Free MS-ADJ Practice Questions

Question 1

A commercial building has a replacement value of $800,000 and an 80% coinsurance clause. At the time of a covered fire loss, the insured carries a $480,000 limit. The covered damage is $160,000, the deductible is $2,000, and all replacement-cost conditions are satisfied. What amount should the insurer pay?

Accepted Answer

$118,000

Answer

$94,000

Answer

$126,000

Answer

$158,000

Question 2

A store owed shoppers a duty of reasonable care and knowingly left a spill unmarked. Video establishes that the spill caused a shopper to slip, but the shopper caught a handrail and sustained no bodily injury, property damage, or financial loss. Which required element of negligence is absent?

Accepted Answer

Compensable injury or loss

Answer

A duty owed to the shopper

Answer

A breach of the duty of care

Answer

A causal connection between the spill and the slip

Question 3

While moving a wall-mounted television, an owner-occupant accidentally drops it. The television tears a hole in an interior wall and crushes a laptop. No exclusion applies, but accidental dropping is not a named peril for personal property under the unendorsed HO-3. Which coverage analysis is correct?

Accepted Answer

Cover the wall under open-peril treatment, but do not cover the laptop without a named peril

Answer

Require the insured to prove a named peril caused both the wall and the laptop damage

Answer

Treat both losses as open-peril claims unless the insurer proves intentional damage

Answer

Deny both losses because accidental damage caused by the insured cannot qualify as a covered peril

Question 4

For 75 consecutive days, the owner of a commercial building uses only 20% of its total square footage for customary operations; the rest is empty. An unprotected sprinkler pipe freezes and leaks, damaging stock. Under the standard commercial property vacancy condition, select the correct payment treatment.

Accepted Answer

Pay nothing under the vacant-building sprinkler-leakage rule

Answer

Pay in full because any owner occupancy defeats vacancy

Answer

Pay 85% because every vacant-building loss receives only a 15% reduction

Answer

Pay in full because sprinkler leakage remains covered after 60 days

Question 5

A retailer carries the standard unendorsed Business Income and Extra Expense coverage form. A covered fire forces operations to stop, and the retailer rents temporary premises the next morning to reduce the shutdown. How do the two coverages respond during the first 72 hours after the direct loss?

Accepted Answer

Business Income is subject to the waiting period, while Extra Expense may begin immediately

Answer

Apply the 72-hour waiting period to both Business Income and every Extra Expense incurred to reduce the suspension

Answer

Business Income begins immediately, while Extra Expense is delayed for 72 hours

Answer

Neither coverage can respond until permanent repairs have started

Question 6

A covered fire destroys 40% of a building. Enforcement of a new code requires demolition of the undamaged 60% and installation of a modern sprinkler system during reconstruction. Which allocation correctly matches Ordinance or Law Coverages A, B, and C?

Accepted Answer

A pays the loss in value of the undamaged portion; B pays demolition; C pays the code-upgrade cost

Answer

A pays demolition; B pays the undamaged portion's value; C pays the original fire damage

Answer

A pays code upgrades; B pays lost income during demolition; C pays debris removal from the damaged and undamaged portions

Answer

A pays the fire-damaged portion; B pays the undamaged portion's value; C pays demolition

Question 7

Six months after a general contractor completes a building, plumbing installed by a subcontractor fails and damages tenant inventory and finished walls. Under a standard CGL form, what is the best initial coverage classification?

Accepted Answer

Products-completed operations, followed by analysis of the your-work exclusion and subcontractor exception

Answer

Premises and operations, because the damage occurred at the contractor's former jobsite

Answer

Medical payments, because the claimant need not establish negligence after completion

Answer

Contractual liability only, because the general contractor hired the plumbing subcontractor

Question 8

A driver strikes a deer and then loses control, hitting a guardrail. For physical-damage classification under a Personal Auto Policy, how should the two impacts be categorized?

Accepted Answer

The deer impact is other than collision; the guardrail impact is collision

Answer

Both impacts are collision because the vehicle was moving when each occurred

Answer

Both impacts are other than collision because the animal initiated the sequence

Answer

The deer impact is collision; the guardrail impact is other than collision

Question 9

An employee uses her personally owned sedan to make a delivery for her employer. The employer does not own, lease, hire, rent, or borrow the sedan, and Symbol 1 is not shown. Which Business Auto covered-auto symbol is specifically designed to encompass this liability exposure?

Accepted Answer

Symbol 9 - Nonowned autos only

Answer

Symbol 7 - Specifically described autos

Answer

Symbol 8 - Hired autos only

Answer

Symbol 2 - Owned autos only

Question 10

After a side impact, a vehicle's outer quarter panel appears repairable. Three-dimensional measurement shows the adjacent rear rail is displaced 9 mm from datum, while the manufacturer's allowable tolerance is plus or minus 3 mm. What estimate action is most defensible?

Accepted Answer

Include manufacturer-directed structural repair and verification before finalizing the estimate

Answer

Authorize cosmetic panel repair because acceptable exterior fit resolves the loss

Answer

Declare a total loss solely because any rail deviation makes repair legally impossible

Answer

Disregard the measurement unless the police report expressly identifies frame damage

Free MS-ADJ Practice Questions

Domain 1: Property and Casualty Insurance Terms and Concepts

Question 1

Question 2

Domain 2: Types of Property Policies

Question 3

Question 4

Question 5

Question 6

Domain 3: Types of Casualty Policies

Question 7

Question 8

Question 9

Question 10

The rest of the MS-ADJ blueprint

That's 10 of 1,030