ADJUSTERPRO FINAL EXAM STUDY GUIDE 2025/2026 COMPLETE QUESTIONS BANK AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS <RECENT VERSION>

ADJUSTERPRO FINAL EXAM STUDY GUIDE 2025/2026 COMPLETE QUESTIONS BANK AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS &lt;RECENT VERSION&gt; 1. Insurance - ANSWER financial tool that protects individuals and organizations from unforeseen and extraordinary financial losses by transferring risk to another party 2. Insured - ANSWER individual or organization that pays premiums in exchange for protection 3. Insurer - ANSWER Company, group, or government agency offering financial protection 4. Insurance policy - ANSWER A legally binding contract that defines the obligations of both the insured and the insurer. 5. Principle of Indemnity - ANSWER Restoration to previous financial condition; no more, no less 6. 4 qualifications of a contract - ANSWER 1. agreement 2. consideration 3. competent parties 4. legal purpose 7. Types of Damages - ANSWER 1. Special damages - money awarded for exact value of tangible damages i.e. medical costs 2. General damages - money awarded for intangible, emotional damages 3. punitive damages - awards money for malicious, willful misconduct on the part of the tortfeasor 8. Which of the following is NOT true of Personal Injury Protection? A. PIP is usually secondary coverage. B. PIP restricts the policyholder's right to recover losses in civil court. C. PIP is primary coverage. D. PIP provides no-fault protection. - ANSWER A. PIP is usually secondary coverage. 9. During a strong storm, Missy's grain drill was mangled by a tornado, which rendered it useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000 to buy a new one today. Missy's farm policy has a replacement cost endorsement, and the grain drill is scheduled on a Mobile Agricultural Machinery and Equipment form with a $36,000 limit. Missy replaces her grain drill with one she found on sale for $40,000. How much total indemnification will she receive? A. $36,000 B. $25,000 C. $45,000 D. $40,000 - ANSWER $36,000 10. Which characteristic would prohibit a convenience store/gas station from purchasing a BOP? A. Over 4,000 square feet of retail space B. The use of microwave ovens C. Gasoline accounts for over 50% of sales D. The operation of a car wash - ANSWER THE OPERATION OF A CAR WASH 11. Which characteristic would prohibit a convenience store/gas station from purchasing a BOP? A. Over 4,000 square feet of retail space B. The use of microwave ovens C. Gasoline accounts for over 50% of sales D. The operation of a car wash - ANSWER flash-cards/ 12. An insurance company may consider each of the following a risk, EXCEPT: WHICH ONE IS NOT A RISK BUT A HAZARD? A. a ruby necklace. B. a race car. C. a school bus. D. a flood zone. - ANSWER D. FLOOD ZONE -- IS NOT A RISK 13. Farmer Scott owns a farm and raises goats, producing a lot of manure. Occasionally, after a strong rain, some of the waste washes into a nearby river. Which insurance coverage can protect Scott from any liability caused by the goat waste runoff? A. Farm Product Liability B. Custom Farming Liability C. Farm Livestock-Waste Liability D. Farm Pollution Liability - ANSWER D. Farm Pollution Liability 14. Christine's spinach field was partially destroyed by fire that resulted from a lightning strike during a recent storm. She lost 23 of her 150 acres. The adjuster writes her a check for the value of the damaged 23 acres, even though the yield from the rest of the field is doing exceptionally well and may make up for the damaged portion. What type of insurance policy does Christine have? A. Revenue Protection B. Multi-Peril Crop Insurance C. Crop-Hail D. Yield Guarantee - ANSWER christine has CROP-HAIL POLICY for her spinach field of 150 acres 15. Veronica owns a pottery business and is insured under a commercial property policy. She was in the process of building an extra structure for the sole purpose of kiln firing her pottery when a massive storm came through and blew down all the scaffolding, which added additional cost to the construction project. Which coverage extension of the Builder's Risk Coverage Form would cover the scaffolding? A. Scaffolding, Construction Forms, and Temporary Structures B. Debris Removal C. Property in Transit D. Preservation of Property - ANSWER A. Scaffolding, Construction Forms, and Temporary Structures 16. Covered by other insurance (boiler and machinery) - ANSWER windstorm or hail explosion fire or combustion explosion internal furnace explosion 17. social insurance - ANSWER non profit, mandatory participation, benefits prescribed by the law, designed to meet general needs of the public, gov. has monopoly 18. Private Insurers - ANSWER sells insurance based on consumer preferences, offers a wide variety of insurance products, typically exists to benefit a group or profit, insured party voluntarily participates 19. Stock Insurance Companies - ANSWER always for profit, usually publicly-traded, stockholders provide capital and participate in profits or losses, non-participating insurers: no dividends go to policyholders 20. Mutual Insurance Companies - ANSWER owned by policyholders (no shareholders), policyholders elect board of directors participating insurers: policyholders participate in dividends 21. Reciprocal Insurers - ANSWER a group of people or organizations that insure each other, unincorporated, non-profit, operated by attorney-in-fact, members pay into individual accounts, cost of claims shared by the whole group 22. Surplus Lines - ANSWER people can get surplus lines when they are denied coverage by standard insurers for multiple reasons 23. Surplus (Excess) Lines Insurance - ANSWER is a last resort, is not available in the standard market and must meet certain conditions 24. Blanket coverage vs. specific limits - ANSWER Blanket coverage "blankets" more than one property, type of property, or coverage under a single limit. Specific limits are limits that apply to one specific type of property 25. Estoppel - ANSWER A legal principle that prohibits a party from asserting a claim or right that is inconsistent with that party's past statement or conduct on which another party has detrimentally relied. A estoppel is a type of implied waiver 26. 6 Qualifications of Insurable Risk - ANSWER 1.) Adequate Premiums 2.) Definable Risk 3.) Unexpected Losses 4.) Substantial losses 5.) Exclusions 6.) Law of Large Numbers 27. Adequate Premiums - ANSWER Insurance must be able to cover claims with premium incomes 28. Exclusions - ANSWER The insurer must exclude coverage for large-scale disasters and catastrophic events 29. Jones' Auto in Dallas, Texas buys 50 cars from ABC Auto in Tokyo, Japan. They sign a contract whereby Jones' Auto assumes the risk of any damages to the cars until they are delivered. What term of sale have they agreed to? A.Cargo, Insurance, and Freight B.Cost and Freight C.Cost, Insurance, and Freight D.Free on Board, Dallas - ANSWER B.Cost and Freight 30. The Write Your Own program allows private insurers to: A.write their own flood policies. B.give policyholders the opportunity to design their own policies. C.sell standardized NFIP policies. D.underwrite losses. - ANSWER C.sell standardized NFIP policies. 31. Jaime made $950/week before he was killed in a work-related accident. The State Average Weekly Wage is $895. Jaime has three dependents: his wife and two children. How much will each of his children receive per week in death benefits? - ANSWER $178 32. Death benefits pay 75% of the deceased worker's AWW (Average Weekly Wage) 33. Death benefits pay ____ of the deceased worker's AWW (Average Weekly Wage) - ANSWER 75% 34. For farm, minor structures or items are limited to ... - ANSWER $250 35. Ty's farm policy fully insures him. A tornado destroys:A barn worth $15,600A light pole worth $400A corral and two livestock chutes worth $6,200 36. Question: How much indemnification can Ty expect to receive for this claim? - ANSWER $22,050 37. The Period of Restoration for Business Income Coverage begins when? - ANSWER Typically has a waiting period (e.g., 72 hours) before indemnification begins. 38. The Period of Restoration for Extra Expense coverage begins when? - ANSWER immediately after damage occurs and continue until the damaged property is replaced or repaired or until a new property is up and running. 39. The other coverage Trees, Shrubs, etc. allows for $500 towards the replacement of any one tree or shrub, but ____ is not a covered peril. - ANSWER wind 40. During a severe windstorm, a large tree in Jeff's yard was blown down and two large bushes were ripped from the ground. Jeff has an HO-3. What is the maximum amount that Jeff can receive for the replacement of the tree and bushes that were damaged by the windstorm? - ANSWER $0 The other coverage Trees, Shrubs, etc. allows for $500 towards the replacement of any one tree or shrub, but wind is not a covered peril.