ALABAMA ADJUSTER LATEST 2026 EXAM STUDY GUIDE
QUESTIONS AND ANSWERS GRADED A+
✔✔Mediation - ✔✔Cindy and her insurer cannot reach an agreement for her property
claim , and have gone back and forth for weeks without coming within $ 10,000 of each
other . At this point , since both believe they are offering a fair settlement , a third party
is needed to help facilitate the negotiation . Both parties still want to retain their ability to
" walk - away " if they cannot reach an agreement . What is the next best step for Cindy
and her insurer ?
✔✔move to dispute resolution . - ✔✔When the dollar amount difference between an
adjuster and a claimant is very large , the adjuster should :
✔✔Reviewing video footage with the claimant that contradicts the claimant's position -
✔✔Which of the following activities could be a useful negotiation technique ?
✔✔Over - confident or arrogant - ✔✔Having a positive attitude can help an adjuster
during negotiations . Which of the following aspects of an adjuster's attitude can hinder
negotiations ?
✔✔Policy X will pay $ 50,000 and Policy Z will pay $ 12,000 - ✔✔Jim has two policies
that cover the same risk , but they respond differently : Policy X is primary and Policy Z
is excess . Policy X has a limit of $ 50,000 and Policy Z has a limit of $ 25,000 . When
Jim suffers an insured loss totaling $ 62,000 , how will each policy respond ?
✔✔$ 12,000 - ✔✔Melanie's $ 300,000 home suffers $ 90,000 in damage from a fire .
The adjuster finds the home value since 2008 has depreciated 25 % , making the ACV
loss $ 67,500 . Although Melanie's policy covers repairs at their replacement cost , she
receives $ 67,500 at the time of loss . Repair to her home end up totaling $ 79,500 .
How much , if any , further indemnification may Melanie receive from the loss ?
✔✔Lightning - ✔✔Which of these is NOT typically excluded from coverage in a property
insurance policy ?
✔✔An endorsed policy will always provide more coverage than an unendorsed policy . -
✔✔Which of the following statements is NOT true of endorsements ?
✔✔It is no longer used in its original format - ✔✔Which of the following statements
about the Standard Fire Policy is TRUE ?
✔✔exclusions . - ✔✔In the Standard Fire Policy , " intentional losses " and " extreme
perils that cause catastrophic damage to a large number of policyholders " would be
considered examples of :
, ✔✔His insurer will pay $ 15,000 to rebuild the kitchen and nothing for the stolen trim . -
✔✔Bill's new home is in the final stages of construction , and he has purchased an HO -
2 policy to insure his financial interest in the property . This morning , Bill's contractor
calls to tell him that an electrical fire has destroyed his new kitchen , and all of the crown
molding that was supposed to be installed today has been stolen . It will be $ 15,000 to
rebuild the kitchen and another $ 4,200 to replace the trim . How will Bill's insurer
respond when he files a claim ?
✔✔With Grave Marker coverage , Susan can receive a maximum of $ 5,000 to pay for
the damaged gravestone - ✔✔Susan is insured with a homeowners policy . After
someone destroyed her late husband's gravestone with a vehicle , Susan filed a claim
against her homeowners policy . Which of the following statements is TRUE ?
✔✔$ 0 - ✔✔Sam , who has a typical HO - 3 policy , is forced to evacuate his home by
civil authorities due to rising flood waters in his neighborhood . It takes a month before
Sam is allowed to come back to his home . During this time , he has spent $ 3,000 in
hotel expenses , on top of his monthly mortgage payment of $ 850 . When he files a
claim , how much will Sam receive under Coverage
✔✔Scheduled Personal Property - ✔✔Monica's husband , Sam , likes to buy her
expensive jewelry , and she has amassed quite the collection over the years . What
endorsement would Monica and Sam need to add to their homeowners policy to fully
cover Monica's jewelry collection ?
✔✔$ 15,000 - ✔✔Sherrie's roof and fence are damaged in a violent windstorm . Sherrie
has a typical HO - 3 policy with a $ 150,000 limit for Coverage A - Dwelling . Assuming
she has no endorsements , how much coverage does she have available for the
damage to her fence ?
✔✔dwelling policy . - ✔✔A large corporation owns a small hunting cabin in the woods ,
that it uses for occasional weekend getaways . The corporation can insure the cabin
against property damage with a :
✔✔$ 2,500 - ✔✔Diana is insured under a DP - 2 policy with the following coverage
limits : Coverage A $ 150,000 , Coverage B - $ 15,000 , and Coverage C- $ 25,000 .
She and her fiancé have planned a destination wedding , but their hotel catches fire
shortly after their arrival . Smoke from the fire damages all of their belongings , including
Diana's $ 4,000 wedding dress . Diana's loss totals $ 5,200 . When she files a claim
with her insurance company , how much can she expect to receive for this loss under
her DP - 2 ( ignoring any deductible ) ?
✔✔Broken windows caused by a burglar breaking in . - ✔✔In a DP - 2 Broad Form ,
which of the following would be covered under the peril of Theft ?
QUESTIONS AND ANSWERS GRADED A+
✔✔Mediation - ✔✔Cindy and her insurer cannot reach an agreement for her property
claim , and have gone back and forth for weeks without coming within $ 10,000 of each
other . At this point , since both believe they are offering a fair settlement , a third party
is needed to help facilitate the negotiation . Both parties still want to retain their ability to
" walk - away " if they cannot reach an agreement . What is the next best step for Cindy
and her insurer ?
✔✔move to dispute resolution . - ✔✔When the dollar amount difference between an
adjuster and a claimant is very large , the adjuster should :
✔✔Reviewing video footage with the claimant that contradicts the claimant's position -
✔✔Which of the following activities could be a useful negotiation technique ?
✔✔Over - confident or arrogant - ✔✔Having a positive attitude can help an adjuster
during negotiations . Which of the following aspects of an adjuster's attitude can hinder
negotiations ?
✔✔Policy X will pay $ 50,000 and Policy Z will pay $ 12,000 - ✔✔Jim has two policies
that cover the same risk , but they respond differently : Policy X is primary and Policy Z
is excess . Policy X has a limit of $ 50,000 and Policy Z has a limit of $ 25,000 . When
Jim suffers an insured loss totaling $ 62,000 , how will each policy respond ?
✔✔$ 12,000 - ✔✔Melanie's $ 300,000 home suffers $ 90,000 in damage from a fire .
The adjuster finds the home value since 2008 has depreciated 25 % , making the ACV
loss $ 67,500 . Although Melanie's policy covers repairs at their replacement cost , she
receives $ 67,500 at the time of loss . Repair to her home end up totaling $ 79,500 .
How much , if any , further indemnification may Melanie receive from the loss ?
✔✔Lightning - ✔✔Which of these is NOT typically excluded from coverage in a property
insurance policy ?
✔✔An endorsed policy will always provide more coverage than an unendorsed policy . -
✔✔Which of the following statements is NOT true of endorsements ?
✔✔It is no longer used in its original format - ✔✔Which of the following statements
about the Standard Fire Policy is TRUE ?
✔✔exclusions . - ✔✔In the Standard Fire Policy , " intentional losses " and " extreme
perils that cause catastrophic damage to a large number of policyholders " would be
considered examples of :
, ✔✔His insurer will pay $ 15,000 to rebuild the kitchen and nothing for the stolen trim . -
✔✔Bill's new home is in the final stages of construction , and he has purchased an HO -
2 policy to insure his financial interest in the property . This morning , Bill's contractor
calls to tell him that an electrical fire has destroyed his new kitchen , and all of the crown
molding that was supposed to be installed today has been stolen . It will be $ 15,000 to
rebuild the kitchen and another $ 4,200 to replace the trim . How will Bill's insurer
respond when he files a claim ?
✔✔With Grave Marker coverage , Susan can receive a maximum of $ 5,000 to pay for
the damaged gravestone - ✔✔Susan is insured with a homeowners policy . After
someone destroyed her late husband's gravestone with a vehicle , Susan filed a claim
against her homeowners policy . Which of the following statements is TRUE ?
✔✔$ 0 - ✔✔Sam , who has a typical HO - 3 policy , is forced to evacuate his home by
civil authorities due to rising flood waters in his neighborhood . It takes a month before
Sam is allowed to come back to his home . During this time , he has spent $ 3,000 in
hotel expenses , on top of his monthly mortgage payment of $ 850 . When he files a
claim , how much will Sam receive under Coverage
✔✔Scheduled Personal Property - ✔✔Monica's husband , Sam , likes to buy her
expensive jewelry , and she has amassed quite the collection over the years . What
endorsement would Monica and Sam need to add to their homeowners policy to fully
cover Monica's jewelry collection ?
✔✔$ 15,000 - ✔✔Sherrie's roof and fence are damaged in a violent windstorm . Sherrie
has a typical HO - 3 policy with a $ 150,000 limit for Coverage A - Dwelling . Assuming
she has no endorsements , how much coverage does she have available for the
damage to her fence ?
✔✔dwelling policy . - ✔✔A large corporation owns a small hunting cabin in the woods ,
that it uses for occasional weekend getaways . The corporation can insure the cabin
against property damage with a :
✔✔$ 2,500 - ✔✔Diana is insured under a DP - 2 policy with the following coverage
limits : Coverage A $ 150,000 , Coverage B - $ 15,000 , and Coverage C- $ 25,000 .
She and her fiancé have planned a destination wedding , but their hotel catches fire
shortly after their arrival . Smoke from the fire damages all of their belongings , including
Diana's $ 4,000 wedding dress . Diana's loss totals $ 5,200 . When she files a claim
with her insurance company , how much can she expect to receive for this loss under
her DP - 2 ( ignoring any deductible ) ?
✔✔Broken windows caused by a burglar breaking in . - ✔✔In a DP - 2 Broad Form ,
which of the following would be covered under the peril of Theft ?
