AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
Stephen's insurer denied his claim because the peril was not covered. But,
according to Stephen's understanding of the policy, his loss should be
covered, so he filed a dispute. During the trial, the jury agreed that the
policy language was open to interpretation, so they decided in favor of
Stephen. This is because:
A. Insurance policies are contracts of adhesion.
B. Insurance policies are conditional contracts.
C. Insurance policies are contracts of utmost good faith.
D. Insurance policies are personal contracts. - (ANSWERS)A. Insurance
policies are contracts of adhesion.
"We will provide the insurance described in this policy in return for the
premium and compliance with all applicable provisions of this policy." In
which section of the insurance policy would this statement be found?
A. Definitions
B. Declarations
C. Insuring Agreement
D. Endorsements - (ANSWERS)C. Insuring Agreement
Melinda's home sustained $6,500 in damage when Jared ran into it with his
truck. Melinda received $6,500 from her insurance company, and Jared also
paid her $5,000. Melinda has now profited from this loss and is in violation
,AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
of:
A. The principle of subrogation.
B. Federal law.
C. The principle of indemnity.
D. State law. - (ANSWERS)C. The principle of indemnity.
Sandra rear-ended Randy's car when he stopped quickly for a yellow light
that she was sure they were both going to make. The damage was minor,
but Sandra was worried her premiums would increase if the accident was
reported, so she gave Randy $500 in an effort to keep it just between the
two of them. However, Randy filed the claim with his insurance company
and received a settlement check for $750. What has Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization - (ANSWERS)C. The principle of
indemnity
Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as low as
possible, so he decides not to include uninsured motorist coverage on his
policy. His agent has him sign a document giving up his right to this
,AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
coverage. What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver - (ANSWERS)B. An express waiver
An insurance policy's declarations page contains all of the following,
EXCEPT:
A. The deductible.
B. The dates of the policy term.
C. The perils insured against.
D. The coverage limit. - (ANSWERS)C. The perils insured against.
An economic device used to protect against the risk of realizing unforeseen
and extraordinary financial loss is called:
A. Risk avoidance.
B. Insurance.
C. Indemnification.
D. Subrogation. - (ANSWERS)B. Insurance.
, AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
Which of the following does NOT constitute a legal termination of a
contract offer?
A. Rejection by offeree
B. Request for more information
C. Termination by operation of law
D. Revocation by offeror - (ANSWERS)B. Request for more information
The Principle of Indemnity is designed to prevent:
A. Having multiple payees on a policy.
B. An insured from making a profit.
C. Insurers from making a profit.
D. Subrogation. - (ANSWERS)B. An insured from making a profit.
Jason's auto policy states that the insurer may cancel coverage if Jason pays
a premium more than 30 days late. However, Jason is currently more than
30 days late, and has been so five times in the last year, and his insurer has
done nothing about it. When Jason gets into an accident and files a claim,
which of the following would be true?
A. The principle of utmost good faith prevents the insurer from denying
coverage in this case.
B. The principle of utmost good faith allows the insurer to deny coverage in
Answers | Latest Already Graded A+ UPDATE |2026
Stephen's insurer denied his claim because the peril was not covered. But,
according to Stephen's understanding of the policy, his loss should be
covered, so he filed a dispute. During the trial, the jury agreed that the
policy language was open to interpretation, so they decided in favor of
Stephen. This is because:
A. Insurance policies are contracts of adhesion.
B. Insurance policies are conditional contracts.
C. Insurance policies are contracts of utmost good faith.
D. Insurance policies are personal contracts. - (ANSWERS)A. Insurance
policies are contracts of adhesion.
"We will provide the insurance described in this policy in return for the
premium and compliance with all applicable provisions of this policy." In
which section of the insurance policy would this statement be found?
A. Definitions
B. Declarations
C. Insuring Agreement
D. Endorsements - (ANSWERS)C. Insuring Agreement
Melinda's home sustained $6,500 in damage when Jared ran into it with his
truck. Melinda received $6,500 from her insurance company, and Jared also
paid her $5,000. Melinda has now profited from this loss and is in violation
,AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
of:
A. The principle of subrogation.
B. Federal law.
C. The principle of indemnity.
D. State law. - (ANSWERS)C. The principle of indemnity.
Sandra rear-ended Randy's car when he stopped quickly for a yellow light
that she was sure they were both going to make. The damage was minor,
but Sandra was worried her premiums would increase if the accident was
reported, so she gave Randy $500 in an effort to keep it just between the
two of them. However, Randy filed the claim with his insurance company
and received a settlement check for $750. What has Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization - (ANSWERS)C. The principle of
indemnity
Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as low as
possible, so he decides not to include uninsured motorist coverage on his
policy. His agent has him sign a document giving up his right to this
,AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
coverage. What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver - (ANSWERS)B. An express waiver
An insurance policy's declarations page contains all of the following,
EXCEPT:
A. The deductible.
B. The dates of the policy term.
C. The perils insured against.
D. The coverage limit. - (ANSWERS)C. The perils insured against.
An economic device used to protect against the risk of realizing unforeseen
and extraordinary financial loss is called:
A. Risk avoidance.
B. Insurance.
C. Indemnification.
D. Subrogation. - (ANSWERS)B. Insurance.
, AdjusterPro - Practice Exam (updated 2026) Questions &
Answers | Latest Already Graded A+ UPDATE |2026
Which of the following does NOT constitute a legal termination of a
contract offer?
A. Rejection by offeree
B. Request for more information
C. Termination by operation of law
D. Revocation by offeror - (ANSWERS)B. Request for more information
The Principle of Indemnity is designed to prevent:
A. Having multiple payees on a policy.
B. An insured from making a profit.
C. Insurers from making a profit.
D. Subrogation. - (ANSWERS)B. An insured from making a profit.
Jason's auto policy states that the insurer may cancel coverage if Jason pays
a premium more than 30 days late. However, Jason is currently more than
30 days late, and has been so five times in the last year, and his insurer has
done nothing about it. When Jason gets into an accident and files a claim,
which of the following would be true?
A. The principle of utmost good faith prevents the insurer from denying
coverage in this case.
B. The principle of utmost good faith allows the insurer to deny coverage in
