Insurance adjuster exam questions Test bank
CERTIFICATION GUIDE
FOR 2025/2026 TESTS|MOST COMMON
QUESTIONS WITH CORRECTLY VERIFIED ANSWERS
(LATEST QUIZZES) |ALREADY A+
GRADED|GUARANTEED PASS
During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing
$6,500 in damage. Paul's insurance company now considers his house: - A Loss
Which of the following best describes a "risk," according to the insurance definition? - A
potential for financial loss
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo
patron. In court, the injured patron's lawyer could invoke the doctrine of: - Res Ipsa
Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? - The
circumstances of the injury make it obvious that the defendant is negligent; no proof is needed.
Nina's home is located in a high crime neighborhood. One day, she comes home from work to
find that her garage door had been spray-painted with graffiti. Nina's insurer would consider the
act of vandalism to Nina's garage a: - Peril
An economic device used to protect against the risk of realizing unforeseen and extraordinary
financial loss is called: - A Peril
Anytown Pediatrics has been having a hard time finding medical malpractice insurance. The
premiums are extraordinarily high, and they get higher every year. Finally, fed up with the cost
of insurance, the directors decide to form their own insurance company, which will serve only
Anytown Pediatrics. This way, any profits generated by the insurer will come back to Anytown
Pediatrics. What kind of insurance company would this be? - Captive insurer
,In an insurance contract, exclusions serve all of the following purposes, except: - add
coverages that need special treatment.
Sam was tired of the neighbor's trees along the fence line poking through the fence and
dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the
neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is ordered to pay
$500 for the tree. Under which category of damage would this fall? - Compensory
Damage
Jackie recently inherited a life-sized marble statue of her great-grandfather. It is an irreplaceable
antique, and it is nearly impossible to determine the ACV. Which type of policy would best
indemnify Jackie in the event that the statue was ever damaged? - Agreed Value Policy
ABC Consulting has a CGL policy and an Umbrella policy, but the CGL runs from January 1 to
December 31 and the Umbrella policy runs from June 1 to May 31. This difference in inception
and expiration dates creates confusion when settling claims. This condition is known as: -
Nonconcurency
A power surge sparks a small electrical fire in an office building. The electrical fire triggers the
automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-out all
the computers, causing thousands of dollars in damage. The office must close for two months
during repairs. The sprinklers soaking the office would be considered: - An occurrence
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following statements
is true? - The Recovered Property provision states that Sara must notify the insurer and
either return the settlement payment or surrender the vehicle to the insurer.
As Seth is driving along a country road, a deer jumps out in front of him. This causes Seth to
veer off the road and crash into Cassie's wood fence and a brick mailbox. As a result of the
crash, Seth suffers $3,700 in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability insurance? - $1800
Which of the following sequences is most likely in the correct chronological order? -
Acknowledge the claim, then open a line of communication with the claimant.
Appraisal is used to decide: - the settlement amount
The adjusters preliminary report would most likely not include: - The settlement amount
,Which of the following is least likely to be one of the important questions an adjuster must
answer before entering into the negotiations process? - How much is the insured willing
to pay
Sylvia is in the process of building an addition onto her used book store, which is insured under
a commercial property policy. About 40 days into the process, her mother takes a bad fall and
breaks her hip. Seeing that she needs to move closer to her mom, Sylvia sells the book store.
Her Builder's Risk coverage is terminated because: - Sylvia no longer has insurable
interest in the bui;ding
Sarah and a carload of her friends are driving to Vermont for the weekend when she hits a deer,
causing $10,000 in damages to her car and $5,000 in medical bills for herself and her
passengers. Which insurance coverage will pay for the damages to Sarah's car? -
Comprehensive
What document do insurance companies give to claimants when they think something in the
claim is not covered by the policy, but they are not sure yet? - Reservation of rights letter
Jared is fishing from his 22-foot sailboat when he is caught in a sudden hailstorm. His boat
suffers extensive hail damage. When he files a claim against his homeowners policy, he is upset
to learn that his claim is denied because: - the boat was not fully enclosed inside a
building during the hailstorm.
Which ISO is known as the Condominium form? - Homeowners 6
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? - $225,000
After a hail storm passed through his neighborhood, Perry had his roof inspected by a local
contractor. The contractor gave Perry an estimate of $9,850 to replace his roof, so he filed a
claim with his insurer. The adjuster came up with her own estimate of $9,645 to replace Perry's
roof. How will the adjuster likely respond to Perry's request? - Accept his request, since
the difference between the two amounts is small enough to settle in Perry's favor.
Under which circumstances may an insurer cancel a policy during the first 90 days that the
policy is in effect? - The insurer may cancel for any reason
Frank purchases a homeowners policy worth $700,000 with a 4% deductible. A few months
later, a heavy hailstorm destroys his roof, porch, and windows, causing $50,000 in damages.
Frank should expect __________ from the insurance company to pay for the damages. -
$22,000
, After Cindy crashes into Nancy's mailbox while driving drunk, she gets out of her car, trips over
Nancy's sidewalk, falls and breaks her arm. She then sues Nancy for the medical bills related to
her broken arm. They are in a state that follows the doctrine of comparative negligence. What is
the likely outcome of Cindy's lawsuit against Nancy? - The amount awarded to Cindy will
be reduced by the percentage of her own negligence.
An adjuster has several tasks to complete during the adjusting process. All of the following are
examples of the types of tasks an adjuster may be required to perform, EXCEPT: - During
a meeting with Darlene, Mindy collects various pieces of information and writes an auto policy
for Darlene to purchase.
Which of the following is the easiest and least costly option? - Adjuster/clamant
negotiation
Which of the following is NOT a way to determine an insurer's liability in a claim? - Check
if the current month's premium had been paid at the time of loss.
When a storm rolled through town a month ago, John's home suffered substantial damage. He
filed a claim, but his insurer has offered a settlement much lower than John feels is fair. Each
party selects an appraiser, who in turn agree on an umpire, to help settle the claim. If two of the
three parties agree, their decision is: - binding
Greg works for XYZ Insurance. Part of his daily tasks involve visiting sites, investigating liability,
and determining the time and cost of repairs. On occasion, Greg will have to negotiate with
claimants as part of his job. Which type of agent is Greg? - Claims Adjuster
Whose responsibility is it to maintain an open line of communication during the settlement
process? - The Adjuster
Which of the following people are in the process of submitting a formal request to settle the
damage? - Grace is filing a claim with her insurer for hail damage to her roof.
What does a declaratory judgment action seek? - Legal Clarification of policy coverage
Which of the following statements about litigation is FALSE? - In liability claims, the
defendant is usually a third party.
Why might a Reservation of Rights letter be sent? - The Clamant took too long to file the
claim
After a fire destroys Gale's kitchen, she files a claim with her insurer and hires a contractor. The
contractor estimates it will take $42,250 to repair the damage, but the adjuster estimates it will
CERTIFICATION GUIDE
FOR 2025/2026 TESTS|MOST COMMON
QUESTIONS WITH CORRECTLY VERIFIED ANSWERS
(LATEST QUIZZES) |ALREADY A+
GRADED|GUARANTEED PASS
During a storm, heavy winds cause a tree limb to break and fall onto Paul's house, causing
$6,500 in damage. Paul's insurance company now considers his house: - A Loss
Which of the following best describes a "risk," according to the insurance definition? - A
potential for financial loss
A lion at a zoo escaped when a zoo employee failed to follow protocol. The lion injured a zoo
patron. In court, the injured patron's lawyer could invoke the doctrine of: - Res Ipsa
Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? - The
circumstances of the injury make it obvious that the defendant is negligent; no proof is needed.
Nina's home is located in a high crime neighborhood. One day, she comes home from work to
find that her garage door had been spray-painted with graffiti. Nina's insurer would consider the
act of vandalism to Nina's garage a: - Peril
An economic device used to protect against the risk of realizing unforeseen and extraordinary
financial loss is called: - A Peril
Anytown Pediatrics has been having a hard time finding medical malpractice insurance. The
premiums are extraordinarily high, and they get higher every year. Finally, fed up with the cost
of insurance, the directors decide to form their own insurance company, which will serve only
Anytown Pediatrics. This way, any profits generated by the insurer will come back to Anytown
Pediatrics. What kind of insurance company would this be? - Captive insurer
,In an insurance contract, exclusions serve all of the following purposes, except: - add
coverages that need special treatment.
Sam was tired of the neighbor's trees along the fence line poking through the fence and
dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the
neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is ordered to pay
$500 for the tree. Under which category of damage would this fall? - Compensory
Damage
Jackie recently inherited a life-sized marble statue of her great-grandfather. It is an irreplaceable
antique, and it is nearly impossible to determine the ACV. Which type of policy would best
indemnify Jackie in the event that the statue was ever damaged? - Agreed Value Policy
ABC Consulting has a CGL policy and an Umbrella policy, but the CGL runs from January 1 to
December 31 and the Umbrella policy runs from June 1 to May 31. This difference in inception
and expiration dates creates confusion when settling claims. This condition is known as: -
Nonconcurency
A power surge sparks a small electrical fire in an office building. The electrical fire triggers the
automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-out all
the computers, causing thousands of dollars in damage. The office must close for two months
during repairs. The sprinklers soaking the office would be considered: - An occurrence
Sara's vehicle was stolen and her insurer paid her theft claim for the total value of the car. A
week later, the police found Sara's car and returned it to her. Which of the following statements
is true? - The Recovered Property provision states that Sara must notify the insurer and
either return the settlement payment or surrender the vehicle to the insurer.
As Seth is driving along a country road, a deer jumps out in front of him. This causes Seth to
veer off the road and crash into Cassie's wood fence and a brick mailbox. As a result of the
crash, Seth suffers $3,700 in damage to his sedan and causes $1,800 in damage to Cassie's
property. How much of the damage will be covered by Seth's liability insurance? - $1800
Which of the following sequences is most likely in the correct chronological order? -
Acknowledge the claim, then open a line of communication with the claimant.
Appraisal is used to decide: - the settlement amount
The adjusters preliminary report would most likely not include: - The settlement amount
,Which of the following is least likely to be one of the important questions an adjuster must
answer before entering into the negotiations process? - How much is the insured willing
to pay
Sylvia is in the process of building an addition onto her used book store, which is insured under
a commercial property policy. About 40 days into the process, her mother takes a bad fall and
breaks her hip. Seeing that she needs to move closer to her mom, Sylvia sells the book store.
Her Builder's Risk coverage is terminated because: - Sylvia no longer has insurable
interest in the bui;ding
Sarah and a carload of her friends are driving to Vermont for the weekend when she hits a deer,
causing $10,000 in damages to her car and $5,000 in medical bills for herself and her
passengers. Which insurance coverage will pay for the damages to Sarah's car? -
Comprehensive
What document do insurance companies give to claimants when they think something in the
claim is not covered by the policy, but they are not sure yet? - Reservation of rights letter
Jared is fishing from his 22-foot sailboat when he is caught in a sudden hailstorm. His boat
suffers extensive hail damage. When he files a claim against his homeowners policy, he is upset
to learn that his claim is denied because: - the boat was not fully enclosed inside a
building during the hailstorm.
Which ISO is known as the Condominium form? - Homeowners 6
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? - $225,000
After a hail storm passed through his neighborhood, Perry had his roof inspected by a local
contractor. The contractor gave Perry an estimate of $9,850 to replace his roof, so he filed a
claim with his insurer. The adjuster came up with her own estimate of $9,645 to replace Perry's
roof. How will the adjuster likely respond to Perry's request? - Accept his request, since
the difference between the two amounts is small enough to settle in Perry's favor.
Under which circumstances may an insurer cancel a policy during the first 90 days that the
policy is in effect? - The insurer may cancel for any reason
Frank purchases a homeowners policy worth $700,000 with a 4% deductible. A few months
later, a heavy hailstorm destroys his roof, porch, and windows, causing $50,000 in damages.
Frank should expect __________ from the insurance company to pay for the damages. -
$22,000
, After Cindy crashes into Nancy's mailbox while driving drunk, she gets out of her car, trips over
Nancy's sidewalk, falls and breaks her arm. She then sues Nancy for the medical bills related to
her broken arm. They are in a state that follows the doctrine of comparative negligence. What is
the likely outcome of Cindy's lawsuit against Nancy? - The amount awarded to Cindy will
be reduced by the percentage of her own negligence.
An adjuster has several tasks to complete during the adjusting process. All of the following are
examples of the types of tasks an adjuster may be required to perform, EXCEPT: - During
a meeting with Darlene, Mindy collects various pieces of information and writes an auto policy
for Darlene to purchase.
Which of the following is the easiest and least costly option? - Adjuster/clamant
negotiation
Which of the following is NOT a way to determine an insurer's liability in a claim? - Check
if the current month's premium had been paid at the time of loss.
When a storm rolled through town a month ago, John's home suffered substantial damage. He
filed a claim, but his insurer has offered a settlement much lower than John feels is fair. Each
party selects an appraiser, who in turn agree on an umpire, to help settle the claim. If two of the
three parties agree, their decision is: - binding
Greg works for XYZ Insurance. Part of his daily tasks involve visiting sites, investigating liability,
and determining the time and cost of repairs. On occasion, Greg will have to negotiate with
claimants as part of his job. Which type of agent is Greg? - Claims Adjuster
Whose responsibility is it to maintain an open line of communication during the settlement
process? - The Adjuster
Which of the following people are in the process of submitting a formal request to settle the
damage? - Grace is filing a claim with her insurer for hail damage to her roof.
What does a declaratory judgment action seek? - Legal Clarification of policy coverage
Which of the following statements about litigation is FALSE? - In liability claims, the
defendant is usually a third party.
Why might a Reservation of Rights letter be sent? - The Clamant took too long to file the
claim
After a fire destroys Gale's kitchen, she files a claim with her insurer and hires a contractor. The
contractor estimates it will take $42,250 to repair the damage, but the adjuster estimates it will
