State Farm Auto Adjuster Certification
Questions with Complete Answers
Course
State Farm
1. What is the primary responsibility of an auto claims adjuster?
A. Sell new policies to customers
B. Determine fault in all accidents
C. Evaluate, investigate, and settle auto insurance claims
D. Repair damaged vehicles
✅ Correct Answer: C. Evaluate, investigate, and settle auto insurance claims
Rationale: Auto adjusters assess the extent of loss or damage, determine coverage and liability,
and negotiate settlements.
2. A claimant reports that their car was rear-ended at a stoplight. What is the
most likely liability decision?
A. 100% liability on the claimant
B. 100% liability on the other driver
C. 50/50 shared liability
D. No liability assigned
✅ Correct Answer: B. 100% liability on the other driver
Rationale: In most jurisdictions, rear-end collisions are presumed to be the fault of the following
driver due to failure to maintain a safe distance.
3. What document outlines the specific coverage and limits of a customer’s auto
insurance?
A. Accident report
B. Declarations page
C. Vehicle title
D. Repair estimate
✅ Correct Answer: B. Declarations page
Rationale: The declarations page summarizes the policyholder’s coverage, limits, deductibles,
and vehicles insured.
,4. A repair estimate shows $3,200 in damage. The vehicle’s actual cash value
(ACV) is $3,000. What should the adjuster consider?
A. Approve the repair anyway
B. Proceed with a total loss settlement
C. Reduce the repair cost by removing parts
D. Wait for a second estimate
✅ Correct Answer: B. Proceed with a total loss settlement
Rationale: When repair costs exceed ACV, the vehicle is considered a constructive total loss
and typically not repaired.
5. What is the purpose of a comparative negligence assessment?
A. Determine if fraud has occurred
B. Allocate responsibility when both parties are partially at fault
C. Decide when no one is at fault
D. Set the deductible
✅ Correct Answer: B. Allocate responsibility when both parties are partially at fault
Rationale: Comparative negligence allows liability to be shared based on the degree of fault for
each party involved.
6. Which of the following is typically not covered under standard auto liability
insurance?
A. Property damage to another vehicle
B. Bodily injury to another person
C. Damage to the insured's own vehicle
D. Legal defense for the insured
✅ Correct Answer: C. Damage to the insured's own vehicle
Rationale: Liability insurance covers damage or injury to others. Coverage for the insured’s
own vehicle comes from collision or comprehensive insurance.
7. What is a supplement in the auto claims process?
A. A refund given to the claimant
B. A final payment to the repair shop
,C. An additional repair cost not in the original estimate
D. A liability waiver
✅ Correct Answer: C. An additional repair cost not in the original estimate
Rationale: Supplements are added when hidden damage is discovered after disassembly or
during repairs.
8. What is "betterment" in a repair estimate?
A. A discount applied to repairs
B. A cost for upgrading old parts to new ones
C. A fee charged by the body shop
D. A coverage enhancement
✅ Correct Answer: B. A cost for upgrading old parts to new ones
Rationale: Betterment applies when replacement parts improve the vehicle’s condition, such as
replacing worn tires with new ones.
9. When is a diminished value claim applicable?
A. After a vehicle is totaled
B. When repairs are substandard
C. When a repaired vehicle is worth less due to its accident history
D. When there’s depreciation from age
✅ Correct Answer: C. When a repaired vehicle is worth less due to its accident history
Rationale: Diminished value represents the reduction in market value of a vehicle after it's
been repaired, even if fully restored.
10. What is the adjuster’s role in subrogation?
A. Collect premiums
B. Represent the insured in court
C. Seek reimbursement from the at-fault party’s insurer
D. Determine customer satisfaction
✅ Correct Answer: C. Seek reimbursement from the at-fault party’s insurer
Rationale: Subrogation allows the insurer to recover claim payouts from the responsible party's
insurance company.
, 11. What type of part is typically preferred by insurance companies to reduce repair costs
while maintaining safety standards?
A. OEM (Original Equipment Manufacturer)
B. Aftermarket equivalent part
C. Salvage-only part
D. Performance-enhanced replacement
✅ Correct Answer: B. Aftermarket equivalent part
Rationale: Aftermarket parts are cost-effective and can meet quality standards, often used unless
policy or state law requires OEM parts.
12. A customer with liability-only coverage files a claim for damage to their own vehicle.
What is the proper adjuster response?
A. Approve repairs under liability coverage
B. Deny the claim—damage to own vehicle not covered
C. File a subrogation claim
D. Initiate arbitration
✅ Correct Answer: B. Deny the claim—damage to own vehicle not covered
Rationale: Liability-only coverage does not protect the insured’s own vehicle, only damage
caused to others.
13. During an inspection, you find hidden structural damage not included in the original
estimate. What should you do?
A. Ignore the damage and close the claim
B. Add a supplement and update the estimate
C. Ask the customer to pay the difference
D. Cancel the repair process
✅ Correct Answer: B. Add a supplement and update the estimate
Rationale: New findings require a supplemental estimate to accurately reflect the repair scope.
14. What is the main reason for securing photo documentation during a claim inspection?
A. To create marketing materials
B. To assist with police reports
C. To document damage for the claim file and liability decisions
D. To help the repair shop source parts
Questions with Complete Answers
Course
State Farm
1. What is the primary responsibility of an auto claims adjuster?
A. Sell new policies to customers
B. Determine fault in all accidents
C. Evaluate, investigate, and settle auto insurance claims
D. Repair damaged vehicles
✅ Correct Answer: C. Evaluate, investigate, and settle auto insurance claims
Rationale: Auto adjusters assess the extent of loss or damage, determine coverage and liability,
and negotiate settlements.
2. A claimant reports that their car was rear-ended at a stoplight. What is the
most likely liability decision?
A. 100% liability on the claimant
B. 100% liability on the other driver
C. 50/50 shared liability
D. No liability assigned
✅ Correct Answer: B. 100% liability on the other driver
Rationale: In most jurisdictions, rear-end collisions are presumed to be the fault of the following
driver due to failure to maintain a safe distance.
3. What document outlines the specific coverage and limits of a customer’s auto
insurance?
A. Accident report
B. Declarations page
C. Vehicle title
D. Repair estimate
✅ Correct Answer: B. Declarations page
Rationale: The declarations page summarizes the policyholder’s coverage, limits, deductibles,
and vehicles insured.
,4. A repair estimate shows $3,200 in damage. The vehicle’s actual cash value
(ACV) is $3,000. What should the adjuster consider?
A. Approve the repair anyway
B. Proceed with a total loss settlement
C. Reduce the repair cost by removing parts
D. Wait for a second estimate
✅ Correct Answer: B. Proceed with a total loss settlement
Rationale: When repair costs exceed ACV, the vehicle is considered a constructive total loss
and typically not repaired.
5. What is the purpose of a comparative negligence assessment?
A. Determine if fraud has occurred
B. Allocate responsibility when both parties are partially at fault
C. Decide when no one is at fault
D. Set the deductible
✅ Correct Answer: B. Allocate responsibility when both parties are partially at fault
Rationale: Comparative negligence allows liability to be shared based on the degree of fault for
each party involved.
6. Which of the following is typically not covered under standard auto liability
insurance?
A. Property damage to another vehicle
B. Bodily injury to another person
C. Damage to the insured's own vehicle
D. Legal defense for the insured
✅ Correct Answer: C. Damage to the insured's own vehicle
Rationale: Liability insurance covers damage or injury to others. Coverage for the insured’s
own vehicle comes from collision or comprehensive insurance.
7. What is a supplement in the auto claims process?
A. A refund given to the claimant
B. A final payment to the repair shop
,C. An additional repair cost not in the original estimate
D. A liability waiver
✅ Correct Answer: C. An additional repair cost not in the original estimate
Rationale: Supplements are added when hidden damage is discovered after disassembly or
during repairs.
8. What is "betterment" in a repair estimate?
A. A discount applied to repairs
B. A cost for upgrading old parts to new ones
C. A fee charged by the body shop
D. A coverage enhancement
✅ Correct Answer: B. A cost for upgrading old parts to new ones
Rationale: Betterment applies when replacement parts improve the vehicle’s condition, such as
replacing worn tires with new ones.
9. When is a diminished value claim applicable?
A. After a vehicle is totaled
B. When repairs are substandard
C. When a repaired vehicle is worth less due to its accident history
D. When there’s depreciation from age
✅ Correct Answer: C. When a repaired vehicle is worth less due to its accident history
Rationale: Diminished value represents the reduction in market value of a vehicle after it's
been repaired, even if fully restored.
10. What is the adjuster’s role in subrogation?
A. Collect premiums
B. Represent the insured in court
C. Seek reimbursement from the at-fault party’s insurer
D. Determine customer satisfaction
✅ Correct Answer: C. Seek reimbursement from the at-fault party’s insurer
Rationale: Subrogation allows the insurer to recover claim payouts from the responsible party's
insurance company.
, 11. What type of part is typically preferred by insurance companies to reduce repair costs
while maintaining safety standards?
A. OEM (Original Equipment Manufacturer)
B. Aftermarket equivalent part
C. Salvage-only part
D. Performance-enhanced replacement
✅ Correct Answer: B. Aftermarket equivalent part
Rationale: Aftermarket parts are cost-effective and can meet quality standards, often used unless
policy or state law requires OEM parts.
12. A customer with liability-only coverage files a claim for damage to their own vehicle.
What is the proper adjuster response?
A. Approve repairs under liability coverage
B. Deny the claim—damage to own vehicle not covered
C. File a subrogation claim
D. Initiate arbitration
✅ Correct Answer: B. Deny the claim—damage to own vehicle not covered
Rationale: Liability-only coverage does not protect the insured’s own vehicle, only damage
caused to others.
13. During an inspection, you find hidden structural damage not included in the original
estimate. What should you do?
A. Ignore the damage and close the claim
B. Add a supplement and update the estimate
C. Ask the customer to pay the difference
D. Cancel the repair process
✅ Correct Answer: B. Add a supplement and update the estimate
Rationale: New findings require a supplemental estimate to accurately reflect the repair scope.
14. What is the main reason for securing photo documentation during a claim inspection?
A. To create marketing materials
B. To assist with police reports
C. To document damage for the claim file and liability decisions
D. To help the repair shop source parts
