Claims Adjuster Pre Exam Questions with
correct Answers 2025/2026 A+ Graded
100% Verified
Which of the following types of insurance companies are owned by its policyholder & -
ANS-Mutuel insurance company
Which insurance company department is responsible for accepting and rejecting applications -
ANS-Underwriting
what type of damages are awarded to punish the defendant and deter others from behaving the
same - ANS-Punitive damages
All of the following are elements of negligence , except : - ANS-Consideration
Which domicile type is an insurer that is organized under the laws of this state? -
ANS-Domestic
All of the following are risk management techniques except - ANS-Assumption of risk
What type of insurance company is owned by its shareholders ? - ANS-Stock insurance
company
John decides that he is going to burn down his house to collect on his insurance policy . This is
an example of what type of hazard? - ANS-Moral hazard
Bob purchases a house from Steve . He borrows $ 75,000 from City Bank which , along with his
$ 25,000 down payment , equals the $ 100,000 purchase price of the home . Who has an
insurable interest in this home ? - ANS-Bob
Which type of Adjuster is either employees of or independent contractors for insurance
companies , self - insured companies or adjusting companies ? - ANS-Independent adjuster
Which legislation determined that individual states have the power to regulate insurance and not
the federal government ? - ANS-McCarran - Ferguson Act of 1945
Marvel Industries has an automatic sprinkler system installed in its warehouse . This is an
example of which risk management method ? - ANS-Reduction
,Which concept , utilized by insurers to predict losses and calculate premiums , states that as the
increase , it is more likely to predict losses for that number of homogeneous units in a group
group ? - ANS-Law of large numbers
Which alternative dispute resolution technique uses a process where a third party helps the
disputing parties reach a compromise or settlement agreement that is not binding ? -
ANS-Mediation
Terrie , a spectator at a baseball game , is injured when an errant ball hits her in the head . She
sues the stadium owners for negligence . Which of the following defenses against negligence
will the owners probably use ? - ANS-Assumption of risk
Suzy purchased a new cell phone . It suddenly catches fire while in Suzy's pocket causing injury
to her legs . What type of liability is this for the manufacturer of the phone ? - ANS-Strict liability
The cost of replacing damaged property at today's prices , without deducting for depreciation is
called ? - ANS-Replacement cost value
What is the length of time a party must settle or sue in a tort claim called ? - ANS-Statute of
limitations
The following are three types of authority an agent may possess during an insurance
transaction , except : - ANS-Absolute authority
Which type of contract involves one party writing the contract without input from the other party
? - ANS-Contract of adhesion
Which personal auto policy provision provides a way for the insurer and / or the policyholder to
settle a dispute over the amount of a loss ? - ANS-Appraisal
Which of the following would not be covered under collision coverage in the personal auto policy
?
Hitting a pothole
Hitting a stop sign
Hitting another vehicle
Hitting a deer - ANS-Hitting a deer
Which of the following would not be covered under collision coverage in the personal auto policy
?
Hitting a pothole
Hitting a stop sign
Hitting another vehicle
Hitting a deer - ANS-Hitting a deer
, What is the cost of replacing damaged property at today's prices minus deductions for t
depreciation ? - ANS-Actual cash value
Mark was injured when he was struck by a car while driving down the street . The other driver ,
who was at fault and cannot be identified , left the scene of the accident . What coverage would
apply under Mark's personal auto policy for his vehicle damage and injuries ? - ANS-Uninsured
motorist
Which of the following persons do not have liability coverage under Mary's personal auto policy
?
Mary's husband , who resides with her
Mary's 16 - year old son , who lives at home
A neighbor who borrows Mary's car with her permission
A group of teenagers who steal Mary's car and take it for a joy ride - ANS-A group of teenagers
who steal Mary's car and take it for a joy ride.
Which homeowner policy form is used for owners of condo units ?
HO-2
HO-3
HO-4
HO-6 - ANS-HO - 6
Gail's sofa , television and entertainment center were destroyed in a fire . The total amount of
the loss is $ 5,000 ; the actual cash value of the items is $ 3,000 . If this loss is valued on a
replacement cost basis , how much will Gail's insurance policy pay for the loss ? - ANS-$ 5,000
What is defined as bodily harm , sickness , disease , including death ?
a . Tort
b . Casualty
C. Risk
d . Bodily injury - ANS-d . Bodily injury
Terri's house is burned down to the ground due to a fire that started when George's misdirected
against George to fireworks set the house on fire . Terri's insurance company pays for the
recover the amount it paid for the loss . This is an example of which policy damage and then
files suit condition ?
a . Liberalization
b. Duties after a loss
c . Subrogation
d . Indemnification - ANS-c . Subrogation
Edith spends $ 400,000 to build a custom home in a residential area . Eventually , the land
around her home is zoned for an oil refinery , which causes bad odors in the area . Edith
correct Answers 2025/2026 A+ Graded
100% Verified
Which of the following types of insurance companies are owned by its policyholder & -
ANS-Mutuel insurance company
Which insurance company department is responsible for accepting and rejecting applications -
ANS-Underwriting
what type of damages are awarded to punish the defendant and deter others from behaving the
same - ANS-Punitive damages
All of the following are elements of negligence , except : - ANS-Consideration
Which domicile type is an insurer that is organized under the laws of this state? -
ANS-Domestic
All of the following are risk management techniques except - ANS-Assumption of risk
What type of insurance company is owned by its shareholders ? - ANS-Stock insurance
company
John decides that he is going to burn down his house to collect on his insurance policy . This is
an example of what type of hazard? - ANS-Moral hazard
Bob purchases a house from Steve . He borrows $ 75,000 from City Bank which , along with his
$ 25,000 down payment , equals the $ 100,000 purchase price of the home . Who has an
insurable interest in this home ? - ANS-Bob
Which type of Adjuster is either employees of or independent contractors for insurance
companies , self - insured companies or adjusting companies ? - ANS-Independent adjuster
Which legislation determined that individual states have the power to regulate insurance and not
the federal government ? - ANS-McCarran - Ferguson Act of 1945
Marvel Industries has an automatic sprinkler system installed in its warehouse . This is an
example of which risk management method ? - ANS-Reduction
,Which concept , utilized by insurers to predict losses and calculate premiums , states that as the
increase , it is more likely to predict losses for that number of homogeneous units in a group
group ? - ANS-Law of large numbers
Which alternative dispute resolution technique uses a process where a third party helps the
disputing parties reach a compromise or settlement agreement that is not binding ? -
ANS-Mediation
Terrie , a spectator at a baseball game , is injured when an errant ball hits her in the head . She
sues the stadium owners for negligence . Which of the following defenses against negligence
will the owners probably use ? - ANS-Assumption of risk
Suzy purchased a new cell phone . It suddenly catches fire while in Suzy's pocket causing injury
to her legs . What type of liability is this for the manufacturer of the phone ? - ANS-Strict liability
The cost of replacing damaged property at today's prices , without deducting for depreciation is
called ? - ANS-Replacement cost value
What is the length of time a party must settle or sue in a tort claim called ? - ANS-Statute of
limitations
The following are three types of authority an agent may possess during an insurance
transaction , except : - ANS-Absolute authority
Which type of contract involves one party writing the contract without input from the other party
? - ANS-Contract of adhesion
Which personal auto policy provision provides a way for the insurer and / or the policyholder to
settle a dispute over the amount of a loss ? - ANS-Appraisal
Which of the following would not be covered under collision coverage in the personal auto policy
?
Hitting a pothole
Hitting a stop sign
Hitting another vehicle
Hitting a deer - ANS-Hitting a deer
Which of the following would not be covered under collision coverage in the personal auto policy
?
Hitting a pothole
Hitting a stop sign
Hitting another vehicle
Hitting a deer - ANS-Hitting a deer
, What is the cost of replacing damaged property at today's prices minus deductions for t
depreciation ? - ANS-Actual cash value
Mark was injured when he was struck by a car while driving down the street . The other driver ,
who was at fault and cannot be identified , left the scene of the accident . What coverage would
apply under Mark's personal auto policy for his vehicle damage and injuries ? - ANS-Uninsured
motorist
Which of the following persons do not have liability coverage under Mary's personal auto policy
?
Mary's husband , who resides with her
Mary's 16 - year old son , who lives at home
A neighbor who borrows Mary's car with her permission
A group of teenagers who steal Mary's car and take it for a joy ride - ANS-A group of teenagers
who steal Mary's car and take it for a joy ride.
Which homeowner policy form is used for owners of condo units ?
HO-2
HO-3
HO-4
HO-6 - ANS-HO - 6
Gail's sofa , television and entertainment center were destroyed in a fire . The total amount of
the loss is $ 5,000 ; the actual cash value of the items is $ 3,000 . If this loss is valued on a
replacement cost basis , how much will Gail's insurance policy pay for the loss ? - ANS-$ 5,000
What is defined as bodily harm , sickness , disease , including death ?
a . Tort
b . Casualty
C. Risk
d . Bodily injury - ANS-d . Bodily injury
Terri's house is burned down to the ground due to a fire that started when George's misdirected
against George to fireworks set the house on fire . Terri's insurance company pays for the
recover the amount it paid for the loss . This is an example of which policy damage and then
files suit condition ?
a . Liberalization
b. Duties after a loss
c . Subrogation
d . Indemnification - ANS-c . Subrogation
Edith spends $ 400,000 to build a custom home in a residential area . Eventually , the land
around her home is zoned for an oil refinery , which causes bad odors in the area . Edith
