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Claims Adjuster Exam Practice Questions and Answershttps://www.stuvia.com/user/edupac
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Claims Adjuster Exam
Practice Questions and
Answers
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A $20,000 engagement ring is accidentally lost while A Personal Articles Floater is generally designed to insure valuable scheduled
traveling overseas. Which policy is specifically designed jewelry against a broad range of covered accidental losses, subject to policy
to provide broader protection for this type of property? terms.
A 15-year-old commercial HVAC unit is destroyed by a If the policy provides Actual Cash Value settlement, the adjuster must determine
covered peril. Why is depreciation relevant? appropriate depreciation based on the equipment's age, condition, expected
useful life, and remaining value.
A 15-year-old roof with significant wear is destroyed by Because the roof had already experienced physical deterioration before the fire,
fire. Why might depreciation apply when calculating depreciation reflects its reduced pre-loss value when determining Actual Cash
ACV? Value.
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A 20-year-old commercial roof is destroyed by a covered If the policy settles losses on an Actual Cash Value basis, depreciation may be
windstorm. Why is depreciation relevant? deducted from the replacement cost to determine the final payment, subject to
policy provisions.
Actual Cash Value is commonly calculated as Depreciation. This reflects the property's reduced value immediately before the
Replacement Cost minus __________. covered loss.
An adjuster determines that part of a loss resulted from The adjuster should identify and document each portion of the damage, apply
a covered peril while another portion resulted from an the applicable policy provisions separately, pay only covered damages, and
excluded peril. What is the proper approach? clearly explain the basis for any partial denial.
An adjuster pays Replacement Cost benefits before The adjuster failed to follow the policy's replacement cost settlement conditions.
confirming repairs were completed when the policy Many replacement cost policies require the insured to repair or replace
requires repair first. What mistake occurred? damaged property before receiving full replacement cost benefits beyond ACV.
An adjuster receives a property claim but must first The adjuster should review the Declarations Page, which identifies the effective
verify whether the loss occurred during the policy period. and expiration dates of coverage and confirms whether the policy was in force
Which section of the policy should be reviewed first? on the date of loss.
After a covered fire, a business temporarily leases Extra Expense Coverage may reimburse the reasonable additional expenses
another facility to continue operations. Which incurred to continue business operations following a covered property loss,
commercial coverage may reimburse these additional subject to policy conditions.
costs?
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After a covered loss, the insured has a duty to Mitigate. Failure to protect damaged property from additional avoidable damage
__________ the damage by taking reasonable steps to may reduce the amount recoverable under the policy.
prevent further loss.
After a covered water loss, the insured assigns the This is an Assignment of Rights (or Assignment of Benefits, where permitted).
insurance claim proceeds to a restoration contractor. The adjuster should review the policy provisions and applicable state law before
What insurance terminology applies? recognizing the assignment.
After a covered windstorm, fallen structural debris must Debris Removal Coverage may reimburse qualifying cleanup expenses
be removed before rebuilding can begin. Which associated with covered property damage, subject to policy limitations.
additional coverage may help?
After a fire loss, the insured has a duty to take Protect (or mitigate). The insured must make reasonable efforts to prevent
reasonable steps to __________ the damaged property additional damage after the covered fire occurs.
from further damage.
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Claims Adjuster Exam Practice Questions and Answershttps://www.stuvia.com/user/edupac
https://www.stuvia.com/user/edupac
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edupacr/edupac
Claims Adjuster Exam
Practice Questions and
Answers
https://www.stuvia.com/user/edupac
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edupacser/edupac
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,https://www.stuvia.com/user/edupac 1000 Flashcards Claims Adjuster Examhttps://www.stuvia.com/user/edupac https://www.stuvia.com/user/edupac
A $20,000 engagement ring is accidentally lost while A Personal Articles Floater is generally designed to insure valuable scheduled
traveling overseas. Which policy is specifically designed jewelry against a broad range of covered accidental losses, subject to policy
to provide broader protection for this type of property? terms.
A 15-year-old commercial HVAC unit is destroyed by a If the policy provides Actual Cash Value settlement, the adjuster must determine
covered peril. Why is depreciation relevant? appropriate depreciation based on the equipment's age, condition, expected
useful life, and remaining value.
A 15-year-old roof with significant wear is destroyed by Because the roof had already experienced physical deterioration before the fire,
fire. Why might depreciation apply when calculating depreciation reflects its reduced pre-loss value when determining Actual Cash
ACV? Value.
https://www.stuvia.com/user/edupacPage 2 of 172 https://www.stuvia.com/user/edupac 7/4/2026, 8:44:31 AMhttps://www.stuvia.com/user/edupac
,https://www.stuvia.com/user/edupac 1000 Flashcards Claims Adjuster Examhttps://www.stuvia.com/user/edupac https://www.stuvia.com/user/edupac
A 20-year-old commercial roof is destroyed by a covered If the policy settles losses on an Actual Cash Value basis, depreciation may be
windstorm. Why is depreciation relevant? deducted from the replacement cost to determine the final payment, subject to
policy provisions.
Actual Cash Value is commonly calculated as Depreciation. This reflects the property's reduced value immediately before the
Replacement Cost minus __________. covered loss.
An adjuster determines that part of a loss resulted from The adjuster should identify and document each portion of the damage, apply
a covered peril while another portion resulted from an the applicable policy provisions separately, pay only covered damages, and
excluded peril. What is the proper approach? clearly explain the basis for any partial denial.
An adjuster pays Replacement Cost benefits before The adjuster failed to follow the policy's replacement cost settlement conditions.
confirming repairs were completed when the policy Many replacement cost policies require the insured to repair or replace
requires repair first. What mistake occurred? damaged property before receiving full replacement cost benefits beyond ACV.
An adjuster receives a property claim but must first The adjuster should review the Declarations Page, which identifies the effective
verify whether the loss occurred during the policy period. and expiration dates of coverage and confirms whether the policy was in force
Which section of the policy should be reviewed first? on the date of loss.
After a covered fire, a business temporarily leases Extra Expense Coverage may reimburse the reasonable additional expenses
another facility to continue operations. Which incurred to continue business operations following a covered property loss,
commercial coverage may reimburse these additional subject to policy conditions.
costs?
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, https://www.stuvia.com/user/edupac 1000 Flashcards Claims Adjuster Examhttps://www.stuvia.com/user/edupac https://www.stuvia.com/user/edupac
After a covered loss, the insured has a duty to Mitigate. Failure to protect damaged property from additional avoidable damage
__________ the damage by taking reasonable steps to may reduce the amount recoverable under the policy.
prevent further loss.
After a covered water loss, the insured assigns the This is an Assignment of Rights (or Assignment of Benefits, where permitted).
insurance claim proceeds to a restoration contractor. The adjuster should review the policy provisions and applicable state law before
What insurance terminology applies? recognizing the assignment.
After a covered windstorm, fallen structural debris must Debris Removal Coverage may reimburse qualifying cleanup expenses
be removed before rebuilding can begin. Which associated with covered property damage, subject to policy limitations.
additional coverage may help?
After a fire loss, the insured has a duty to take Protect (or mitigate). The insured must make reasonable efforts to prevent
reasonable steps to __________ the damaged property additional damage after the covered fire occurs.
from further damage.
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