Insurance adjuster exam questions Test bank Exam Questions and Correct Detailled
Answers|Latest 2025|100% 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: -CORRECT ANSWER-A
Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECT ANSWER-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: -CORRECT
ANSWER-Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? -CORRECT ANSWER-
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: -CORRECT ANSWER-Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: -CORRECT ANSWER-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? -CORRECT ANSWER-
Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: -CORRECT
ANSWER-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? -
CORRECT ANSWER-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? -CORRECT
ANSWER-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: -CORRECT ANSWER-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: -CORRECT
ANSWER-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? -CORRECT ANSWER-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? -CORRECT
ANSWER-$1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECT ANSWER-Acknowledge the claim, then open a line of communication with the
claimant.
Appraisal is used to decide: -CORRECT ANSWER-the settlement amount
The adjusters preliminary report would most likely not include: -CORRECT ANSWER-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? -CORRECT ANSWER-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: -CORRECT ANSWER-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? -CORRECT
ANSWER-Comprehensive
Answers|Latest 2025|100% 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: -CORRECT ANSWER-A
Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECT ANSWER-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: -CORRECT
ANSWER-Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa Loquitur? -CORRECT ANSWER-
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: -CORRECT ANSWER-Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: -CORRECT ANSWER-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? -CORRECT ANSWER-
Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: -CORRECT
ANSWER-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? -
CORRECT ANSWER-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? -CORRECT
ANSWER-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: -CORRECT ANSWER-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: -CORRECT
ANSWER-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? -CORRECT ANSWER-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? -CORRECT
ANSWER-$1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECT ANSWER-Acknowledge the claim, then open a line of communication with the
claimant.
Appraisal is used to decide: -CORRECT ANSWER-the settlement amount
The adjusters preliminary report would most likely not include: -CORRECT ANSWER-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? -CORRECT ANSWER-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: -CORRECT ANSWER-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? -CORRECT
ANSWER-Comprehensive
