Free IIC C130 Exam Questions

Question 1

Which type of adjuster processes a large volume of claims that do not require inspecting property damage or visiting the loss location?

A : Service adjuster

B : Account adjuster

C : Remote adjuster

D : Telephone adjuster

Answer: D

Question 2

A building valued at $500,000 is insured under a homeowners policy with a guaranteed replacement cost provision. If the building suffers a total fire loss, under what circumstances would the insurer pay the full cost of rebuilding, even if it cost $725,000?

A : The amount insured was 100 percent of the replacement cost at last valuation.

B : The insured notified the insurer 115 days after the building improvements have been completed.

C : The increased cost of replacement was due to a change in the potential occupancy of the building.

D : The amount of insurance under the policy was 85 percent of the replacement cost at last valuation.

Answer: A

Question 3

A building valued at $500,000 is insured under a homeowners policy with a guaranteed replacement cost provision. If the building suffers a total fire loss, under what circumstances would the insurer pay the full cost of rebuilding, even if it cost $725,000?

A : The amount insured was 100 percent of the replacement cost at last valuation.

B : The insured notified the insurer 115 days after the building improvements have been completed.

C : The increased cost of replacement was due to a change in the potential occupancy of the building.

D : The amount of insurance under the policy was 85 percent of the replacement cost at last valuation.

Answer: A

Question 4

Which homeowners package policy provides all-perils coverage on the building and named-perils coverage on the contents?

A : Basic

B : Broad

C : Standard

D : Comprehensive

Answer: B

Question 5

What must an intermediary remember when using a valuation guide to calculate the replacement cost for a dwelling?

A : There is no substitute for an on-site inspection by the intermediary.

B : The mortgage value may be less than the cost of replacing the building.

C : The tool used by each insurer would provide the exact same calculation.

D : There will be increased costs to repair or replace luxury or custom dwellings.

Answer: D