AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
1. The insured carries a BOP policy with protective systems such as a sprinkler system. If the
system becomes inoperative, the insured must advise the insurance company of the problem
within if the system cannot be restored to working order - CORRECT ANSWERS
48 hours Your Answer
2. Tina has two policies (Policy X and Policy Y) that cover the same risk on a pro rata basis.
Policy X has a limit of $100,000 and Policy Y has a limit of $25,000. When Tina suffers a loss
totaling $75,000, how will the two policies respond? - CORRECT ANSWERS . Policy X will
pay $60,000 and Policy Y will pay $15,000
C.
D.
This provision in Ocean Marine insurance obligates insurers of various interests to share the
cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its
cargo. - CORRECT ANSWERS General Average
Which of the following incidents would a liability insurance policy cover? - CORRECT
ANSWERS D. A man slips inside a grocery store and injures himself.
Which of the following does NOT apply to commercial property insurance? - CORRECT
ANSWERS B. Because of their complexity, commercial policies only offer named-peril
coverage.
Which of the following perils is excluded from coverage in a National Flood Insurance Program
policy? - CORRECT ANSWERS C. Water-main breakage
Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to
rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to
his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly
mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage
D - Loss of Use? - CORRECT ANSWERS A.
D. $0
Which of the following insurance packages will indemnify a policyholder for a variety of hospital-
related expenses such as nursing care, supplies, and rooming charges? - CORRECT
ANSWERS A. Hospitalization Expense insurance
,AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
Which of the following statements about Alabama's approach to Workers' Comp insurance is
true? - CORRECT ANSWERS A. WC is compulsory, and Alabama has no state WC fund.
B.
Barry lives in Texas, but wants to obtain an independent adjuster license in Alabama. He can
get this license without passing the Alabama adjuster licensing exam if: - CORRECT
ANSWERS D. he has passed the Texas exam and received an all-lines adjuster license in
Texas.
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: - CORRECT
ANSWERS D. an occurrence
When Emma is found guilty of arson for burning down her $175,000 home, her insurance policy
is voided and she receives no indemnification for the loss. Emma still had $155,000 left on her
mortgage at the time of the fire. Under the mortgagee clause, Emma's mortgage lender can
recoup: - CORRECT ANSWERS A. the total amount left on the loan - $155,000.
Grace purchased a recliner from XYZ Furniture. After getting it home, she decided to try out the
new chair. While leaning back, the chair breaks and Grace injures her neck. She sues XYZ
Furniture and is awarded $300,000. The costs for the legal defense come to $45,000. XYZ
Furniture's CGL policy has a Products-Completed Operations Aggregate limit of $750,000, with
a per occurrence limit of $250,000. How much will XYZ Furniture have to pay out-of-pocket for
this claim? - CORRECT ANSWERS D. $50,000
Under which circumstance would it be legal for an insurer to charge one insured more than
another insured for the same coverage? - CORRECT ANSWERS C. When the insured is
statistically more likely to experience a loss
Peter works as a real estate agent and uses the internet extensively for sales leads and
advertising. One day, he finds another realtor's ad online and copies it, using his own
information as the contact info. This generates a lot of business for Peter, but unfortunately
Peter gets a call one day and is informed that he is being sued for copyright infringement. This
is an example of what type of claim covered under Peter's Commercial General Liability policy?
- CORRECT ANSWERS C. Advertising Injury
,AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
When would a default judgment occur? - CORRECT ANSWERS A. When a defendant does
not answer a complaint
Cameron is fully insured by a DP-2 on his $130,000 home. His monthly mortgage payment is
$775 per month, and he usually pays $400 per month in groceries. When a kitchen fire
damages his house, causing $61,000 in damage, he forced to move out for a month while the
repairs can be made. Cameron's hotel bill for the month comes to $1,250 and he spends $600
eating at restaurants. Based only on this information, how much indemnification can Cameron
expect to receive for this claim? - CORRECT ANSWERS A.
B. Coverage A - $61,000; Coverage E - $1,450
C.
D.
Which of the following are eligible for a Fortified Home Hurricane designation? - CORRECT
ANSWERS B. Single family homes with permanent foundations
Risk avoidance is a risk management technique that: - CORRECT ANSWERS B. eliminates
risk.
Veronica owns a pottery business and is insured under a commercial property policy. She was
in the process of building an extra structure for the sole purpose of kiln firing her pottery, but
after 40 days of waiting for it to be completed, she moved her business to a new location without
any intention of moving back. Her Builder's Risk Coverage Form was terminated because: -
CORRECT ANSWERS D. the property is abandoned.
Due to decreased demand, the market price of beets dropped dramatically during the recent
growing season. Consequently, Michelle's crop of beets did not make as much money as she
was expecting this year, based on her production history and the harvest-time futures price.
However, Michelle is insured for this type of situation. What kind of insurance does she have? -
CORRECT ANSWERS A.
B.
C. Crop-Revenue
D.
, AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
Which of the following activities could be a useful negotiation technique? - CORRECT
ANSWERS B. Reviewing video footage with the claimant that contradicts the claimant's
position
Which of the following homeowners policies provide coverage on an open-peril basis for
personal property without endorsement? - CORRECT ANSWERS A. HO-5
D.
Eloise borrows Uriah's car so she can run to the grocery store to pick up a few things. While out,
she rear-ends a minivan, injuring the driver and 3 other passengers. Each of the passengers
suffers $45,000 in injuries, and the driver suffers $40,000. Uriah has a liability policy with limits
of 50/100/50, while Eloise carries the minimum liability coverage for Alabama. How much will
the primary policy pay for this occurrence? - CORRECT ANSWERS B. $100,000
Lucille owns her own woodworking business, building custom items such as dressers, wooden
trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her
insurer. Which of the following would be covered under Coverage A of the Building and Personal
Property Coverage Form in her commercial property policy? - CORRECT ANSWERS B.. A
bandsaw permanently affixed to the floor
D.
Which of the following statements about Crop-Hail insurance is FALSE? - CORRECT
ANSWERS It is subsidized by the FCIC.
When a severe flood is imminent, Erica goes out and spends $1,200 on sandbags, $760 on
plastic sheeting and lumber, and $1,500 on a pump. Then she hires two neighbors to help her
flood-proof her house with these materials. She and her neighbors work together for 16 hours,
and she pays them the federal minimum wage for their labor. After the flood passes, Erica files a
claim for these expenses. Assuming the federal minimum wage at that time is $7.00 per hour,
how much will her flood policy indemnify her? - CORRECT ANSWERS C. $2,872
Honey's Bakery is a local coffee shop run by two sisters. In a rush to leave one afternoon, their
new employee forgets to turn off the gas stove. The leaking gas causes an explosion,
destroying the kitchen. Which condition in their commercial property policy could help the sisters
cover the cost of the damage? - CORRECT ANSWERS A. Control of Property
100%Correctly verified answers latest update 2026/2027 RATED
A+
1. The insured carries a BOP policy with protective systems such as a sprinkler system. If the
system becomes inoperative, the insured must advise the insurance company of the problem
within if the system cannot be restored to working order - CORRECT ANSWERS
48 hours Your Answer
2. Tina has two policies (Policy X and Policy Y) that cover the same risk on a pro rata basis.
Policy X has a limit of $100,000 and Policy Y has a limit of $25,000. When Tina suffers a loss
totaling $75,000, how will the two policies respond? - CORRECT ANSWERS . Policy X will
pay $60,000 and Policy Y will pay $15,000
C.
D.
This provision in Ocean Marine insurance obligates insurers of various interests to share the
cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its
cargo. - CORRECT ANSWERS General Average
Which of the following incidents would a liability insurance policy cover? - CORRECT
ANSWERS D. A man slips inside a grocery store and injures himself.
Which of the following does NOT apply to commercial property insurance? - CORRECT
ANSWERS B. Because of their complexity, commercial policies only offer named-peril
coverage.
Which of the following perils is excluded from coverage in a National Flood Insurance Program
policy? - CORRECT ANSWERS C. Water-main breakage
Sam, who has a typical HO-3 policy, is forced to evacuate his home by civil authorities due to
rising flood waters in his neighborhood. It takes a month before Sam is allowed to come back to
his home. During this time, he has spent $3,000 in hotel expenses, on top of his monthly
mortgage payment of $850. When he files a claim, how much will Sam receive under Coverage
D - Loss of Use? - CORRECT ANSWERS A.
D. $0
Which of the following insurance packages will indemnify a policyholder for a variety of hospital-
related expenses such as nursing care, supplies, and rooming charges? - CORRECT
ANSWERS A. Hospitalization Expense insurance
,AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
Which of the following statements about Alabama's approach to Workers' Comp insurance is
true? - CORRECT ANSWERS A. WC is compulsory, and Alabama has no state WC fund.
B.
Barry lives in Texas, but wants to obtain an independent adjuster license in Alabama. He can
get this license without passing the Alabama adjuster licensing exam if: - CORRECT
ANSWERS D. he has passed the Texas exam and received an all-lines adjuster license in
Texas.
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: - CORRECT
ANSWERS D. an occurrence
When Emma is found guilty of arson for burning down her $175,000 home, her insurance policy
is voided and she receives no indemnification for the loss. Emma still had $155,000 left on her
mortgage at the time of the fire. Under the mortgagee clause, Emma's mortgage lender can
recoup: - CORRECT ANSWERS A. the total amount left on the loan - $155,000.
Grace purchased a recliner from XYZ Furniture. After getting it home, she decided to try out the
new chair. While leaning back, the chair breaks and Grace injures her neck. She sues XYZ
Furniture and is awarded $300,000. The costs for the legal defense come to $45,000. XYZ
Furniture's CGL policy has a Products-Completed Operations Aggregate limit of $750,000, with
a per occurrence limit of $250,000. How much will XYZ Furniture have to pay out-of-pocket for
this claim? - CORRECT ANSWERS D. $50,000
Under which circumstance would it be legal for an insurer to charge one insured more than
another insured for the same coverage? - CORRECT ANSWERS C. When the insured is
statistically more likely to experience a loss
Peter works as a real estate agent and uses the internet extensively for sales leads and
advertising. One day, he finds another realtor's ad online and copies it, using his own
information as the contact info. This generates a lot of business for Peter, but unfortunately
Peter gets a call one day and is informed that he is being sued for copyright infringement. This
is an example of what type of claim covered under Peter's Commercial General Liability policy?
- CORRECT ANSWERS C. Advertising Injury
,AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
When would a default judgment occur? - CORRECT ANSWERS A. When a defendant does
not answer a complaint
Cameron is fully insured by a DP-2 on his $130,000 home. His monthly mortgage payment is
$775 per month, and he usually pays $400 per month in groceries. When a kitchen fire
damages his house, causing $61,000 in damage, he forced to move out for a month while the
repairs can be made. Cameron's hotel bill for the month comes to $1,250 and he spends $600
eating at restaurants. Based only on this information, how much indemnification can Cameron
expect to receive for this claim? - CORRECT ANSWERS A.
B. Coverage A - $61,000; Coverage E - $1,450
C.
D.
Which of the following are eligible for a Fortified Home Hurricane designation? - CORRECT
ANSWERS B. Single family homes with permanent foundations
Risk avoidance is a risk management technique that: - CORRECT ANSWERS B. eliminates
risk.
Veronica owns a pottery business and is insured under a commercial property policy. She was
in the process of building an extra structure for the sole purpose of kiln firing her pottery, but
after 40 days of waiting for it to be completed, she moved her business to a new location without
any intention of moving back. Her Builder's Risk Coverage Form was terminated because: -
CORRECT ANSWERS D. the property is abandoned.
Due to decreased demand, the market price of beets dropped dramatically during the recent
growing season. Consequently, Michelle's crop of beets did not make as much money as she
was expecting this year, based on her production history and the harvest-time futures price.
However, Michelle is insured for this type of situation. What kind of insurance does she have? -
CORRECT ANSWERS A.
B.
C. Crop-Revenue
D.
, AL Practice Exam - Adjusting Exam with 221questions and answers
100%Correctly verified answers latest update 2026/2027 RATED
A+
Which of the following activities could be a useful negotiation technique? - CORRECT
ANSWERS B. Reviewing video footage with the claimant that contradicts the claimant's
position
Which of the following homeowners policies provide coverage on an open-peril basis for
personal property without endorsement? - CORRECT ANSWERS A. HO-5
D.
Eloise borrows Uriah's car so she can run to the grocery store to pick up a few things. While out,
she rear-ends a minivan, injuring the driver and 3 other passengers. Each of the passengers
suffers $45,000 in injuries, and the driver suffers $40,000. Uriah has a liability policy with limits
of 50/100/50, while Eloise carries the minimum liability coverage for Alabama. How much will
the primary policy pay for this occurrence? - CORRECT ANSWERS B. $100,000
Lucille owns her own woodworking business, building custom items such as dressers, wooden
trunks, and mantelpieces. A fire destroys her entire operation and Lucille files a claim with her
insurer. Which of the following would be covered under Coverage A of the Building and Personal
Property Coverage Form in her commercial property policy? - CORRECT ANSWERS B.. A
bandsaw permanently affixed to the floor
D.
Which of the following statements about Crop-Hail insurance is FALSE? - CORRECT
ANSWERS It is subsidized by the FCIC.
When a severe flood is imminent, Erica goes out and spends $1,200 on sandbags, $760 on
plastic sheeting and lumber, and $1,500 on a pump. Then she hires two neighbors to help her
flood-proof her house with these materials. She and her neighbors work together for 16 hours,
and she pays them the federal minimum wage for their labor. After the flood passes, Erica files a
claim for these expenses. Assuming the federal minimum wage at that time is $7.00 per hour,
how much will her flood policy indemnify her? - CORRECT ANSWERS C. $2,872
Honey's Bakery is a local coffee shop run by two sisters. In a rush to leave one afternoon, their
new employee forgets to turn off the gas stove. The leaking gas causes an explosion,
destroying the kitchen. Which condition in their commercial property policy could help the sisters
cover the cost of the damage? - CORRECT ANSWERS A. Control of Property
