Insurance adjuster exam questions Test
bank LATEST 2025 WITH QUESTIONS
AND CORRECT VERIFIED ANSWERS
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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: -
CORRECTANSWER Res Ipsa Loquitur.
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: -
CORRECTANSWER A Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECTANSWER A potential for financial loss
Which of the following best defines the doctrine of Res Ipsa Loquitur? -
CORRECTANSWER 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: -CORRECTANSWER Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: -CORRECTANSWER 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? -
CORRECTANSWER Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: -
CORRECTANSWER 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? -CORRECTANSWER 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? -
CORRECTANSWER 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: -CORRECTANSWER 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: -CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER $1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECTANSWER Acknowledge the claim, then open a line of communication with
the claimant.
Appraisal is used to decide: -CORRECTANSWER the settlement amount
The adjusters preliminary report would most likely not include: -CORRECTANSWER
The settlement amount
Which of the following is least likely to be one of the important questions an adjuster
must CORRECTANSWER before entering into the negotiations process? -
CORRECTANSWER 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,
bank LATEST 2025 WITH QUESTIONS
AND CORRECT VERIFIED ANSWERS
GRADED A+ GUARANTEED 100% PASS
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: -
CORRECTANSWER Res Ipsa Loquitur.
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: -
CORRECTANSWER A Loss
Which of the following best describes a "risk," according to the insurance definition? -
CORRECTANSWER A potential for financial loss
Which of the following best defines the doctrine of Res Ipsa Loquitur? -
CORRECTANSWER 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: -CORRECTANSWER Peril
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called: -CORRECTANSWER 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? -
CORRECTANSWER Captive insurer
In an insurance contract, exclusions serve all of the following purposes, except: -
CORRECTANSWER 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? -CORRECTANSWER 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? -
CORRECTANSWER 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: -CORRECTANSWER 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: -CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER $1800
Which of the following sequences is most likely in the correct chronological order? -
CORRECTANSWER Acknowledge the claim, then open a line of communication with
the claimant.
Appraisal is used to decide: -CORRECTANSWER the settlement amount
The adjusters preliminary report would most likely not include: -CORRECTANSWER
The settlement amount
Which of the following is least likely to be one of the important questions an adjuster
must CORRECTANSWER before entering into the negotiations process? -
CORRECTANSWER 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,
