Adjuster Pro Insurance Adjuster
Test 2025/2026 QUESTIONS AND
VERIFIED CORRECT SOLUTIONS || 100%
GUARANTEED PASS
<BRAND NEW VERSION>
1. What is insurance? - ANSWER ✓ protection against financial loss
2. what is a premium - ANSWER ✓ a scheduled amount to be paid for an
insurance policy.
3. What are premiums used for - ANSWER ✓ premiums are collected into a
"pool" or "reserve to pay out claimants when needed.
4. Certificate of Insurance - ANSWER ✓ A legal document that indicates that
an insurance policy has been issued, and that states both the amounts and
types of insurance provided.
5. Characteristics of social insurance - ANSWER ✓ Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
Government has monopoly
6. Private Insurers - ANSWER ✓ Sell insurance based on needs and
preferences
Wide variety of products
Exist to generate a profit
, Insured party voluntarily participate
7. Stock Insurance Companies - ANSWER ✓ Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
8. Mutual Insurance Company - ANSWER ✓ No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
9. Re-insurer - ANSWER ✓ Provides insurance for insurers to reduce exposure
to loss
Pays percentage of insurers loss or any loss over a certain amount
10.Reciprocal Insurers - ANSWER ✓ Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
11.Fraternal Benefit Societies - ANSWER ✓ Also called fraternal associations
Non profit mutual aid organizations
Engage in charitable activities
Provide some type of insurance to members
Typically consist of people with similar religion, ethnicity or occupation
12.Fraternal Benefit Societies insurance - ANSWER ✓ Used to fund altruistic
activities
Must be assessable by law
Members are both providers and recipients
If claims payment ability is impaired, members help pay the difference
13.captive insurers - ANSWER ✓ Created by businesses in order to retain risk
Exist to provide insurance for their "parent"
All profit belongs to parent company
Permitted in some states
,14.Risk retention groups - ANSWER ✓ Authorized by the federal liability risk
retention act of 1986
Owned by their members
Provide commercial liability
15.RRG Requirements - ANSWER ✓ Members must be involved in similar
business endeavors
Don't need to be licensed in multiple states
16.Classification based on location - ANSWER ✓ Domestic Insurer - adhere to
law of a state, located in that state
17.Foreign insurer - adhere to laws in the US but can be located elsewhere
18.Alien insurer - obey laws of another country all together
19.Risk - ANSWER ✓ Potential for financial loss
An insured item
20.Two types of risk - ANSWER ✓ Pure and Speculative
21.Speculative risk - ANSWER ✓ No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
22.Pure risk - ANSWER ✓ Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
23.What is the purpose of a Dwelling Fire Policy? - ANSWER ✓ to cover a
residence
24.Residence: - ANSWER ✓ can only contain up to 4 family units
25.If a structure contains more than 4 family units, it is a: - ANSWER ✓
commercial building
, 26.Mobile homes can qualify as a residence; however, they: - ANSWER ✓
can't be on wheels, they must have a location with an address
27.Does a house on a farm qualify as a residence? - ANSWER ✓ No- must get
a Farm Owners Policy, which covers both residential and farmer activities
28.If your name is on the insurance policy, you are the: - ANSWER ✓ Named
Insured
29.A spouse can be covered under a policy even if her name isn't on it, as long
as: - ANSWER ✓ she is a resident of the household
30.Must be a full-time student under the age of ____ for policy to cover child
when away from household - ANSWER ✓ 24
31.What does Dwelling Coverage E cover? - ANSWER ✓ additional living
expenses
32.What does Dwelling Coverage D cover? - ANSWER ✓ loss of rental value
33.What does Coverage C of the Dwelling Policy cover? - ANSWER ✓
personal property
34.What does Coverage B of the Dwelling Policy cover? - ANSWER ✓ other
structures that are unattached/disconnected structures, like a shed or pool
35.What does Coverage A of Dwelling Policy cover? - ANSWER ✓ the
residence and anything attached
36.By default, the limit for Coverage B of Dwelling Policy is automatically
____% of the Coverage A limit - ANSWER ✓ 10%
37.What are the minimum and maximum time frames for a temporary adjuster's
license? - ANSWER ✓ minimum: 6 months
maximum: 15 months
Test 2025/2026 QUESTIONS AND
VERIFIED CORRECT SOLUTIONS || 100%
GUARANTEED PASS
<BRAND NEW VERSION>
1. What is insurance? - ANSWER ✓ protection against financial loss
2. what is a premium - ANSWER ✓ a scheduled amount to be paid for an
insurance policy.
3. What are premiums used for - ANSWER ✓ premiums are collected into a
"pool" or "reserve to pay out claimants when needed.
4. Certificate of Insurance - ANSWER ✓ A legal document that indicates that
an insurance policy has been issued, and that states both the amounts and
types of insurance provided.
5. Characteristics of social insurance - ANSWER ✓ Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
Government has monopoly
6. Private Insurers - ANSWER ✓ Sell insurance based on needs and
preferences
Wide variety of products
Exist to generate a profit
, Insured party voluntarily participate
7. Stock Insurance Companies - ANSWER ✓ Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
8. Mutual Insurance Company - ANSWER ✓ No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
9. Re-insurer - ANSWER ✓ Provides insurance for insurers to reduce exposure
to loss
Pays percentage of insurers loss or any loss over a certain amount
10.Reciprocal Insurers - ANSWER ✓ Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
11.Fraternal Benefit Societies - ANSWER ✓ Also called fraternal associations
Non profit mutual aid organizations
Engage in charitable activities
Provide some type of insurance to members
Typically consist of people with similar religion, ethnicity or occupation
12.Fraternal Benefit Societies insurance - ANSWER ✓ Used to fund altruistic
activities
Must be assessable by law
Members are both providers and recipients
If claims payment ability is impaired, members help pay the difference
13.captive insurers - ANSWER ✓ Created by businesses in order to retain risk
Exist to provide insurance for their "parent"
All profit belongs to parent company
Permitted in some states
,14.Risk retention groups - ANSWER ✓ Authorized by the federal liability risk
retention act of 1986
Owned by their members
Provide commercial liability
15.RRG Requirements - ANSWER ✓ Members must be involved in similar
business endeavors
Don't need to be licensed in multiple states
16.Classification based on location - ANSWER ✓ Domestic Insurer - adhere to
law of a state, located in that state
17.Foreign insurer - adhere to laws in the US but can be located elsewhere
18.Alien insurer - obey laws of another country all together
19.Risk - ANSWER ✓ Potential for financial loss
An insured item
20.Two types of risk - ANSWER ✓ Pure and Speculative
21.Speculative risk - ANSWER ✓ No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
22.Pure risk - ANSWER ✓ Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
23.What is the purpose of a Dwelling Fire Policy? - ANSWER ✓ to cover a
residence
24.Residence: - ANSWER ✓ can only contain up to 4 family units
25.If a structure contains more than 4 family units, it is a: - ANSWER ✓
commercial building
, 26.Mobile homes can qualify as a residence; however, they: - ANSWER ✓
can't be on wheels, they must have a location with an address
27.Does a house on a farm qualify as a residence? - ANSWER ✓ No- must get
a Farm Owners Policy, which covers both residential and farmer activities
28.If your name is on the insurance policy, you are the: - ANSWER ✓ Named
Insured
29.A spouse can be covered under a policy even if her name isn't on it, as long
as: - ANSWER ✓ she is a resident of the household
30.Must be a full-time student under the age of ____ for policy to cover child
when away from household - ANSWER ✓ 24
31.What does Dwelling Coverage E cover? - ANSWER ✓ additional living
expenses
32.What does Dwelling Coverage D cover? - ANSWER ✓ loss of rental value
33.What does Coverage C of the Dwelling Policy cover? - ANSWER ✓
personal property
34.What does Coverage B of the Dwelling Policy cover? - ANSWER ✓ other
structures that are unattached/disconnected structures, like a shed or pool
35.What does Coverage A of Dwelling Policy cover? - ANSWER ✓ the
residence and anything attached
36.By default, the limit for Coverage B of Dwelling Policy is automatically
____% of the Coverage A limit - ANSWER ✓ 10%
37.What are the minimum and maximum time frames for a temporary adjuster's
license? - ANSWER ✓ minimum: 6 months
maximum: 15 months
