AE21 Insurance Adjuster License Final Exam Questions with Correct Answers Latest Update
2025/2026
A Claim in the property industry is defined as - Answers An assertion of of an alleged legal right
against a person, entity, company or insurer that carries with it a demand for money as
compensation for injuries or damage.
What are you really, buying when you purchase insurance - Answers Peace of mind
Why is insurance such a unique product - Answers It is a financial product, the purchase of a
product based on trust.
What is an adjusters most important objective in todays world of insurance? - Answers To help
those who have been injured, or who have suffered a loss that is covered by the insurance
contract.
company adjustor - Answers Claims adjustor who is a salaried employee representing only one
company.
Independent Adjuster - Answers An independent claim representative who handles claims for
insurers for a fee.
property adjuster - Answers
Liability Adjuster - Answers
Multi-Line Adjusters - Answers Field Adjuster
Fiduciary Duty - Answers That duty owed by an agent to act in the highest good faith toward the
principal and not to obtain any advantage over the latter by the slightest misrepresentation,
concealment, duress or pressure.
Agency: Power to Bind - Answers
What is not a basic adjusting function - Answers Inspection
Evaluation - Answers Establishing a dollar value for a claim
No Release/Walk Away - Answers Paying what is owed, asking the claimant to ask you
questions.
Is an Adjusters claim file "confidential"? - Answers No
Main components in the investigative process: - Answers Inquiry, Verification, and Comparison
What is NOT one of the four elements of a contract - Answers Written evidence of the
agreement and its terms
, breach of contract - Answers The failure, without legal excuse, of a promisor to perform the
obligations of a contract. "Bad Faith" verdict.
What is not a fundamental part of an insurance policy? - Answers Endorsements
Following a loss, what is one one of the duties of the insured? - Answers Giving prompt notice of
loss to the insurer
Percentage Deductible - Answers percentage of the value of the insured property
10/20/10 Split Limit Policy - Answers $10,000 for bodily injury to one person in an accident, A
max of $20,000 for all individuals in an accident regardless of the total number involved, and a
Max of $10,000 for all property damage.
Which of the following is NOT a defense to a claim of Negligence? - Answers Breach of
Warranty
Which of the following is NOT a law that affects ones Legal Liability? - Answers Valued Policy
Law
"Arising out of the use of" - Answers Doing anything with an insured vehicle.
Permissive Use - Answers Letting somebody use your vehicle of that which you are insured
under.
Supplementary Payments Coverage - Answers Will pay up to $200 a day for the insured's loss or
earnings if they are required to attend trials or hearings.
Liability Coverage cannot be used for: - Answers Any vehicle with less than four wheels.
Using a vehicle without the permission of the insured.
In a Personal Auto-Policy, liability coverage only protects: - Answers those individuals meeting
the definition of an "insured" under the policy.
Claims Process: - Answers Review the notice of claim and policy
Contact the Insured
Secure Claimant's Statement
Secure the police report and witness statements
Contact Claimant and Resolve the Claim
Business Auto Policy - Types of Vehicles Insured - Answers Private Passenger, Commercial
Vehicles, Public Transport, Specialty Units
2025/2026
A Claim in the property industry is defined as - Answers An assertion of of an alleged legal right
against a person, entity, company or insurer that carries with it a demand for money as
compensation for injuries or damage.
What are you really, buying when you purchase insurance - Answers Peace of mind
Why is insurance such a unique product - Answers It is a financial product, the purchase of a
product based on trust.
What is an adjusters most important objective in todays world of insurance? - Answers To help
those who have been injured, or who have suffered a loss that is covered by the insurance
contract.
company adjustor - Answers Claims adjustor who is a salaried employee representing only one
company.
Independent Adjuster - Answers An independent claim representative who handles claims for
insurers for a fee.
property adjuster - Answers
Liability Adjuster - Answers
Multi-Line Adjusters - Answers Field Adjuster
Fiduciary Duty - Answers That duty owed by an agent to act in the highest good faith toward the
principal and not to obtain any advantage over the latter by the slightest misrepresentation,
concealment, duress or pressure.
Agency: Power to Bind - Answers
What is not a basic adjusting function - Answers Inspection
Evaluation - Answers Establishing a dollar value for a claim
No Release/Walk Away - Answers Paying what is owed, asking the claimant to ask you
questions.
Is an Adjusters claim file "confidential"? - Answers No
Main components in the investigative process: - Answers Inquiry, Verification, and Comparison
What is NOT one of the four elements of a contract - Answers Written evidence of the
agreement and its terms
, breach of contract - Answers The failure, without legal excuse, of a promisor to perform the
obligations of a contract. "Bad Faith" verdict.
What is not a fundamental part of an insurance policy? - Answers Endorsements
Following a loss, what is one one of the duties of the insured? - Answers Giving prompt notice of
loss to the insurer
Percentage Deductible - Answers percentage of the value of the insured property
10/20/10 Split Limit Policy - Answers $10,000 for bodily injury to one person in an accident, A
max of $20,000 for all individuals in an accident regardless of the total number involved, and a
Max of $10,000 for all property damage.
Which of the following is NOT a defense to a claim of Negligence? - Answers Breach of
Warranty
Which of the following is NOT a law that affects ones Legal Liability? - Answers Valued Policy
Law
"Arising out of the use of" - Answers Doing anything with an insured vehicle.
Permissive Use - Answers Letting somebody use your vehicle of that which you are insured
under.
Supplementary Payments Coverage - Answers Will pay up to $200 a day for the insured's loss or
earnings if they are required to attend trials or hearings.
Liability Coverage cannot be used for: - Answers Any vehicle with less than four wheels.
Using a vehicle without the permission of the insured.
In a Personal Auto-Policy, liability coverage only protects: - Answers those individuals meeting
the definition of an "insured" under the policy.
Claims Process: - Answers Review the notice of claim and policy
Contact the Insured
Secure Claimant's Statement
Secure the police report and witness statements
Contact Claimant and Resolve the Claim
Business Auto Policy - Types of Vehicles Insured - Answers Private Passenger, Commercial
Vehicles, Public Transport, Specialty Units
