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125 ARIZONA INDEPENDENT ADJUSTER PRACTICE
QUESTIONS & DETAILED ANSWER EXPLANATIONS (2026
EXAM PREP)
Insurance Law / Business Law / Ethics In Insurance / Claims Adjusting
Exam coverage:-
✓ Section A (Q1–30): Insurance regulation, adjuster
licensing, DIFI administration, qualifications, exam
requirements, fees, and disciplinary actions.
✓ Section B (Q31–65): Insurance basics, contract principles,
insurable interest, hazards, negligence, valuation methods,
and policy structure.
✓ Section C (Q66–100): Adjusting losses, claim investigation,
reporting, settlement practices, subrogation, salvage,
reserves, and bad faith.
✓ Section D (Q101–125): Property and casualty policies,
dwelling, homeowners, BOP, CGL, workers compensation,
and coverage analysis.
SECTION A: INSURANCE REGULATION & LICENSING (Q1–
Q30)
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1. Under Arizona Revised Statutes, which title and chapter
primarily govern the licensing and regulation of insurance
adjusters?
A) Title 20, Chapter 2
B) Title 32, Chapter 20
C) Title 44, Chapter 15
D) Title 33, Chapter 4
CORRECT ANSWER: A) Title 20, Chapter 2
RATIONALE: Option A is correct because A.R.S. Title 20,
Chapter 2, Article 3.2 establishes the licensing requirements,
qualifications, and regulatory framework for insurance
adjusters in Arizona. Option B is incorrect because Title 32,
Chapter 20 governs real estate regulation. Option C is incorrect
because Title 44, Chapter 15 addresses trade names and
business practices. Option D is incorrect because Title 33,
Chapter 4 covers landlord-tenant law.
2. Which Arizona state agency is responsible for licensing and
regulating independent insurance adjusters?
A) Arizona Department of Real Estate
B) Arizona Department of Insurance and Financial Institutions
(DIFI)
C) Arizona Corporation Commission
D) Arizona Attorney General's Office
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CORRECT ANSWER: B) Arizona Department of Insurance and
Financial Institutions (DIFI)
RATIONALE: Option B is correct because DIFI is the regulatory
body that oversees the licensing, regulation, and enforcement
of all insurance adjusters in Arizona, including independent
adjusters. Option A is incorrect because ADRE regulates real
estate professionals. Option C is incorrect because the
Corporation Commission regulates utilities and securities.
Option D is incorrect because the Attorney General's Office
handles legal matters but does not license adjusters.
3. Under A.R.S. § 20-321.01, what is the minimum age
requirement to obtain an Arizona adjuster license?
A) 16 years old
B) 18 years old
C) 21 years old
D) 25 years old
CORRECT ANSWER: B) 18 years old
RATIONALE: Option B is correct because A.R.S. § 20-
321.01(C)(1) requires all adjuster applicants, including
independent adjusters, to be at least 18 years of age to qualify
for licensure. Option A is incorrect because 16 years is below
the statutory minimum. Option C is incorrect because 21 years
is not the requirement. Option D is incorrect because 25 years is
not the statutory minimum.
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4. Which of the following best defines an independent adjuster?
A) An individual who works exclusively for one insurance
company as a salaried employee
B) An individual who is contracted by insurers to adjust claims
on a fee-for-service basis
C) An individual who represents policyholders in claim
negotiations
D) An individual who sells insurance policies to consumers
CORRECT ANSWER: B) An individual who is contracted by
insurers to adjust claims on a fee-for-service basis
RATIONALE: Option B is correct because an independent
adjuster is a licensed professional who works for multiple
insurance companies on a contract basis, adjusting claims for a
fee. Option A is incorrect because that describes a staff
adjuster. Option C is incorrect because that describes a public
adjuster. Option D is incorrect because that describes an
insurance producer or agent.
5. An Arizona adjuster license must be renewed every how many
years?
A) 1 year
B) 2 years
C) 4 years
D) 5 years
CORRECT ANSWER: C) 4 years
125 ARIZONA INDEPENDENT ADJUSTER PRACTICE
QUESTIONS & DETAILED ANSWER EXPLANATIONS (2026
EXAM PREP)
Insurance Law / Business Law / Ethics In Insurance / Claims Adjusting
Exam coverage:-
✓ Section A (Q1–30): Insurance regulation, adjuster
licensing, DIFI administration, qualifications, exam
requirements, fees, and disciplinary actions.
✓ Section B (Q31–65): Insurance basics, contract principles,
insurable interest, hazards, negligence, valuation methods,
and policy structure.
✓ Section C (Q66–100): Adjusting losses, claim investigation,
reporting, settlement practices, subrogation, salvage,
reserves, and bad faith.
✓ Section D (Q101–125): Property and casualty policies,
dwelling, homeowners, BOP, CGL, workers compensation,
and coverage analysis.
SECTION A: INSURANCE REGULATION & LICENSING (Q1–
Q30)
, Page 2 of 76
1. Under Arizona Revised Statutes, which title and chapter
primarily govern the licensing and regulation of insurance
adjusters?
A) Title 20, Chapter 2
B) Title 32, Chapter 20
C) Title 44, Chapter 15
D) Title 33, Chapter 4
CORRECT ANSWER: A) Title 20, Chapter 2
RATIONALE: Option A is correct because A.R.S. Title 20,
Chapter 2, Article 3.2 establishes the licensing requirements,
qualifications, and regulatory framework for insurance
adjusters in Arizona. Option B is incorrect because Title 32,
Chapter 20 governs real estate regulation. Option C is incorrect
because Title 44, Chapter 15 addresses trade names and
business practices. Option D is incorrect because Title 33,
Chapter 4 covers landlord-tenant law.
2. Which Arizona state agency is responsible for licensing and
regulating independent insurance adjusters?
A) Arizona Department of Real Estate
B) Arizona Department of Insurance and Financial Institutions
(DIFI)
C) Arizona Corporation Commission
D) Arizona Attorney General's Office
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CORRECT ANSWER: B) Arizona Department of Insurance and
Financial Institutions (DIFI)
RATIONALE: Option B is correct because DIFI is the regulatory
body that oversees the licensing, regulation, and enforcement
of all insurance adjusters in Arizona, including independent
adjusters. Option A is incorrect because ADRE regulates real
estate professionals. Option C is incorrect because the
Corporation Commission regulates utilities and securities.
Option D is incorrect because the Attorney General's Office
handles legal matters but does not license adjusters.
3. Under A.R.S. § 20-321.01, what is the minimum age
requirement to obtain an Arizona adjuster license?
A) 16 years old
B) 18 years old
C) 21 years old
D) 25 years old
CORRECT ANSWER: B) 18 years old
RATIONALE: Option B is correct because A.R.S. § 20-
321.01(C)(1) requires all adjuster applicants, including
independent adjusters, to be at least 18 years of age to qualify
for licensure. Option A is incorrect because 16 years is below
the statutory minimum. Option C is incorrect because 21 years
is not the requirement. Option D is incorrect because 25 years is
not the statutory minimum.
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4. Which of the following best defines an independent adjuster?
A) An individual who works exclusively for one insurance
company as a salaried employee
B) An individual who is contracted by insurers to adjust claims
on a fee-for-service basis
C) An individual who represents policyholders in claim
negotiations
D) An individual who sells insurance policies to consumers
CORRECT ANSWER: B) An individual who is contracted by
insurers to adjust claims on a fee-for-service basis
RATIONALE: Option B is correct because an independent
adjuster is a licensed professional who works for multiple
insurance companies on a contract basis, adjusting claims for a
fee. Option A is incorrect because that describes a staff
adjuster. Option C is incorrect because that describes a public
adjuster. Option D is incorrect because that describes an
insurance producer or agent.
5. An Arizona adjuster license must be renewed every how many
years?
A) 1 year
B) 2 years
C) 4 years
D) 5 years
CORRECT ANSWER: C) 4 years
