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Free NH Adjuster's Property & Casualty Insurance Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the NH Adjuster's Property & Casualty Insurance practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A salaried employee investigates and settles casualty claims on New Hampshire risks for an insurer. What licensing rule applies?

    1. A. The employee must hold an insurance claims adjuster license
    2. B. The employee needs a license only when paid per claim
    3. C. The employee needs a producer license instead
    4. D. The employee is exempt whenever the insurer is admitted

    Answer: A

    Explanation: RSA 402-B:1 says it is unlawful for any person, "whether as agent or employee, to act directly or indirectly, as an insurance claims adjuster" without the chapter's license. Salaried status does not create an exemption.

    Reference: Section 402-B:1 Prohibition. — § 402-B:1

  2. 2A person convicted of a felony involving dishonesty seeks to participate in the interstate insurance business. Which authorization addresses the federal restriction in 18 USC 1033(e)?

    1. A. A newly issued producer license from the applicant's home state
    2. B. Written approval from the insurer's chief underwriting officer
    3. C. Written consent from an insurance regulator authorized over the insurer
    4. D. A written employment offer from a licensed adjusting company

    Answer: C

    Explanation: Section 1033(e)(2) permits such participation with "written consent of any insurance regulatory official authorized to regulate the insurer, which consent specifically refers to this subsection." Insurer management approval, an ordinary license, and an employment offer do not substitute for that specified consent.

    Reference: 18 USC §1033 — 18 USC §1033(e)(1)(A), (e)(2)

  3. 3A business buys liability insurance so an insurer will bear covered financial losses that the business would otherwise bear itself. Which risk-handling method is illustrated?

    1. A. Risk reduction
    2. B. Risk retention
    3. C. Risk avoidance
    4. D. Risk transfer

    Answer: D

    Explanation: NAIC defines insurance as "an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling." Buying coverage moves the financial risk to the insurer; keeping, avoiding, or reducing the exposure is a different risk-handling decision.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Insurance

  4. 4A DP-3 dwelling claim involves damage to the insured house from a cause of loss that is not named in the form and is not excluded. How does the DP-3 cause-of-loss approach treat that damage?

    1. A. The dwelling is covered only if the cause appears on the basic named-perils list
    2. B. The dwelling is covered under open-peril treatment, subject to policy terms
    3. C. The dwelling is covered only if the cause appears on the broad named-perils list
    4. D. The dwelling is covered only when the cause is scheduled by a separate endorsement

    Answer: B

    Explanation: NAIC states that DP-3 "Covers all perils except those explicitly excluded in the policy, such as floods or earthquakes." Because the cause here is not excluded, the dwelling form uses open-peril treatment. Basic and broad named-peril tests do not control a DP-3 claim.

    Reference: NAIC Homeowners Data Call Definitions — DP-3 (Special Form), data-call definitions

  5. 5A claim under an HO-3 special form involves separate damage to the house and to unscheduled personal property. Which statement correctly describes the form's peril treatment?

    1. A. House: open perils except exclusions; personal property: open perils
    2. B. House: named perils; personal property: open perils except exclusions
    3. C. House: open perils except exclusions; personal property: named perils
    4. D. House: named perils; personal property: named perils only

    Answer: C

    Explanation: The NAIC describes the special form: "Covers your home against all perils except those specifically listed as exclusions in the policy." It also says personal property is covered "only if damage or loss is due to perils specifically listed in the policy." Thus HO-3 uses different peril treatments for the two kinds of property.

    Reference: NAIC A Shopping Tool for Homeowners Insurance — Special Form Policy (HO-3), p. 8

  6. 6A driver insured under a personal auto policy is injured in a crash and seeks reimbursement for treatment under the driver's own policy. Which coverage is designed for that first-party expense?

    1. A. Other-than-Collision damage coverage
    2. B. Property Damage Liability coverage
    3. C. Collision physical-damage coverage
    4. D. Medical Payments coverage

    Answer: D

    Explanation: NAIC says, "This coverage pays for treating injuries to you" when describing Medical Payments or PIP. The driver's own treatment expense is a medical-payments issue; the other listed coverages address property damage rather than the insured's treatment.

    Reference: NAIC A Consumer's Guide to Auto Insurance — Coverages in an Auto Policy, Medical Payments or PIP, p. 1

  7. 7An employee drives the employee's own car on a company errand. In a commercial auto policy, which covered-auto category can address that vehicle's use for the business?

    1. A. Hired automobile
    2. B. Non-owned automobile
    3. C. Owned automobile
    4. D. Mobile equipment

    Answer: B

    Explanation: NAIC notes that commercial vehicle insurance can include "special provisions for rented and other non-owned vehicles, including employees' cars driven for company business." An employee-owned car used for the employer is a non-owned automobile for the business, not its owned or hired auto.

    Reference: NAIC Small Business Insurance — Small Business Insurance, commercial vehicle paragraph

  8. 8A customer alleges a business negligently damaged the customer's property during normal operations and seeks damages. Which commercial coverage addresses the alleged third-party property liability?

    1. A. Commercial auto physical damage for the business's vehicles
    2. B. Commercial property coverage for the business's equipment
    3. C. Business income coverage for the business's lost sales
    4. D. CGL bodily-injury and property-damage liability

    Answer: D

    Explanation: NAIC says, "General liability: Also known as business liability insurance, this coverage protects the business from liability claims alleging bodily injury, property damage, libel, and slander." This is a third-party property-damage liability claim. The other choices concern the business's own property, income, or vehicles.

    Reference: NAIC Business Interruption and Business Owner Policy — General liability paragraph

  9. 9A covered liability judgment exceeds the applicable primary auto policy's limit. Which coverage layer is designed to address an eligible excess portion above that underlying liability insurance?

    1. A. An umbrella liability policy above the underlying auto limit
    2. B. The primary auto liability policy below its own stated limit
    3. C. The auto medical-payments coverage for the injured driver
    4. D. The auto physical-damage coverage for the insured vehicle

    Answer: A

    Explanation: NAIC describes "umbrella policies that provide broad liability coverage at relatively high limits (e.g., $1 million) in excess of the liability coverage provided by their auto and home policies." The umbrella is the excess layer; medical payments and physical damage serve different losses.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — Personal and Commercial Liability Insurance, p. 43

  10. 10A New Hampshire insured emails the insurer's appointed producer, using a method accepted by the policy, and describes the date, location, and damage from a loss. What makes this a notice of claim?

    1. A. A repair estimate was prepared by the insured's contractor
    2. B. Pertinent claim facts reached the insurer's appointed producer
    3. C. A witness described the incident to an investigating officer
    4. D. A bank learned that collateral covered by a policy was damaged

    Answer: B

    Explanation: Ins 1002.02(k) defines notice as "any notification, whether in writing or other means acceptable under the terms of an insurance policy" to the insurer or appointed producer by an insured or claimant, which "apprises the insurer of the facts pertinent to a claim." The insured's accepted email to the appointed producer satisfies that definition; other communications do not themselves notify the insurer or its appointed producer.

    Reference: Insurance 1000 — Ins 1002.02(k), Notice of a claim

Topics in this practice bank

These topics describe the available practice for NH Adjuster's Property & Casualty Insurance. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing requirements (402-B:1)
    • Licensing requirements (402-B:1) / Qualifications (402-B:3)
    • Licensing requirements (402-B:1) / Process (402-B:3, 4)
    • Licensing requirements (402-B:1) / Licensing exemptions (402-B:2)
    • Licensing requirements (402-B:1) / License display (402-B:9)
    • Maintenance and duration
    • Maintenance and duration / Renewal (402-B:10-a)
    • Maintenance and duration / Renewal (402-B:10-a) / Investigations enforcement (400-A:16)
    • Maintenance and duration / Records (400-B:5)
    • Maintenance and duration / Continuing education requirements (402-B:5-a; Reg 1302.04)
    • Disciplinary actions
    • Disciplinary actions / Cease and desist order (417:12)
    • Disciplinary actions / Suspension or revocation (402-B:12)
    • Disciplinary actions / Penalties and fines (402-B:12, 13; 417:13)
    • Claim settlement laws and regulations (407:12–15; 417:4(XV); Reg 1002.01–.20)
    • Records Retention (400-B)
    • New Hampshire Auto Laws
    • New Hampshire Auto Laws / Collision Deductible Waiver (Reg 1002.19, 412:8(III))
  • Licensing and Regulation
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose / Privacy (Gramm-Leach-Bliley)
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose / National Flood Insurance Program (NFIP)
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose / Terrorism Risk Insurance Act
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose / Motor Carrier Act (MCS-90 and Others)
  • General Insurance Concepts
    • Risk
    • Risk / Methods of Handling Risk (e.g., Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk / Elements of Insurable Risks
    • Risk / Definitions (e.g., Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers / Mutual, Stock
    • Classifications of Insurers / Admitted, Non-Admitted
    • Classifications of Insurers / Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract / Consideration
    • Elements of a Contract / Competent Parties
    • Elements of a Contract / Legal Purpose
    • Elements of a Contract / Offer
    • Elements of a Contract / Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers / Express
    • Authority and Powers of Producers / Implied
    • Authority and Powers of Producers / Apparent
    • Authority and Powers of Producers / The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts / Reasonable Expectations
    • Legal Interpretations Affecting Contracts / Indemnity
    • Legal Interpretations Affecting Contracts / Good Faith
    • Legal Interpretations Affecting Contracts / Fraud
    • Legal Interpretations Affecting Contracts / Warranties, Representations, Misrepresentations, and Concealment
  • Property and Casualty Insurance Basics
    • Insurable Interest
    • Liability
    • Liability / Absolute
    • Liability / Strict
    • Liability / Vicarious
    • Underwriting
    • Underwriting / Purpose
    • Underwriting / Process
    • Underwriting / Results
    • Rate Development
    • Rate Development / Types
    • Rate Development / Components
    • Rate Development / Basis
    • Types of Hazards
    • Types of Perils
    • Types of Loss
    • Types of Loss / Direct
    • Types of Loss / Indirect
    • Loss Valuation
    • Loss Valuation / Actual Cash Value
    • Loss Valuation / Replacement Cost
    • Loss Valuation / Functional Replacement Cost
    • Loss Valuation / Market Value
    • Loss Valuation / Agreed Value
    • Loss Valuation / Valued Policy
    • Basic Types of Construction
    • Negligence
    • Negligence / Torts
    • Negligence / Elements of a Negligent Act
    • Negligence / Defense Against Negligence
    • Accident versus Occurrence
    • Policy Structure
    • Policy Structure / Declarations
    • Policy Structure / Definitions
    • Policy Structure / Insuring Agreement
    • Policy Structure / Additional/Supplementary Coverage
    • Policy Structure / Conditions
    • Policy Structure / Exclusions
    • Policy Structure / Endorsements
    • Policy Clauses
    • Policy Clauses / Insureds
    • Policy Clauses / Policy Period
    • Policy Clauses / Policy Territory
    • Policy Clauses / Cancellation and Non-Renewal
    • Policy Clauses / Deductibles
    • Policy Clauses / Other Insurance
    • Policy Clauses / Other Insurance / Nonconcurrency
    • Policy Clauses / Other Insurance / Primary and Excess
    • Policy Clauses / Other Insurance / Pro Rata
    • Policy Clauses / Other Insurance / Contribution by Equal Shares
    • Limits of Liability
    • Limits of Liability / Per Accident
    • Limits of Liability / Per Occurrence
    • Limits of Liability / Per Person
    • Limits of Liability / Aggregate
    • Limits of Liability / Split Limits
    • Limits of Liability / Combined Single Limit
    • Coinsurance
    • Coinsurance / Purpose
    • Coinsurance / Definition
    • Coinsurance / Calculation
    • Coinsurance / Penalties
    • Coinsurance / Total versus Partial Loss
    • Specific, Scheduled, and Blanket Insurance
    • Vacant versus Unoccupied
    • Named Insured Provisions
    • Named Insured Provisions / First Named Insured versus Other Insureds
    • Named Insured Provisions / Duties After Loss
    • Named Insured Provisions / Assignment
    • Named Insured Provisions / Waiver of Rights
    • Named Insured Provisions / Insurer Provisions
    • Named Insured Provisions / Insurer Provisions / Liberalization
    • Named Insured Provisions / Insurer Provisions / Subrogation
    • Named Insured Provisions / Insurer Provisions / Claim Settlement Options
    • Named Insured Provisions / Insurer Provisions / Duty to Defend
    • Named Insured Provisions / Third-Party Provisions
    • Named Insured Provisions / Third-Party Provisions / Standard Mortgage Clause
    • Named Insured Provisions / Third-Party Provisions / Loss Payable Clause
    • Named Insured Provisions / Third-Party Provisions / No Benefit to the Bailee
  • Dwelling Policy Concepts
    • Purpose and Eligibility
    • Perils Insured Against
    • Perils Insured Against / Basic
    • Perils Insured Against / Broad
    • Perils Insured Against / Special
    • Property Coverages
    • Property Coverages / Coverage A - Dwelling
    • Property Coverages / Coverage B - Other Structures
    • Property Coverages / Coverage C - Personal Property
    • Property Coverages / Coverage D - Fair Rental Value
    • Property Coverages / Coverage E - Additional Living Expenses
    • Property Coverages / Other Coverages
    • Dwelling Property Conditions
    • Dwelling Property Exclusions
    • Dwelling Property Endorsements
    • Personal Liability Supplement
    • Personal Liability Supplement / Coverage L - Personal Liability
    • Personal Liability Supplement / Coverage M - Medical Payments to Others
  • Homeowners Policy Concepts
    • Definitions
    • Eligibility and Purpose
    • Homeowners Policy Coverage Forms
    • Homeowners Policy Coverage Forms / Broad (HO-2)
    • Homeowners Policy Coverage Forms / Special (HO-3)
    • Homeowners Policy Coverage Forms / Contents Broad (HO-4)
    • Homeowners Policy Coverage Forms / Comprehensive (HO-5)
    • Homeowners Policy Coverage Forms / Unit-Owners (HO-6)
    • Homeowners Policy Coverage Forms / Modified Coverages (HO-8)
    • Section I - Property Coverages
    • Section I - Property Coverages / Coverage A - Dwelling
    • Section I - Property Coverages / Coverage B - Other Structures
    • Section I - Property Coverages / Coverage C - Personal Property
    • Section I - Property Coverages / Coverage D - Loss of Use
    • Section I - Property Coverages / Additional Coverages
    • Section II - Liability Coverages
    • Section II - Liability Coverages / Coverage E - Personal Liability
    • Section II - Liability Coverages / Coverage F - Medical Payments to Others
    • Section II - Liability Coverages / Additional Coverages
    • Homeowners Policy Exclusions
    • Homeowners Policy Exclusions / Section I-Property Covered Exclusions
    • Homeowners Policy Exclusions / Section II - Liability Covered Exclusions
    • Homeowners Policy Conditions
    • Homeowners Policy Endorsements
    • Homeowners Policy Endorsements / Business Pursuits
    • Homeowners Policy Endorsements / Earthquake
    • Homeowners Policy Endorsements / Home Day Care
    • Homeowners Policy Endorsements / Personal Injury
    • Homeowners Policy Endorsements / Personal Property Replacement Cost
    • Homeowners Policy Endorsements / Watercraft
    • Homeowners Policy Endorsements / Ordinance or Law
    • Scheduled Personal Property/Personal Articles Floater
  • Personal Automobile Policy
    • Definitions
    • Personal Injury Protection Definitions
    • Liability Coverage
    • Liability Coverage / Bodily Injury and Property Damage
    • Liability Coverage / Supplementary Payments
    • Liability Coverage / Exclusions
    • Medical Payments Coverage
    • Uninsured and Underinsured Motorists Coverage
    • Uninsured and Underinsured Motorists Coverage / Definitions
    • Uninsured and Underinsured Motorists Coverage / Bodily Injury
    • Uninsured and Underinsured Motorists Coverage / UM and UIM Rejection
    • Coverage for Damage to your Automobile
    • Coverage for Damage to your Automobile / Collision
    • Coverage for Damage to your Automobile / Other than Collision (Comprehensive)
    • Coverage for Damage to your Automobile / Deductibles
    • Coverage for Damage to your Automobile / Exclusions
    • Duties after an Accident or Loss
    • General Provisions
    • Endorsements
    • Endorsements / Towing and Labor Costs
    • Endorsements / Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use
    • Endorsements / Joint Ownership Coverage
    • Endorsements / Rental Vehicle Coverage
  • Commercial Automobile Policy
    • Commercial Automobile Coverage Forms
    • Covered Automobiles
    • Covered Automobiles / Hired Automobiles
    • Covered Automobiles / Non-owned Automobiles
    • Liability
    • Physical Damage
    • Exclusions
    • Conditions
    • Definitions
    • Selected Endorsements
    • Selected Endorsements / Lessor - Additional Insured and Loss Payee
    • Selected Endorsements / Mobile Equipment
    • Selected Endorsements / Property Protection Coverage
    • Selected Endorsements / Broad Form Products
    • Selected Endorsements / Employees as Insureds
  • Commercial Property Policies
    • Commercial Package Policy
    • Commercial Package Policy / Purpose
    • Commercial Package Policy / Definition
    • Commercial Package Policy / Coverages
    • Commercial Package Policy / Coverage Extensions
    • Commercial Policy Components
    • Commercial Policy Components / Declarations
    • Commercial Policy Components / Conditions
    • Commercial Policy Components / Insuring Agreements
    • Commercial Policy Components / Exclusions
    • Commercial Property Forms
    • Commercial Property Forms / Coverage Forms for Building and Business Personal Property
    • Commercial Property Forms / Builders Risk
    • Commercial Property Forms / Business Income
    • Commercial Property Forms / Extra Expense
    • Commercial Property Forms / Legal Liability
    • Commercial Property Forms / Cause of Loss Forms
    • Commercial Property Forms / Commercial Crime
    • Commercial Property Endorsements
    • Commercial Property Endorsements / Ordinance or Law
    • Commercial Property Endorsements / Peak Season Limit of Insurance
    • Commercial Property Endorsements / Spoilage
    • Commercial Property Endorsements / Value Reporting Form
    • Commercial Property Endorsements / Earthquake
    • Commercial Property Endorsements / Equipment Breakdown Coverages
    • Commercial Inland Marine - Purpose
    • Ocean Marine (Distinction Between Inland and Ocean)
    • Farm Property
    • Farm Property / Definitions
    • Farm Property / Conditions and Exclusions
    • Farm Property / Coverages
  • Commercial General Liability
    • Commercial Policy Components
    • Commercial Policy Components / Declarations
    • Commercial Policy Components / Conditions
    • Commercial Policy Components / Interline Endorsements
    • Commercial General Liability Coverages
    • Commercial General Liability Coverages / Bodily Injury and Property Damage
    • Commercial General Liability Coverages / Personal and Advertising Injury
    • Commercial General Liability Coverages / Medical Payments
    • Commercial General Liability Coverages / Conditions
    • Commercial General Liability Coverages / Definitions
    • Commercial General Liability Coverages / Exclusions
    • Occurrence versus Claims-made
    • Commercial General Liability Exposures
    • Commercial General Liability Exposures / Premises and Operations
    • Commercial General Liability Exposures / Products and Completed Operations
    • Commercial General Liability Exposures / Contractual Liability
  • Other Types of Insurance Policies
    • Personal Umbrella, Commercial Umbrella, and Excess Policies
    • Personal Umbrella, Commercial Umbrella, and Excess Policies / Underlying Limits
    • Personal Umbrella, Commercial Umbrella, and Excess Policies / Self-Insured Retention
    • Mobile Home Policy (Insuring Agreement)
    • Earthquake Insurance (Insuring Agreement)
    • Earthquake Insurance (Insuring Agreement) / Deductible
  • Adjustment Process
    • Claim Notification Process
    • Claim Notification Process / Date of Loss
    • Claim Notification Process / Location
    • Claim Notification Process / Parties Involved
    • Claim Notification Process / Type of Loss (e.g., Liability, Property)
    • Investigation and Evaluation of Loss/Claim Information
    • Investigation and Evaluation of Loss/Claim Information / Determination of Applicable Coverage
    • Investigation and Evaluation of Loss/Claim Information / Inquiry into Relevant Information
    • Investigation and Evaluation of Loss/Claim Information / Purpose of Loss Reserves
    • Remedies for Disputes
    • Remedies for Disputes / Appraisal
    • Remedies for Disputes / Mediation (Binding and Unbinding)
    • Remedies for Disputes / Arbitration (Binding and Unbinding)
    • Remedies for Disputes / Litigation
    • Finalization of Claim
    • Finalization of Claim / Denial
    • Finalization of Claim / Settlement
    • Finalization of Claim / Closing Claim
    • Finalization of Claim / Salvage

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