LOUISIANA INSURANCE ADJUSTER TEST 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home
will cost $235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700
deductible. How much would Nick typically calculate the final settlement amount to be? -
✔✔Because the cost of repairs is more than the policy limit, the final settlement amount
is the full policy limit ($225,000) and the deductible is absorbed into the amount of the
loss that exceeds the limit.
✔✔Terry is renting half of a duplex. During a severe storm, lightning strikes a tree in the
front yard and causes a large portion of the tree to fall on Terry's side of the duplex.
Which of the following losses will be covered by Terry's Homeowners 4 policy? -
✔✔HO-4 only covers a renter's personal property, not the structure, so Terry's policy will
only cover the TV and entertainment system.
✔✔Andrew's house is struck by lightning. The power surge fries two of the family's
laptop computers, and starts a fire that damages his roof, two living room walls, and a
leather sofa. Which of these damages would fall under Coverage C of Andrew's
Homeowners 3 policy? - ✔✔The computers and phones would fall under Coverage C,
but there is a special limit for portable electronics: $1,500.
✔✔When the state issues a mandatory evacuation order due to a hurricane, Kimberly is
forced to leave her home. The hurricane causes a lot of damage, but Kimberly's house
is spared. Three weeks later, when Kimberly is finally allowed to return to her home, she
files a claim against her homeowners policy for her increased living expenses. Will it be
accepted? - ✔✔Civil Authority coverage will pay the insured's Additional Living
Expenses for up to two weeks if the insured had to leave the home because of an order
by civil authority. Kimberly's policy will pay her for two of the three weeks that she was
out of her home.
✔✔Orlando's house was fully insured when it was completely destroyed by a tornado.
All that's left is a huge pile of debris and a $167,000 mortgage balance. Orlando files a
claim against his DP-3 with a $220,000 limit. Normally, the cost of debris removal is
subject to the policy limit, but Orlando's total costs exceed his limit. Once all cleanup
and repairs are completed, what is the maximum indemnification the insurer could end
up paying for the dwelling and debris removal? - ✔✔Debris Removal coverage can pay
up to an additional 5% of the coverage limit, when needed. Since Orlando's Coverage A
losses exceeded his policy limit, his policy can pay up to $11,000 (since this is 5% of
$220,000) over and above that limit for the cost of removing the debris of Coverage A
property.
, ✔✔A basic DP-1 dwelling policy offers ___________ coverage and ___________
valuations. - ✔✔A basic dwelling policy offers named-peril coverage and actual cash
value valuations.
✔✔Which of the following is NOT an endorsement commonly added to a Dwelling
Policy? - ✔✔Annual Depreciation
✔✔In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: -
✔✔add coverage for motorcycles and motor homes.
✔✔In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of
the following vehicles, EXCEPT: - ✔✔A trailer can be "your covered auto" if the insured
owns it, but not if it is borrowed.
✔✔All drivers in Louisiana must carry liability coverage of at least ______ and Bodily
Injury UM/UIM coverage of at least ______, unless the insured rejects UM/UIM
coverage in writing. - ✔✔15/30/25; 15/30
✔✔Under which circumstances may a Louisiana insurer cancel a policy after 60 days
with sufficient notice? - ✔✔C. If the policyholder's 17-year-old son has his license
suspended during the policy period.
✔✔Judy has applied for an auto liability policy to cover her two cars for up to
100/300/100. Which of the following statements is TRUE? - ✔✔Judy's insurer must offer
her UM coverage at the same limits as her liability coverage, which are 100/300.
However, she may choose to buy lower limits (as low as 15/30) or reject the coverage
altogether in writing.
✔✔Gabe owns Dream Fresh, a frozen yogurt manufacturer. One day, a refrigeration
unit ruptures and sprays refrigerant throughout the Dream Fresh plant. Because of this
accident, an employee blinded by refrigerant needs $1,000 in medical treatment, a
$3,000 batch of frozen yogurt is contaminated and has to be destroyed, the plant loses
$10,000 in revenue when it shuts down during decontamination, and the $15,000
refrigeration unit has to be replaced. How much of this loss might be covered under
Gabe's Time Element insurance? - ✔✔The $10,000 in lost revenue during the plant's
shut-down would be covered under Gabe's Time Element insurance.
✔✔Which of these statements about the Signs Business Floater is FALSE? - ✔✔The
Signs Business Floater does cover signs that belong to other people while in the
insured's care.
✔✔The Hometown Paint store burns down one night, and almost everything is
destroyed. Which of the following items would NOT be covered under Coverage B in the
QUESTIONS WITH ANSWERS GRADED A+
✔✔Bill's home was destroyed by a tornado, and Nick is adjusting the claim. Bill's home
will cost $235,000 to rebuild. His homeowners policy has a $225,000 limit and a $1,700
deductible. How much would Nick typically calculate the final settlement amount to be? -
✔✔Because the cost of repairs is more than the policy limit, the final settlement amount
is the full policy limit ($225,000) and the deductible is absorbed into the amount of the
loss that exceeds the limit.
✔✔Terry is renting half of a duplex. During a severe storm, lightning strikes a tree in the
front yard and causes a large portion of the tree to fall on Terry's side of the duplex.
Which of the following losses will be covered by Terry's Homeowners 4 policy? -
✔✔HO-4 only covers a renter's personal property, not the structure, so Terry's policy will
only cover the TV and entertainment system.
✔✔Andrew's house is struck by lightning. The power surge fries two of the family's
laptop computers, and starts a fire that damages his roof, two living room walls, and a
leather sofa. Which of these damages would fall under Coverage C of Andrew's
Homeowners 3 policy? - ✔✔The computers and phones would fall under Coverage C,
but there is a special limit for portable electronics: $1,500.
✔✔When the state issues a mandatory evacuation order due to a hurricane, Kimberly is
forced to leave her home. The hurricane causes a lot of damage, but Kimberly's house
is spared. Three weeks later, when Kimberly is finally allowed to return to her home, she
files a claim against her homeowners policy for her increased living expenses. Will it be
accepted? - ✔✔Civil Authority coverage will pay the insured's Additional Living
Expenses for up to two weeks if the insured had to leave the home because of an order
by civil authority. Kimberly's policy will pay her for two of the three weeks that she was
out of her home.
✔✔Orlando's house was fully insured when it was completely destroyed by a tornado.
All that's left is a huge pile of debris and a $167,000 mortgage balance. Orlando files a
claim against his DP-3 with a $220,000 limit. Normally, the cost of debris removal is
subject to the policy limit, but Orlando's total costs exceed his limit. Once all cleanup
and repairs are completed, what is the maximum indemnification the insurer could end
up paying for the dwelling and debris removal? - ✔✔Debris Removal coverage can pay
up to an additional 5% of the coverage limit, when needed. Since Orlando's Coverage A
losses exceeded his policy limit, his policy can pay up to $11,000 (since this is 5% of
$220,000) over and above that limit for the cost of removing the debris of Coverage A
property.
, ✔✔A basic DP-1 dwelling policy offers ___________ coverage and ___________
valuations. - ✔✔A basic dwelling policy offers named-peril coverage and actual cash
value valuations.
✔✔Which of the following is NOT an endorsement commonly added to a Dwelling
Policy? - ✔✔Annual Depreciation
✔✔In a personal auto policy, the Miscellaneous Vehicle Coverage endorsement: -
✔✔add coverage for motorcycles and motor homes.
✔✔In a Personal Auto Policy, the definition of "Your Covered Auto" can refer to any of
the following vehicles, EXCEPT: - ✔✔A trailer can be "your covered auto" if the insured
owns it, but not if it is borrowed.
✔✔All drivers in Louisiana must carry liability coverage of at least ______ and Bodily
Injury UM/UIM coverage of at least ______, unless the insured rejects UM/UIM
coverage in writing. - ✔✔15/30/25; 15/30
✔✔Under which circumstances may a Louisiana insurer cancel a policy after 60 days
with sufficient notice? - ✔✔C. If the policyholder's 17-year-old son has his license
suspended during the policy period.
✔✔Judy has applied for an auto liability policy to cover her two cars for up to
100/300/100. Which of the following statements is TRUE? - ✔✔Judy's insurer must offer
her UM coverage at the same limits as her liability coverage, which are 100/300.
However, she may choose to buy lower limits (as low as 15/30) or reject the coverage
altogether in writing.
✔✔Gabe owns Dream Fresh, a frozen yogurt manufacturer. One day, a refrigeration
unit ruptures and sprays refrigerant throughout the Dream Fresh plant. Because of this
accident, an employee blinded by refrigerant needs $1,000 in medical treatment, a
$3,000 batch of frozen yogurt is contaminated and has to be destroyed, the plant loses
$10,000 in revenue when it shuts down during decontamination, and the $15,000
refrigeration unit has to be replaced. How much of this loss might be covered under
Gabe's Time Element insurance? - ✔✔The $10,000 in lost revenue during the plant's
shut-down would be covered under Gabe's Time Element insurance.
✔✔Which of these statements about the Signs Business Floater is FALSE? - ✔✔The
Signs Business Floater does cover signs that belong to other people while in the
insured's care.
✔✔The Hometown Paint store burns down one night, and almost everything is
destroyed. Which of the following items would NOT be covered under Coverage B in the
