Page 1 of 123
Claims Adjuster Final Exam 2026 Questions
Answered Correctly, Guaranteed Pass |A
Grade Assured|
1. An insurance policy is a contract of:
A) Warranty
B) Adhesion
C) Indemnity
D) Subrogation
,Page 2 of 123
Answer: C
Rationale: Indemnity means restoring the insured to the same
financial position after a loss, not profiting.
2. The principle of utmost good faith (uberrimae fidei)
requires:
A) Insurer to pay claims quickly
B) Insured to disclose all material facts
C) Both parties to act without fraud
D) B and C
Answer: D
Rationale: Both insured and insurer must act honestly; the
insured must disclose known risks.
3. An endorsement does what?
A) Cancels the policy
B) Modifies coverage
C) Renews the policy
D) Assigns benefits
,Page 3 of 123
Answer: B
Rationale: Endorsements add, remove, or change policy terms.
4. Subrogation allows the insurer to:
A) Deny a claim
B) Recover from a third party after paying the insured
C) Reduce premiums
D) Increase deductibles
Answer: B
Rationale: After paying a claim, the insurer steps into the
insured's rights to sue a liable third party.
5. A deductible is:
A) Amount insurer pays first
B) Amount insured pays before coverage applies
C) A type of exclusion
D) A premium discount
, Page 4 of 123
Answer: B
Rationale: Deductibles reduce small claims and share risk with
the insured.
6. Coinsurance in property insurance penalizes:
A) Overinsurance
B) Underinsurance
C) Late reporting
D) Fraud
Answer: B
Rationale: If insured carries less than the required percentage
of value, claim payments are reduced.
7. Insurable interest must exist:
A) Only at policy inception
B) Only at time of loss
C) At both inception and loss for life insurance; at loss for
property
D) Never
Claims Adjuster Final Exam 2026 Questions
Answered Correctly, Guaranteed Pass |A
Grade Assured|
1. An insurance policy is a contract of:
A) Warranty
B) Adhesion
C) Indemnity
D) Subrogation
,Page 2 of 123
Answer: C
Rationale: Indemnity means restoring the insured to the same
financial position after a loss, not profiting.
2. The principle of utmost good faith (uberrimae fidei)
requires:
A) Insurer to pay claims quickly
B) Insured to disclose all material facts
C) Both parties to act without fraud
D) B and C
Answer: D
Rationale: Both insured and insurer must act honestly; the
insured must disclose known risks.
3. An endorsement does what?
A) Cancels the policy
B) Modifies coverage
C) Renews the policy
D) Assigns benefits
,Page 3 of 123
Answer: B
Rationale: Endorsements add, remove, or change policy terms.
4. Subrogation allows the insurer to:
A) Deny a claim
B) Recover from a third party after paying the insured
C) Reduce premiums
D) Increase deductibles
Answer: B
Rationale: After paying a claim, the insurer steps into the
insured's rights to sue a liable third party.
5. A deductible is:
A) Amount insurer pays first
B) Amount insured pays before coverage applies
C) A type of exclusion
D) A premium discount
, Page 4 of 123
Answer: B
Rationale: Deductibles reduce small claims and share risk with
the insured.
6. Coinsurance in property insurance penalizes:
A) Overinsurance
B) Underinsurance
C) Late reporting
D) Fraud
Answer: B
Rationale: If insured carries less than the required percentage
of value, claim payments are reduced.
7. Insurable interest must exist:
A) Only at policy inception
B) Only at time of loss
C) At both inception and loss for life insurance; at loss for
property
D) Never
