ADJUSTER PRO INDIANA ADJUSTER'S
LICENSE COMPREHENSIVE EXAMINATION
TEST 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉Define: No liability. Answer: The policyholder has 0% or, no
liability in the damages to a third party
◉Define: Liability policy limits. Answer: Maximum payout for each
policy
◉Define: Single limit. Answer: A fixed limit for each type of damage
◉What are the three different split limits?. Answer: Maximum paid
for bodily injury of one person
Maximum paid for bodily injury of multiple persons
Maximum paid for property damage
◉What are the two different aggregate limts?. Answer: Maximum
payout per occurrence
,Maximum payout per policy period
◉Matching:
1. Replacement cost
2. Actual cash value
3. Annual depreciation
4. Accumulated Depreciation
5. Valued policy
6. Valuation
A. An item's annual depreciation multiplied by its age
B. Assigns a set value to each insured item
C. Replacement cost divided by item's useful life
D. The process of estimating what an item is worth
E. Cost to replace an item at today's market value
F. Replacement cost minus accumulated depreciation. Answer: 1 - E
2-F
3-C
4-A
5-B
6-D
,◉An item's replacement cost divided by the number of years its
expected or useful life is its:
A. Annual replacement cost
B. Annual depreciation
C. Accumulated depreciation
D. Actual cash value. Answer: B. Annual depreciation
◉What is the formula for actual cash value?
A. Replacement cost minus annual depreciation
B. Replacement cost minus total depreciation
C. Original cost minus total depreciation
D. Fair market value minus annual depreciation. Answer: B.
Replacement cost minus total depreciation
◉Jerry is using an expensive video recorder near the family pool
when he slips and falls in, destroying the camera. Jerry bought the
camera three years ago for $4,000, and it depreciates at $500 per
year. A new, similar camera costs $5,000 today. Assuming the loss is
covered, if Jerry had a replacement cost policy, how much would
Jerry's insurer indemnify Jerry for the destroyed camera?
, A. $3,500
B. $4,000
C. $2,500
D. $5,000. Answer: D. $5,000
◉Sue decides to get a valued insurance policy on her antique car.
She and her insurance company agree to a value of $85,000. three
years later, the car is destroyed when a tree falls on it in a parking
lot. The car depreciates at $2,000 a year, and its replacement cost is
$100,000. ignoring any deductible, how much can Sue expect her
insurer to indemnify her?
A. $94,000
B. $79,000
C. $85,000
D. $83,000. Answer: C. $85,000
◉Which of the following statements regarding actual cash value is
FALSE?
A. A replacement cost valuation will generally be more than the ACV
valuation
B. Actual cash value is always most beneficial to a policyholder
LICENSE COMPREHENSIVE EXAMINATION
TEST 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉Define: No liability. Answer: The policyholder has 0% or, no
liability in the damages to a third party
◉Define: Liability policy limits. Answer: Maximum payout for each
policy
◉Define: Single limit. Answer: A fixed limit for each type of damage
◉What are the three different split limits?. Answer: Maximum paid
for bodily injury of one person
Maximum paid for bodily injury of multiple persons
Maximum paid for property damage
◉What are the two different aggregate limts?. Answer: Maximum
payout per occurrence
,Maximum payout per policy period
◉Matching:
1. Replacement cost
2. Actual cash value
3. Annual depreciation
4. Accumulated Depreciation
5. Valued policy
6. Valuation
A. An item's annual depreciation multiplied by its age
B. Assigns a set value to each insured item
C. Replacement cost divided by item's useful life
D. The process of estimating what an item is worth
E. Cost to replace an item at today's market value
F. Replacement cost minus accumulated depreciation. Answer: 1 - E
2-F
3-C
4-A
5-B
6-D
,◉An item's replacement cost divided by the number of years its
expected or useful life is its:
A. Annual replacement cost
B. Annual depreciation
C. Accumulated depreciation
D. Actual cash value. Answer: B. Annual depreciation
◉What is the formula for actual cash value?
A. Replacement cost minus annual depreciation
B. Replacement cost minus total depreciation
C. Original cost minus total depreciation
D. Fair market value minus annual depreciation. Answer: B.
Replacement cost minus total depreciation
◉Jerry is using an expensive video recorder near the family pool
when he slips and falls in, destroying the camera. Jerry bought the
camera three years ago for $4,000, and it depreciates at $500 per
year. A new, similar camera costs $5,000 today. Assuming the loss is
covered, if Jerry had a replacement cost policy, how much would
Jerry's insurer indemnify Jerry for the destroyed camera?
, A. $3,500
B. $4,000
C. $2,500
D. $5,000. Answer: D. $5,000
◉Sue decides to get a valued insurance policy on her antique car.
She and her insurance company agree to a value of $85,000. three
years later, the car is destroyed when a tree falls on it in a parking
lot. The car depreciates at $2,000 a year, and its replacement cost is
$100,000. ignoring any deductible, how much can Sue expect her
insurer to indemnify her?
A. $94,000
B. $79,000
C. $85,000
D. $83,000. Answer: C. $85,000
◉Which of the following statements regarding actual cash value is
FALSE?
A. A replacement cost valuation will generally be more than the ACV
valuation
B. Actual cash value is always most beneficial to a policyholder
