ARIZONA ADJUSTER LATEST 2026 TEST PAPER
QUESTIONS AND SOLUTIONS RATED A+
✔✔Acronym for the four sections of an Insurance policy - ✔✔DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
✔✔Decelerations section - ✔✔Always the first section - establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
Deductible
Premium
✔✔Definitions section - ✔✔Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
✔✔Insuring agreement section - ✔✔What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
✔✔Conditions section - ✔✔Insurer specifies any limits or qualifications the policy holder
must meet
✔✔Exclusions section - ✔✔losses for which the insured is not covered for
✔✔Endorsements - ✔✔Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Characteristics of social insurance - ✔✔Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
, Government has monopoly
✔✔Private Insurers - ✔✔Sell insurance based on needs and preferences
Wide variety of products
Exist to generate a profit
Insured party voluntarily participate
✔✔Stock Insurance Companies - ✔✔Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
✔✔Mutual Insurance Company - ✔✔No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
✔✔Re-insurer - ✔✔Provides insurance for insurers to reduce exposure to loss
Pays percentage of insurers loss or any loss over a certain amount
✔✔Reciprocal Insurers - ✔✔Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
✔✔Fraternal Benefit Societies - ✔✔Also called fraternal associations
Non profit mutual aid organizations
Engage in charitable activities
Provide some type of insurance to members
Typically consist of people with similar religion, ethnicity or occupation
✔✔Fraternal Benefit Societies insurance - ✔✔Used to fund altruistic activities
Must be assessable by law
Members are both providers and recipients
If claims payment ability is impaired, members help pay the difference
✔✔captive insurers - ✔✔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 - ✔✔Authorized by the federal liability risk retention act of
1986
Owned by their members
Provide commercial liability
QUESTIONS AND SOLUTIONS RATED A+
✔✔Acronym for the four sections of an Insurance policy - ✔✔DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
✔✔Decelerations section - ✔✔Always the first section - establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
Deductible
Premium
✔✔Definitions section - ✔✔Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
✔✔Insuring agreement section - ✔✔What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
✔✔Conditions section - ✔✔Insurer specifies any limits or qualifications the policy holder
must meet
✔✔Exclusions section - ✔✔losses for which the insured is not covered for
✔✔Endorsements - ✔✔Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Characteristics of social insurance - ✔✔Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
, Government has monopoly
✔✔Private Insurers - ✔✔Sell insurance based on needs and preferences
Wide variety of products
Exist to generate a profit
Insured party voluntarily participate
✔✔Stock Insurance Companies - ✔✔Always for profit
Publicly traded
Stockholder provide capital and participate in profit or losses
"Non participation" insurers - no dividends go to policy holders
✔✔Mutual Insurance Company - ✔✔No shareholders
Policy holders elect board of directors
"Participating" insurers - policy holders participate in dividends
✔✔Re-insurer - ✔✔Provides insurance for insurers to reduce exposure to loss
Pays percentage of insurers loss or any loss over a certain amount
✔✔Reciprocal Insurers - ✔✔Unincorporated
Non profit
Operated by attorney in fact
Members pay into individual accounts
Cost of claims shared by whole groups
✔✔Fraternal Benefit Societies - ✔✔Also called fraternal associations
Non profit mutual aid organizations
Engage in charitable activities
Provide some type of insurance to members
Typically consist of people with similar religion, ethnicity or occupation
✔✔Fraternal Benefit Societies insurance - ✔✔Used to fund altruistic activities
Must be assessable by law
Members are both providers and recipients
If claims payment ability is impaired, members help pay the difference
✔✔captive insurers - ✔✔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 - ✔✔Authorized by the federal liability risk retention act of
1986
Owned by their members
Provide commercial liability
