ADJUSTER PRO INSURANCE
ADJUSTER TEST 154 QUESTIONS
2026 FINAL PAPER PRACTICE
QUESTIONS ANSWERS ACCURATE
A+
◉ Which of the following best describes a "risk," according to the
insurance definition?
Answer: A potential for financial loss
◉ A lion at a zoo escaped when a zoo employee failed to follow
protocol. The lion injured a zoo patron. In court, the injured patron's
lawyer could invoke the doctrine of:
Answer: Res Ipsa Loquitur.
◉ Which of the following best defines the doctrine of Res Ipsa
Loquitur?
Answer: The circumstances of the injury make it obvious that the
defendant is negligent; no proof is needed.
◉ Nina's home is located in a high crime neighborhood. One day, she
comes home from work to find that her garage door had been spray-
painted with graffiti. Nina's insurer would consider the act of vandalism
to Nina's garage a:
Answer: Peril
,◉ An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called:
Answer: A Peril
◉ Anytown Pediatrics has been having a hard time finding medical
malpractice insurance. The premiums are extraordinarily high, and they
get higher every year. Finally, fed up with the cost of insurance, the
directors decide to form their own insurance company, which will serve
only Anytown Pediatrics. This way, any profits generated by the insurer
will come back to Anytown Pediatrics. What kind of insurance company
would this be?
Answer: Captive insurer
◉ In an insurance contract, exclusions serve all of the following
purposes, except:
Answer: add coverages that need special treatment.
◉ Sam was tired of the neighbor's trees along the fence line poking
through the fence and dropping leaves in his yard, so he reached across
the fence with his pole saw and cut down the neighbor's tree. Sam's
neighbor was upset and sued him for the damages. Sam is ordered to pay
$500 for the tree. Under which category of damage would this fall?
Answer: Compensory Damage
◉ Jackie recently inherited a life-sized marble statue of her great-
grandfather. It is an irreplaceable antique, and it is nearly impossible to
,determine the ACV. Which type of policy would best indemnify Jackie
in the event that the statue was ever damaged?
Answer: Agreed Value Policy
◉ ABC Consulting has a CGL policy and an Umbrella policy, but the
CGL runs from January 1 to December 31 and the Umbrella policy runs
from June 1 to May 31. This difference in inception and expiration dates
creates confusion when settling claims. This condition is known as:
Answer: Nonconcurency
◉ A power surge sparks a small electrical fire in an office building. The
electrical fire triggers the automatic sprinkler system. The water from
the sprinklers soaks the carpets and shorts-out all the computers, causing
thousands of dollars in damage. The office must close for two months
during repairs. The sprinklers soaking the office would be considered:
Answer: An occurrence
◉ Sara's vehicle was stolen and her insurer paid her theft claim for the
total value of the car. A week later, the police found Sara's car and
returned it to her. Which of the following statements is true?
Answer: The Recovered Property provision states that Sara must notify
the insurer and either return the settlement payment or surrender the
vehicle to the insurer.
◉ As Seth is driving along a country road, a deer jumps out in front of
him. This causes Seth to veer off the road and crash into Cassie's wood
fence and a brick mailbox. As a result of the crash, Seth suffers $3,700
, in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability
insurance?
Answer: $1800
◉ Which of the following sequences is most likely in the correct
chronological order?
Answer: Acknowledge the claim, then open a line of communication
with the claimant.
◉ Appraisal is used to decide:
Answer: the settlement amount
◉ The adjusters preliminary report would most likely not include:
Answer: The settlement amount
◉ Which of the following is least likely to be one of the important
questions an adjuster must answer before entering into the negotiations
process?
Answer: How much is the insured willing to pay
◉ Sylvia is in the process of building an addition onto her used book
store, which is insured under a commercial property policy. About 40
days into the process, her mother takes a bad fall and breaks her hip.
Seeing that she needs to move closer to her mom, Sylvia sells the book
store. Her Builder's Risk coverage is terminated because:
ADJUSTER TEST 154 QUESTIONS
2026 FINAL PAPER PRACTICE
QUESTIONS ANSWERS ACCURATE
A+
◉ Which of the following best describes a "risk," according to the
insurance definition?
Answer: A potential for financial loss
◉ A lion at a zoo escaped when a zoo employee failed to follow
protocol. The lion injured a zoo patron. In court, the injured patron's
lawyer could invoke the doctrine of:
Answer: Res Ipsa Loquitur.
◉ Which of the following best defines the doctrine of Res Ipsa
Loquitur?
Answer: The circumstances of the injury make it obvious that the
defendant is negligent; no proof is needed.
◉ Nina's home is located in a high crime neighborhood. One day, she
comes home from work to find that her garage door had been spray-
painted with graffiti. Nina's insurer would consider the act of vandalism
to Nina's garage a:
Answer: Peril
,◉ An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called:
Answer: A Peril
◉ Anytown Pediatrics has been having a hard time finding medical
malpractice insurance. The premiums are extraordinarily high, and they
get higher every year. Finally, fed up with the cost of insurance, the
directors decide to form their own insurance company, which will serve
only Anytown Pediatrics. This way, any profits generated by the insurer
will come back to Anytown Pediatrics. What kind of insurance company
would this be?
Answer: Captive insurer
◉ In an insurance contract, exclusions serve all of the following
purposes, except:
Answer: add coverages that need special treatment.
◉ Sam was tired of the neighbor's trees along the fence line poking
through the fence and dropping leaves in his yard, so he reached across
the fence with his pole saw and cut down the neighbor's tree. Sam's
neighbor was upset and sued him for the damages. Sam is ordered to pay
$500 for the tree. Under which category of damage would this fall?
Answer: Compensory Damage
◉ Jackie recently inherited a life-sized marble statue of her great-
grandfather. It is an irreplaceable antique, and it is nearly impossible to
,determine the ACV. Which type of policy would best indemnify Jackie
in the event that the statue was ever damaged?
Answer: Agreed Value Policy
◉ ABC Consulting has a CGL policy and an Umbrella policy, but the
CGL runs from January 1 to December 31 and the Umbrella policy runs
from June 1 to May 31. This difference in inception and expiration dates
creates confusion when settling claims. This condition is known as:
Answer: Nonconcurency
◉ A power surge sparks a small electrical fire in an office building. The
electrical fire triggers the automatic sprinkler system. The water from
the sprinklers soaks the carpets and shorts-out all the computers, causing
thousands of dollars in damage. The office must close for two months
during repairs. The sprinklers soaking the office would be considered:
Answer: An occurrence
◉ Sara's vehicle was stolen and her insurer paid her theft claim for the
total value of the car. A week later, the police found Sara's car and
returned it to her. Which of the following statements is true?
Answer: The Recovered Property provision states that Sara must notify
the insurer and either return the settlement payment or surrender the
vehicle to the insurer.
◉ As Seth is driving along a country road, a deer jumps out in front of
him. This causes Seth to veer off the road and crash into Cassie's wood
fence and a brick mailbox. As a result of the crash, Seth suffers $3,700
, in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability
insurance?
Answer: $1800
◉ Which of the following sequences is most likely in the correct
chronological order?
Answer: Acknowledge the claim, then open a line of communication
with the claimant.
◉ Appraisal is used to decide:
Answer: the settlement amount
◉ The adjusters preliminary report would most likely not include:
Answer: The settlement amount
◉ Which of the following is least likely to be one of the important
questions an adjuster must answer before entering into the negotiations
process?
Answer: How much is the insured willing to pay
◉ Sylvia is in the process of building an addition onto her used book
store, which is insured under a commercial property policy. About 40
days into the process, her mother takes a bad fall and breaks her hip.
Seeing that she needs to move closer to her mom, Sylvia sells the book
store. Her Builder's Risk coverage is terminated because:
