Adjuster Licensing Examination
(AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. What is the primary role of an insurance adjuster?
A. Investigate, evaluate, and settle insurance claims
B. Sell insurance policies
C. Underwrite insurance applications
D. Collect insurance premiums
Correct Answer: A
Rationale: Adjusters determine coverage, investigate losses, evaluate damages, and
negotiate claim settlements.
2. The purpose of insurance is to:
A. Transfer financial risk from an individual to an insurer
B. Guarantee profits
C. Eliminate all losses
D. Increase property value
,Correct Answer: A
Rationale: Insurance protects policyholders from financial loss by transferring risk.
3. An insurance policy is:
A. A legal contract between the insurer and the insured
B. A government license
C. A court order
D. A property deed
Correct Answer: A
Rationale: Insurance policies establish the rights and obligations of both parties.
4. The insured is:
A. The person or entity protected by the insurance policy
B. The insurance company
C. The claims adjuster
D. The insurance regulator
Correct Answer: A
Rationale: The insured receives protection under the policy.
5. The insurer is:
A. The company providing insurance coverage
B. The claimant
C. The beneficiary
,D. The appraiser
Correct Answer: A
Rationale: The insurer assumes covered risks in exchange for premiums.
6. A premium is:
A. The amount paid for insurance coverage
B. A deductible
C. A settlement payment
D. An appraisal fee
Correct Answer: A
Rationale: Premiums are the cost of maintaining insurance coverage.
7. A deductible is:
A. The amount the insured pays before insurance benefits apply
B. The policy limit
C. The premium
D. The claim payment
Correct Answer: A
Rationale: Deductibles help share the cost of losses.
8. Policy limits represent:
A. The maximum amount payable under the policy for covered losses
B. The annual premium
, C. The deductible amount
D. The inspection fee
Correct Answer: A
Rationale: Policy limits define the insurer's maximum financial responsibility.
9. An endorsement is:
A. A written amendment modifying an insurance policy
B. A claim payment
C. A premium refund
D. A lawsuit
Correct Answer: A
Rationale: Endorsements add, remove, or change policy provisions.
10. An exclusion identifies:
A. Losses or situations not covered by the policy
B. Covered property
C. Premium calculations
D. Settlement options
Correct Answer: A
Rationale: Exclusions define coverage limitations.
11. The principle of indemnity means:
(AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. What is the primary role of an insurance adjuster?
A. Investigate, evaluate, and settle insurance claims
B. Sell insurance policies
C. Underwrite insurance applications
D. Collect insurance premiums
Correct Answer: A
Rationale: Adjusters determine coverage, investigate losses, evaluate damages, and
negotiate claim settlements.
2. The purpose of insurance is to:
A. Transfer financial risk from an individual to an insurer
B. Guarantee profits
C. Eliminate all losses
D. Increase property value
,Correct Answer: A
Rationale: Insurance protects policyholders from financial loss by transferring risk.
3. An insurance policy is:
A. A legal contract between the insurer and the insured
B. A government license
C. A court order
D. A property deed
Correct Answer: A
Rationale: Insurance policies establish the rights and obligations of both parties.
4. The insured is:
A. The person or entity protected by the insurance policy
B. The insurance company
C. The claims adjuster
D. The insurance regulator
Correct Answer: A
Rationale: The insured receives protection under the policy.
5. The insurer is:
A. The company providing insurance coverage
B. The claimant
C. The beneficiary
,D. The appraiser
Correct Answer: A
Rationale: The insurer assumes covered risks in exchange for premiums.
6. A premium is:
A. The amount paid for insurance coverage
B. A deductible
C. A settlement payment
D. An appraisal fee
Correct Answer: A
Rationale: Premiums are the cost of maintaining insurance coverage.
7. A deductible is:
A. The amount the insured pays before insurance benefits apply
B. The policy limit
C. The premium
D. The claim payment
Correct Answer: A
Rationale: Deductibles help share the cost of losses.
8. Policy limits represent:
A. The maximum amount payable under the policy for covered losses
B. The annual premium
, C. The deductible amount
D. The inspection fee
Correct Answer: A
Rationale: Policy limits define the insurer's maximum financial responsibility.
9. An endorsement is:
A. A written amendment modifying an insurance policy
B. A claim payment
C. A premium refund
D. A lawsuit
Correct Answer: A
Rationale: Endorsements add, remove, or change policy provisions.
10. An exclusion identifies:
A. Losses or situations not covered by the policy
B. Covered property
C. Premium calculations
D. Settlement options
Correct Answer: A
Rationale: Exclusions define coverage limitations.
11. The principle of indemnity means:
