ARIZONA ADJUSTER MAIN EXAMINATION 2026 SET
QUESTIONS AND SOLUTIONS RATED A+
✔✔Contract - ✔✔An agreement entered into voluntarily by two parties or more with the
intention of creating a legal obligation.
✔✔Coverages - ✔✔The amount and extent of protection provided by an insurance
policy.
✔✔Crime - ✔✔An offense against the State or Federal Government, or a breach of law,
for which the offender shall make satisfaction to the public.
✔✔Criminal - ✔✔Someone who has been convicted of a criminal act in a court of law.
✔✔Crop Hail Insurance - ✔✔A form of Crop Yield Insurance that is usually provided by
private insurers without government subsidy. It offers named-peril protection on an
acreage basis.
✔✔Crop Insurance - ✔✔Insurance coverage designed to protect a farmer's financial
investment in his or her crops. Covers losses to a crop's profitability.
✔✔Crop Revenue Insurance - ✔✔Crop insurance that combines crop-yield insurance
and price insurance to protect against losses to crop value.
✔✔Crop Yield Insurance - ✔✔Crop insurance that covers physical losses to actual
crops.
✔✔Damages - general - ✔✔Intangible losses such as pain and suffering, or mental
anguish.
✔✔Damages - special - ✔✔Tangible, financial losses that can be documented.
✔✔Dangerous Instrumentality Doctrine - ✔✔States that anyone involved in the use of
inherently dangerous products or machines is held 100% liable for their own damages.
✔✔Dec Page - ✔✔Also called the Declarations Page. First page of a policy, which
provides a summary of the contract; includes names of insured, addresses, coverage
limits, policy period, etc.
✔✔Declined Coverage - ✔✔takes place when an insurance company rejects an
application for coverage.
✔✔Deductible - ✔✔Deductible: the amount the policyholder must pay out-of-pocket
before the insurance company will pay the remaining costs.
,✔✔Deductible - fixed - ✔✔A fixed deductible is one specific, predetermined amount that
a policyholder must pay out-of-pocket before he can be indemnified.
✔✔Deductible - percentage - ✔✔A deductible that is calculated as a percentage of the
value of the insured risk.
✔✔Deductible - franchise - ✔✔A franchise deductible states that the policyholder only
pays for damages that are less than his deductible. If the cost of damages equals or
exceeds his deductible, the insurer pays the full amount and the policyholder pays
nothing.
✔✔Defamation - ✔✔Damage to another's name or reputation, whether by libel, which is
in print, or by slander, which is in speech.
✔✔Default Judgement - ✔✔Default Judgement is entered by the court against the party
who failed to defend against a claim brought on by another party. In other words, if the
person fails to show up and answer the claim the court will find in favor of the other
party.
✔✔Definitions - ✔✔Page in policy that gives specific limited meaning to terms used in
policy.
✔✔Depreciation - ✔✔A decline in value of property caused by wear or loss of
usefulness usually measured by a specific formula.
✔✔Direct Loss - ✔✔Physical harm to tangible property caused by a peril.
✔✔Discoverable - ✔✔Capable of being demanded and handed over as evidence in a
court of law; during litigation proceedings, the adjuster's claims file is discoverable.
✔✔Eligiblity - ✔✔Eligibility Requirements are found in some insurance policies. They
identify the conditions that must be met by the policyholder in order to qualify for
coverage under a policy.
✔✔End of Insurance Date - ✔✔The date that crop insurance coverage will end. It is the
earliest of: total crop destruction, harvest of the crop, final adjustment of a loss,
abandonment of a crop, or a date predesignated by crop type.
✔✔Endorsement(s) - ✔✔An optional provision that can be added to a policy to
increase, reduce, or modify coverage for specific property types or perils.
✔✔Errors and Omissions - ✔✔Liability insurance that indemnifies professionals for
errors or oversights on the part of the insured that caused harm to their clients.
, ✔✔Estoppel - ✔✔A legal principle that bars a party from asserting something contrary
to what has been implied by his previous actions or statements.
✔✔Ethical - ✔✔Adhering to moral laws and to principles of fairness.
✔✔Evaluation - ✔✔Evaluation, determining the approximate value of damages relevant
to a claim i.e. total of medical bills, costs of repair & replacement of damaged property
and the consideration of the financial provisions of the insurance policy.
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils that are NOT covered by the policy.
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely.
✔✔Fair Credit Reporting - ✔✔Federal legislation that gives an applicant for insurance
the right to investigate the reasons his insurance application was denied.
✔✔Fall Down Case - ✔✔A lawsuit brought against a property owner by someone who
has fallen down on the property.
✔✔False Advertising - ✔✔Presenting something in a deceptive or untrue manner to the
consumer; misrepresentations in advertisements.
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for injury and damage to a third party.
✔✔Farm Property Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for the dwelling, other structures, farm structures, and both
household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In Farm insurance, a farmer must reside and do business on the same premises.
✔✔Federal Crop Insurance Act - ✔✔Legislation passed by Congress that established
the Federal crop insurance program.
✔✔Federal Crop Insurance Corporation (FCIC) - ✔✔A government-owned corporation
that manages the Federal crop insurance program.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Contract - ✔✔An agreement entered into voluntarily by two parties or more with the
intention of creating a legal obligation.
✔✔Coverages - ✔✔The amount and extent of protection provided by an insurance
policy.
✔✔Crime - ✔✔An offense against the State or Federal Government, or a breach of law,
for which the offender shall make satisfaction to the public.
✔✔Criminal - ✔✔Someone who has been convicted of a criminal act in a court of law.
✔✔Crop Hail Insurance - ✔✔A form of Crop Yield Insurance that is usually provided by
private insurers without government subsidy. It offers named-peril protection on an
acreage basis.
✔✔Crop Insurance - ✔✔Insurance coverage designed to protect a farmer's financial
investment in his or her crops. Covers losses to a crop's profitability.
✔✔Crop Revenue Insurance - ✔✔Crop insurance that combines crop-yield insurance
and price insurance to protect against losses to crop value.
✔✔Crop Yield Insurance - ✔✔Crop insurance that covers physical losses to actual
crops.
✔✔Damages - general - ✔✔Intangible losses such as pain and suffering, or mental
anguish.
✔✔Damages - special - ✔✔Tangible, financial losses that can be documented.
✔✔Dangerous Instrumentality Doctrine - ✔✔States that anyone involved in the use of
inherently dangerous products or machines is held 100% liable for their own damages.
✔✔Dec Page - ✔✔Also called the Declarations Page. First page of a policy, which
provides a summary of the contract; includes names of insured, addresses, coverage
limits, policy period, etc.
✔✔Declined Coverage - ✔✔takes place when an insurance company rejects an
application for coverage.
✔✔Deductible - ✔✔Deductible: the amount the policyholder must pay out-of-pocket
before the insurance company will pay the remaining costs.
,✔✔Deductible - fixed - ✔✔A fixed deductible is one specific, predetermined amount that
a policyholder must pay out-of-pocket before he can be indemnified.
✔✔Deductible - percentage - ✔✔A deductible that is calculated as a percentage of the
value of the insured risk.
✔✔Deductible - franchise - ✔✔A franchise deductible states that the policyholder only
pays for damages that are less than his deductible. If the cost of damages equals or
exceeds his deductible, the insurer pays the full amount and the policyholder pays
nothing.
✔✔Defamation - ✔✔Damage to another's name or reputation, whether by libel, which is
in print, or by slander, which is in speech.
✔✔Default Judgement - ✔✔Default Judgement is entered by the court against the party
who failed to defend against a claim brought on by another party. In other words, if the
person fails to show up and answer the claim the court will find in favor of the other
party.
✔✔Definitions - ✔✔Page in policy that gives specific limited meaning to terms used in
policy.
✔✔Depreciation - ✔✔A decline in value of property caused by wear or loss of
usefulness usually measured by a specific formula.
✔✔Direct Loss - ✔✔Physical harm to tangible property caused by a peril.
✔✔Discoverable - ✔✔Capable of being demanded and handed over as evidence in a
court of law; during litigation proceedings, the adjuster's claims file is discoverable.
✔✔Eligiblity - ✔✔Eligibility Requirements are found in some insurance policies. They
identify the conditions that must be met by the policyholder in order to qualify for
coverage under a policy.
✔✔End of Insurance Date - ✔✔The date that crop insurance coverage will end. It is the
earliest of: total crop destruction, harvest of the crop, final adjustment of a loss,
abandonment of a crop, or a date predesignated by crop type.
✔✔Endorsement(s) - ✔✔An optional provision that can be added to a policy to
increase, reduce, or modify coverage for specific property types or perils.
✔✔Errors and Omissions - ✔✔Liability insurance that indemnifies professionals for
errors or oversights on the part of the insured that caused harm to their clients.
, ✔✔Estoppel - ✔✔A legal principle that bars a party from asserting something contrary
to what has been implied by his previous actions or statements.
✔✔Ethical - ✔✔Adhering to moral laws and to principles of fairness.
✔✔Evaluation - ✔✔Evaluation, determining the approximate value of damages relevant
to a claim i.e. total of medical bills, costs of repair & replacement of damaged property
and the consideration of the financial provisions of the insurance policy.
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils that are NOT covered by the policy.
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely.
✔✔Fair Credit Reporting - ✔✔Federal legislation that gives an applicant for insurance
the right to investigate the reasons his insurance application was denied.
✔✔Fall Down Case - ✔✔A lawsuit brought against a property owner by someone who
has fallen down on the property.
✔✔False Advertising - ✔✔Presenting something in a deceptive or untrue manner to the
consumer; misrepresentations in advertisements.
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for injury and damage to a third party.
✔✔Farm Property Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for the dwelling, other structures, farm structures, and both
household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In Farm insurance, a farmer must reside and do business on the same premises.
✔✔Federal Crop Insurance Act - ✔✔Legislation passed by Congress that established
the Federal crop insurance program.
✔✔Federal Crop Insurance Corporation (FCIC) - ✔✔A government-owned corporation
that manages the Federal crop insurance program.
