Insurance Claims Quiz

**1. What is the first requirement to open a policy?**\ A) A high settlement demand\ B) A compliant defendant\ C) A lengthy legal process\ D) An aggressive negotiation approach ✅ **Correct Answer:** B) A compliant defendant **2. What is considered a \"compliant defendant\"?**\ A) Someone who admi...

**1. What is the first requirement to open a policy?**\ A) A high settlement demand\ B) A compliant defendant\ C) A lengthy legal process\ D) An aggressive negotiation approach ✅ **Correct Answer:** B) A compliant defendant **2. What is considered a \"compliant defendant\"?**\ A) Someone who admits fault immediately\ B) Someone who cooperates with the insurance company and legal process\ C) Someone who refuses to speak to the adjuster\ D) Someone who cancels their insurance after an accident ✅ **Correct Answer:** B) Someone who cooperates with the insurance company and legal process **3. If the defendant denies liability and there is no independent proof, what can the adjuster do?**\ A) Reject the policy limit offer\ B) Automatically accept the claim\ C) Reduce the settlement by 90%\ D) Close the case immediately ✅ **Correct Answer:** A) Reject the policy limit offer **4. Why would a defendant file a bad faith claim against their insurance company?**\ A) The plaintiff filed a complaint against them\ B) The insurance company refused to settle within policy limits, exposing the defendant to excess liability\ C) The defendant wants to avoid paying attorney fees\ D) The insurance company forced them to admit fault ✅ **Correct Answer:** B) The insurance company refused to settle within policy limits, exposing the defendant to excess liability **5. What strategy is recommended before submitting a second demand letter?**\ A) Filing a lawsuit immediately\ B) Asking the insurance company why they denied the first demand\ C) Reducing the settlement demand amount\ D) Ignoring the first denial and resubmitting the same letter ✅ **Correct Answer:** B) Asking the insurance company why they denied the first demand **6. What is the purpose of sending a second demand letter after a denial?**\ A) To annoy the adjuster\ B) To provide any missing information and trap the insurance company into a mistake\ C) To request a higher payout\ D) To delay the case as long as possible ✅ **Correct Answer:** B) To provide any missing information and trap the insurance company into a mistake **7. Who is the plaintiff in a bad faith claim?**\ A) The original plaintiff in the case\ B) The defendant in the original case\ C) The insurance company\ D) The judge ✅ **Correct Answer:** B) The defendant in the original case **8. What does it mean to "open policy limits"?**\ A) Forcing the insurance company to pay beyond policy limits due to a bad faith refusal\ B) The maximum payout allowed in any insurance claim\ C) A voluntary decision by the defendant to pay more\ D) The automatic approval of settlement demands ✅ **Correct Answer:** A) Forcing the insurance company to pay beyond policy limits due to a bad faith refusal **9. What should be included in a demand to increase the chance of acceptance?**\ A) Emotional arguments about the case\ B) A random settlement number\ C) Strong evidence of liability and damages\ D) Threats to sue immediately ✅ **Correct Answer:** C) Strong evidence of liability and damages