INSURANCE ADJUSTER EXAM 2026 ACTUAL
SCRIPT WITH ACCURATE ANSWERS
GRADED A+
◉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
◉Risk retention groups. Answer: Authorized by the federal liability
risk retention act of 1986
Owned by their members
Provide commercial liability
◉RRG Requirements. Answer: Members must be involved in similar
business endeavors
Don't need to be licensed in multiple states
◉Classification based on location. Answer: Domestic Insurer -
adhere to law of a state, located in that state
,Foreign insurer - adhere to laws in the US but can be located
elsewhere
Alien insurer - obey laws of another country all together
◉Risk. Answer: Potential for financial loss
An insured item
◉Two types of risk. Answer: Pure and Speculative
◉Speculative risk. Answer: No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
◉Pure risk. Answer: Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
◉Exposure. Answer: Extent to which an item, person, or
organization is open to damage or loss
, ◉Evaluating exposure. Answer: Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
◉Hazard. Answer: A condition increasing the likelihood or severity
of a loss
◉Peril. Answer: The actual cause of loss or damage
◉Insurable risk. Answer: Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
◉Adequate Premiums. Answer: Potential loss can't be too much for
insurer to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
◉Difneable risk. Answer: Insurer can define exact conditions under
which the item is covered by the policy
SCRIPT WITH ACCURATE ANSWERS
GRADED A+
◉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
◉Risk retention groups. Answer: Authorized by the federal liability
risk retention act of 1986
Owned by their members
Provide commercial liability
◉RRG Requirements. Answer: Members must be involved in similar
business endeavors
Don't need to be licensed in multiple states
◉Classification based on location. Answer: Domestic Insurer -
adhere to law of a state, located in that state
,Foreign insurer - adhere to laws in the US but can be located
elsewhere
Alien insurer - obey laws of another country all together
◉Risk. Answer: Potential for financial loss
An insured item
◉Two types of risk. Answer: Pure and Speculative
◉Speculative risk. Answer: No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
◉Pure risk. Answer: Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
◉Exposure. Answer: Extent to which an item, person, or
organization is open to damage or loss
, ◉Evaluating exposure. Answer: Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
◉Hazard. Answer: A condition increasing the likelihood or severity
of a loss
◉Peril. Answer: The actual cause of loss or damage
◉Insurable risk. Answer: Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
◉Adequate Premiums. Answer: Potential loss can't be too much for
insurer to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
◉Difneable risk. Answer: Insurer can define exact conditions under
which the item is covered by the policy
