ALABAMA ADJUSTER LATEST 2026 COMPREHENSIVE
QUESTIONS AND ANSWERS GRADED A+
✔✔11. The Standard Fire policy is structured with blank sections - ✔✔Four
✔✔12. At the time of the covered property loss, the insurance company must do which
of the following? - ✔✔Whichever method described above the company chooses
✔✔13. The following statements about policy provisions that change coverage are true,
except, - ✔✔Additional Coverages. They can add dollar value or give back limited
coverage by removing an exclusion
✔✔14. Personal property that cost John $6,000 was stolen during a home theft.
Depreciation on the property since he purchased it is $3,500. Today, the same property
would cost $7,500 to replace. What will be John's settlement on an Actual Cash Value
basis? - ✔✔$4,000
✔✔15. When applying for an insurance policy, Wilma suddenly asked her insurance
agent, "How do you know you can trust me on these answers?" The agent replied,
"Some answers we can verify, but you and I have a responsibility of trust to each other."
This is called the - ✔✔Doctrine of Utmost Good Faith.
✔✔16. Don buys a Homeowners policy to cover his home. Six months into the policy,
he sold his house to Jack. He told Jack not to worry about buying a Homeowner's policy
since the home has six months left on the policy Don bought. Don was wrong because
an insurance policy is a/an - ✔✔personal contract
✔✔17. To be legally enforceable, a contract must contain all of the following essential
elements EXCEPT: - ✔✔equal terms
✔✔18. An insurance policy is a contract in which the number of dollars given up by
each party is unequal. The policy holder pays a premium and may collect zero from the
insurer or may collect the great deal more than the amount paid in premiums when a
loss occurs. This is called - ✔✔aleatory contract.
✔✔19. Besides gaining time for gathering information to consider a claim, what is the
top reason for issuing a reservation of rights letter and/or a nonwaiver agreement? -
✔✔To protect the insurance company against claims not covered under the policy.
✔✔20. The burden is on the_______ to see if special requirements of the policy apply
to a claim. - ✔✔Adjuster
, ✔✔21. As a landlord, Susan wants the dwelling policy that provides the best coverage.
Which DP form should she use? - ✔✔DP-3
✔✔22. Under the Terrorism Risk Insurance Program (TRIP), every policy owner of a
Fire Insurance policy or anotherP & C policy, is required to - ✔✔accept or reject
coverage for losses related to terrorism.
✔✔23. Which of the following is NOT true about Dwelling policies compared to
Homeowners policies? - ✔✔Dwelling policies provide personal liability coverage
✔✔24. Assume that Cal's Commercial Liability policy have an occurrence limit of
$100,000 an aggregate limit of $500,000. Further assume that so far this year, his
insurer has paid claims of $420,000. When an injured shopper is awarded $90,000, how
much will Cal's company pay? - ✔✔$80,000
✔✔25. Which of the following statements about medical payments coverage is false? -
✔✔Medical payments are typically added to the liability settlement or judgment .
✔✔26. While Ken was standing in his yard, a car veered out of control, hit him, and
went on to damage part of his home. Ken had pain and suffering during his
hospitalization and subsequent rehab. Which of the following is not one of the
"compensatory damages" suffered by Ken? - ✔✔Contributory
✔✔27. Despite her 85 years, Dorothy remains active an enjoys shopping. While in
Manbeck's Department Store, she tripped on a shoelace, fell, and broke her arm,
causing medical bills of $1,200. Which of the following statements best describes
Manbeck's negligence? - ✔✔Proximate cause of the damages was not a failure on
Manbeck's to act or not to act.
✔✔28. The law says that a tort is - ✔✔a civil wrong between two parties that results in
legal liability and for which the law provides a solution.
✔✔29. The standard mortgage clause in a Property policy is there to protect - ✔✔the
mortgage.
✔✔30. The Standard Fire policy primarily provides property protection. Which of these
statements about liability coverage is true? - ✔✔In order to provide liability coverage, a
separate policy must be purchased.
✔✔31. All of the following are true concerning Auto policy Med Pay EXCEPT - ✔✔Med
Pay coverage is triggered by negligence.
QUESTIONS AND ANSWERS GRADED A+
✔✔11. The Standard Fire policy is structured with blank sections - ✔✔Four
✔✔12. At the time of the covered property loss, the insurance company must do which
of the following? - ✔✔Whichever method described above the company chooses
✔✔13. The following statements about policy provisions that change coverage are true,
except, - ✔✔Additional Coverages. They can add dollar value or give back limited
coverage by removing an exclusion
✔✔14. Personal property that cost John $6,000 was stolen during a home theft.
Depreciation on the property since he purchased it is $3,500. Today, the same property
would cost $7,500 to replace. What will be John's settlement on an Actual Cash Value
basis? - ✔✔$4,000
✔✔15. When applying for an insurance policy, Wilma suddenly asked her insurance
agent, "How do you know you can trust me on these answers?" The agent replied,
"Some answers we can verify, but you and I have a responsibility of trust to each other."
This is called the - ✔✔Doctrine of Utmost Good Faith.
✔✔16. Don buys a Homeowners policy to cover his home. Six months into the policy,
he sold his house to Jack. He told Jack not to worry about buying a Homeowner's policy
since the home has six months left on the policy Don bought. Don was wrong because
an insurance policy is a/an - ✔✔personal contract
✔✔17. To be legally enforceable, a contract must contain all of the following essential
elements EXCEPT: - ✔✔equal terms
✔✔18. An insurance policy is a contract in which the number of dollars given up by
each party is unequal. The policy holder pays a premium and may collect zero from the
insurer or may collect the great deal more than the amount paid in premiums when a
loss occurs. This is called - ✔✔aleatory contract.
✔✔19. Besides gaining time for gathering information to consider a claim, what is the
top reason for issuing a reservation of rights letter and/or a nonwaiver agreement? -
✔✔To protect the insurance company against claims not covered under the policy.
✔✔20. The burden is on the_______ to see if special requirements of the policy apply
to a claim. - ✔✔Adjuster
, ✔✔21. As a landlord, Susan wants the dwelling policy that provides the best coverage.
Which DP form should she use? - ✔✔DP-3
✔✔22. Under the Terrorism Risk Insurance Program (TRIP), every policy owner of a
Fire Insurance policy or anotherP & C policy, is required to - ✔✔accept or reject
coverage for losses related to terrorism.
✔✔23. Which of the following is NOT true about Dwelling policies compared to
Homeowners policies? - ✔✔Dwelling policies provide personal liability coverage
✔✔24. Assume that Cal's Commercial Liability policy have an occurrence limit of
$100,000 an aggregate limit of $500,000. Further assume that so far this year, his
insurer has paid claims of $420,000. When an injured shopper is awarded $90,000, how
much will Cal's company pay? - ✔✔$80,000
✔✔25. Which of the following statements about medical payments coverage is false? -
✔✔Medical payments are typically added to the liability settlement or judgment .
✔✔26. While Ken was standing in his yard, a car veered out of control, hit him, and
went on to damage part of his home. Ken had pain and suffering during his
hospitalization and subsequent rehab. Which of the following is not one of the
"compensatory damages" suffered by Ken? - ✔✔Contributory
✔✔27. Despite her 85 years, Dorothy remains active an enjoys shopping. While in
Manbeck's Department Store, she tripped on a shoelace, fell, and broke her arm,
causing medical bills of $1,200. Which of the following statements best describes
Manbeck's negligence? - ✔✔Proximate cause of the damages was not a failure on
Manbeck's to act or not to act.
✔✔28. The law says that a tort is - ✔✔a civil wrong between two parties that results in
legal liability and for which the law provides a solution.
✔✔29. The standard mortgage clause in a Property policy is there to protect - ✔✔the
mortgage.
✔✔30. The Standard Fire policy primarily provides property protection. Which of these
statements about liability coverage is true? - ✔✔In order to provide liability coverage, a
separate policy must be purchased.
✔✔31. All of the following are true concerning Auto policy Med Pay EXCEPT - ✔✔Med
Pay coverage is triggered by negligence.
