NM ADJUSTER PRACTICE EXAM 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Greg works for XYZ Insurance. Part of his daily tasks involve visiting
sites, investigating liability, and determining the time and cost of repairs.
On occasion, Greg will have to negotiate with claimants as part of his
job. Which type of agent is Greg? Answer: Claims Adjuster
◉ Kathryn, a manager at XYZ Distributors, leaves her diamond earrings
on her desk in her office. Jordan, an employee at XYZ sees the earrings
and takes them when he leaves for the day. Which term best describes
what Jordan did? Answer: Larceny
◉ When Shay purposefully caused fire damage to Jim's restaurant, Jim
was covered under his commercial property policy. Which policy
condition allows Jim's insurer to now attempt to recover those damages
from Shay? Answer:
◉ Jane's health insurance policy has a supplemental coverage that pays a
flat daily amount if Jane were to be admitted into a hospital. What type
of supplemental coverage does Jane have? Answer: Hopsital Indemnity
Insurance?
◉ Which of the following is often Coverage B in the Business Owners
Policy? Answer: Business Personal Property.
,◉ Which of the following people is NOT occupying a vehicle that
would qualify as "your covered auto" on the declarations page of his
Personal Auto Policy? Answer: Patrick borrows his neighbor's 45,000
pound semi truck to help his neighbor move.
◉ A loss to which of the following items would be covered under
Coverage A - Buildings and Structures in a BOP? Answer: Fire and
smoke
Lightning
Wind
Hail
Theft
Vandalism.. DOES NOT COVER FLOODS OR EARTHQUAKES..also
covers.. additions , additons under construction, any construction
equipment within 100 ft of insured property. Machinery and equipment
inside the building. maintenance property.
◉ Julie owns the local shopping mall. One day, Julie sees Greg walking
through the mall and doesn't like the way he looks, so she forces him to
leave the premises. Greg then sues Julie for her actions. This is an
example of what type of personal injury .. Answer: Wrongful Eviction.
◉ Everstrong Insurance enters into a surety contract with Homestead
Construction, in which Everstrong guarantees that Homestead will finish
,a new housing development. In order to protect itself from being on the
hook for large losses if the construction company fails to complete its
contract, Everstrong Insurance turns to a fourth company, the KLM
Group, which agrees to indemnify Everstrong Insurance if Homestead
Construction fails to complete its contract. In this arrangement,
Homestead Construction is the _______, Everstrong Insurance is the
_______, and the KLM Group is the _______. Answer: principal; surety;
indemnitor
◉ Protects seaman. Answer: The Jones Act
◉ Which of the following would be covered perils under theDP-1 Basic
policy form? Answer: Riots or Civil Commotion
◉ African Spice Exporters Inc. brings two shipments of cloves from
Zanzibar, Tanzania to the United States each year. When their second
shipment of the year is stopped .. Answer: African Spice Exporters Inc.
violated the "legality" implied warranty of ocean marine insurance.
◉ Under which circumstances may an insurer cancel a policy after 60
days with sufficient notice? Answer: (2) No notice of cancellation of a
policy shall be effective unless it is based on one or more of the
following grounds:
(a) Nonpayment of premium.
(b) Material misrepresentation or fraud.
, (c) The driver license or motor vehicle registration of the named insured
or of any other ?
◉ LMN Insurance and ABC Mortgage have struck a deal where ABC
Mortgage requires mortgage clients to purchase homeowners insurance
through LMN Insurance. In return, LMN Insurance pays ABC Mortgage
$500 for each new policy they refer. In regards to the consumers, these
two companies are practicing: Answer:
◉ An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called: Answer: A Peril
◉ Jim has a PAP with liability limits of 25/50/25 and $5,000 in medical
payments coverage. Jim causes an accident which leaves him with
$7,500 in medical costs and $50,000 in property damage to a parked
BMW. How much will Jim be out of pocket in total for all damages
occurring in this accident? Answer: 27,500
◉ n a condo association's commercial property policy, which of the
following items would be covered by the Condominium Coverage
Form? Answer: An elevator in common ground
◉ Brendan is applying for a new job at Acme Superstore. Which law
limits how much information Brendan's bank and mortgage lender can
share with Acme Superstore, with regard to Brendan's finances and
credit score? Answer: Fair Credit Reporting
QUESTIONS WITH ANSWERS GRADED A+
◉ Greg works for XYZ Insurance. Part of his daily tasks involve visiting
sites, investigating liability, and determining the time and cost of repairs.
On occasion, Greg will have to negotiate with claimants as part of his
job. Which type of agent is Greg? Answer: Claims Adjuster
◉ Kathryn, a manager at XYZ Distributors, leaves her diamond earrings
on her desk in her office. Jordan, an employee at XYZ sees the earrings
and takes them when he leaves for the day. Which term best describes
what Jordan did? Answer: Larceny
◉ When Shay purposefully caused fire damage to Jim's restaurant, Jim
was covered under his commercial property policy. Which policy
condition allows Jim's insurer to now attempt to recover those damages
from Shay? Answer:
◉ Jane's health insurance policy has a supplemental coverage that pays a
flat daily amount if Jane were to be admitted into a hospital. What type
of supplemental coverage does Jane have? Answer: Hopsital Indemnity
Insurance?
◉ Which of the following is often Coverage B in the Business Owners
Policy? Answer: Business Personal Property.
,◉ Which of the following people is NOT occupying a vehicle that
would qualify as "your covered auto" on the declarations page of his
Personal Auto Policy? Answer: Patrick borrows his neighbor's 45,000
pound semi truck to help his neighbor move.
◉ A loss to which of the following items would be covered under
Coverage A - Buildings and Structures in a BOP? Answer: Fire and
smoke
Lightning
Wind
Hail
Theft
Vandalism.. DOES NOT COVER FLOODS OR EARTHQUAKES..also
covers.. additions , additons under construction, any construction
equipment within 100 ft of insured property. Machinery and equipment
inside the building. maintenance property.
◉ Julie owns the local shopping mall. One day, Julie sees Greg walking
through the mall and doesn't like the way he looks, so she forces him to
leave the premises. Greg then sues Julie for her actions. This is an
example of what type of personal injury .. Answer: Wrongful Eviction.
◉ Everstrong Insurance enters into a surety contract with Homestead
Construction, in which Everstrong guarantees that Homestead will finish
,a new housing development. In order to protect itself from being on the
hook for large losses if the construction company fails to complete its
contract, Everstrong Insurance turns to a fourth company, the KLM
Group, which agrees to indemnify Everstrong Insurance if Homestead
Construction fails to complete its contract. In this arrangement,
Homestead Construction is the _______, Everstrong Insurance is the
_______, and the KLM Group is the _______. Answer: principal; surety;
indemnitor
◉ Protects seaman. Answer: The Jones Act
◉ Which of the following would be covered perils under theDP-1 Basic
policy form? Answer: Riots or Civil Commotion
◉ African Spice Exporters Inc. brings two shipments of cloves from
Zanzibar, Tanzania to the United States each year. When their second
shipment of the year is stopped .. Answer: African Spice Exporters Inc.
violated the "legality" implied warranty of ocean marine insurance.
◉ Under which circumstances may an insurer cancel a policy after 60
days with sufficient notice? Answer: (2) No notice of cancellation of a
policy shall be effective unless it is based on one or more of the
following grounds:
(a) Nonpayment of premium.
(b) Material misrepresentation or fraud.
, (c) The driver license or motor vehicle registration of the named insured
or of any other ?
◉ LMN Insurance and ABC Mortgage have struck a deal where ABC
Mortgage requires mortgage clients to purchase homeowners insurance
through LMN Insurance. In return, LMN Insurance pays ABC Mortgage
$500 for each new policy they refer. In regards to the consumers, these
two companies are practicing: Answer:
◉ An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called: Answer: A Peril
◉ Jim has a PAP with liability limits of 25/50/25 and $5,000 in medical
payments coverage. Jim causes an accident which leaves him with
$7,500 in medical costs and $50,000 in property damage to a parked
BMW. How much will Jim be out of pocket in total for all damages
occurring in this accident? Answer: 27,500
◉ n a condo association's commercial property policy, which of the
following items would be covered by the Condominium Coverage
Form? Answer: An elevator in common ground
◉ Brendan is applying for a new job at Acme Superstore. Which law
limits how much information Brendan's bank and mortgage lender can
share with Acme Superstore, with regard to Brendan's finances and
credit score? Answer: Fair Credit Reporting
