AE21 INSURANCE ADJUSTER LICENSE
ACTUAL EXAMINATION TEST 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ What are you really, buying when you purchase insurance. Answer:
Peace of mind
◉ Why is insurance such a unique product. Answer: It is a financial
product, the purchase of a product based on trust.
◉ What is an adjusters most important objective in todays world of
insurance. Answer: To help those who have been injured, or who have
suffered a loss that is covered by the insurance contract.
◉ company adjustor. Answer: Claims adjustor who is a salaried
employee representing only one company.
◉ Independent Adjuster. Answer: An independent claim representative
who handles claims for insurers for a fee.
,◉ property adjuster. Answer:
◉ Liability Adjuster. Answer:
◉ Multi-Line Adjusters. Answer: Field Adjuster
◉ Fiduciary Duty. Answer: That duty owed by an agent to act in the
highest good faith toward the principal and not to obtain any advantage
over the latter by the slightest misrepresentation, concealment, duress or
pressure.
◉ Agency: Power to Bind. Answer:
◉ What is not a basic adjusting function. Answer: Inspection
◉ Evaluation. Answer: Establishing a dollar value for a claim
◉ No Release/Walk Away. Answer: Paying what is owed, asking the
claimant to ask you questions.
◉ Is an Adjusters claim file "confidential". Answer: No
, ◉ Main components in the investigative process:. Answer: Inquiry,
Verification, and Comparison
◉ What is NOT one of the four elements of a contract. Answer: Written
evidence of the agreement and its terms
◉ breach of contract. Answer: The failure, without legal excuse, of a
promisor to perform the obligations of a contract. "Bad Faith" verdict.
◉ What is not a fundamental part of an insurance policy. Answer:
Endorsements
◉ Following a loss, what is one one of the duties of the insured. Answer:
Giving prompt notice of loss to the insurer
◉ Percentage Deductible. Answer: percentage of the value of the insured
property
◉ 10/20/10 Split Limit Policy. Answer: $10,000 for bodily injury to one
person in an accident, A max of $20,000 for all individuals in an
accident regardless of the total number involved, and a Max of $10,000
for all property damage.
◉ Which of the following is NOT a defense to a claim of Negligence.
Answer: Breach of Warranty
ACTUAL EXAMINATION TEST 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ What are you really, buying when you purchase insurance. Answer:
Peace of mind
◉ Why is insurance such a unique product. Answer: It is a financial
product, the purchase of a product based on trust.
◉ What is an adjusters most important objective in todays world of
insurance. Answer: To help those who have been injured, or who have
suffered a loss that is covered by the insurance contract.
◉ company adjustor. Answer: Claims adjustor who is a salaried
employee representing only one company.
◉ Independent Adjuster. Answer: An independent claim representative
who handles claims for insurers for a fee.
,◉ property adjuster. Answer:
◉ Liability Adjuster. Answer:
◉ Multi-Line Adjusters. Answer: Field Adjuster
◉ Fiduciary Duty. Answer: That duty owed by an agent to act in the
highest good faith toward the principal and not to obtain any advantage
over the latter by the slightest misrepresentation, concealment, duress or
pressure.
◉ Agency: Power to Bind. Answer:
◉ What is not a basic adjusting function. Answer: Inspection
◉ Evaluation. Answer: Establishing a dollar value for a claim
◉ No Release/Walk Away. Answer: Paying what is owed, asking the
claimant to ask you questions.
◉ Is an Adjusters claim file "confidential". Answer: No
, ◉ Main components in the investigative process:. Answer: Inquiry,
Verification, and Comparison
◉ What is NOT one of the four elements of a contract. Answer: Written
evidence of the agreement and its terms
◉ breach of contract. Answer: The failure, without legal excuse, of a
promisor to perform the obligations of a contract. "Bad Faith" verdict.
◉ What is not a fundamental part of an insurance policy. Answer:
Endorsements
◉ Following a loss, what is one one of the duties of the insured. Answer:
Giving prompt notice of loss to the insurer
◉ Percentage Deductible. Answer: percentage of the value of the insured
property
◉ 10/20/10 Split Limit Policy. Answer: $10,000 for bodily injury to one
person in an accident, A max of $20,000 for all individuals in an
accident regardless of the total number involved, and a Max of $10,000
for all property damage.
◉ Which of the following is NOT a defense to a claim of Negligence.
Answer: Breach of Warranty
