LOUISIANA INDEPENDENT ADJUSTER EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2027|INSTANT DOWNLOAD PDF
1.
What is the primary responsibility of an insurance adjuster
when investigating a claim?
A. Protect the insurer from every payment
B. Determine the facts and evaluate coverage and damages
fairly
C. Represent the claimant's attorney
D. Guarantee payment to the insured
Rationale: An adjuster investigates the facts, determines
applicable coverage, evaluates damages, and handles the claim
fairly.
Correct Answer: B. Determine the facts and evaluate coverage
and damages fairly
2.
An independent adjuster is generally hired by whom to
investigate and adjust claims?
A. The insured
B. The insurer
,C. The state legislature
D. The mortgage lender
Rationale: An independent adjuster is typically an outside
professional retained by an insurer or adjusting organization.
Correct Answer: B. The insurer
3.
What is the purpose of an insurance policy?
A. To eliminate all financial risk
B. To transfer specified risks from the insured to the insurer
C. To guarantee investment profits
D. To replace government assistance
Rationale: Insurance transfers specified financial risks to an
insurer in exchange for a premium.
Correct Answer: B. To transfer specified risks from the insured to
the insurer
4.
Which principle requires an insured to have a financial or legal
interest in the property insured?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
,Rationale: An insurable interest exists when the insured would
suffer a financial loss from damage to the subject of insurance.
Correct Answer: B. Insurable interest
5.
What does the principle of indemnity generally seek to
accomplish?
A. Allow the insured to profit from a loss
B. Restore the insured financially to approximately the pre-loss
position
C. Eliminate deductibles
D. Increase the policy limit
Rationale: Indemnity is designed to compensate for covered
loss without creating an unjustified profit.
Correct Answer: B. Restore the insured financially to
approximately the pre-loss position
6.
What is a deductible?
A. The insurer's maximum payment
B. The amount the insured generally bears before insurance
responds
C. The insurance premium
D. The adjuster's fee
Rationale: A deductible is the portion of a covered loss that
remains the insured's responsibility under the policy.
, Correct Answer: B. The amount the insured generally bears
before insurance responds
7.
Which document generally contains the terms and conditions
of an insurance contract?
A. Police report
B. Insurance policy
C. Adjuster's worksheet
D. Repair estimate
Rationale: The policy establishes the contractual rights, duties,
coverage, exclusions, limits, and conditions.
Correct Answer: B. Insurance policy
8.
What is a policy exclusion?
A. A provision that identifies something not covered
B. A statement increasing coverage automatically
C. A claim payment
D. A premium refund
Rationale: Exclusions identify losses, causes, property, or
circumstances that the policy does not cover.
Correct Answer: A. A provision that identifies something not
covered
9.
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2027|INSTANT DOWNLOAD PDF
1.
What is the primary responsibility of an insurance adjuster
when investigating a claim?
A. Protect the insurer from every payment
B. Determine the facts and evaluate coverage and damages
fairly
C. Represent the claimant's attorney
D. Guarantee payment to the insured
Rationale: An adjuster investigates the facts, determines
applicable coverage, evaluates damages, and handles the claim
fairly.
Correct Answer: B. Determine the facts and evaluate coverage
and damages fairly
2.
An independent adjuster is generally hired by whom to
investigate and adjust claims?
A. The insured
B. The insurer
,C. The state legislature
D. The mortgage lender
Rationale: An independent adjuster is typically an outside
professional retained by an insurer or adjusting organization.
Correct Answer: B. The insurer
3.
What is the purpose of an insurance policy?
A. To eliminate all financial risk
B. To transfer specified risks from the insured to the insurer
C. To guarantee investment profits
D. To replace government assistance
Rationale: Insurance transfers specified financial risks to an
insurer in exchange for a premium.
Correct Answer: B. To transfer specified risks from the insured to
the insurer
4.
Which principle requires an insured to have a financial or legal
interest in the property insured?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
,Rationale: An insurable interest exists when the insured would
suffer a financial loss from damage to the subject of insurance.
Correct Answer: B. Insurable interest
5.
What does the principle of indemnity generally seek to
accomplish?
A. Allow the insured to profit from a loss
B. Restore the insured financially to approximately the pre-loss
position
C. Eliminate deductibles
D. Increase the policy limit
Rationale: Indemnity is designed to compensate for covered
loss without creating an unjustified profit.
Correct Answer: B. Restore the insured financially to
approximately the pre-loss position
6.
What is a deductible?
A. The insurer's maximum payment
B. The amount the insured generally bears before insurance
responds
C. The insurance premium
D. The adjuster's fee
Rationale: A deductible is the portion of a covered loss that
remains the insured's responsibility under the policy.
, Correct Answer: B. The amount the insured generally bears
before insurance responds
7.
Which document generally contains the terms and conditions
of an insurance contract?
A. Police report
B. Insurance policy
C. Adjuster's worksheet
D. Repair estimate
Rationale: The policy establishes the contractual rights, duties,
coverage, exclusions, limits, and conditions.
Correct Answer: B. Insurance policy
8.
What is a policy exclusion?
A. A provision that identifies something not covered
B. A statement increasing coverage automatically
C. A claim payment
D. A premium refund
Rationale: Exclusions identify losses, causes, property, or
circumstances that the policy does not cover.
Correct Answer: A. A provision that identifies something not
covered
9.
