ADJUSTER PRO INDIANA ADJUSTER'S
LICENSE FINAL STUDY GUIDE 2026
COMPLETE SOLVED QUESTIONS 100%
CORRECT
◉Sally throws a cigarette butt into Neal's dumpster, starting a fire on
Neal's property that costs him $10,000. Neal files a claim with his
insurer. The insurer pays Neal and then demands $10,000 from Sally
to pay for the loss she caused. What gives the insurer the right to
collect payment from Sally?
A. Right of recovery
B. Subrogation
C. Estoppel
D. Vicarious liability. Answer: B. Subrogation
◉When Zach intentionally burned down Matt's restaurant, Matt's
insurer paid the claim and then pursued subrogation. Matt is furious
about the incident and wants to sue Zach. Why is it NOT possible for
Matt to sue Zach?
,A. Zach may not be tried for the same thing twice
B. Matt was not present at the time of the fire
C. Zach is protected by the Statute of Limitations
D. Matt has already received indemnification from his insurer.
Answer: D. Matt has already received indemnification from his
insurer
◉Define: First party claim. Answer: Made by policyholder on her
own policy
◉Define: Third party claim. Answer: Made by anyone other than the
policyholder
◉Put the claims process in order:
1. The insurer accepts or rejects the claim
2. The insurer acknowledges the claim and requests all items
necessary to prove the loss
3. The claimant contacts the insurer and files a claim
4. If valid, the adjuster evaluates the claim
5. The adjuster investigates the claim and determines whether it is
valid. Answer: 3, 2, 5, 4, 1
,◉Define: Insurable interest. Answer: Direct financial interest in
protecting a unit
◉Define: Lender interest. Answer: The lender's financial stake in an
insured item
◉Define: Lender interest provisions. Answer: Protects lender
interest by allowing the lender certain rights in the policy
◉Define: Subrogation. Answer: The transfer of rights that allows the
insurer to recover its losses after it has indemnified the policyholder
◉During a storm, lightning strikes a tree in Harry's yard and starts a
fire that spreads to his shed where he keeps all his equipment for his
landscaping business. In addition to the shed, Harry has to purchase
all new equipment to stay in business. The cost to replace the
equipment would be considered:
A. An occurrence
B. A peril
C. A direct loss
D. An indirect loss. Answer: C. A direct loss
, ◉A power surge sparks a small electrical fire in an office building.
The electrical fire triggers the automatic sprinkler system. The water
from the sprinklers soak the carpets and short-out all the
computers, causing thousands of dollars in damage. What is the
proximate cause of the loss?
A. The electrical fire
B. The water from the sprinklers
C. The power surge
D. The automatic sprinkler system. Answer: C. The power surge
◉Driving home after a 14-hour shift, Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the East
wall and roof. As a result, Sandra and her family must move into a
hotel until the repairs are completed. The cost of staying in a hotel
is:
A. A direct loss
B. A physical hazard
C. The proximate cause
D. An indirect loss. Answer: D. An indirect loss
◉Driving home after a 14-hour shift, Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the East
LICENSE FINAL STUDY GUIDE 2026
COMPLETE SOLVED QUESTIONS 100%
CORRECT
◉Sally throws a cigarette butt into Neal's dumpster, starting a fire on
Neal's property that costs him $10,000. Neal files a claim with his
insurer. The insurer pays Neal and then demands $10,000 from Sally
to pay for the loss she caused. What gives the insurer the right to
collect payment from Sally?
A. Right of recovery
B. Subrogation
C. Estoppel
D. Vicarious liability. Answer: B. Subrogation
◉When Zach intentionally burned down Matt's restaurant, Matt's
insurer paid the claim and then pursued subrogation. Matt is furious
about the incident and wants to sue Zach. Why is it NOT possible for
Matt to sue Zach?
,A. Zach may not be tried for the same thing twice
B. Matt was not present at the time of the fire
C. Zach is protected by the Statute of Limitations
D. Matt has already received indemnification from his insurer.
Answer: D. Matt has already received indemnification from his
insurer
◉Define: First party claim. Answer: Made by policyholder on her
own policy
◉Define: Third party claim. Answer: Made by anyone other than the
policyholder
◉Put the claims process in order:
1. The insurer accepts or rejects the claim
2. The insurer acknowledges the claim and requests all items
necessary to prove the loss
3. The claimant contacts the insurer and files a claim
4. If valid, the adjuster evaluates the claim
5. The adjuster investigates the claim and determines whether it is
valid. Answer: 3, 2, 5, 4, 1
,◉Define: Insurable interest. Answer: Direct financial interest in
protecting a unit
◉Define: Lender interest. Answer: The lender's financial stake in an
insured item
◉Define: Lender interest provisions. Answer: Protects lender
interest by allowing the lender certain rights in the policy
◉Define: Subrogation. Answer: The transfer of rights that allows the
insurer to recover its losses after it has indemnified the policyholder
◉During a storm, lightning strikes a tree in Harry's yard and starts a
fire that spreads to his shed where he keeps all his equipment for his
landscaping business. In addition to the shed, Harry has to purchase
all new equipment to stay in business. The cost to replace the
equipment would be considered:
A. An occurrence
B. A peril
C. A direct loss
D. An indirect loss. Answer: C. A direct loss
, ◉A power surge sparks a small electrical fire in an office building.
The electrical fire triggers the automatic sprinkler system. The water
from the sprinklers soak the carpets and short-out all the
computers, causing thousands of dollars in damage. What is the
proximate cause of the loss?
A. The electrical fire
B. The water from the sprinklers
C. The power surge
D. The automatic sprinkler system. Answer: C. The power surge
◉Driving home after a 14-hour shift, Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the East
wall and roof. As a result, Sandra and her family must move into a
hotel until the repairs are completed. The cost of staying in a hotel
is:
A. A direct loss
B. A physical hazard
C. The proximate cause
D. An indirect loss. Answer: D. An indirect loss
◉Driving home after a 14-hour shift, Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the East
