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Insurance adjuster exam questions Test bankEXAM 2025/2026
BANK 2025/2026 BANK 2 VERSIONS QUESTIONS AND
ACCURATE ACTUAL EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE / EXPERT VERIFIED FOR
GUARANTEED PASS/ALREADY GRADED A+
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: - ANSWERS--A Loss
Which of the following best describes a "risk," according to the
insurance definition? - ANSWERS--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: - ANSWERS--Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa
Loquitur? - ANSWERS--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: - ANSWERS--Peril
,2|Page
An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called: - ANSWERS--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? - ANSWERS--Captive insurer
In an insurance contract, exclusions serve all of the following
purposes, except: - ANSWERS--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? - ANSWERS--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? - ANSWERS--
Agreed Value Policy
,3|Page
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: - ANSWERS--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: - ANSWERS--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? -
ANSWERS--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? - ANSWERS--$1800
, 4|Page
Which of the following sequences is most likely in the correct
chronological order? - ANSWERS--Acknowledge the claim, then open
a line of communication with the claimant.
Appraisal is used to decide: - ANSWERS--the settlement amount
The adjusters preliminary report would most likely not include: -
ANSWERS--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? - ANSWERS--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: -
ANSWERS--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? -
ANSWERS--Comprehensive
Insurance adjuster exam questions Test bankEXAM 2025/2026
BANK 2025/2026 BANK 2 VERSIONS QUESTIONS AND
ACCURATE ACTUAL EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE / EXPERT VERIFIED FOR
GUARANTEED PASS/ALREADY GRADED A+
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: - ANSWERS--A Loss
Which of the following best describes a "risk," according to the
insurance definition? - ANSWERS--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: - ANSWERS--Res Ipsa Loquitur.
Which of the following best defines the doctrine of Res Ipsa
Loquitur? - ANSWERS--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: - ANSWERS--Peril
,2|Page
An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called: - ANSWERS--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? - ANSWERS--Captive insurer
In an insurance contract, exclusions serve all of the following
purposes, except: - ANSWERS--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? - ANSWERS--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? - ANSWERS--
Agreed Value Policy
,3|Page
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: - ANSWERS--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: - ANSWERS--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? -
ANSWERS--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? - ANSWERS--$1800
, 4|Page
Which of the following sequences is most likely in the correct
chronological order? - ANSWERS--Acknowledge the claim, then open
a line of communication with the claimant.
Appraisal is used to decide: - ANSWERS--the settlement amount
The adjusters preliminary report would most likely not include: -
ANSWERS--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? - ANSWERS--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: -
ANSWERS--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? -
ANSWERS--Comprehensive
