NM ADJUSTER EXAMINATION TEST 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Which of the following people does NOT have an insurable interest in
an insured property? Answer: A homeowner's interest in the local town
water pipes that deliver water to his home.
◉ In the event of a catastrophe, emergency adjuster licenses in New
Mexico are valid for: Answer: 90 days.
◉ Cindy falls down the stairs at Jane's house and breaks her arm,
resulting in $2,500 in medical expenses. Jane's homeowner's insurance
will cover the liability, but Cindy is particularly mad at Jane for not
keeping her house in order and is seeking punitive damages. Jane's
insurance adjuster informs the two of them that they will likely have to
go to court to settle the dispute because: Answer: punitive damages can
only be determined by a court of law.
◉ Under Jacqueline's Personal Injury Protection, all of the following
would be covered for bodily injuries except: Answer: Jacqueline's sister
who also has PIP
◉ Jason has had mild asthma since childhood. He now works in a
chemical processing plant, and his asthma has gotten much worse ever
,since he contracted pneumonia because of the fumes at the plant. For
workers' compensation insurance, this is usually known as: Answer:
aggravation.
◉ Jane's shed burns to the ground during a tornado, when a tree falls on
the roof and snaps a power line, which then ignites the structure. What is
the proximate cause of the loss? Answer: Wind
◉ Inland marine insurance protects: Answer: property related to
transportation and property being transported
◉ Under the New Mexico Commercial Auto Insurance Plan, a
policyholder can purchase additional coverage up to limits required by
any other state: Answer: but only for as long as the insured vehicles are
being driven in that state.
◉ What are the four requirements of a legally binding contract? Answer:
Agreement, consideration, competent parties, legal purpose
◉ Which statement about the Jones Act is TRUE? Answer: It protects
injured seamen by allowing them to sue for damages and to choose a
jury trial.
◉ All of the following lines of coverage may be offered in Commercial
Package Policy, except: Answer: Workers' Compensation.
,◉ Jocelyn visits her local car dealership to test drive a sports car, but
once she gets on the road, she skips town with the car and doesn't come
back. Which Garage policy coverage could pay for the theft of the sports
car? Answer: False pretense coverage
◉ Who must fill out a proof of loss form? Answer: The claimant
◉ Appraisal is used to decide: Answer: the settlement amount
◉ _________covers losses ships and their Answer: Ocean Marine
insurance
◉ Caitlin works as a driver for a local oil company. She picks up the
field workers and drops them at the wellsite. Then, once their shift is
completed she brings them home again using the company van. Which
endorsement provides the best coverage for Caitlin? Answer: Extended
Non-Owner
◉ What type of commercial auto policy would best suit a taxi company?
Answer: Motor Carrier policy
◉ Lillian owns an antiques shop and Sandy works part time for her. One
afternoon, while Sandy is decorating the window display, she loses her
balance and falls backward off a step stool, breaking some very
, expensive lamps in the process. What policy condition in Lillian's
commercial property policy provides evidence that this loss may be
covered? Answer: Control of Property
◉ Reservation of Rights letter is sent by: Answer: the insurer to the
claimant.
◉ In a third-party claim, the injured person has a duty to: Answer:
authorize the insurer to examine her medical records.
◉ All of the insurance professionals below are in danger of having their
licenses suspended or revoked, except: Answer: Arlene, who received a
$175 traffic ticket after running a stop sign.
◉ A policyholder who does not currently have Comprehensive
Coverage, but would like to add it to a newly purchased vehicle, must
notify the insurer within: Answer: 4 days
◉ Cheney owns a construction company in New Mexico. How many
employees does Cheney have to have in order to be required by law to
purchase workers' compensation coverage for them? Answer: 1
◉ While reviewing a homeowners policy, you may find all of the
following listed as an insured's duty after a loss, EXCEPT: Answer:
provide the insurer with a loss estimate from an appraiser.
QUESTIONS WITH ANSWERS GRADED A+
◉ Which of the following people does NOT have an insurable interest in
an insured property? Answer: A homeowner's interest in the local town
water pipes that deliver water to his home.
◉ In the event of a catastrophe, emergency adjuster licenses in New
Mexico are valid for: Answer: 90 days.
◉ Cindy falls down the stairs at Jane's house and breaks her arm,
resulting in $2,500 in medical expenses. Jane's homeowner's insurance
will cover the liability, but Cindy is particularly mad at Jane for not
keeping her house in order and is seeking punitive damages. Jane's
insurance adjuster informs the two of them that they will likely have to
go to court to settle the dispute because: Answer: punitive damages can
only be determined by a court of law.
◉ Under Jacqueline's Personal Injury Protection, all of the following
would be covered for bodily injuries except: Answer: Jacqueline's sister
who also has PIP
◉ Jason has had mild asthma since childhood. He now works in a
chemical processing plant, and his asthma has gotten much worse ever
,since he contracted pneumonia because of the fumes at the plant. For
workers' compensation insurance, this is usually known as: Answer:
aggravation.
◉ Jane's shed burns to the ground during a tornado, when a tree falls on
the roof and snaps a power line, which then ignites the structure. What is
the proximate cause of the loss? Answer: Wind
◉ Inland marine insurance protects: Answer: property related to
transportation and property being transported
◉ Under the New Mexico Commercial Auto Insurance Plan, a
policyholder can purchase additional coverage up to limits required by
any other state: Answer: but only for as long as the insured vehicles are
being driven in that state.
◉ What are the four requirements of a legally binding contract? Answer:
Agreement, consideration, competent parties, legal purpose
◉ Which statement about the Jones Act is TRUE? Answer: It protects
injured seamen by allowing them to sue for damages and to choose a
jury trial.
◉ All of the following lines of coverage may be offered in Commercial
Package Policy, except: Answer: Workers' Compensation.
,◉ Jocelyn visits her local car dealership to test drive a sports car, but
once she gets on the road, she skips town with the car and doesn't come
back. Which Garage policy coverage could pay for the theft of the sports
car? Answer: False pretense coverage
◉ Who must fill out a proof of loss form? Answer: The claimant
◉ Appraisal is used to decide: Answer: the settlement amount
◉ _________covers losses ships and their Answer: Ocean Marine
insurance
◉ Caitlin works as a driver for a local oil company. She picks up the
field workers and drops them at the wellsite. Then, once their shift is
completed she brings them home again using the company van. Which
endorsement provides the best coverage for Caitlin? Answer: Extended
Non-Owner
◉ What type of commercial auto policy would best suit a taxi company?
Answer: Motor Carrier policy
◉ Lillian owns an antiques shop and Sandy works part time for her. One
afternoon, while Sandy is decorating the window display, she loses her
balance and falls backward off a step stool, breaking some very
, expensive lamps in the process. What policy condition in Lillian's
commercial property policy provides evidence that this loss may be
covered? Answer: Control of Property
◉ Reservation of Rights letter is sent by: Answer: the insurer to the
claimant.
◉ In a third-party claim, the injured person has a duty to: Answer:
authorize the insurer to examine her medical records.
◉ All of the insurance professionals below are in danger of having their
licenses suspended or revoked, except: Answer: Arlene, who received a
$175 traffic ticket after running a stop sign.
◉ A policyholder who does not currently have Comprehensive
Coverage, but would like to add it to a newly purchased vehicle, must
notify the insurer within: Answer: 4 days
◉ Cheney owns a construction company in New Mexico. How many
employees does Cheney have to have in order to be required by law to
purchase workers' compensation coverage for them? Answer: 1
◉ While reviewing a homeowners policy, you may find all of the
following listed as an insured's duty after a loss, EXCEPT: Answer:
provide the insurer with a loss estimate from an appraiser.
