MICHIGAN PROMETRIC ALL LINES
ADJUSTER EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following best describes the role of an insurance
adjuster?
a) Selling insurance policies
b) Investigating and evaluating claims
c) Setting premium rates
b) Investigating and evaluating claims
Because an adjuster's primary responsibility is to investigate,
evaluate, and settle insurance claims.
2. In Michigan, what is the standard proof of loss period an insured must
submit a proof of loss form after a loss?
a) 10 days
b) 30 days
, c) 60 days
c) 60 days
Michigan regulations generally require proof of loss within 60 days
after the insurer requests it.
3. Under Michigan no-fault auto insurance, which type of coverage pays
for medical expenses regardless of fault?
a) Bodily injury liability
b) Personal injury protection (PIP)
c) Collision coverage
b) Personal injury protection (PIP)
PIP provides coverage for medical expenses regardless of who caused
the accident under Michigan no-fault law.
4. When an adjuster handles a claim, what is the primary consideration
in determining coverage?
a) Policy language and facts of the loss
b) The insured’s credit score
c) The insured’s age
a) Policy language and facts of the loss
Coverage depends primarily on the contract terms and the actual
facts related to the loss.
5. Which of the following is an example of a "covered peril" in a typical
homeowner’s insurance policy?
a) Earthquake
, b) Fire
c) Flood
b) Fire
Fire is typically a covered peril; earthquake and flood are usually
excluded or require separate policies.
6. What does "actual cash value" (ACV) mean in property insurance?
a) Replacement cost without deduction
b) Replacement cost minus depreciation
c) Market value of the property
b) Replacement cost minus depreciation
ACV equals the replacement cost minus depreciation due to age,
wear and tear.
7. Under Michigan insurance law, an adjuster must provide the insured
with a written estimate of the claim settlement within how many days
of receiving notice of the claim?
a) 5 days
b) 14 days
c) 30 days
b) 14 days
Michigan law requires insurers to provide written notice within 14
days of receiving claim notice.
8. In a liability claim, what is the "duty to defend"?
a) The insurer’s obligation to pay damages
ADJUSTER EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following best describes the role of an insurance
adjuster?
a) Selling insurance policies
b) Investigating and evaluating claims
c) Setting premium rates
b) Investigating and evaluating claims
Because an adjuster's primary responsibility is to investigate,
evaluate, and settle insurance claims.
2. In Michigan, what is the standard proof of loss period an insured must
submit a proof of loss form after a loss?
a) 10 days
b) 30 days
, c) 60 days
c) 60 days
Michigan regulations generally require proof of loss within 60 days
after the insurer requests it.
3. Under Michigan no-fault auto insurance, which type of coverage pays
for medical expenses regardless of fault?
a) Bodily injury liability
b) Personal injury protection (PIP)
c) Collision coverage
b) Personal injury protection (PIP)
PIP provides coverage for medical expenses regardless of who caused
the accident under Michigan no-fault law.
4. When an adjuster handles a claim, what is the primary consideration
in determining coverage?
a) Policy language and facts of the loss
b) The insured’s credit score
c) The insured’s age
a) Policy language and facts of the loss
Coverage depends primarily on the contract terms and the actual
facts related to the loss.
5. Which of the following is an example of a "covered peril" in a typical
homeowner’s insurance policy?
a) Earthquake
, b) Fire
c) Flood
b) Fire
Fire is typically a covered peril; earthquake and flood are usually
excluded or require separate policies.
6. What does "actual cash value" (ACV) mean in property insurance?
a) Replacement cost without deduction
b) Replacement cost minus depreciation
c) Market value of the property
b) Replacement cost minus depreciation
ACV equals the replacement cost minus depreciation due to age,
wear and tear.
7. Under Michigan insurance law, an adjuster must provide the insured
with a written estimate of the claim settlement within how many days
of receiving notice of the claim?
a) 5 days
b) 14 days
c) 30 days
b) 14 days
Michigan law requires insurers to provide written notice within 14
days of receiving claim notice.
8. In a liability claim, what is the "duty to defend"?
a) The insurer’s obligation to pay damages
