ARIZONA INSURANCE ADJUSTER EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES Q&A 2026 |INSTANT
DOWNLOAD PDF
1. Which of the following is the primary duty of an insurance
adjuster?
A. Sell insurance policies
B. Investigate claims
C. Set premium rates
D. Audit financial statements
Rationale: Adjusters are responsible for investigating and
evaluating insurance claims to determine coverage and payout
amounts.
Correct Answer: B. Investigate claims
2. What is the first step an adjuster should take after receiving
a claim?
A. Pay the claim immediately
B. Contact the insured
C. Investigate the loss
D. File a report with the state
,Rationale: The initial step is to contact the insured and gather
information before investigation.
Correct Answer: B. Contact the insured
3. Which of the following is considered a peril in property
insurance?
A. Fire
B. Theft
C. Flood
D. All of the above
Rationale: Perils are causes of loss that insurance policies
cover, including fire, theft, and natural disasters.
Correct Answer: D. All of the above
4. Which type of policy provides coverage for all risks except
those specifically excluded?
A. Named peril policy
B. Open peril policy
C. Liability policy
D. Life insurance policy
Rationale: Open (or all-risk) policies cover all losses except
those specifically excluded.
Correct Answer: B. Open peril policy
,5. What does “ACV” stand for in property claims?
A. Actual Cost Value
B. Adjusted Claim Value
C. Actual Cash Value
D. Average Claim Value
Rationale: ACV represents the replacement cost of property
minus depreciation.
Correct Answer: C. Actual Cash Value
6. Which of the following is a common duty of a public
adjuster?
A. Represent the insurer in claim negotiation
B. Represent the insured in claim negotiation
C. Determine insurance premium rates
D. Audit insurance companies
Rationale: Public adjusters act on behalf of the policyholder to
settle claims.
Correct Answer: B. Represent the insured in claim negotiation
7. Which of these is NOT an element of a valid insurance
contract?
, A. Offer and acceptance
B. Consideration
C. Legal purpose
D. Government approval
Rationale: Government approval is not required; the essential
elements are agreement, consideration, competent parties,
and legal purpose.
Correct Answer: D. Government approval
8. In liability insurance, what is the “per occurrence limit”?
A. Maximum coverage for all claims in a year
B. Maximum coverage for a single claim
C. Deductible amount per claim
D. Amount paid by the insured
Rationale: The per occurrence limit is the maximum insurer
payout for any single incident.
Correct Answer: B. Maximum coverage for a single claim
9. What is the main purpose of subrogation?
A. Increase the insured’s payout
B. Recover money from a third party responsible for the loss
C. Reduce premiums
D. Avoid paying claims
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES Q&A 2026 |INSTANT
DOWNLOAD PDF
1. Which of the following is the primary duty of an insurance
adjuster?
A. Sell insurance policies
B. Investigate claims
C. Set premium rates
D. Audit financial statements
Rationale: Adjusters are responsible for investigating and
evaluating insurance claims to determine coverage and payout
amounts.
Correct Answer: B. Investigate claims
2. What is the first step an adjuster should take after receiving
a claim?
A. Pay the claim immediately
B. Contact the insured
C. Investigate the loss
D. File a report with the state
,Rationale: The initial step is to contact the insured and gather
information before investigation.
Correct Answer: B. Contact the insured
3. Which of the following is considered a peril in property
insurance?
A. Fire
B. Theft
C. Flood
D. All of the above
Rationale: Perils are causes of loss that insurance policies
cover, including fire, theft, and natural disasters.
Correct Answer: D. All of the above
4. Which type of policy provides coverage for all risks except
those specifically excluded?
A. Named peril policy
B. Open peril policy
C. Liability policy
D. Life insurance policy
Rationale: Open (or all-risk) policies cover all losses except
those specifically excluded.
Correct Answer: B. Open peril policy
,5. What does “ACV” stand for in property claims?
A. Actual Cost Value
B. Adjusted Claim Value
C. Actual Cash Value
D. Average Claim Value
Rationale: ACV represents the replacement cost of property
minus depreciation.
Correct Answer: C. Actual Cash Value
6. Which of the following is a common duty of a public
adjuster?
A. Represent the insurer in claim negotiation
B. Represent the insured in claim negotiation
C. Determine insurance premium rates
D. Audit insurance companies
Rationale: Public adjusters act on behalf of the policyholder to
settle claims.
Correct Answer: B. Represent the insured in claim negotiation
7. Which of these is NOT an element of a valid insurance
contract?
, A. Offer and acceptance
B. Consideration
C. Legal purpose
D. Government approval
Rationale: Government approval is not required; the essential
elements are agreement, consideration, competent parties,
and legal purpose.
Correct Answer: D. Government approval
8. In liability insurance, what is the “per occurrence limit”?
A. Maximum coverage for all claims in a year
B. Maximum coverage for a single claim
C. Deductible amount per claim
D. Amount paid by the insured
Rationale: The per occurrence limit is the maximum insurer
payout for any single incident.
Correct Answer: B. Maximum coverage for a single claim
9. What is the main purpose of subrogation?
A. Increase the insured’s payout
B. Recover money from a third party responsible for the loss
C. Reduce premiums
D. Avoid paying claims
