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Practice test · 15 questions
Adjuster Math Practice Test (Part 2 of 2)
Part 2 continues the adjuster math question bank with 15 new questions. Answer each one to see the correct choice and a full explanation; your progress is saved in this browser.
Questions
15
Suggested time
18 min
Difficulty mix
6 / 8 / 1
Passing target
70%
Subtopics in this part: Other insurance and liability limits, Business income, Auto physical damage, Workers compensation benefits, Flood (NFIP).
0 of 15 answered
Other insurance and liability limits · Recall
Nadia's auto liability policy has a $300,000 combined single limit per accident. She causes an accident with bodily injury damages of $180,000 and $90,000 to two people and $60,000 of property damage. How much will her insurer pay?
Show answer and explanation
Correct answer: A. $300,000
A combined single limit is one pool for all bodily injury and property damage from one accident, with no separate per person or property damage caps. Damages total $180,000 + $90,000 + $60,000 = $330,000, so the insurer pays its $300,000 limit and Nadia owes $30,000. $240,000 wrongly applies split-limit caps of 100/300/50.
Other insurance and liability limits · Application
A CGL policy (CG 00 01 04 13) has a $1,000,000 each occurrence limit, a $2,000,000 general aggregate, and a $2,000,000 products-completed operations aggregate. This year it paid $1,300,000 for premises injuries, $400,000 for products claims, and $250,000 in defense costs. A $900,000 premises judgment follows. How much is paid?
Show answer and explanation
Correct answer: D. $700,000
Premises damages erode the general aggregate: $2,000,000 - $1,300,000 = $700,000 remaining. Products claims draw on the separate products-completed operations aggregate, and defense costs are supplementary payments that do not reduce the limits. The judgment fits within the occurrence limit, but only $700,000 of aggregate remains. $450,000 and $300,000 wrongly charge defense or products losses to the general aggregate.
Reference: ISO CG 00 01 04 13, Section III Limits Of Insurance 2., 3., 5.; Supplementary Payments
Other insurance and liability limits · Application
Ben's auto policy has limits of 100/300/50, and he has a $1,000,000 personal umbrella written excess of those limits. He injures two people in one accident, and the judgments are $250,000 and $120,000. How much does the umbrella pay?
Show answer and explanation
Correct answer: B. $170,000
The auto policy pays up to $100,000 per person: $100,000 to each claimant, or $200,000, within its $300,000 per accident limit. The umbrella pays what exceeds the underlying limit for each claimant: $150,000 + $20,000 = $170,000. $70,000 wrongly measures the excess against the $300,000 per accident limit, and $150,000 forgets the second claimant.
A fire closes a bakery insured under ISO CP 00 30 10 12. During the period of restoration it would have earned $36,000 of net income. Continuing normal operating expenses, including payroll, total $28,000, and $10,000 of other expenses stopped while it was closed. What is the Business Income loss?
Show answer and explanation
Correct answer: D. $64,000
Business Income is the net income that would have been earned plus continuing normal operating expenses incurred, including payroll: $36,000 + $28,000 = $64,000. Expenses that stop during the shutdown are not a loss to the insured, so adding the $10,000 ($74,000) overstates the claim. Net income alone ($36,000) leaves out the bills that keep coming.
Reference: ISO CP 00 30 10 12, A.1. Business Income (net income plus continuing normal operating expenses)
Business income · Challenging
Under ISO CP 00 30 10 12, Business Income coverage begins 72 hours after the direct physical loss, while Extra Expense coverage begins immediately. A fire suspends Ravi's print shop for exactly 10 days, causing a Business Income loss of $2,500 per day. On day 1 he spends $1,200 renting equipment to restart work sooner. What is the total payment?
Show answer and explanation
Correct answer: B. $18,700
The first 72 hours (3 days) of Business Income loss are not covered, so Business Income is 7 days x $2,500 = $17,500. Extra Expense has no waiting period, so the $1,200 spent on day 1 is covered. Total: $17,500 + $1,200 = $18,700. $26,200 ignores the waiting period, and $17,500 wrongly applies it to Extra Expense.
Reference: ISO CP 00 30 10 12, F.3. Period of restoration (72 hours for Business Income; immediately for Extra Expense)
Business income · Application
A restaurant's net income plus operating expenses for the 12 months following policy inception would have been $600,000. Its ISO CP 00 30 10 12 coverage has a 50% Coinsurance percentage and a $240,000 Business Income limit. A covered Business Income loss of $90,000 occurs. How much will the insurer pay?
Show answer and explanation
Correct answer: A. $72,000
Required insurance is $600,000 x 50% = $300,000. The ratio is $240,000 / $300,000 = 0.80, and $90,000 x 0.80 = $72,000. Business Income coinsurance is based on 12 months of net income and operating expenses, not on property value. $36,000 wrongly uses 100% of the $600,000, and $18,000 is the penalty, not the payment.
Reference: ISO CP 00 30 10 12, D. Additional Condition, Coinsurance (Example 1)
Business income · Application
Under the Monthly Limit of Indemnity option in ISO CP 00 30 10 12, Fatima's Business Income limit is $90,000 and the Declarations fraction is 1/3. Her losses for days 1-30, 31-60, and 61-90 of the period of restoration are $36,000, $22,000, and $28,000. How much does the insurer pay?
Show answer and explanation
Correct answer: C. $80,000
The most payable in each 30-day period is $90,000 x 1/3 = $30,000. Days 1-30: the $36,000 loss is capped at $30,000. Days 31-60: $22,000. Days 61-90: $28,000. Total: $80,000. Unused monthly amounts do not carry forward, so $86,000 is wrong, and $30,000 treats the monthly cap as the total limit.
Reference: ISO CP 00 30 10 12, E.2. Monthly Limit Of Indemnity (and its Example)
Auto physical damage · Recall
A state declares a vehicle a total loss when the repair cost reaches 75% of its actual cash value. Grace's car has an ACV of $16,000, the collision repair estimate is $12,800, and her collision deductible is $500. The insurer takes the salvage. How much will it pay Grace?
Show answer and explanation
Correct answer: B. $15,500
$12,800 / $16,000 = 80%, which meets the 75% threshold, so the car is a total loss. A total loss is settled at actual cash value less the deductible: $16,000 - $500 = $15,500, and the insurer keeps the salvage. $12,300 treats the claim as a repair, and $16,000 forgets the deductible.
Andre's car is a total loss when repair cost plus salvage value equals or exceeds ACV. The ACV is $10,000, the repair estimate is $7,200, and the salvage value is $3,100. His deductible is $500. Andre keeps the vehicle, and the insurer deducts the salvage value. How much is paid?
Show answer and explanation
Correct answer: A. $6,400
Repair cost plus salvage is $7,200 + $3,100 = $10,300, which exceeds the $10,000 ACV, so the car is a total loss. When the owner retains the salvage, payment is ACV minus salvage value minus the deductible: $10,000 - $3,100 - $500 = $6,400. $9,500 ignores the retained salvage, $6,700 pays the repair estimate, and $6,900 forgets the deductible.
Under PP 00 01 09 18, transportation expenses after a total theft are paid at up to $30 per day, to a $900 maximum, beginning 48 hours after the theft. Keiko's car, insured for Other Than Collision, is stolen. Starting on the day of the theft, she rents a car for $45 per day for 14 days until her car is recovered and returned to use. How much is paid?
Show answer and explanation
Correct answer: C. $360
Expenses are covered only from 48 hours (2 days) after the theft, so 14 - 2 = 12 days qualify. Each day is capped at $30: 12 x $30 = $360, well under the $900 maximum, and no deductible applies to this coverage. $420 ignores the 48-hour wait, and $540 pays the full $45 daily rental rate.
A state pays temporary total disability at 66 2/3% of the average weekly wage, subject to a maximum weekly benefit of $1,150. An injured machinist earned an average weekly wage of $1,950. What is the weekly benefit?
Show answer and explanation
Correct answer: D. $1,150
Two-thirds of $1,950 is $1,300, but the benefit cannot exceed the $1,150 maximum, so the weekly benefit is $1,150. $1,300 forgets the cap, $1,950 is full wages, and $766.67 wrongly takes two-thirds of the maximum. Higher earners are often limited by the maximum, while lower earners receive the full two-thirds of their wage.
Florida pays temporary total disability at 66 2/3% of the average weekly wage and allows no compensation for the first 7 days unless the disability exceeds 21 days. Tomas earns an average weekly wage of $1,050 (below the maximum) and is totally disabled for 30 days. How much indemnity is owed?
Show answer and explanation
Correct answer: A. $3,000
The weekly benefit is $1,050 x 2/3 = $700, or $100 per day. Because the disability lasted more than 21 days, compensation is paid from the start of the disability, including the 7-day waiting period: 30 days x $100 = $3,000. $2,300 deducts the waiting period anyway, and $4,500 pays full wages instead of two-thirds.
A flood damages Gabriel's home, insured under the NFIP Dwelling Form. The covered building loss is $40,000 and the covered contents loss is $12,000. His policy has a $2,000 building deductible and a $1,000 contents deductible. How much will the NFIP pay in total?
Show answer and explanation
Correct answer: C. $49,000
In each flood loss, separate deductibles apply to the building and to personal property. Building: $40,000 - $2,000 = $38,000. Contents: $12,000 - $1,000 = $11,000. Total: $49,000. Applying a single deductible to the combined loss ($50,000 or $51,000) is a homeowners habit that does not carry over to the Standard Flood Insurance Policy.
Reference: NFIP Standard Flood Insurance Policy, Dwelling Form (FEMA F-122, October 2021), VI. Deductibles B.
Flood (NFIP) · Recall
Flood destroys first-floor furniture and electronics in Rosa's home, which is insured under the NFIP Dwelling Form with contents coverage. The replacement cost is $18,000, the actual cash value is $11,000, and the contents deductible is $1,000. How much will the NFIP pay?
Show answer and explanation
Correct answer: D. $10,000
The Dwelling Form settles personal property at actual cash value; replacement cost settlement is available only for a qualifying single-family dwelling building. Payment is $11,000 - $1,000 = $10,000. $17,000 uses replacement cost, and $11,000 forgets that a separate contents deductible applies.
Reference: NFIP Standard Flood Insurance Policy, Dwelling Form (FEMA F-122, October 2021), VII.R.4. Actual Cash Value Loss Settlement (personal property)
Flood (NFIP) · Application
Under the NFIP Dwelling Form, a single-family principal residence has a full replacement cost of $400,000 and is insured for $250,000, the NFIP maximum. Flood damage costs $66,000 to repair (ACV $48,000), repairs are complete, and the building deductible is $2,000. How much is paid?
Show answer and explanation
Correct answer: B. $64,000
Replacement cost settlement applies if the insurance is at least 80% of full replacement cost or the maximum available under the NFIP. $250,000 is less than 80% of $400,000 ($320,000) but is the maximum, so the loss is paid at replacement cost: $66,000 - $2,000 = $64,000. $50,000 wrongly applies a 250/320 proportion, and $46,000 pays ACV.
Reference: NFIP Standard Flood Insurance Policy, Dwelling Form (FEMA F-122, October 2021), VII.R.1.a. and R.2. Replacement Cost Loss Settlement
Pick an answer and the correct choice appears with an explanation and the policy form, statute or FEMA document it comes from. Difficulty is labeled on each question: recall items test a definition, application items put the rule into a short claim scenario, and challenging items combine two rules or require a calculation.
Aim for at least 80% before moving on, since the real exam mixes these topics with state law under time pressure. When you are consistently above that line, take a full timed exam or the version for your state: Texas or Florida 6-20.