Adjuster Pro: Indiana Adjuster's License - Practice Exam
questions with correct answers
Dr. Adams is in the middle of a malpractice lawsuit. Her insurer decides it will be more cost effective
to simply settle the suit rather than draw the process out over several months. Assuming Dr. Adams
holds a Professional Liability Policy, which of the following statements is TRUE in regards to settling
the claim?
A. The insurer has the right to settle the claim anyway it finds advantageous to its interests.
B. An umpire must be employed to settle the claim through arbitration.
C. Dr. Adams' insurer must seek her consent before settling the claim.
D. Dr. Adams must pay all her own legal expenses. -Ans>>B
*Every workers' comp insurance company that operates in Indiana must:
A. join the Indiana Life and Health Insurance Guaranty Association.
Your Answer
B. become a Lloyd's plan insurer.
C. become a member of the Indiana Insurance Guaranty Association.
D. have a physical office with a minimum of 2,500 square feet. -Ans>>C
*Having insurance is required by Indiana law in order to drive your car on public roads. In which of the
following scenarios would you NOT need to have insurance on your vehicle?
A. Getting license plates for your vehicle
B. Registering your vehicle with the state
C. Using your vehicle seasonally for agricultural purposes
D. Driving to a dealership to trade in your vehicle -Ans>>C
*Jane has a $150,000 homeowners policy with a 3% percentage deductible. One night, an oven fire
destroys her kitchen, causing $50,000 in damage. How much of the damage falls under Jane's
responsibility?
A. $4,500
B. $15,000
C. $3,600
D. $1,500 -Ans>>A
*Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on
May 31. Which of the following statements is true?
A. Lemon Insurance must notify Hugh at least 10 days before the policy expires.
B. Hugh's policy will be effective until 12:00 AM on June 1.
C. Lemon Insurance must notify Hugh at least 45 days before the policy expires.
D. Hugh's policy will be effective until 12:01 AM on May 31. -Ans>>A
*Which of these is a prohibited unfair practice?
A. Paying undisputed settlements under one portion of a claim before the entire claim has been
settled
B. Appealing arbitration awards
C. Requiring an insured to submit formal proof of loss forms and then subsequent verification before
moving forward on the claim
D. Consulting with the insured before instructing a body shop to conduct repairs on the insured's
vehicle -Ans>>C
, A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. -Ans>>D
A few weeks ago Christopher's garage was destroyed by an out-of-control motorist. Fortunately, the
motorist had sufficient liability insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has received from contractors.
Christopher and the insurer have gone back and forth in negotiations for weeks, making little
headway. Christopher decides it's time to:
A. issue an answer for the policyholder.
B. issue a judgment.
C. issue a complaint against the policyholder.
D. issue a reservation of rights. -Ans>>C
A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the following
items would NOT be covered under Coverage A of the Building and Personal Property Coverage Form
in her commercial property policy?
A. The heating and air conditioning system
B. An employee's laptop which she uses for work
C. The brand new flooring Jenny had installed a month ago
D. The lumber storage shed, listed on the dec page -Ans>>B
All of the following are true about mediation, except:
A. the mediator is a neutral third party.
B. either party may walk away.
C. settlement is only legally binding if both parties agree to it.
D. the mediator's decision is legally binding. -Ans>>D
All of the following are typical exclusions in an insurance policy, except:
A. Explosion
B. flooding
C. Nuclear hazards
D. earthquakes -Ans>>A
All of the following pieces of information can be found in the Conditions section of an insurance policy,
EXCEPT:
A. anything the insured must do for coverage to remain in effect.
B. what the insured must do in the event of a lawsuit.
C. the insured's duties after a loss.
D. causes of loss that are not covered. -Ans>>D
Barbara has been negotiating a property claim with a claimant for a few hours now. She has displayed
her assessments, gone over the policy, and offered a fair settlement amount within the policy limits.
However, the claimant has dismissed it completely without any counter-offer. The most appropriate
next step is for Barbara to:
A. submit her backup offer.
B. enter into arbitration.
C. remain silent.
D. tell a joke to lighten the mood. -Ans>>B
Chandler is a photographer who is taking pictures at a reenactment of the Battle of Gettysburg, when
Harper (Union Cavalry) crashes through the brush and into Chandler, breaking both his arms and his
camera. In court, Chandler demands payment not only for his medical bills and broken camera, but
for future lost business; now that he is unable to take pictures for the next 6 months, his clients are
questions with correct answers
Dr. Adams is in the middle of a malpractice lawsuit. Her insurer decides it will be more cost effective
to simply settle the suit rather than draw the process out over several months. Assuming Dr. Adams
holds a Professional Liability Policy, which of the following statements is TRUE in regards to settling
the claim?
A. The insurer has the right to settle the claim anyway it finds advantageous to its interests.
B. An umpire must be employed to settle the claim through arbitration.
C. Dr. Adams' insurer must seek her consent before settling the claim.
D. Dr. Adams must pay all her own legal expenses. -Ans>>B
*Every workers' comp insurance company that operates in Indiana must:
A. join the Indiana Life and Health Insurance Guaranty Association.
Your Answer
B. become a Lloyd's plan insurer.
C. become a member of the Indiana Insurance Guaranty Association.
D. have a physical office with a minimum of 2,500 square feet. -Ans>>C
*Having insurance is required by Indiana law in order to drive your car on public roads. In which of the
following scenarios would you NOT need to have insurance on your vehicle?
A. Getting license plates for your vehicle
B. Registering your vehicle with the state
C. Using your vehicle seasonally for agricultural purposes
D. Driving to a dealership to trade in your vehicle -Ans>>C
*Jane has a $150,000 homeowners policy with a 3% percentage deductible. One night, an oven fire
destroys her kitchen, causing $50,000 in damage. How much of the damage falls under Jane's
responsibility?
A. $4,500
B. $15,000
C. $3,600
D. $1,500 -Ans>>A
*Lemon Insurance Co. decides not to renew Hugh's Personal Auto policy, which is set to expire on
May 31. Which of the following statements is true?
A. Lemon Insurance must notify Hugh at least 10 days before the policy expires.
B. Hugh's policy will be effective until 12:00 AM on June 1.
C. Lemon Insurance must notify Hugh at least 45 days before the policy expires.
D. Hugh's policy will be effective until 12:01 AM on May 31. -Ans>>A
*Which of these is a prohibited unfair practice?
A. Paying undisputed settlements under one portion of a claim before the entire claim has been
settled
B. Appealing arbitration awards
C. Requiring an insured to submit formal proof of loss forms and then subsequent verification before
moving forward on the claim
D. Consulting with the insured before instructing a body shop to conduct repairs on the insured's
vehicle -Ans>>C
, A dwelling policy would NOT be appropriate for:
A. a duplex owned by an individual.
B. a single-family home wholly rented out.
C. a four-plex owned by a corporation.
D. a motorhome owned by an individual. -Ans>>D
A few weeks ago Christopher's garage was destroyed by an out-of-control motorist. Fortunately, the
motorist had sufficient liability insurance to cover the damages. However, the insurer insists that
Christopher's garage is worth far less than the appraisals he has received from contractors.
Christopher and the insurer have gone back and forth in negotiations for weeks, making little
headway. Christopher decides it's time to:
A. issue an answer for the policyholder.
B. issue a judgment.
C. issue a complaint against the policyholder.
D. issue a reservation of rights. -Ans>>C
A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the following
items would NOT be covered under Coverage A of the Building and Personal Property Coverage Form
in her commercial property policy?
A. The heating and air conditioning system
B. An employee's laptop which she uses for work
C. The brand new flooring Jenny had installed a month ago
D. The lumber storage shed, listed on the dec page -Ans>>B
All of the following are true about mediation, except:
A. the mediator is a neutral third party.
B. either party may walk away.
C. settlement is only legally binding if both parties agree to it.
D. the mediator's decision is legally binding. -Ans>>D
All of the following are typical exclusions in an insurance policy, except:
A. Explosion
B. flooding
C. Nuclear hazards
D. earthquakes -Ans>>A
All of the following pieces of information can be found in the Conditions section of an insurance policy,
EXCEPT:
A. anything the insured must do for coverage to remain in effect.
B. what the insured must do in the event of a lawsuit.
C. the insured's duties after a loss.
D. causes of loss that are not covered. -Ans>>D
Barbara has been negotiating a property claim with a claimant for a few hours now. She has displayed
her assessments, gone over the policy, and offered a fair settlement amount within the policy limits.
However, the claimant has dismissed it completely without any counter-offer. The most appropriate
next step is for Barbara to:
A. submit her backup offer.
B. enter into arbitration.
C. remain silent.
D. tell a joke to lighten the mood. -Ans>>B
Chandler is a photographer who is taking pictures at a reenactment of the Battle of Gettysburg, when
Harper (Union Cavalry) crashes through the brush and into Chandler, breaking both his arms and his
camera. In court, Chandler demands payment not only for his medical bills and broken camera, but
for future lost business; now that he is unable to take pictures for the next 6 months, his clients are
