Free DE Casualty Adjuster Practice Questions

Sample Practice Questions

Try these 10 sample questions from the DE Casualty Adjuster practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A visitor slips while a store employee is restocking shelves during normal business operations. Which CGL hazard best describes the store's liability exposure?

   1. A. Premises and operations liability coverage
   2. B. Products and completed operations liability
   3. C. Contractual liability assumed under a contract
   4. D. Independent contractors liability coverage

   Answer: A

   Explanation: "on an insured's premises during normal operations or routine maintenance" The injury arose on the insured's premises during ongoing operations; no completed work or contract assumption is the trigger.

   Reference: NAIC Glossary of Insurance Terms — Premises and Operations

2. 2At a warehouse, exposed wiring could start a fire. Which insurance term describes the wiring itself, as distinct from a fire or the resulting damage?

   1. A. Risk
   2. B. Hazard
   3. C. Peril
   4. D. Loss

   Answer: B

   Explanation: "Hazard - circumstance which tends to increase the probability or severity of a loss." The exposed wiring is the condition increasing the chance of loss; risk is uncertainty, a peril is a cause of loss, and loss is the resulting harm.

   Reference: NAIC Glossary of Insurance Terms — Hazard

3. 3An insured asks a Delaware underinsured-motorists carrier to consent to settlement with a liability insurer. Within what period must the UIM carrier respond before consent is deemed granted?

   1. A. 30 days
   2. B. 60 days
   3. C. 90 days
   4. D. 120 days

   Answer: B

   Explanation: The statute provides: "Within 60 days after receipt of the notice under subsection (a) of this section, the underinsured motor vehicle insurer shall send" either written consent or a written good-faith refusal by an authorized delivery method.

   Reference: De Code Title 18 — 18 Del. C. § 3902A(a)-(b)

4. 4A casualty adjuster prepares an initial report for a vehicle collision. Which information belongs under the occurrence facts needed to analyze the loss?

   1. A. The settlement date and location of the claims office
   2. B. The policy issue date and address of the producer
   3. C. The repair date and location of the repair shop
   4. D. The collision's date, time, and exact loss location

   Answer: D

   Explanation: "The time, date, and exact location of the accident" The accident's date, time and place are occurrence facts; administrative dates and later repair details serve other purposes.

   Reference: NAIC What You Should Know About Filing an Auto Claim — Get this information at the scene of the accident

5. 5A Delaware licensee works for an insurer and negotiates settlement of claims arising under insurance contracts. Which Chapter 17 role describes this work?

   1. A. Adjuster
   2. B. Appraiser
   3. C. Insurance producer
   4. D. Fraternal representative

   Answer: A

   Explanation: The role is adjuster. Delaware defines this role as a Department licensee who "investigates and/or negotiates settlement of claims arising under insurance contracts."

   Reference: De Code Title 18 — 18 Del. C. § 1702(1)

6. 6During a Delaware regulatory examination, what must the person being examined make freely available?

   1. A. Only filed annual statements
   2. B. Accounts, records, documents, files, information, assets, and related matters under the person's control
   3. C. Only documents created in Delaware
   4. D. Only materials approved by counsel

   Answer: B

   Explanation: The examined person must make "accounts, records, documents, files, information, assets and matters" relating to the examination freely available.

   Reference: De Code Title 18 — 18 Del. C. § 320(c)

7. 7Which set states Delaware's minimum motor-vehicle liability limits and minimum personal injury protection limits?

   1. A. $15,000/$30,000/$5,000 liability and $10,000/$20,000 PIP
   2. B. $25,000/$50,000/$10,000 liability and $15,000/$30,000 PIP
   3. C. $30,000/$60,000/$15,000 liability and $25,000/$50,000 PIP
   4. D. $50,000/$100,000/$25,000 liability and $25,000/$50,000 PIP

   Answer: B

   Explanation: The liability limits are stated "subject to limits exclusive of interest and costs." Those limits are $25,000 per injured or deceased person, $50,000 for two or more persons in one accident, and $10,000 for property; the separate minimum PIP limits are $15,000 per person and $30,000 per accident.

   Reference: De Code Title 21 — 21 Del. C. §§ 2902(b)(2), 2118(a)(2)b

8. 8A plumbing contractor finishes an off-site installation. Weeks later, the contractor's faulty workmanship at the completed connection causes water damage to the customer's property. Which CGL hazard best fits the claim?

   1. A. Premises/operations liability
   2. B. Products/completed operations liability
   3. C. Independent contractors liability
   4. D. Contractual liability

   Answer: B

   Explanation: "defective work or operations completed or abandoned by or for the insured, away from the insured's premises" The contractor's faulty installation caused damage after completion, placing it under completed operations; the facts do not show ongoing operations, another contractor's work, or an assumed contractual obligation.

   Reference: NAIC Glossary of Insurance Terms — Completed Operations Liability

9. 9Four parties ask whether damage to a commercial building gives them an insurable interest in the building itself. Which party has the clearest direct financial stake in that damage?

   1. A. A prospective buyer with no purchase agreement for the building
   2. B. A mortgage lender with a secured loan against the building
   3. C. A broker paid a fixed listing fee regardless of building condition
   4. D. A neighbor planning to rent a different building nearby

   Answer: B

   Explanation: "such that the insured can suffer a financial loss from damage, loss or destruction to it." The mortgage lender's secured interest can lose value if the collateral is damaged. The other relationships, as stated, do not depend on this building's condition.

   Reference: NAIC Glossary of Insurance Terms — Insurable Interest

10. 10A casualty adjuster needs to verify the policy term and listed coverage limits before comparing them with the reported loss date. Which policy section provides those starting facts?

    1. A. Declarations page for the insured policy
    2. B. Insuring agreement for covered perils
    3. C. Conditions section for claim duties
    4. D. Exclusions section for removed losses

    Answer: A

    Explanation: "with a declarations page. This identifies the policy number and provides important information including the policy term, coverage limits" The declarations identify the policy term and coverage limits, making them the first place to verify those contract facts.

    Reference: NAIC Consumer Auto Insurance Guide — Understanding Your Auto Insurance Policy, Declarations Page