AE21 INSURANCE ADJUSTER LICENSE EXAM
PREP TEST BANK 2026 FULL QUESTIONS WITH
VERIFIED ANSWERS
◉ waiver of sovereign. Answer: individuals may sue government
entities in certain cases
◉ direct writer. Answer: salaried employee that works for only one
company
◉ report to principal. Answer: the adjuster must give the principal
detailed information on how each claim is going.
◉ wrongful death act. Answer: protects parties associated with a death
caused by negligence
◉ workers compensation laws. Answer: keeps employees from suing
their employers for injuries.
◉ apparent authority. Answer: the authority granted when the insurer
does not stop the agent from acting in a certain way, even when those
actions do not adhere to the authority granted in the contract.
,◉ adjusting. Answer: The process of comparing a claimant's losses to
the promises made in an insurance policy
◉ independent agent. Answer: agent that is self employed; sells
insurance from many insurers
◉ claimant. Answer: person or entity that requests indemnification for
losses under the terms of an insurance policy
◉ final. Answer: adjuster reports: full details of claim investigation,
evidence loss totals, and final claim resolution
◉ agent. Answer: receives authority to act on behalf of another party
◉ implied authority. Answer: authority that is reasonable for public to
believe, not expressly granted in writting.
◉ preliminary. Answer: adjuster reports: initial investigation results,
timeline of claim, initial claim reserve
◉ general agent. Answer: agent that trains and supervises exclusive
agents for an insurer
, ◉ fiduciary agent. Answer: the adjusters act on behalf of principal and
must protect the principals interest
◉ express authority. Answer: authority given in writing within the
agents contract
◉ general damages. Answer: Money awarded for intangible, emotional
damages decided by court
◉ interim. Answer: adjuster reports: update on progress of claim due at
set intervals
◉ exclusive agent. Answer: commissioned agent that offers products
from only one insurer
◉ adjuster. Answer: Person who investigates, evaluates, and negotiates
claims arising under insurance contracts
◉ breach of product warranty. Answer: Manufacturers are strictly liable
for producing faulty or dangerous products
◉ auto no-fault laws. Answer: keep people from suing drivers for
damages due to motorized vehicles
PREP TEST BANK 2026 FULL QUESTIONS WITH
VERIFIED ANSWERS
◉ waiver of sovereign. Answer: individuals may sue government
entities in certain cases
◉ direct writer. Answer: salaried employee that works for only one
company
◉ report to principal. Answer: the adjuster must give the principal
detailed information on how each claim is going.
◉ wrongful death act. Answer: protects parties associated with a death
caused by negligence
◉ workers compensation laws. Answer: keeps employees from suing
their employers for injuries.
◉ apparent authority. Answer: the authority granted when the insurer
does not stop the agent from acting in a certain way, even when those
actions do not adhere to the authority granted in the contract.
,◉ adjusting. Answer: The process of comparing a claimant's losses to
the promises made in an insurance policy
◉ independent agent. Answer: agent that is self employed; sells
insurance from many insurers
◉ claimant. Answer: person or entity that requests indemnification for
losses under the terms of an insurance policy
◉ final. Answer: adjuster reports: full details of claim investigation,
evidence loss totals, and final claim resolution
◉ agent. Answer: receives authority to act on behalf of another party
◉ implied authority. Answer: authority that is reasonable for public to
believe, not expressly granted in writting.
◉ preliminary. Answer: adjuster reports: initial investigation results,
timeline of claim, initial claim reserve
◉ general agent. Answer: agent that trains and supervises exclusive
agents for an insurer
, ◉ fiduciary agent. Answer: the adjusters act on behalf of principal and
must protect the principals interest
◉ express authority. Answer: authority given in writing within the
agents contract
◉ general damages. Answer: Money awarded for intangible, emotional
damages decided by court
◉ interim. Answer: adjuster reports: update on progress of claim due at
set intervals
◉ exclusive agent. Answer: commissioned agent that offers products
from only one insurer
◉ adjuster. Answer: Person who investigates, evaluates, and negotiates
claims arising under insurance contracts
◉ breach of product warranty. Answer: Manufacturers are strictly liable
for producing faulty or dangerous products
◉ auto no-fault laws. Answer: keep people from suing drivers for
damages due to motorized vehicles
