NEW HAMPSHIRE ADJUSTER REAL EXAM 150 QUESTIONS
AND CORRECT ANSWERS WITH RATIONALES 2025-2026
LATEST VERSION//ALREADY GRADED A+
1. An insurance adjuster is investigating a property damage claim. What is the
first step in the claim process?
☑ A. Verify coverage and policy details
B. Determine settlement amount
C. Contact the insured’s attorney
D. Submit a final report
Rationale: The first step is always to confirm that the claim is covered under the policy, as this
determines how the investigation proceeds.
2. A homeowner files a claim after a storm damages their roof. Which document
is most important for the adjuster to review first?
☑ A. The insurance policy
B. Police report
C. Contractor estimate
D. Mortgage statement
Rationale: Reviewing the policy helps the adjuster understand coverage limits, exclusions, and
deductibles.
3. During a property inspection, the adjuster notices damage not claimed by the
policyholder. What should the adjuster do?
☑ A. Document the damage and notify the insurance company
B. Ignore the damage
C. Repair the damage personally
D. Advise the policyholder to claim it later
Rationale: Any uncovered or additional damage must be documented and reported to maintain
transparency and integrity.
4. A claim involves water damage due to a broken pipe. Which type of coverage
is typically considered first?
,☑ A. Dwelling or property coverage
B. Liability coverage
C. Auto coverage
D. Life insurance
Rationale: Water damage to the structure of a home is covered under dwelling or property
coverage, not liability or other policies.
5. An adjuster evaluates a personal injury claim. Which factor is critical in
determining liability?
☑ A. Negligence or fault
B. Age of the injured party
C. Type of insurance policy
D. Weather at the time of filing
Rationale: Liability hinges on proving negligence or fault in the incident.
6. A policyholder disagrees with the adjuster’s damage estimate. What is the
appropriate next step?
☑ A. Explain how the estimate was calculated and provide documentation
B. Refuse further discussion
C. Approve the claim regardless
D. Ask the policyholder to hire a lawyer immediately
Rationale: Transparency and explanation help resolve disputes professionally and maintain
compliance with regulations.
7. An adjuster handling a liability claim receives conflicting witness statements.
What should they do?
☑ A. Document all statements and seek corroborating evidence
B. Choose the statement that favors the insured
C. Ignore the witnesses
D. Only consider statements from the policyholder
Rationale: Thorough documentation and corroboration ensure accurate assessment of liability.
8. Which factor is most important when calculating depreciation for a property
damage claim?
,☑ A. Age and condition of the property
B. Location of the property
C. Color of the property
D. Policyholder’s occupation
Rationale: Depreciation is based on the property’s age, condition, and useful life, not unrelated
factors.
9. An adjuster is evaluating a total loss vehicle claim. What is the primary
method for determining the payout?
☑ A. Actual cash value (ACV) of the vehicle
B. Replacement cost of a new vehicle
C. Original purchase price
D. Loan balance only
Rationale: Total loss claims are generally paid based on the vehicle’s ACV at the time of loss,
accounting for depreciation.
10. A homeowner reports fire damage. Which action should the adjuster take
first?
☑ A. Inspect the property for safety and document damage
B. Schedule repairs immediately
C. Pay the claim before inspection
D. Call the fire department for investigation
Rationale: Ensuring safety and proper documentation is the first step in handling fire claims.
11. What is the purpose of a proof of loss form in an insurance claim?
☑ A. To provide a formal statement of the loss to the insurance company
B. To authorize repairs without inspection
C. To cancel the policy
D. To serve as a receipt for payment
Rationale: The proof of loss form documents the claim in writing and is required before
settlement.
12. An adjuster handling a liability claim notices the insured was partially at
fault. What type of settlement approach is typically used?
, ☑ A. Comparative negligence
B. Full liability on the insured
C. No settlement allowed
D. Punitive damages only
Rationale: Comparative negligence adjusts settlement amounts based on the degree of fault of
each party.
13. A flood damages a client’s basement. Which coverage is generally required to
pay for damages?
☑ A. Separate flood insurance policy
B. Standard homeowners insurance
C. Liability insurance
D. Auto insurance
Rationale: Standard homeowners insurance typically excludes flood damage, requiring a
separate flood policy.
14. An adjuster notices signs of potential fraud in a claim. What is the first step?
☑ A. Document observations and notify the insurance company’s fraud unit
B. Confront the policyholder immediately
C. Ignore the issue
D. Approve the claim regardless
Rationale: Suspected fraud must be reported internally; confronting the insured directly can
compromise the investigation.
15. When an adjuster uses the “replacement cost” method, what does this mean?
☑ A. The cost to repair or replace the property with similar materials without depreciation
B. The cost minus depreciation
C. The market value of the property
D. The original purchase price only
Rationale: Replacement cost coverage reimburses the insured for the full cost to replace
damaged property with similar quality items.
16. Which is the best way for an adjuster to handle a claim dispute with a
policyholder?
AND CORRECT ANSWERS WITH RATIONALES 2025-2026
LATEST VERSION//ALREADY GRADED A+
1. An insurance adjuster is investigating a property damage claim. What is the
first step in the claim process?
☑ A. Verify coverage and policy details
B. Determine settlement amount
C. Contact the insured’s attorney
D. Submit a final report
Rationale: The first step is always to confirm that the claim is covered under the policy, as this
determines how the investigation proceeds.
2. A homeowner files a claim after a storm damages their roof. Which document
is most important for the adjuster to review first?
☑ A. The insurance policy
B. Police report
C. Contractor estimate
D. Mortgage statement
Rationale: Reviewing the policy helps the adjuster understand coverage limits, exclusions, and
deductibles.
3. During a property inspection, the adjuster notices damage not claimed by the
policyholder. What should the adjuster do?
☑ A. Document the damage and notify the insurance company
B. Ignore the damage
C. Repair the damage personally
D. Advise the policyholder to claim it later
Rationale: Any uncovered or additional damage must be documented and reported to maintain
transparency and integrity.
4. A claim involves water damage due to a broken pipe. Which type of coverage
is typically considered first?
,☑ A. Dwelling or property coverage
B. Liability coverage
C. Auto coverage
D. Life insurance
Rationale: Water damage to the structure of a home is covered under dwelling or property
coverage, not liability or other policies.
5. An adjuster evaluates a personal injury claim. Which factor is critical in
determining liability?
☑ A. Negligence or fault
B. Age of the injured party
C. Type of insurance policy
D. Weather at the time of filing
Rationale: Liability hinges on proving negligence or fault in the incident.
6. A policyholder disagrees with the adjuster’s damage estimate. What is the
appropriate next step?
☑ A. Explain how the estimate was calculated and provide documentation
B. Refuse further discussion
C. Approve the claim regardless
D. Ask the policyholder to hire a lawyer immediately
Rationale: Transparency and explanation help resolve disputes professionally and maintain
compliance with regulations.
7. An adjuster handling a liability claim receives conflicting witness statements.
What should they do?
☑ A. Document all statements and seek corroborating evidence
B. Choose the statement that favors the insured
C. Ignore the witnesses
D. Only consider statements from the policyholder
Rationale: Thorough documentation and corroboration ensure accurate assessment of liability.
8. Which factor is most important when calculating depreciation for a property
damage claim?
,☑ A. Age and condition of the property
B. Location of the property
C. Color of the property
D. Policyholder’s occupation
Rationale: Depreciation is based on the property’s age, condition, and useful life, not unrelated
factors.
9. An adjuster is evaluating a total loss vehicle claim. What is the primary
method for determining the payout?
☑ A. Actual cash value (ACV) of the vehicle
B. Replacement cost of a new vehicle
C. Original purchase price
D. Loan balance only
Rationale: Total loss claims are generally paid based on the vehicle’s ACV at the time of loss,
accounting for depreciation.
10. A homeowner reports fire damage. Which action should the adjuster take
first?
☑ A. Inspect the property for safety and document damage
B. Schedule repairs immediately
C. Pay the claim before inspection
D. Call the fire department for investigation
Rationale: Ensuring safety and proper documentation is the first step in handling fire claims.
11. What is the purpose of a proof of loss form in an insurance claim?
☑ A. To provide a formal statement of the loss to the insurance company
B. To authorize repairs without inspection
C. To cancel the policy
D. To serve as a receipt for payment
Rationale: The proof of loss form documents the claim in writing and is required before
settlement.
12. An adjuster handling a liability claim notices the insured was partially at
fault. What type of settlement approach is typically used?
, ☑ A. Comparative negligence
B. Full liability on the insured
C. No settlement allowed
D. Punitive damages only
Rationale: Comparative negligence adjusts settlement amounts based on the degree of fault of
each party.
13. A flood damages a client’s basement. Which coverage is generally required to
pay for damages?
☑ A. Separate flood insurance policy
B. Standard homeowners insurance
C. Liability insurance
D. Auto insurance
Rationale: Standard homeowners insurance typically excludes flood damage, requiring a
separate flood policy.
14. An adjuster notices signs of potential fraud in a claim. What is the first step?
☑ A. Document observations and notify the insurance company’s fraud unit
B. Confront the policyholder immediately
C. Ignore the issue
D. Approve the claim regardless
Rationale: Suspected fraud must be reported internally; confronting the insured directly can
compromise the investigation.
15. When an adjuster uses the “replacement cost” method, what does this mean?
☑ A. The cost to repair or replace the property with similar materials without depreciation
B. The cost minus depreciation
C. The market value of the property
D. The original purchase price only
Rationale: Replacement cost coverage reimburses the insured for the full cost to replace
damaged property with similar quality items.
16. Which is the best way for an adjuster to handle a claim dispute with a
policyholder?
