ARIZONA ADJUSTER CORE EXAM TEST 2026
QUESTIONS AND SOLUTIONS RATED A+
✔✔Appraisal - ✔✔A negotiation method which allows the claimant and the insurer each
to select an appraiser. The two appraisers in turn select an Umpire. The appraisers then
work together to determine a settlement amount. If they cannot agree, the Umpire steps
in. Agreement by any two of the three is binding.
✔✔Arbitration - ✔✔A negotiation method in which the opposing parties each submit
their evidence to a mutually-agreed-upon and neutral third party, called an arbitrator.
The arbitrator reviews the positions of each opposing side, and makes a final and
legally binding decision.
✔✔Arbitrator - ✔✔The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each opposing side, and makes a final and legally binding
decision.
✔✔Artificially Generated Current - ✔✔Also called "artificial current." A peril covered in
some property insurance policies. It includes sudden and accidental damage from any
electrical current, except currents that are naturally generated, such as lightning or
static electricity.
✔✔Auto Policy - ✔✔Insurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle. Usually combines liability coverage and property
coverage into one policy.
✔✔Automobile - ✔✔In Insurance policies, Automobile generally means any vehicle
designed for use on public roads.
✔✔Automobile No-Fault Laws - ✔✔Laws in effect in some states that require any owner
of a vehicle to purchase no-fault insurance; that is, insurance that indemnifies the
insured regardless of who was at fault in an accident. No-fault laws also restrict the
insured's right to sue the at-fault party.
✔✔Aviation - ✔✔Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not passengers.
✔✔Bailee - ✔✔An individual or company that receives the property of someone else for
a special purpose, and returns the product after use.
✔✔BAP - ✔✔The Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
✔✔Binder - ✔✔A temporary contract provided by an insurer that ensures coverage until
the complete, permanent policy is issued.
,✔✔Bl - ✔✔(Bodily Injury): Physical damage to someone's person. Liability insurance
covers bodily injury that the insured might cause to another person through negligence.
✔✔Body Language - ✔✔The signals we give through posture, behaviour, apparel, etc.,
which are involved in communication.
✔✔Boiler & Machinery - ✔✔Boiler and machinery insurance is designed to indemnify a
business for damages to, and damages by, boilers, machinery, motors, generators and
a variety of other electrical devices and appliances.
✔✔Bond - ✔✔A contract wherein one party guarantees the performance of a third party.
Bonds involve three parties: (1) the surety agrees to pay the second party, (2) the
obligee, if the third party, (3) the principal, neglects to carry out an obligation it has to
the obligee.
✔✔Breach of Product Warranty - ✔✔The failure or falsehood of a stated promise of a
product stipulation.
✔✔Business Personal Property - ✔✔Moveable property used for business
✔✔Catastrophe - ✔✔An occurrence or a sequence of occurrences that causes
enormous property losses. Catastrophes are normally uninsurable by private insurers.
✔✔Cause of Loss - ✔✔A form included in a Commercial Package Policy or a
Commercial Property Policy that lists the causes of loss from which the insured property
is covered.
✔✔CGL - ✔✔A Commercial General Liability policy protects businesses against
damages and injuries to third parties.
✔✔Civil - ✔✔Civil law observes court cases of one citizen charging another citizen for
damages caused by tort; it differs from criminal law.
✔✔Claim - ✔✔The "offer of settlement" that the policyholder files with an insurer after
she experiences a loss.
✔✔Claims-Made Form - ✔✔A liability policy in which the insurer pays only those claims
arising during the policy period (as opposed to those claims arising after the policy
period is over, regardless of whether the incident took place during the policy period).
✔✔Claims Management - ✔✔The practice of the insurance adjuster of managing a
claim by processing it in a prompt and effective manner from the time the claim is filed
until a settlement is reached, while adhering to all local and federal laws.
, ✔✔Claimant - ✔✔One who files a claim with an insurer for a loss.
✔✔Claude the Clueless Adjuster - ✔✔In this course, Claude the Clueless Adjuster
represents an incompetent or unprofessional adjuster.
✔✔Coarse Grains - ✔✔In Crop Insurance, a provision that covers reduction in crop
quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
✔✔Coinsurance - ✔✔The Coinsurance Clause applies to policyholders who purchase
an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a
covered claim that the insured is responsible for paying out-of-pocket, after the
deductible has been paid.
✔✔Code of Ethics - ✔✔A set of governing professional standards of conduct, usually
created by regulatory bodies or government regulatory agencies. These standards may
also be formally codified with statutes.
✔✔Coercion - ✔✔The practice of forcing another party to behave in an involuntary
manner (whether through action or inaction) by use of threats or intimidation or some
other form of pressure or force.
✔✔Commerce - ✔✔The exchange or transport of goods or property.
✔✔Commercial - ✔✔Having to do with commerce or business activity in general.
✔✔Commercial Crime Insurance - ✔✔Commercial insurance that covers employee
dishonesty and theft by employees or others.
✔✔Commercial Lines - ✔✔A variety of insurance coverages that protect those involved
in the business of creating, selling, displaying, evaluating, or shipping, etc. Example
include: Business Owner's Policy; Commercial Property; Commercial General Liability;
Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O) and
Employment-Related Practices Liability.
✔✔Commercial Property Floater - ✔✔A means of protecting a business' property that is
not in one fixed location.
✔✔Common Crop Insurance Policy - ✔✔A single uniform policy that combines Crop
Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Appraisal - ✔✔A negotiation method which allows the claimant and the insurer each
to select an appraiser. The two appraisers in turn select an Umpire. The appraisers then
work together to determine a settlement amount. If they cannot agree, the Umpire steps
in. Agreement by any two of the three is binding.
✔✔Arbitration - ✔✔A negotiation method in which the opposing parties each submit
their evidence to a mutually-agreed-upon and neutral third party, called an arbitrator.
The arbitrator reviews the positions of each opposing side, and makes a final and
legally binding decision.
✔✔Arbitrator - ✔✔The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each opposing side, and makes a final and legally binding
decision.
✔✔Artificially Generated Current - ✔✔Also called "artificial current." A peril covered in
some property insurance policies. It includes sudden and accidental damage from any
electrical current, except currents that are naturally generated, such as lightning or
static electricity.
✔✔Auto Policy - ✔✔Insurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle. Usually combines liability coverage and property
coverage into one policy.
✔✔Automobile - ✔✔In Insurance policies, Automobile generally means any vehicle
designed for use on public roads.
✔✔Automobile No-Fault Laws - ✔✔Laws in effect in some states that require any owner
of a vehicle to purchase no-fault insurance; that is, insurance that indemnifies the
insured regardless of who was at fault in an accident. No-fault laws also restrict the
insured's right to sue the at-fault party.
✔✔Aviation - ✔✔Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not passengers.
✔✔Bailee - ✔✔An individual or company that receives the property of someone else for
a special purpose, and returns the product after use.
✔✔BAP - ✔✔The Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
✔✔Binder - ✔✔A temporary contract provided by an insurer that ensures coverage until
the complete, permanent policy is issued.
,✔✔Bl - ✔✔(Bodily Injury): Physical damage to someone's person. Liability insurance
covers bodily injury that the insured might cause to another person through negligence.
✔✔Body Language - ✔✔The signals we give through posture, behaviour, apparel, etc.,
which are involved in communication.
✔✔Boiler & Machinery - ✔✔Boiler and machinery insurance is designed to indemnify a
business for damages to, and damages by, boilers, machinery, motors, generators and
a variety of other electrical devices and appliances.
✔✔Bond - ✔✔A contract wherein one party guarantees the performance of a third party.
Bonds involve three parties: (1) the surety agrees to pay the second party, (2) the
obligee, if the third party, (3) the principal, neglects to carry out an obligation it has to
the obligee.
✔✔Breach of Product Warranty - ✔✔The failure or falsehood of a stated promise of a
product stipulation.
✔✔Business Personal Property - ✔✔Moveable property used for business
✔✔Catastrophe - ✔✔An occurrence or a sequence of occurrences that causes
enormous property losses. Catastrophes are normally uninsurable by private insurers.
✔✔Cause of Loss - ✔✔A form included in a Commercial Package Policy or a
Commercial Property Policy that lists the causes of loss from which the insured property
is covered.
✔✔CGL - ✔✔A Commercial General Liability policy protects businesses against
damages and injuries to third parties.
✔✔Civil - ✔✔Civil law observes court cases of one citizen charging another citizen for
damages caused by tort; it differs from criminal law.
✔✔Claim - ✔✔The "offer of settlement" that the policyholder files with an insurer after
she experiences a loss.
✔✔Claims-Made Form - ✔✔A liability policy in which the insurer pays only those claims
arising during the policy period (as opposed to those claims arising after the policy
period is over, regardless of whether the incident took place during the policy period).
✔✔Claims Management - ✔✔The practice of the insurance adjuster of managing a
claim by processing it in a prompt and effective manner from the time the claim is filed
until a settlement is reached, while adhering to all local and federal laws.
, ✔✔Claimant - ✔✔One who files a claim with an insurer for a loss.
✔✔Claude the Clueless Adjuster - ✔✔In this course, Claude the Clueless Adjuster
represents an incompetent or unprofessional adjuster.
✔✔Coarse Grains - ✔✔In Crop Insurance, a provision that covers reduction in crop
quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
✔✔Coinsurance - ✔✔The Coinsurance Clause applies to policyholders who purchase
an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a
covered claim that the insured is responsible for paying out-of-pocket, after the
deductible has been paid.
✔✔Code of Ethics - ✔✔A set of governing professional standards of conduct, usually
created by regulatory bodies or government regulatory agencies. These standards may
also be formally codified with statutes.
✔✔Coercion - ✔✔The practice of forcing another party to behave in an involuntary
manner (whether through action or inaction) by use of threats or intimidation or some
other form of pressure or force.
✔✔Commerce - ✔✔The exchange or transport of goods or property.
✔✔Commercial - ✔✔Having to do with commerce or business activity in general.
✔✔Commercial Crime Insurance - ✔✔Commercial insurance that covers employee
dishonesty and theft by employees or others.
✔✔Commercial Lines - ✔✔A variety of insurance coverages that protect those involved
in the business of creating, selling, displaying, evaluating, or shipping, etc. Example
include: Business Owner's Policy; Commercial Property; Commercial General Liability;
Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O) and
Employment-Related Practices Liability.
✔✔Commercial Property Floater - ✔✔A means of protecting a business' property that is
not in one fixed location.
✔✔Common Crop Insurance Policy - ✔✔A single uniform policy that combines Crop
Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
