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ADJUSTER PRO EXAM PREP 2025 QUESTIONS AND ANSWERS Common law is based upon - ....ANSWER cause of loss or damage - ....ANSWER ...-court decisions and customs. ...-peril Jim owns a home valued at $187,500, but he only has a $100,000 homeowner's policy and is underinsured. During a storm, lightning strikes Jim's home causing $45,000 in damages. The insurer decides to invoke a coinsurance penalty. How much will Jim be required to pay for the penalty? - ....ANSWER ...-The coinsurance requirement of 80% means that Jim should have maintained a minimum policy of $150,000 in coverage. Instead, Jim maintained a $100,000 policy, under-insuring himself by a third. When the insurer invokes the coinsurance penalty, Jim is then responsible for a third of the damages, which in this case totaled $45,000. So, Jim must pay $15,000. In the context of insurance adjusting, who is the principal? - ....ANSWER ...- The source of the adjuster's authority ....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1