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an insurance contract, the policyholder gives the insurer ___ and the insurer gives the
policyholder ___. - anspremium payments; peace of mind
Which of the following people does NOT have an insurable interest in an insured property? -
ansA 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: -
ans90 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: - anspunitive 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: - ansJacqueline'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: -
ansaggravation.
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? -
ansWind
Inland marine insurance protects: - ansproperty 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: - ansbut only for as long as the
insured vehicles are being driven in that state.
What are the four requirements of a legally binding contract? - ansAgreement, consideration,
competent parties, legal purpose
Which statement about the Jones Act is TRUE? - ansIt 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:
- ansWorkers' 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? - ansFalse pretense coverage
,Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
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FINAL EXAM.
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Who must fill out a proof of loss form? - ansThe claimant
Appraisal is used to decide: - ansthe settlement amount
_________covers losses ships and their - ansOcean 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? - ansExtended
Non-Owner
What type of commercial auto policy would best suit a taxi company? - ansMotor 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? - ansControl of
Property
Reservation of Rights letter is sent by: - ansthe insurer to the claimant.
In a third-party claim, the injured person has a duty to: - ansauthorize the insurer to examine
her medical records.
All of the insurance professionals below are in danger of having their licenses suspended or
revoked, except: - ansArlene, 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: - ans4 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? - ans1
While reviewing a homeowners policy, you may find all of the following listed as an
insured's duty after a loss, EXCEPT: - ansprovide the insurer with a loss estimate from an
appraiser.
Which of the following is NOT an endorsement commonly added to a Dwelling Policy? -
ansAnnual Depreciation
Lawrence is 24, but he gives his age as 26 on his car insurance application because he hopes
this will get him a better rate. Lawrence's actions could best be described as -
ansmisrepresentation.
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still
,Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
review, NY Practice exam
w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
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wants to protect his initial investment. What is the cheapest policy option that would protect
Simon's financial interest in his home, even in the brutal winters? - ansHO-2
For the purposes of workers' compensation insurance, an employee's Average Weekly Wage
is determined by averaging the employee's pay in the weeks leading up to the injury. - ans26
Which of the following situations does NOT involve misrepresentation? - ansAtticus
manages an insurance agency and posts the salespeoples' numbers publicly each month, to
promote competition.
What does it mean when we say that an adjuster has the "power to bind"? - ansThe principal
is bound to the decisions the adjuster makes.
James has purchased a collection of antique furniture to sell to fine furniture dealers in the
United States. James is moving the entire collection from Shanghai to Los Angeles in one
shipment, and wants to purchase insurance for his cargo, should anything occur during the
voyage to compromise his investment. What kind of coverage is James looking for? -
ansCargo coverage-Single Risk Form
Homeowners policies don't provide coverage for: - ansflood damage.
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen and
leaves smoke damage throughout her home. While the fire department puts the fire out, the
influx of water causes extensive damage as well. On top of all that, Mary is forced to board
her three dogs at a kennel for several weeks while her house is under repair. The kennel
charge would be considered: - ansan indirect loss.
Which of the following would be considered a physical hazard? - ansBrad's pool in his
backyard.
An adjuster with draft authority can: - answrite settlement checks on the insurer's behalf.
Calvin earned $450 per week before he was killed in a work-related accident. His dependents
will receive per week for up to weeks - ans$300: 700
The New Mexico Insurance Fraud Act stipulates that the superintendent must: - ansassist in
the prosecution of any suspected fraud that he reports to the appropriate law enforcement
agency
Which of the following sequences is most likely in the correct chronological order? -
ansAcknowledge the claim, then open a line of communication with the claimant.
insurance company would pay him somewhere in the neighborhood of $7,000. Jim decides to
have a friend car, he knows he'll only get about $4,000 for it. But Jim knows that if the car
was somehow stolen, his Jim is completely "upside down" financially on his car. He owes the
finance company $8,000. If he sells the steal the car and "make it disappear." Jim then files a
, Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
review, NY Practice exam
w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
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claim with his insurance company to report his car stolen. Which best represents Jim's
actions? - ansHard fraud
In each of the following, the insured has filed a claim against their homeowners policy. In
which of these scenarios would the insurer most likely deny the claim?
A. Stephen is unable to provide pictures of his personal items that were destroyed in his
house fire, but he is able to provide a list and descriptions for the adjuster.
B. Susan can't make it home from work to meet an adjuster at her house (which was damaged
by a recent hailstorm), but gives the adjuster permission to inspect the property in her absence
C. Darla files a claim when her estranged husband sets fire to her back deck, but she doesn't
Your AnswerV notify the police for fear of getting her husband in trouble.
D. The insurer sends David a Proof of Loss form for him to complete in conjunction with his
theft claim, and it takes him 25 days to return the completed form to his insurer - ansDarla
files a claim when her estranged husband sets fire to her back deck, but she doesn't notify the
police for fear of getting her husband in trouble.
An adjuster must make several important decisions during the adjusting process. All of these
are examples of such decisions, EXCEPT:
A. Linda must determine if Lyle was intoxicated when the car he was driving was side-
swiped by Jeffery.
B. Becca must determine if the marks on Shellie's roof were caused by a hammer or by hail.
C. Steve must determine the water damage in Monica's bathroom is recent or pre-existing.
D. Stacy must determine how much of a limit for Coverage A would best fit John's needs in
his Your new homeowners policy. - ansD. Stacy must determine how much of a limit for
Coverage A would best fit John's needs in his Your Answer new homeowners policy.
Which of the following is NOT one of the unfair claims settlement practices specifically
prohibited by New Mexico law?
A. Not attempting in good faith to bring about a prompt, fair claim settlement when liability
is reasonably clear
B. Knowingly misrepresenting pertinent facts or policy provisions to a claimant C. Failing to
promptly acknowledge communications about a claim
D. Failing to pay a claim settlement within 5 business days of receiving a proof of loss -
ansD. Failing to pay a claim settlement within 5 business days of receiving a proof of loss
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
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w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
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an insurance contract, the policyholder gives the insurer ___ and the insurer gives the
policyholder ___. - anspremium payments; peace of mind
Which of the following people does NOT have an insurable interest in an insured property? -
ansA 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: -
ans90 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: - anspunitive 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: - ansJacqueline'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: -
ansaggravation.
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? -
ansWind
Inland marine insurance protects: - ansproperty 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: - ansbut only for as long as the
insured vehicles are being driven in that state.
What are the four requirements of a legally binding contract? - ansAgreement, consideration,
competent parties, legal purpose
Which statement about the Jones Act is TRUE? - ansIt 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:
- ansWorkers' 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? - ansFalse pretense coverage
,Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
review, NY Practice exam
w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
Latest Updated Exam Guide
2026/2027
Who must fill out a proof of loss form? - ansThe claimant
Appraisal is used to decide: - ansthe settlement amount
_________covers losses ships and their - ansOcean 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? - ansExtended
Non-Owner
What type of commercial auto policy would best suit a taxi company? - ansMotor 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? - ansControl of
Property
Reservation of Rights letter is sent by: - ansthe insurer to the claimant.
In a third-party claim, the injured person has a duty to: - ansauthorize the insurer to examine
her medical records.
All of the insurance professionals below are in danger of having their licenses suspended or
revoked, except: - ansArlene, 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: - ans4 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? - ans1
While reviewing a homeowners policy, you may find all of the following listed as an
insured's duty after a loss, EXCEPT: - ansprovide the insurer with a loss estimate from an
appraiser.
Which of the following is NOT an endorsement commonly added to a Dwelling Policy? -
ansAnnual Depreciation
Lawrence is 24, but he gives his age as 26 on his car insurance application because he hopes
this will get him a better rate. Lawrence's actions could best be described as -
ansmisrepresentation.
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he still
,Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
review, NY Practice exam
w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
Latest Updated Exam Guide
2026/2027
wants to protect his initial investment. What is the cheapest policy option that would protect
Simon's financial interest in his home, even in the brutal winters? - ansHO-2
For the purposes of workers' compensation insurance, an employee's Average Weekly Wage
is determined by averaging the employee's pay in the weeks leading up to the injury. - ans26
Which of the following situations does NOT involve misrepresentation? - ansAtticus
manages an insurance agency and posts the salespeoples' numbers publicly each month, to
promote competition.
What does it mean when we say that an adjuster has the "power to bind"? - ansThe principal
is bound to the decisions the adjuster makes.
James has purchased a collection of antique furniture to sell to fine furniture dealers in the
United States. James is moving the entire collection from Shanghai to Los Angeles in one
shipment, and wants to purchase insurance for his cargo, should anything occur during the
voyage to compromise his investment. What kind of coverage is James looking for? -
ansCargo coverage-Single Risk Form
Homeowners policies don't provide coverage for: - ansflood damage.
When Mary leaves her stove on by accident, she starts a fire that destroys her kitchen and
leaves smoke damage throughout her home. While the fire department puts the fire out, the
influx of water causes extensive damage as well. On top of all that, Mary is forced to board
her three dogs at a kennel for several weeks while her house is under repair. The kennel
charge would be considered: - ansan indirect loss.
Which of the following would be considered a physical hazard? - ansBrad's pool in his
backyard.
An adjuster with draft authority can: - answrite settlement checks on the insurer's behalf.
Calvin earned $450 per week before he was killed in a work-related accident. His dependents
will receive per week for up to weeks - ans$300: 700
The New Mexico Insurance Fraud Act stipulates that the superintendent must: - ansassist in
the prosecution of any suspected fraud that he reports to the appropriate law enforcement
agency
Which of the following sequences is most likely in the correct chronological order? -
ansAcknowledge the claim, then open a line of communication with the claimant.
insurance company would pay him somewhere in the neighborhood of $7,000. Jim decides to
have a friend car, he knows he'll only get about $4,000 for it. But Jim knows that if the car
was somehow stolen, his Jim is completely "upside down" financially on his car. He owes the
finance company $8,000. If he sells the steal the car and "make it disappear." Jim then files a
, Comprehensive NM Adjuster Exam,
practice exam, Property Casualty,
CIR- FINAL EXAM, NM adjusters
review, NY Practice exam
w/feedback, Practice Exam #3, CIR-
FINAL EXAM.
Latest Updated Exam Guide
2026/2027
claim with his insurance company to report his car stolen. Which best represents Jim's
actions? - ansHard fraud
In each of the following, the insured has filed a claim against their homeowners policy. In
which of these scenarios would the insurer most likely deny the claim?
A. Stephen is unable to provide pictures of his personal items that were destroyed in his
house fire, but he is able to provide a list and descriptions for the adjuster.
B. Susan can't make it home from work to meet an adjuster at her house (which was damaged
by a recent hailstorm), but gives the adjuster permission to inspect the property in her absence
C. Darla files a claim when her estranged husband sets fire to her back deck, but she doesn't
Your AnswerV notify the police for fear of getting her husband in trouble.
D. The insurer sends David a Proof of Loss form for him to complete in conjunction with his
theft claim, and it takes him 25 days to return the completed form to his insurer - ansDarla
files a claim when her estranged husband sets fire to her back deck, but she doesn't notify the
police for fear of getting her husband in trouble.
An adjuster must make several important decisions during the adjusting process. All of these
are examples of such decisions, EXCEPT:
A. Linda must determine if Lyle was intoxicated when the car he was driving was side-
swiped by Jeffery.
B. Becca must determine if the marks on Shellie's roof were caused by a hammer or by hail.
C. Steve must determine the water damage in Monica's bathroom is recent or pre-existing.
D. Stacy must determine how much of a limit for Coverage A would best fit John's needs in
his Your new homeowners policy. - ansD. Stacy must determine how much of a limit for
Coverage A would best fit John's needs in his Your Answer new homeowners policy.
Which of the following is NOT one of the unfair claims settlement practices specifically
prohibited by New Mexico law?
A. Not attempting in good faith to bring about a prompt, fair claim settlement when liability
is reasonably clear
B. Knowingly misrepresenting pertinent facts or policy provisions to a claimant C. Failing to
promptly acknowledge communications about a claim
D. Failing to pay a claim settlement within 5 business days of receiving a proof of loss -
ansD. Failing to pay a claim settlement within 5 business days of receiving a proof of loss
