Adjuster License Practice Test Exam
Q&A 100% Solved | Graded A+
The purpose of the principle of indemnity is - ✔✔to prevent an insured from
making a profit on a loss.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire
and burns down his detached garage. This award is an example of -
✔✔special damages
Which of the following best describes a Fraternal Benefit Society - ✔✔A
fraternal benefit society is a social organization based around common
interests and beliefs.
SureTrust Insurance was founded and operates in Texas. In Texas,
SureTrust is considered: - ✔✔a domestic insurer.
Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter
ruins Jackie's laptop during a flight. When they go to court, Jackie is the -
✔✔plaintiff
A captive insurance company - ✔✔exists solely to provide insurance for its
parent company.
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Which of the following is NOT a qualification of an insurable risk - ✔✔An
insurable risk must have guaranteed protection from damage
Five years ago, when Rosamund was one year old, she had an expensive
procedure done to remove what a doctor said was a cancerous tumor
behind her knee. Her parents have recently discovered, upon the return of
her condition, that the growth was merely a harmless cyst and not a
dangerous tumor. Will the Statute of Limitations allow her parents to file a
suit against the doctor? - ✔✔Yes; suits for Medical Malpractice are allowed
until the child is eight years old
Which of the following statements about a moral hazard is FALSE? - ✔✔It
is the result of an unconscious behavior.
An individual has ________________ to file a lawsuit for False Arrest in
Florida. - ✔✔four years
John has purchased a homeowners insurance policy with a percentage
deductible based on the total limit of insurance for his home. John insures
his home for $600,000, and the policy includes a 3% deductible. A huge
thunderstorm passes through one night and blows the roof off his house.
The insurance company estimates that covered damage totals $80,000.
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,How much indemnification should John expect for the losses to his roof? -
✔✔$62,000
(First, calculate John's deductible, which is 3% of $600,000. This comes to
$18,000. Then subtract the deductible from the covered damages to get
John's indemnification. $80,000 minus $18,000 equals $62,000.)
What is the formula for actual cash value? - ✔✔Replacement cost minus
total depreciation
Last month, an elderly man slipped and fell on a cracked, uneven icy
sidewalk on Mulberry Street. He sued the homeowner and was awarded
$60,000. The insurers of other properties on Mulberry Street would
consider this award to be: - ✔✔a legal hazard
Which of the following best defines premium? - ✔✔The fee paid by the
insured in exchange for an insurance policy
The city of Hillsdale passed a law dictating that all dogs must wear collars
with tags. This is an example of what kind of law? - ✔✔Statutory
Which of the following is true?
A. Kevin's auto insurance policy protects his car from damage.
B. Kevin's auto insurance policy now covers Bill, who bought Kevin's truck.
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, C. When Kevin sold his truck to Bill, he lost his auto insurance coverage.
D. Kevin's insurance policy covers him for losses to his new car, even
though he sold his truck, which was previously covered under his policy, to
Bill. - ✔✔Kevin's insurance policy covers him for losses to his new car,
even though he sold his truck, which was previously covered under his
policy, to Bill.
In Florida, an insurer has ___ days to pay or deny a claim - ✔✔90
Which of the following statements best describes the Law of Large
Numbers? - ✔✔The larger the number of units insured, the more accurately
the insurer can predict the number of claims from that group.
Which of the following refers to being restored to the financial condition you
were in before a loss? - ✔✔Indemnification
To meet the 80% level of co-insurance required by his lender, Tom
discovers he must insure his home for at least $320,000. What is the value
of Tom's home? - ✔✔$400,000
(400,000 - 80% = 320,000)
Which of the following statements about risk retention groups is FALSE?
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
Q&A 100% Solved | Graded A+
The purpose of the principle of indemnity is - ✔✔to prevent an insured from
making a profit on a loss.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire
and burns down his detached garage. This award is an example of -
✔✔special damages
Which of the following best describes a Fraternal Benefit Society - ✔✔A
fraternal benefit society is a social organization based around common
interests and beliefs.
SureTrust Insurance was founded and operates in Texas. In Texas,
SureTrust is considered: - ✔✔a domestic insurer.
Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter
ruins Jackie's laptop during a flight. When they go to court, Jackie is the -
✔✔plaintiff
A captive insurance company - ✔✔exists solely to provide insurance for its
parent company.
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Which of the following is NOT a qualification of an insurable risk - ✔✔An
insurable risk must have guaranteed protection from damage
Five years ago, when Rosamund was one year old, she had an expensive
procedure done to remove what a doctor said was a cancerous tumor
behind her knee. Her parents have recently discovered, upon the return of
her condition, that the growth was merely a harmless cyst and not a
dangerous tumor. Will the Statute of Limitations allow her parents to file a
suit against the doctor? - ✔✔Yes; suits for Medical Malpractice are allowed
until the child is eight years old
Which of the following statements about a moral hazard is FALSE? - ✔✔It
is the result of an unconscious behavior.
An individual has ________________ to file a lawsuit for False Arrest in
Florida. - ✔✔four years
John has purchased a homeowners insurance policy with a percentage
deductible based on the total limit of insurance for his home. John insures
his home for $600,000, and the policy includes a 3% deductible. A huge
thunderstorm passes through one night and blows the roof off his house.
The insurance company estimates that covered damage totals $80,000.
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,How much indemnification should John expect for the losses to his roof? -
✔✔$62,000
(First, calculate John's deductible, which is 3% of $600,000. This comes to
$18,000. Then subtract the deductible from the covered damages to get
John's indemnification. $80,000 minus $18,000 equals $62,000.)
What is the formula for actual cash value? - ✔✔Replacement cost minus
total depreciation
Last month, an elderly man slipped and fell on a cracked, uneven icy
sidewalk on Mulberry Street. He sued the homeowner and was awarded
$60,000. The insurers of other properties on Mulberry Street would
consider this award to be: - ✔✔a legal hazard
Which of the following best defines premium? - ✔✔The fee paid by the
insured in exchange for an insurance policy
The city of Hillsdale passed a law dictating that all dogs must wear collars
with tags. This is an example of what kind of law? - ✔✔Statutory
Which of the following is true?
A. Kevin's auto insurance policy protects his car from damage.
B. Kevin's auto insurance policy now covers Bill, who bought Kevin's truck.
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, C. When Kevin sold his truck to Bill, he lost his auto insurance coverage.
D. Kevin's insurance policy covers him for losses to his new car, even
though he sold his truck, which was previously covered under his policy, to
Bill. - ✔✔Kevin's insurance policy covers him for losses to his new car,
even though he sold his truck, which was previously covered under his
policy, to Bill.
In Florida, an insurer has ___ days to pay or deny a claim - ✔✔90
Which of the following statements best describes the Law of Large
Numbers? - ✔✔The larger the number of units insured, the more accurately
the insurer can predict the number of claims from that group.
Which of the following refers to being restored to the financial condition you
were in before a loss? - ✔✔Indemnification
To meet the 80% level of co-insurance required by his lender, Tom
discovers he must insure his home for at least $320,000. What is the value
of Tom's home? - ✔✔$400,000
(400,000 - 80% = 320,000)
Which of the following statements about risk retention groups is FALSE?
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
