Adjuster Pro: Indiana Adjuster's License -
Practice Exam (2025) comprehensive
questions and verified detailed solutions
D- 📌📌 - On January 27, 2008, Ryan was using an exercise bike purchased from
NusquamCycle when the chain broke, causing him to fall and severely bruise his knee. It
seemed to heal just fine, but three years later, on January 25, 2011, Ryan's knee gave out while
jogging. His doctor told him that he'll need surgery and that this deterioration resulted from the
earlier accident with the exercise bike. Which of the following CGL policies may cover Ryan's
claim filed January 25, 2011?
A. An occurrence policy from Jan 31 2011-Jan 31 2013
B. An occurrence policy from Feb 28 2008-Feb 28 2010
C. A claims-made policy from Jan 31 2008-Jan 31 2010
D. A claims-made policy from Jan 31 2009-Jan 31 2011
A- 📌📌 - Which of the following statements about Indiana's approach to Workers' Comp
insurance is true?
A. WC is compulsory, and Indiana has no state WC fund.
B. WC is elective, and Indiana has no state WC fund.
C. WC is elective, and Indiana has a competitive state WC fund.
D. WC is compulsory, and Indiana has a monopolistic state WC fund.
D- 📌📌 - Who is NOT eligible for a homeowners policy?
A. An owner of a home under construction
B. A person who owns and lives in his house
C. A tenant who rents a home or apartment
D. An owner of a house in which he does not live, but rents to a tenant
B- 📌📌 - Frank owns a bakery specializing in authentic French bread. He uses two specialty
ovens for his daily production of French bread. If one of these giant ovens were to break down,
it would cost Frank's bakery a lot of money to repair, not to mention the loss of revenue caused
by lower production. On his Equipment Breakdown Protection Form, each of Frank's ovens
would be considered:
A. a "peril."
B. an "object."
C. a "machine."
D. a "liability."
D- 📌📌 - 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.
A- 📌📌 - *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?
, D- 📌📌 - 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.
C- 📌📌 - 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.
C- 📌📌 - Which of the following may be covered under an Equipment Breakdown Protection
Coverage Form?
A. Self-propelled equipment
B. Dragline, excavation, and construction equipment
C. Equipment built to operate under internal pressure or vacuum
D. Equipment used solely for therapeutic or surgical purposes
C- 📌📌 - Jim drops his car off at ABC Garage to have his exhaust system repaired and takes
the train to work. When he returns, he finds that his car has been vandalized. Jim has
comprehensive coverage, but feels the garage is responsible for the damage since Jim
entrusted the car to ABC Garage. Which coverage type under ABC's garagekeepers policy
would cover any part of the loss that Jim's policy does not cover?
A. Direct Primary Coverage
B. Excess Comprehensive Coverage
C. Direct Excess Coverage
D. General Liability Coverage
D- 📌📌 - Clara plays the harp in an orchestra. Her harp cost $12,000, and she had it for 5
years before it was stolen from her locker at a symphony hall. She recently found out a new
harp will cost $15,000. Assuming her harp depreciated at $1,000 a year, how much will an
actual cash value policy indemnify Clara?
A. $7,000- ACV pays the original amount paid minus depreciation
B. $12,000- ACV pays the original amount paid for the item
C. $15,000 - ACV pays the current market value
D. $10,000 - ACV pays at current market value minus depreciation
D- 📌📌 - Which statement about Personal Article Floaters is FALSE?
A. They pay the least of the following for damaged property: actual cash value; the cost to repair
or replace; or the coverage limits.
B. Coverage is worldwide.
C. They cover property on an open-peril basis.
D. They have a $500 deductible.
C- 📌📌 - In a Commercial Crime policy, a "messenger" is defined as:
A. the insured, a business partner, or an employee who has care or custody of insured property
inside the premises, excluding anyone acting as a watchperson or janitor.
Practice Exam (2025) comprehensive
questions and verified detailed solutions
D- 📌📌 - On January 27, 2008, Ryan was using an exercise bike purchased from
NusquamCycle when the chain broke, causing him to fall and severely bruise his knee. It
seemed to heal just fine, but three years later, on January 25, 2011, Ryan's knee gave out while
jogging. His doctor told him that he'll need surgery and that this deterioration resulted from the
earlier accident with the exercise bike. Which of the following CGL policies may cover Ryan's
claim filed January 25, 2011?
A. An occurrence policy from Jan 31 2011-Jan 31 2013
B. An occurrence policy from Feb 28 2008-Feb 28 2010
C. A claims-made policy from Jan 31 2008-Jan 31 2010
D. A claims-made policy from Jan 31 2009-Jan 31 2011
A- 📌📌 - Which of the following statements about Indiana's approach to Workers' Comp
insurance is true?
A. WC is compulsory, and Indiana has no state WC fund.
B. WC is elective, and Indiana has no state WC fund.
C. WC is elective, and Indiana has a competitive state WC fund.
D. WC is compulsory, and Indiana has a monopolistic state WC fund.
D- 📌📌 - Who is NOT eligible for a homeowners policy?
A. An owner of a home under construction
B. A person who owns and lives in his house
C. A tenant who rents a home or apartment
D. An owner of a house in which he does not live, but rents to a tenant
B- 📌📌 - Frank owns a bakery specializing in authentic French bread. He uses two specialty
ovens for his daily production of French bread. If one of these giant ovens were to break down,
it would cost Frank's bakery a lot of money to repair, not to mention the loss of revenue caused
by lower production. On his Equipment Breakdown Protection Form, each of Frank's ovens
would be considered:
A. a "peril."
B. an "object."
C. a "machine."
D. a "liability."
D- 📌📌 - 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.
A- 📌📌 - *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?
, D- 📌📌 - 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.
C- 📌📌 - 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.
C- 📌📌 - Which of the following may be covered under an Equipment Breakdown Protection
Coverage Form?
A. Self-propelled equipment
B. Dragline, excavation, and construction equipment
C. Equipment built to operate under internal pressure or vacuum
D. Equipment used solely for therapeutic or surgical purposes
C- 📌📌 - Jim drops his car off at ABC Garage to have his exhaust system repaired and takes
the train to work. When he returns, he finds that his car has been vandalized. Jim has
comprehensive coverage, but feels the garage is responsible for the damage since Jim
entrusted the car to ABC Garage. Which coverage type under ABC's garagekeepers policy
would cover any part of the loss that Jim's policy does not cover?
A. Direct Primary Coverage
B. Excess Comprehensive Coverage
C. Direct Excess Coverage
D. General Liability Coverage
D- 📌📌 - Clara plays the harp in an orchestra. Her harp cost $12,000, and she had it for 5
years before it was stolen from her locker at a symphony hall. She recently found out a new
harp will cost $15,000. Assuming her harp depreciated at $1,000 a year, how much will an
actual cash value policy indemnify Clara?
A. $7,000- ACV pays the original amount paid minus depreciation
B. $12,000- ACV pays the original amount paid for the item
C. $15,000 - ACV pays the current market value
D. $10,000 - ACV pays at current market value minus depreciation
D- 📌📌 - Which statement about Personal Article Floaters is FALSE?
A. They pay the least of the following for damaged property: actual cash value; the cost to repair
or replace; or the coverage limits.
B. Coverage is worldwide.
C. They cover property on an open-peril basis.
D. They have a $500 deductible.
C- 📌📌 - In a Commercial Crime policy, a "messenger" is defined as:
A. the insured, a business partner, or an employee who has care or custody of insured property
inside the premises, excluding anyone acting as a watchperson or janitor.
