ARIZONA ADJUSTER EVALUATION EXAM 2026
QUESTIONS AND SOLUTIONS RATED A+
✔✔When Teddy bought his homeowners policy, he did not tell his agent or insurer that
he owned three dangerous dogs who had attacked his neighbors. Even though the
insurance application form inquired specifically about pets, Teddy indicated that he
didn't own any. The dogs later attacked a mail carrier and seriously injured him. How will
the insurer respond when it receives the claim? - ✔✔It will deny coverage on the basis
of concealment or fraud.
✔✔Unique characteristics and requirements of a particular risk sometimes make it
unacceptable to insurance companies in the standard insurance market. These
characteristics include: - ✔✔Unfavorable underwriting problems
Exposures that are difficult to evaluate because they are unique
Risks that require high limits of insurance coverage
✔✔If a homeowners policy provision is NOT modified in the Arizona Special Provisions
form, the provision in the policy - ✔✔applies as written in the policy.
✔✔All of the following may have an insurable interest in certain property - ✔✔Property
Owner
Bank or other mortgage holder
Finance company that financed the purchase of the insured property
✔✔Nimiroski Motors failed to use a reasonable degree of care in protecting the vehicles
parked in its lot overnight. It failed to lock the gate to the fence and turn on the outdoor
lights in the lot. As a result, Oscar's car was vandalized. He most likely claimed
Nimiroski Motors was guilty of: - ✔✔the tort of negligence
✔✔How many sections does the ISO businessowners policy (BOP) contain? - ✔✔3
✔✔Mrs. Quayle is using her covered auto for work when she rear-ends a school bus on
her way to a business meeting. Does the medical payments coverage on her personal
auto policy provide coverage for her injuries? - ✔✔No, she was on the job and would be
eligible for workers compensation benefits.
✔✔Allied Motor Transport Co. and Brothers Cartage Co. agree to use each other's
trailers while transporting cargo. While using one of Brothers' trailers, Alliance has an
accident that damages the trailer. What coverage does Alliance need to pay for the
damage? - ✔✔trailer interchange coverage
✔✔Which of the following property insurance policy clauses ensures that a loss payee
will be included in any claim payment related to the insured property? - ✔✔loss payable
clause
, ✔✔Jack is a freelance writer who works from home and often meets with publishers and
editors there. If one of them is injured while there to discuss a project, will Jack's
homeowners policy cover him for a claim made against him? - ✔✔No. The business
exclusion excludes coverage for injury related to a business being conducted from the
insured's home.
✔✔Once an insurer has received proof of loss to settle a claim, it must pay the claim
within - ✔✔30 days.
✔✔An adjuster may obtain draft authority from the insurer to - ✔✔settle a claim.
✔✔A business setting up a self-insurance program is an example of which method of
risk management? - ✔✔risk retention
✔✔Tom and Ann have just bought a condominium as a secondary residence. Which of
the following homeowners coverage form is best designed for them? - ✔✔HO 6 Unit-
Owners Form
✔✔Susan is in a collision with another motorist and files a collision claim with her auto
insurer. The adjuster inspects the damage to her car and writes an estimate that
includes replacing the damage with aftermarket parts, which are also known as: -
✔✔non-OEM parts
✔✔Stan owns a personal auto policy and a personal umbrella policy. He is found liable
for damages caused by an auto accident. Which statement is correct? - ✔✔The
umbrella policy pays the loss exceeding the PAP's limits.
✔✔Gary is insured by Olympus Insurance Company. He is severely injured in an auto
accident due to another driver's negligence, and is unable to work. The adjuster
recommends that Olympus begin making regular payments to Gary while the claim is
under investigation. What must Gary do to receive these payments? - ✔✔Nothing.
✔✔The conditions section of a property insurance policy describes: - ✔✔when and
where coverage applies
✔✔A typical proof of loss contains which of the following information? - ✔✔Date and
cause of loss
Insured's interest in the damaged property
Description of other insurance that might apply
✔✔How do public adjusters primarily differ from staff or independent adjusters? -
✔✔Public adjusters represent insureds, while other adjusters represent insurers.
QUESTIONS AND SOLUTIONS RATED A+
✔✔When Teddy bought his homeowners policy, he did not tell his agent or insurer that
he owned three dangerous dogs who had attacked his neighbors. Even though the
insurance application form inquired specifically about pets, Teddy indicated that he
didn't own any. The dogs later attacked a mail carrier and seriously injured him. How will
the insurer respond when it receives the claim? - ✔✔It will deny coverage on the basis
of concealment or fraud.
✔✔Unique characteristics and requirements of a particular risk sometimes make it
unacceptable to insurance companies in the standard insurance market. These
characteristics include: - ✔✔Unfavorable underwriting problems
Exposures that are difficult to evaluate because they are unique
Risks that require high limits of insurance coverage
✔✔If a homeowners policy provision is NOT modified in the Arizona Special Provisions
form, the provision in the policy - ✔✔applies as written in the policy.
✔✔All of the following may have an insurable interest in certain property - ✔✔Property
Owner
Bank or other mortgage holder
Finance company that financed the purchase of the insured property
✔✔Nimiroski Motors failed to use a reasonable degree of care in protecting the vehicles
parked in its lot overnight. It failed to lock the gate to the fence and turn on the outdoor
lights in the lot. As a result, Oscar's car was vandalized. He most likely claimed
Nimiroski Motors was guilty of: - ✔✔the tort of negligence
✔✔How many sections does the ISO businessowners policy (BOP) contain? - ✔✔3
✔✔Mrs. Quayle is using her covered auto for work when she rear-ends a school bus on
her way to a business meeting. Does the medical payments coverage on her personal
auto policy provide coverage for her injuries? - ✔✔No, she was on the job and would be
eligible for workers compensation benefits.
✔✔Allied Motor Transport Co. and Brothers Cartage Co. agree to use each other's
trailers while transporting cargo. While using one of Brothers' trailers, Alliance has an
accident that damages the trailer. What coverage does Alliance need to pay for the
damage? - ✔✔trailer interchange coverage
✔✔Which of the following property insurance policy clauses ensures that a loss payee
will be included in any claim payment related to the insured property? - ✔✔loss payable
clause
, ✔✔Jack is a freelance writer who works from home and often meets with publishers and
editors there. If one of them is injured while there to discuss a project, will Jack's
homeowners policy cover him for a claim made against him? - ✔✔No. The business
exclusion excludes coverage for injury related to a business being conducted from the
insured's home.
✔✔Once an insurer has received proof of loss to settle a claim, it must pay the claim
within - ✔✔30 days.
✔✔An adjuster may obtain draft authority from the insurer to - ✔✔settle a claim.
✔✔A business setting up a self-insurance program is an example of which method of
risk management? - ✔✔risk retention
✔✔Tom and Ann have just bought a condominium as a secondary residence. Which of
the following homeowners coverage form is best designed for them? - ✔✔HO 6 Unit-
Owners Form
✔✔Susan is in a collision with another motorist and files a collision claim with her auto
insurer. The adjuster inspects the damage to her car and writes an estimate that
includes replacing the damage with aftermarket parts, which are also known as: -
✔✔non-OEM parts
✔✔Stan owns a personal auto policy and a personal umbrella policy. He is found liable
for damages caused by an auto accident. Which statement is correct? - ✔✔The
umbrella policy pays the loss exceeding the PAP's limits.
✔✔Gary is insured by Olympus Insurance Company. He is severely injured in an auto
accident due to another driver's negligence, and is unable to work. The adjuster
recommends that Olympus begin making regular payments to Gary while the claim is
under investigation. What must Gary do to receive these payments? - ✔✔Nothing.
✔✔The conditions section of a property insurance policy describes: - ✔✔when and
where coverage applies
✔✔A typical proof of loss contains which of the following information? - ✔✔Date and
cause of loss
Insured's interest in the damaged property
Description of other insurance that might apply
✔✔How do public adjusters primarily differ from staff or independent adjusters? -
✔✔Public adjusters represent insureds, while other adjusters represent insurers.
