Adjuster license practice test 2025
Questions and Answers
The purpose of the principle of indemnity is - --Answer --to prevent an
insured from making a profit on a loss.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire and
burns down his detached garage. This award is an example of - --Answer --
special damages
Which of the following best describes a Fraternal Benefit Society - --
Answer --A fraternal benefit society is a social organization based around
common interests and beliefs.
SureTrust Insurance was founded and operates in Texas. In Texas, SureTrust is
considered: - --Answer --a domestic insurer.
Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter ruins
Jackie's laptop during a flight. When they go to court, Jackie is the - --
Answer --plaintiff
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,A captive insurance company - --Answer --exists solely to provide insurance
for its parent company.
Which of the following is NOT a qualification of an insurable risk - --
Answer --An insurable risk must have guaranteed protection from damage
Five years ago, when Rosamund was one year old, she had an expensive procedure
done to remove what a doctor said was a cancerous tumor behind her knee. Her
parents have recently discovered, upon the return of her condition, that the growth
was merely a harmless cyst and not a dangerous tumor. Will the Statute of
Limitations allow her parents to file a suit against the doctor? - --Answer --
Yes; suits for Medical Malpractice are allowed until the child is eight years old
Which of the following statements about a moral hazard is FALSE? - --
Answer --It is the result of an unconscious behavior.
An individual has ________________ to file a lawsuit for False Arrest in Florida. -
--Answer --four years
John has purchased a homeowners insurance policy with a percentage deductible
based on the total limit of insurance for his home. John insures his home for
$600,000, and the policy includes a 3% deductible. A huge thunderstorm passes
through one night and blows the roof off his house. The insurance company
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,estimates that covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? - --Answer --$62,000
(First, calculate John's deductible, which is 3% of $600,000. This comes to $18,000.
Then subtract the deductible from the covered damages to get John's
indemnification. $80,000 minus $18,000 equals $62,000.)
What is the formula for actual cash value? - --Answer --Replacement cost
minus total depreciation
Last month, an elderly man slipped and fell on a cracked, uneven icy sidewalk on
Mulberry Street. He sued the homeowner and was awarded $60,000. The insurers
of other properties on Mulberry Street would consider this award to be: - --
Answer --a legal hazard
Which of the following best defines premium? - --Answer --The fee paid by
the insured in exchange for an insurance policy
The city of Hillsdale passed a law dictating that all dogs must wear collars with
tags. This is an example of what kind of law? - --Answer --Statutory
Which of the following is true?
A. Kevin's auto insurance policy protects his car from damage.
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, B. Kevin's auto insurance policy now covers Bill, who bought Kevin's truck.
C. When Kevin sold his truck to Bill, he lost his auto insurance coverage.
D. Kevin's insurance policy covers him for losses to his new car, even though he
sold his truck, which was previously covered under his policy, to Bill. - --
Answer --Kevin's insurance policy covers him for losses to his new car, even
though he sold his truck, which was previously covered under his policy, to Bill.
In Florida, an insurer has ___ days to pay or deny a claim - --Answer --90
Which of the following statements best describes the Law of Large Numbers? - --
Answer --The larger the number of units insured, the more accurately the
insurer can predict the number of claims from that group.
Which of the following refers to being restored to the financial condition you were
in before a loss? - --Answer --Indemnification
To meet the 80% level of co-insurance required by his lender, Tom discovers he
must insure his home for at least $320,000. What is the value of Tom's home? - --
Answer --$400,000
(400,000 - 80% = 320,000)
Which of the following statements about risk retention groups is FALSE?
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Questions and Answers
The purpose of the principle of indemnity is - --Answer --to prevent an
insured from making a profit on a loss.
Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire and
burns down his detached garage. This award is an example of - --Answer --
special damages
Which of the following best describes a Fraternal Benefit Society - --
Answer --A fraternal benefit society is a social organization based around
common interests and beliefs.
SureTrust Insurance was founded and operates in Texas. In Texas, SureTrust is
considered: - --Answer --a domestic insurer.
Jackie files a lawsuit against Ginger after Ginger's three-year-old daughter ruins
Jackie's laptop during a flight. When they go to court, Jackie is the - --
Answer --plaintiff
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,A captive insurance company - --Answer --exists solely to provide insurance
for its parent company.
Which of the following is NOT a qualification of an insurable risk - --
Answer --An insurable risk must have guaranteed protection from damage
Five years ago, when Rosamund was one year old, she had an expensive procedure
done to remove what a doctor said was a cancerous tumor behind her knee. Her
parents have recently discovered, upon the return of her condition, that the growth
was merely a harmless cyst and not a dangerous tumor. Will the Statute of
Limitations allow her parents to file a suit against the doctor? - --Answer --
Yes; suits for Medical Malpractice are allowed until the child is eight years old
Which of the following statements about a moral hazard is FALSE? - --
Answer --It is the result of an unconscious behavior.
An individual has ________________ to file a lawsuit for False Arrest in Florida. -
--Answer --four years
John has purchased a homeowners insurance policy with a percentage deductible
based on the total limit of insurance for his home. John insures his home for
$600,000, and the policy includes a 3% deductible. A huge thunderstorm passes
through one night and blows the roof off his house. The insurance company
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,estimates that covered damage totals $80,000. How much indemnification should
John expect for the losses to his roof? - --Answer --$62,000
(First, calculate John's deductible, which is 3% of $600,000. This comes to $18,000.
Then subtract the deductible from the covered damages to get John's
indemnification. $80,000 minus $18,000 equals $62,000.)
What is the formula for actual cash value? - --Answer --Replacement cost
minus total depreciation
Last month, an elderly man slipped and fell on a cracked, uneven icy sidewalk on
Mulberry Street. He sued the homeowner and was awarded $60,000. The insurers
of other properties on Mulberry Street would consider this award to be: - --
Answer --a legal hazard
Which of the following best defines premium? - --Answer --The fee paid by
the insured in exchange for an insurance policy
The city of Hillsdale passed a law dictating that all dogs must wear collars with
tags. This is an example of what kind of law? - --Answer --Statutory
Which of the following is true?
A. Kevin's auto insurance policy protects his car from damage.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, B. Kevin's auto insurance policy now covers Bill, who bought Kevin's truck.
C. When Kevin sold his truck to Bill, he lost his auto insurance coverage.
D. Kevin's insurance policy covers him for losses to his new car, even though he
sold his truck, which was previously covered under his policy, to Bill. - --
Answer --Kevin's insurance policy covers him for losses to his new car, even
though he sold his truck, which was previously covered under his policy, to Bill.
In Florida, an insurer has ___ days to pay or deny a claim - --Answer --90
Which of the following statements best describes the Law of Large Numbers? - --
Answer --The larger the number of units insured, the more accurately the
insurer can predict the number of claims from that group.
Which of the following refers to being restored to the financial condition you were
in before a loss? - --Answer --Indemnification
To meet the 80% level of co-insurance required by his lender, Tom discovers he
must insure his home for at least $320,000. What is the value of Tom's home? - --
Answer --$400,000
(400,000 - 80% = 320,000)
Which of the following statements about risk retention groups is FALSE?
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