Claims Adjuster PREPARATION TEST 2026
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● What duty does an adjuster owe to all parties? Answer: Good faith
and fair dealing.
● Can an adjuster give legal advice? Answer: No.
● Can an adjuster alter policy language? Answer: No.
● What does acting in good faith require? Answer: Honest, timely, fair,
and reasonable claim handling.
● Who must an adjuster be fair and impartial toward? Answer: All
parties involved in the claim.
● What can happen if an adjuster exceeds authority? Answer: License
discipline or legal liability.
● What is a staff adjuster? Answer: An employee of the insurance
company.
, ● What is an independent adjuster? Answer: A contractor who works for
one or more insurers.
● What is a public adjuster? Answer: An adjuster who represents the
policyholder.
● Who pays a public adjuster? Answer: The insured, usually as a
percentage of settlement.
● Which adjuster represents the insured? Answer: Public adjuster.
● Why is insurance a contract of adhesion? Answer: It is written by the
insurer and interpreted in favor of the insured.
● What does aleatory contract mean? Answer: Unequal exchange of
value.
● What is a unilateral contract? Answer: Only the insurer makes a
promise to pay.
● What part of the policy lists limits and deductibles? Answer:
Declarations page.
QUESTIONS AND CORRECT ANSWERS
GRADED A+
● What duty does an adjuster owe to all parties? Answer: Good faith
and fair dealing.
● Can an adjuster give legal advice? Answer: No.
● Can an adjuster alter policy language? Answer: No.
● What does acting in good faith require? Answer: Honest, timely, fair,
and reasonable claim handling.
● Who must an adjuster be fair and impartial toward? Answer: All
parties involved in the claim.
● What can happen if an adjuster exceeds authority? Answer: License
discipline or legal liability.
● What is a staff adjuster? Answer: An employee of the insurance
company.
, ● What is an independent adjuster? Answer: A contractor who works for
one or more insurers.
● What is a public adjuster? Answer: An adjuster who represents the
policyholder.
● Who pays a public adjuster? Answer: The insured, usually as a
percentage of settlement.
● Which adjuster represents the insured? Answer: Public adjuster.
● Why is insurance a contract of adhesion? Answer: It is written by the
insurer and interpreted in favor of the insured.
● What does aleatory contract mean? Answer: Unequal exchange of
value.
● What is a unilateral contract? Answer: Only the insurer makes a
promise to pay.
● What part of the policy lists limits and deductibles? Answer:
Declarations page.
