Free CT-CADJ Practice Questions

Question 1

The property-damage portion of an auto claim is fully documented and undisputed, while the bodily-injury portion remains under investigation. The insurer will issue the property payment only if the claimant releases every claim arising from the accident. Which response is proper?

Accepted Answer

Pay the undisputed property damage and limit any release to that portion of the claim

Answer

Hold the property payment until the injury evaluation is complete so the entire matter can be settled with one release

Answer

Issue the property payment only after the claimant withdraws the bodily-injury demand in writing

Answer

Tender all available liability limits immediately and close both portions of the claim

Question 2

Eighteen business days have passed since an insurer received a properly executed proof of loss and all claimant-supplied information. A necessary expert report remains outstanding, and the claimant has received neither a decision nor a written delay explanation. What should the adjuster do now?

Accepted Answer

Immediately explain the delay in writing, continue the investigation, and provide 30-day status notices while the decision remains pending

Answer

Deny the claim because the investigation was not completed within the initial decision period

Answer

Pay the full amount claimed because the insurer has not established an exclusion

Answer

Record the delay in the claim diary and postpone further claimant communication until the expert report arrives

Question 3

After paying $40,000 for covered water damage caused by a plumbing contractor's negligence, a homeowners insurer seeks recovery from the contractor while preserving the insured's interest in a $5,000 deductible. Which recovery doctrine applies?

Accepted Answer

Subrogation against the responsible contractor to the extent of the insurer's payment

Answer

Contribution from the contractor's liability insurer because it may ultimately fund the contractor's defense and indemnity

Answer

Salvage based on the remaining value of the failed plumbing components

Answer

Assignment of the insured's entire negligence claim, including the uninsured deductible

Question 4

A Connecticut jury fixes total compensatory damages at $180,000 and attributes 40% of the negligence to the claimant. The insured's applicable liability limit is $100,000, and no other claims share that limit. What is the insurer's maximum indemnity exposure?

Accepted Answer

$100,000

Answer

$72,000

Answer

$108,000, before applying the policy limit

Answer

$0

Question 5

At the time of a covered loss, a commercial building has a replacement value of $1,000,000, an 80% coinsurance requirement, and a $600,000 policy limit. The covered damage is $200,000, the deductible is $5,000, and the limit is otherwise sufficient. What amount is payable?

Accepted Answer

$145,000

Answer

$115,000, treating the carried limit as 60% of the loss

Answer

$150,000, before applying the deductible

Answer

$195,000, subtracting only the deductible from the loss

Question 6

Coverage timeline: a claims-made-and-reported policy runs from January 1 through December 31, 2025, with a January 1, 2023 retroactive date. Its extended reporting provision permits claims first made during the policy to be reported through March 1, 2026. An alleged professional error occurred in June 2024, the claim was first made on December 20, 2025, and the insurer received the report on January 10, 2026. Which conclusion is most accurate?

Accepted Answer

The claim is potentially covered because the act followed the retroactive date, the claim was made during the policy, and reporting occurred within the stated extension

Answer

The claim is barred because every report must reach the insurer before the policy expires

Answer

The claim is barred because the professional act occurred before the 2025 policy began

Answer

The claim can be covered only if the insured renews the policy for another full year

Question 7

Faulty workmanship is excluded, but the property policy covers ensuing direct physical loss unless that resulting loss is otherwise excluded. An improperly installed supply line later ruptures and causes sudden water damage throughout the building. How should the loss be analyzed?

Accepted Answer

Exclude repair of the defective installation; evaluate the ensuing water damage separately

Answer

Deny every part of the claim because the excluded workmanship was the first event in the causal chain

Answer

Pay only to replace the defective supply line because the water damage is consequential

Answer

Submit the entire dispute to appraisal because appraisal determines both cause and coverage

Question 8

Proven bodily-injury damages total $110,000. The at-fault driver pays a $25,000 liability limit, and the Connecticut insured carries $50,000 of conversion underinsured-motorist coverage. With no other offsets, what is the maximum total recovery from those two coverages?

Accepted Answer

$75,000

Answer

$25,000

Answer

$50,000

Answer

$110,000

Question 9

First, a covered auto strikes a deer. Months later, the same auto slides into a guardrail. The Personal Auto Policy carries both collision and other-than-collision coverage. Which classification pairing is correct?

Accepted Answer

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

Answer

Both are collision losses

Answer

Both are other-than-collision losses

Answer

The deer strike is collision because impact occurred; the guardrail loss is other than collision

Question 10

While staying at a hotel, an insured has an unscheduled ring with an actual cash value of $7,000 stolen from the room. The unendorsed homeowners policy uses the common ISO special limit for theft of jewelry. Ignoring the deductible, what is the maximum payable for the ring?

Accepted Answer

$1,500

Answer

$200

Answer

$2,500

Answer

$7,000, because personal property coverage follows the insured worldwide

Free CT-CADJ Practice Questions

Domain 1: CT Statutes, Rules, and Regulations Common to Property and Casualty Insurance

Question 1

Question 2

Domain 2: General Insurance

Question 3

Question 4

Question 5

Question 6

Question 7

Domain 3: Personal Lines

Question 8

Question 9

Question 10

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