1|Page
AdjusterPro - Practice Exam (updated 2026)
Questions & Answers | Latest Already Graded A+
UPDATE
Stephen's insurer denied his claim because the peril was not covered.
But, according to Stephen's understanding of the policy, his loss should
be covered, so he filed a dispute. During the trial, the jury agreed that
the policy language was open to interpretation, so they decided in favor
of Stephen. This is because:
A. insurance policies are contracts of adhesion.
B. insurance policies are conditional contracts.
C. insurance policies are contracts of utmost good faith.
D. insurance policies are personal contracts. ......ANSWER......A.
insurance policies are contracts of adhesion.
"We will provide the insurance described in this policy in return for the
premium and compliance with all applicable provisions of this policy." In
which section of the insurance policy would this statement be found?
A. Definitions
B. Declarations
C. Insuring Agreement
pg. 1
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D. Endorsements ......ANSWER......C. Insuring Agreement
Melinda's home sustained $6,500 in damage when Jared ran into it with
his truck. Melinda received $6,500 from her insurance company, and
Jared also paid her $5,000. Melinda has now profited from this loss and
is in violation of:
A. the principle of subrogation.
B. federal law.
C. the principle of indemnity.
D. state law. ......ANSWER......C. the principle of indemnity.
Sandra rear-ended Randy's car when he stopped quickly for a yellow
light that she was sure they were both going to make. The damage was
minor, but Sandra was worried her premiums would increase if the
accident was reported, so she gave Randy $500 in an effort to keep it
just between the two of them. However, Randy filed the claim with his
insurance company and received a settlement check for $750. What has
Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization ......ANSWER......C. The principle of
indemnity
pg. 2
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Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as
low as possible, so he decides not to include uninsured motorist
coverage on his policy. His agent has him sign a document giving up his
right to this coverage. What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver ......ANSWER......B. An express waiver
An insurance policy's declarations page contains all of the following,
EXCEPT:
A. the deductible.
B. the dates of the policy term.
C. the perils insured against.
D. the coverage limit. ......ANSWER......C. the perils insured against.
An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called:
A. risk avoidance.
pg. 3
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B. insurance.
C. indemnification.
D. subrogation. ......ANSWER......B. insurance.
Which of the following does NOT constitute a legal termination of a
contract offer?
A. Rejection by offeree
B. Request for more information
C. Termination by operation of law
D. Revocation by offeror ......ANSWER......B. Request for more
information
The Principle of Indemnity is designed to prevent:
A. having multiple payees on a policy.
B. an insured from making a profit.
C. insurers from making a profit.
D. subrogation. ......ANSWER......B. an insured from making a profit.
Jason's auto policy states that the insurer may cancel coverage if Jason
pays a premium more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year, and
pg. 4
AdjusterPro - Practice Exam (updated 2026)
Questions & Answers | Latest Already Graded A+
UPDATE
Stephen's insurer denied his claim because the peril was not covered.
But, according to Stephen's understanding of the policy, his loss should
be covered, so he filed a dispute. During the trial, the jury agreed that
the policy language was open to interpretation, so they decided in favor
of Stephen. This is because:
A. insurance policies are contracts of adhesion.
B. insurance policies are conditional contracts.
C. insurance policies are contracts of utmost good faith.
D. insurance policies are personal contracts. ......ANSWER......A.
insurance policies are contracts of adhesion.
"We will provide the insurance described in this policy in return for the
premium and compliance with all applicable provisions of this policy." In
which section of the insurance policy would this statement be found?
A. Definitions
B. Declarations
C. Insuring Agreement
pg. 1
,2|Page
D. Endorsements ......ANSWER......C. Insuring Agreement
Melinda's home sustained $6,500 in damage when Jared ran into it with
his truck. Melinda received $6,500 from her insurance company, and
Jared also paid her $5,000. Melinda has now profited from this loss and
is in violation of:
A. the principle of subrogation.
B. federal law.
C. the principle of indemnity.
D. state law. ......ANSWER......C. the principle of indemnity.
Sandra rear-ended Randy's car when he stopped quickly for a yellow
light that she was sure they were both going to make. The damage was
minor, but Sandra was worried her premiums would increase if the
accident was reported, so she gave Randy $500 in an effort to keep it
just between the two of them. However, Randy filed the claim with his
insurance company and received a settlement check for $750. What has
Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimization ......ANSWER......C. The principle of
indemnity
pg. 2
,3|Page
Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as
low as possible, so he decides not to include uninsured motorist
coverage on his policy. His agent has him sign a document giving up his
right to this coverage. What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiver ......ANSWER......B. An express waiver
An insurance policy's declarations page contains all of the following,
EXCEPT:
A. the deductible.
B. the dates of the policy term.
C. the perils insured against.
D. the coverage limit. ......ANSWER......C. the perils insured against.
An economic device used to protect against the risk of realizing
unforeseen and extraordinary financial loss is called:
A. risk avoidance.
pg. 3
, 4|Page
B. insurance.
C. indemnification.
D. subrogation. ......ANSWER......B. insurance.
Which of the following does NOT constitute a legal termination of a
contract offer?
A. Rejection by offeree
B. Request for more information
C. Termination by operation of law
D. Revocation by offeror ......ANSWER......B. Request for more
information
The Principle of Indemnity is designed to prevent:
A. having multiple payees on a policy.
B. an insured from making a profit.
C. insurers from making a profit.
D. subrogation. ......ANSWER......B. an insured from making a profit.
Jason's auto policy states that the insurer may cancel coverage if Jason
pays a premium more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year, and
pg. 4
