NM ADJUSTER PRACTICE PAPER 2026 FULL
QUESTIONS AND ANSWERS GRADED A+
◉Which Commercial Forms would cover sinkhole collapse? Answer:
Basic, Broad, and Special.
◉______ is a movement allowed by certain joints of the skeleton that
decreases the angle between two adjoining bones. Answer: Flexion
◉The listing of the perils covered is found in which part of a
homeowner policy? Answer: Insuring Agreement.
◉If a dog owned by a customer is injured in the parking lot of a
store, is that considered bodily injury under liability coverage?
Answer: No. The dog is property and would be consider property
damage.
◉The Superintendent of Insurance may approve the employment,
appointment or participation of any person whose license has been
revoked. Karen Jones had her license revoked and filed an
application for relicensing and has waited over 120 days without a
response from the Insurance Department. What should or can she
do? Answer: Assume the relicensing is approved.
,◉Mr. Vickers was in a hurry to catch a plane. He parks his car in the
parking garage at the airport and leaves the keys in the ignition.
When he returns he finds that his car has been stolen. Later the car
was discovered with severe collision damage. The airport carries
Garagekeeper's Legal Liability coverage and Mr. Vickers carries
Liability and Comprehensive coverage on his auto. What coverage
would apply? Answer: Mr. Vickers comprehensive coverage.
◉An automobile is polluting the environment. What engine
component could be the primary cause? Answer: Catalytic
Converter Malfunction.
◉Under the dwelling policy, DP2 or D3, what is the maximum
amount of Coverage A that would be paid for additional living
expenses? Answer: 20%
◉Workers compensation policies also include employer's liability
coverage. If any employer fails to maintain the equipment and an
employee is injured, would it be covered under this coverage?
Answer: Yes.
◉Fidelity bonds are typically written to be effective for a: Answer:
Continuous term without an expiration date.
,◉One purpose of a deductible is to: Answer: Eliminate small claims.
◉If the insured has failed to pay the premium for a worker
compensation policy issued in New York, how many days notice of
cancellation must be sent to the insured? Answer: A 10 day notice.
◉A ship owner wanting coverage in case crew members bring
liability suits for injuries sustained while working would purchase:
Answer: Protection and Indemnity
◉Under workers compensation in New York, which of the following
does not raise the premium based on it being a proportion of the
charged premium? Answer: Premium Discount.
◉What is an example of a moral hazard? Answer: Embezzlement
◉If an insured is responsible for damaging a client's million dollar
shipment of products, would this coverage be covered by the
commercial umbrella liability coverage under BI and PD coverage?
Answer: Yes.
◉A homeowner with personal property insured for $60,000 had a
fire which destroyed everything. The total value of the personal
property at the time of the loss was only $50,000. What principle
, would be violated if her insurer paid her more than $50,000?
Answer: Principle of Indemnity.
◉What is the appropriate manner in which to sign a "release of all
claims?" Answer: Must use full legal name.
◉Jane becomes injured in an auto accident caused when she took
her eyes off the road to send a text message on her cell phone. This is
an example of a: Answer: Morale Hazard.
◉The deductible on the Equipment Breakdown form can be stated
in what 3 ways? Answer: Fixed Dollar Amount, Time Deductible,
and Percentage of Loss.
◉A car has had the front sheet metal replaced. The fender-to-door
gap is wider on the passenger side than on the driver side and the
hood appears out of alignment. Technician A says that only the hood
latch is misaligned. Technician B says the front structure of the
vehicle is not dimensionally correct. Who is right? Answer:
Technician B only.
◉A tenant leases space in a building. The tenant's space is damaged
by fire. When will the commercial Property Policy pay for the
damage? Answer: When the owner of the building submits proof of
loss for the damage.
QUESTIONS AND ANSWERS GRADED A+
◉Which Commercial Forms would cover sinkhole collapse? Answer:
Basic, Broad, and Special.
◉______ is a movement allowed by certain joints of the skeleton that
decreases the angle between two adjoining bones. Answer: Flexion
◉The listing of the perils covered is found in which part of a
homeowner policy? Answer: Insuring Agreement.
◉If a dog owned by a customer is injured in the parking lot of a
store, is that considered bodily injury under liability coverage?
Answer: No. The dog is property and would be consider property
damage.
◉The Superintendent of Insurance may approve the employment,
appointment or participation of any person whose license has been
revoked. Karen Jones had her license revoked and filed an
application for relicensing and has waited over 120 days without a
response from the Insurance Department. What should or can she
do? Answer: Assume the relicensing is approved.
,◉Mr. Vickers was in a hurry to catch a plane. He parks his car in the
parking garage at the airport and leaves the keys in the ignition.
When he returns he finds that his car has been stolen. Later the car
was discovered with severe collision damage. The airport carries
Garagekeeper's Legal Liability coverage and Mr. Vickers carries
Liability and Comprehensive coverage on his auto. What coverage
would apply? Answer: Mr. Vickers comprehensive coverage.
◉An automobile is polluting the environment. What engine
component could be the primary cause? Answer: Catalytic
Converter Malfunction.
◉Under the dwelling policy, DP2 or D3, what is the maximum
amount of Coverage A that would be paid for additional living
expenses? Answer: 20%
◉Workers compensation policies also include employer's liability
coverage. If any employer fails to maintain the equipment and an
employee is injured, would it be covered under this coverage?
Answer: Yes.
◉Fidelity bonds are typically written to be effective for a: Answer:
Continuous term without an expiration date.
,◉One purpose of a deductible is to: Answer: Eliminate small claims.
◉If the insured has failed to pay the premium for a worker
compensation policy issued in New York, how many days notice of
cancellation must be sent to the insured? Answer: A 10 day notice.
◉A ship owner wanting coverage in case crew members bring
liability suits for injuries sustained while working would purchase:
Answer: Protection and Indemnity
◉Under workers compensation in New York, which of the following
does not raise the premium based on it being a proportion of the
charged premium? Answer: Premium Discount.
◉What is an example of a moral hazard? Answer: Embezzlement
◉If an insured is responsible for damaging a client's million dollar
shipment of products, would this coverage be covered by the
commercial umbrella liability coverage under BI and PD coverage?
Answer: Yes.
◉A homeowner with personal property insured for $60,000 had a
fire which destroyed everything. The total value of the personal
property at the time of the loss was only $50,000. What principle
, would be violated if her insurer paid her more than $50,000?
Answer: Principle of Indemnity.
◉What is the appropriate manner in which to sign a "release of all
claims?" Answer: Must use full legal name.
◉Jane becomes injured in an auto accident caused when she took
her eyes off the road to send a text message on her cell phone. This is
an example of a: Answer: Morale Hazard.
◉The deductible on the Equipment Breakdown form can be stated
in what 3 ways? Answer: Fixed Dollar Amount, Time Deductible,
and Percentage of Loss.
◉A car has had the front sheet metal replaced. The fender-to-door
gap is wider on the passenger side than on the driver side and the
hood appears out of alignment. Technician A says that only the hood
latch is misaligned. Technician B says the front structure of the
vehicle is not dimensionally correct. Who is right? Answer:
Technician B only.
◉A tenant leases space in a building. The tenant's space is damaged
by fire. When will the commercial Property Policy pay for the
damage? Answer: When the owner of the building submits proof of
loss for the damage.
