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Adjuster Pro Practice Exam Questions and Correct
Answers/ Latest Update / Already Graded
Stu has a collection of rare comic books. He wants to purchase theft insurance
for his
collection, separate from his home and other property. What term most
accurately
describes the type of policy Stu would purchase?
Ans: Monoline Policy
Which of the following statements does NOT apply to the Standard Fire Policy?
Ans: It automatically covers wind and vandalism.
Which of the following refers to being restored to the financial condition you
were in
before a loss?
Ans: Indemnification
The fee paid by the insured in exchange for an insurance policy is called a:
Ans: premium
Haley takes a bottle of water into a store, pours some of it on the floor when no
one is
looking, and then pretends to slip and fall. She cries out for help in apparent pain
until someone comes to her aid. She then sues the store for her fake injury in an
effort to collect an insurance settlement. What has Haley committed?
© 2025/ 2026 | ® All rights reserved
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Ans: Hard fraud
Which settlement option is most often used when a claimant misses work
because of
bodily injury, but a settlement has not yet been reached?
Ans: Advance payment settlement
Cindy and her insurer cannot reach an agreement for her property claim, and
have
gone back and forth for weeks without coming within $10,000 of each other. At
this
point, since both believe they are offering a fair settlement, a third party is needed
to
help facilitate the negotiation. Both parties still want to retain their ability to
"walkaway" if they cannot reach an agreement. What is the next best step for
Cindy and her insurer?
Ans: Mediation
When Jeanette shows up to handle a claim on behalf of ABC Insurance, she
evaluates
the claim and negotiates a settlement. Maintaining her integrity and acting
ethically,
Jeanette is fulfilling her:
Ans: fiduciary duty.
Many adjusters prefer arbitration to litigation, because professional arbitrators
tend to
© 2025/ 2026 | ® All rights reserved
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be more ___________ than civil juries.
Ans: knowledgeable
Which of the following is NOT true of the no-release settlement?
Ans: It's also called an "advance payment settlement."
Why should litigation be considered a last resort option?
Ans: It can be costly and unpredictable
Which of the following steps would occur LAST in the processing of a claim?
Ans: Negotiate a settlement with the claimant
As an adjuster for KLM Insurance, Chrystal has the important role of fiduciary
agent.
While acting in this capacity, Chrystal's primary responsibility is to:
Ans: protect the financial and property interests of KLM Insurance
Bobby is adjusting a complicated auto claim. Which of the following is TRUE?
Ans: Because the policyholder (Jane) is 84 years old and seems to have trouble
remembering what
happened before the accident, Bobby should feel free to contact her 45-year-old
caretaker for
clarification.
Jim is an insurance adjuster working a theft claim. As part of his investigation, Jim
might want to do all of the following, EXCEPT:
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: look for ways to lower the settlement for the claimant.
Adjuster Alice is trying to determine the final settlement amount for Ted's claim.
Ted's
house was damaged in a covered loss, and Alice has estimated that it will cost
$25,000 to make the necessary repairs. Ted's homeowners policy has a $100,000
limit
and a $2,000 deductible. Typically, how much would Adjuster Alice calculate
Ted's
final settlement amount to be?
Ans: $23,000
As an insurance adjuster, Heather is responsible for updating and maintaining an
accurate record of all the information pertinent to an individual's insurance claim,
including copies of all written documentation, photos and property sketches,
witness
statements, and copies of medical bills. What is this record called?
Ans: Claim file
Bill is going to switch employers, and therefore switch healthcare providers.
Which
federal law ensures that he won't be denied coverage when he switches health
plans?
Ans: HIPAA
Cindy, a drunk driver, accidentally crashes into Nancy's house, causing $22,000 in
© 2025/ 2026 | ® All rights reserved
Adjuster Pro Practice Exam Questions and Correct
Answers/ Latest Update / Already Graded
Stu has a collection of rare comic books. He wants to purchase theft insurance
for his
collection, separate from his home and other property. What term most
accurately
describes the type of policy Stu would purchase?
Ans: Monoline Policy
Which of the following statements does NOT apply to the Standard Fire Policy?
Ans: It automatically covers wind and vandalism.
Which of the following refers to being restored to the financial condition you
were in
before a loss?
Ans: Indemnification
The fee paid by the insured in exchange for an insurance policy is called a:
Ans: premium
Haley takes a bottle of water into a store, pours some of it on the floor when no
one is
looking, and then pretends to slip and fall. She cries out for help in apparent pain
until someone comes to her aid. She then sues the store for her fake injury in an
effort to collect an insurance settlement. What has Haley committed?
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Ans: Hard fraud
Which settlement option is most often used when a claimant misses work
because of
bodily injury, but a settlement has not yet been reached?
Ans: Advance payment settlement
Cindy and her insurer cannot reach an agreement for her property claim, and
have
gone back and forth for weeks without coming within $10,000 of each other. At
this
point, since both believe they are offering a fair settlement, a third party is needed
to
help facilitate the negotiation. Both parties still want to retain their ability to
"walkaway" if they cannot reach an agreement. What is the next best step for
Cindy and her insurer?
Ans: Mediation
When Jeanette shows up to handle a claim on behalf of ABC Insurance, she
evaluates
the claim and negotiates a settlement. Maintaining her integrity and acting
ethically,
Jeanette is fulfilling her:
Ans: fiduciary duty.
Many adjusters prefer arbitration to litigation, because professional arbitrators
tend to
© 2025/ 2026 | ® All rights reserved
, 3 | Page
be more ___________ than civil juries.
Ans: knowledgeable
Which of the following is NOT true of the no-release settlement?
Ans: It's also called an "advance payment settlement."
Why should litigation be considered a last resort option?
Ans: It can be costly and unpredictable
Which of the following steps would occur LAST in the processing of a claim?
Ans: Negotiate a settlement with the claimant
As an adjuster for KLM Insurance, Chrystal has the important role of fiduciary
agent.
While acting in this capacity, Chrystal's primary responsibility is to:
Ans: protect the financial and property interests of KLM Insurance
Bobby is adjusting a complicated auto claim. Which of the following is TRUE?
Ans: Because the policyholder (Jane) is 84 years old and seems to have trouble
remembering what
happened before the accident, Bobby should feel free to contact her 45-year-old
caretaker for
clarification.
Jim is an insurance adjuster working a theft claim. As part of his investigation, Jim
might want to do all of the following, EXCEPT:
© 2025/ 2026 | ® All rights reserved
, 4 | Page
Ans: look for ways to lower the settlement for the claimant.
Adjuster Alice is trying to determine the final settlement amount for Ted's claim.
Ted's
house was damaged in a covered loss, and Alice has estimated that it will cost
$25,000 to make the necessary repairs. Ted's homeowners policy has a $100,000
limit
and a $2,000 deductible. Typically, how much would Adjuster Alice calculate
Ted's
final settlement amount to be?
Ans: $23,000
As an insurance adjuster, Heather is responsible for updating and maintaining an
accurate record of all the information pertinent to an individual's insurance claim,
including copies of all written documentation, photos and property sketches,
witness
statements, and copies of medical bills. What is this record called?
Ans: Claim file
Bill is going to switch employers, and therefore switch healthcare providers.
Which
federal law ensures that he won't be denied coverage when he switches health
plans?
Ans: HIPAA
Cindy, a drunk driver, accidentally crashes into Nancy's house, causing $22,000 in
© 2025/ 2026 | ® All rights reserved
