Indiana Adjuster Practice Exam Q&A
100% Guaranteed Pass | Latest Update
Greg plays trombone in his school band during football games. During a
rally song in the stands one day, Greg annoys one of the opposing team's
fans, who grabs his $400 trombone and hurls it down the bleachers,
completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the opposing team's coach also offers to replace the
instrument, at whatever the cost. So Greg orders a new $3,200 trombone
and has the opposing team's athletic department absorb the cost. Which
principle has Greg violated? - ✔✔The principle of indemnity
Which of the following statements does NOT apply to the Standard Fire
Policy?
A. It is the basis for all homeowners policies.
B. It pays actual cash value.
C. It automatically covers wind and vandalism.
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,D. It is a named peril policy. - ✔✔C. It automatically covers wind and
vandalism.
The Standard Fire Policy is also known by a nickname: The "___ " Policy. -
✔✔165 Line
Stan built a porch for his home three years ago at a cost of $10,000. The
value of the porch has depreciated by $6,000, and it would cost $12,000 to
replace it today. After Stan's porch burnt down during a BBQ today, how
much would a Standard Fire Policy indemnify Stan for his porch? -
✔✔$6,000 (The Standard Fire Policy pays on an ACV basis. Recall from
earlier in the course, that the formula for calculating ACV is Replacement
Cost minus Depreciation. So, in this case: $12,000 - $6,000 = $6,000.)
In an insurance policy, the summary of what the insurer will do in the event
of a covered loss is called: - ✔✔the insuring agreement.
If an adjuster needs to find clarification about what actually constitutes a
collision, in which section of an insurance policy would she find that
information? - ✔✔Definitions
In which section of an insurance policy might you find the following
statement? "Damage to insured property must be reported within 15 days
of the damaging occurrence." - ✔✔Conditions
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,All of the following pieces of information can be found in the Conditions
section of an insurance policy, EXCEPT:
A. anything the insured must do for coverage to remain in effect.
B. what the insured must do in the event of a lawsuit.
C. the insured's duties after a loss.
D. causes of loss that are not covered. - ✔✔D. causes of loss that are not
covered.
Which of the following statements is true about an insurance policy? - ✔✔It
relies on the utmost good faith of both the insured and the insurer.
In a __________, only one party is legally obligated to perform. -
✔✔unilateral contract
A reciprocal insurer is: - ✔✔an unincorporated organization of subscribers
that operates through an attorney-in-fact to provide insurance benefits for
its members.
Xavier owns a small insurance company. Recently the company won a bid
to insure a new housing development in Omaha, NE. His company can
handle any claims that arise, but if a series of tornados were to tear through
the area and destroy the entire development, Xavier's company would
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, suffer financially. Which type of insurer could help Xavier's company
protect itself the most from this potential loss? - ✔✔A re-insurer
Which of these is NOT typically excluded from coverage in a property
insurance policy?
A. Off-premises power failure
B. Nuclear events
C. Civil confiscation
D. Lightning - ✔✔D. Lightning
Clark is filling out an application for an insurance policy. The application
asks for his birth date, and Clark writes 1-24-67. His actual birthday is 1-24-
63, but he likes to appear younger so he uses a different date. This would
be called: - ✔✔misrepresentation.
Bob has been in the construction business a long time and is ready to
retire. He sells the company to his friend Scott and then lets the insurer
know that any claims against his policy should be paid to Scott from now
on. The insurer informs Bob that they cannot do this due to which
condition? - ✔✔Assignment
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
100% Guaranteed Pass | Latest Update
Greg plays trombone in his school band during football games. During a
rally song in the stands one day, Greg annoys one of the opposing team's
fans, who grabs his $400 trombone and hurls it down the bleachers,
completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the opposing team's coach also offers to replace the
instrument, at whatever the cost. So Greg orders a new $3,200 trombone
and has the opposing team's athletic department absorb the cost. Which
principle has Greg violated? - ✔✔The principle of indemnity
Which of the following statements does NOT apply to the Standard Fire
Policy?
A. It is the basis for all homeowners policies.
B. It pays actual cash value.
C. It automatically covers wind and vandalism.
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,D. It is a named peril policy. - ✔✔C. It automatically covers wind and
vandalism.
The Standard Fire Policy is also known by a nickname: The "___ " Policy. -
✔✔165 Line
Stan built a porch for his home three years ago at a cost of $10,000. The
value of the porch has depreciated by $6,000, and it would cost $12,000 to
replace it today. After Stan's porch burnt down during a BBQ today, how
much would a Standard Fire Policy indemnify Stan for his porch? -
✔✔$6,000 (The Standard Fire Policy pays on an ACV basis. Recall from
earlier in the course, that the formula for calculating ACV is Replacement
Cost minus Depreciation. So, in this case: $12,000 - $6,000 = $6,000.)
In an insurance policy, the summary of what the insurer will do in the event
of a covered loss is called: - ✔✔the insuring agreement.
If an adjuster needs to find clarification about what actually constitutes a
collision, in which section of an insurance policy would she find that
information? - ✔✔Definitions
In which section of an insurance policy might you find the following
statement? "Damage to insured property must be reported within 15 days
of the damaging occurrence." - ✔✔Conditions
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,All of the following pieces of information can be found in the Conditions
section of an insurance policy, EXCEPT:
A. anything the insured must do for coverage to remain in effect.
B. what the insured must do in the event of a lawsuit.
C. the insured's duties after a loss.
D. causes of loss that are not covered. - ✔✔D. causes of loss that are not
covered.
Which of the following statements is true about an insurance policy? - ✔✔It
relies on the utmost good faith of both the insured and the insurer.
In a __________, only one party is legally obligated to perform. -
✔✔unilateral contract
A reciprocal insurer is: - ✔✔an unincorporated organization of subscribers
that operates through an attorney-in-fact to provide insurance benefits for
its members.
Xavier owns a small insurance company. Recently the company won a bid
to insure a new housing development in Omaha, NE. His company can
handle any claims that arise, but if a series of tornados were to tear through
the area and destroy the entire development, Xavier's company would
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, suffer financially. Which type of insurer could help Xavier's company
protect itself the most from this potential loss? - ✔✔A re-insurer
Which of these is NOT typically excluded from coverage in a property
insurance policy?
A. Off-premises power failure
B. Nuclear events
C. Civil confiscation
D. Lightning - ✔✔D. Lightning
Clark is filling out an application for an insurance policy. The application
asks for his birth date, and Clark writes 1-24-67. His actual birthday is 1-24-
63, but he likes to appear younger so he uses a different date. This would
be called: - ✔✔misrepresentation.
Bob has been in the construction business a long time and is ready to
retire. He sells the company to his friend Scott and then lets the insurer
know that any claims against his policy should be paid to Scott from now
on. The insurer informs Bob that they cannot do this due to which
condition? - ✔✔Assignment
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
