ADJUSTER LICENSING CLASS 120 EXAM QUESTIONS
& CORRECT ANSWERS LATEST 2025
The amount the insured must pay in a loss before any payment is due is known
as? - ANSWER-Deductible
What is a partial legal defense that reduces the amount of damages that a person
can recover based upon the amount that this person's own negligence
contributed to the loss - ANSWER-Comparative Negligence
What is a situation involving a person other than an insured? - ANSWER-Third
Party Loss
The part of the insurance policy that details the rights and duties of the insured
and the insurance company in the policy? - ANSWER-Conditions
An event that results in an insured loss and damages? - ANSWER-Occurrence
What is the value of your property, based on the current cost to replace it minus
depreciation? - ANSWER-Actual Cash Value
Mary has a Homeowner's policy. Her Coverage A limit of liability is $250,000 and
her Coverage B limit of liability is $125,000. Her policy has a 2% deductible. What
is her deductible? - ANSWER-$5,000
, What is the type of negotiation that is also sometimes called positional or hard-
bargaining negotiation? - ANSWER-Distributive
What is the responsibility to another for one's negligence? - ANSWER-Liability
What is the failure to use that degree of care which an ordinary person of
reasonable prudence would use under similar circumstances? - ANSWER-
Negligence
What is the intentional misrepresentation of a material fact that may void a
contract? - ANSWER-Fraud
What is the process when an insurer and an insured have a dispute regarding the
amount of the damage? - ANSWER-Appraisal
This type of Auto Coverage pays for your damages if you were involved in a hit
and run: - ANSWER-Uninsured Motorist
What is the cost associated with replacing property at current market prices? -
ANSWER-Replacement Cost
What is the period a policy is in force, from the beginning or effective date to the
expiration date? - ANSWER-Policy Period
What is making an oral or written statement that is false or maliciously critical of,
or derogatory to, the financial condition of any insurer that is calculated to injure
any person engaged in the insurance business? - ANSWER-Defamation
& CORRECT ANSWERS LATEST 2025
The amount the insured must pay in a loss before any payment is due is known
as? - ANSWER-Deductible
What is a partial legal defense that reduces the amount of damages that a person
can recover based upon the amount that this person's own negligence
contributed to the loss - ANSWER-Comparative Negligence
What is a situation involving a person other than an insured? - ANSWER-Third
Party Loss
The part of the insurance policy that details the rights and duties of the insured
and the insurance company in the policy? - ANSWER-Conditions
An event that results in an insured loss and damages? - ANSWER-Occurrence
What is the value of your property, based on the current cost to replace it minus
depreciation? - ANSWER-Actual Cash Value
Mary has a Homeowner's policy. Her Coverage A limit of liability is $250,000 and
her Coverage B limit of liability is $125,000. Her policy has a 2% deductible. What
is her deductible? - ANSWER-$5,000
, What is the type of negotiation that is also sometimes called positional or hard-
bargaining negotiation? - ANSWER-Distributive
What is the responsibility to another for one's negligence? - ANSWER-Liability
What is the failure to use that degree of care which an ordinary person of
reasonable prudence would use under similar circumstances? - ANSWER-
Negligence
What is the intentional misrepresentation of a material fact that may void a
contract? - ANSWER-Fraud
What is the process when an insurer and an insured have a dispute regarding the
amount of the damage? - ANSWER-Appraisal
This type of Auto Coverage pays for your damages if you were involved in a hit
and run: - ANSWER-Uninsured Motorist
What is the cost associated with replacing property at current market prices? -
ANSWER-Replacement Cost
What is the period a policy is in force, from the beginning or effective date to the
expiration date? - ANSWER-Policy Period
What is making an oral or written statement that is false or maliciously critical of,
or derogatory to, the financial condition of any insurer that is calculated to injure
any person engaged in the insurance business? - ANSWER-Defamation
