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STATE FARM AUTO ADJUSTER CERTIFICATION EXAM
2026/2027 | Complete Q&A | Claims Adjuster Test Prep |
Pass Guaranteed - A+ Graded
Section 1: Auto Insurance Policy Fundamentals & Coverage
(Questions 1-20)
Question 1
Which of the following coverages pays for damage to the insured's vehicle caused by
hitting a deer?
A. Collision coverage
B. Comprehensive coverage
C. Uninsured Motorist Property Damage
D. Liability coverage
Correct Answer: B. Comprehensive coverage [CORRECT]
Rationale: Comprehensive coverage (also called "other than collision") covers
damage from animal strikes, theft, vandalism, fire, and weather events. Collision
covers impact with another vehicle or object. Liability covers damage to others.
UMPD covers damage caused by an uninsured driver.
Question 2
An insured has a split limit liability policy of 100/300/50. The insured causes an
accident resulting in $120,000 in bodily injury to one person and $40,000 in property
damage. How much will the insurer pay?
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A. $140,000
B. $150,000
C. $90,000
D. $100,000
Correct Answer: B. $150,000 [CORRECT]
Rationale: Split limits 100/300/50 mean $100,000 per person bodily injury, $300,000
per accident bodily injury, and $50,000 property damage. The insurer pays $100,000
(max per person) + $40,000 (property damage within $50,000 limit) = $140,000.
Wait—recalculating: $100,000 per person cap applies, so $100,000 BI + $40,000 PD =
$140,000 total. The correct answer is B. $150,000 is incorrect. Let me fix this.
Actually, $100,000 (capped at per person limit) + $40,000 PD = $140,000. But
$140,000 is option A. However, I need to make sure my rationale is correct. Per
person limit is $100,000, so $120,000 claim is capped at $100,000. Property damage
is $40,000 which is under $50,000. Total = $140,000. So A is correct, not B. Let me fix
the answer.
Correct Answer: A. $140,000 [CORRECT]
Rationale: Split limits 100/300/50 mean $100,000 per person bodily injury, $300,000
per accident bodily injury, and $50,000 property damage. The $120,000 bodily injury
to one person is capped at the $100,000 per person limit. The $40,000 property
damage is within the $50,000 limit. Total payment = $100,000 + $40,000 = $140,000.
Question 3
Under a standard auto policy, which of the following is typically EXCLUDED from
collision coverage?
A. Damage from rolling the vehicle
B. Damage from hitting a stationary object
C. Mechanical breakdown due to wear and tear
D. Damage from impact with another vehicle
Correct Answer: C. Mechanical breakdown due to wear and tear [CORRECT]
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Rationale: Collision coverage applies to overturning or impact with another vehicle or
object. Mechanical breakdown and wear and tear are standard exclusions under both
collision and comprehensive coverage per ISO policy forms.
Question 4
A policyholder carries $500 collision deductible and $250 comprehensive deductible.
A hailstorm causes $3,200 in damage to the vehicle. How much will the insurer pay?
A. $3,200
B. $2,950
C. $2,700
D. $0
Correct Answer: B. $2,950 [CORRECT]
Rationale: Hail damage falls under comprehensive coverage. The comprehensive
deductible is $250. Insurer pays $3,200 - $250 = $2,950. Collision deductible does
not apply to comprehensive claims.
Question 5
Personal Injury Protection (PIP) coverage typically does NOT cover which of the
following?
A. Medical expenses for the insured driver
B. Lost wages for the insured driver
C. Pain and suffering damages
D. Funeral expenses
Correct Answer: C. Pain and suffering damages [CORRECT]
Rationale: PIP is a no-fault coverage that pays for medical expenses, lost wages,
funeral expenses, and essential services regardless of fault. Pain and suffering are
general damages recoverable through liability claims or bodily injury lawsuits, not
through PIP.
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Question 6
An insured has Uninsured Motorist Bodily Injury coverage with limits of $50,000 per
person/$100,000 per accident. The insured is struck by an uninsured driver and
sustains $75,000 in medical bills and lost wages. The insured also has $25,000 in
MedPay coverage. How much can the insured recover from the UMBI coverage?
A. $100,000
B. $75,000
C. $50,000
D. $25,000
Correct Answer: C. $50,000 [CORRECT]
Rationale: UMBI per person limit is $50,000, which caps recovery regardless of total
damages. MedPay is typically primary and may reduce UMBI recovery depending on
state regulations and policy terms, but the per person limit of $50,000 is the
maximum available under this coverage.
Question 7
Which of the following scenarios would MOST likely trigger a coverage denial under
a standard auto liability policy?
A. The insured accidentally backs into a neighbor's mailbox
B. The insured intentionally rams another vehicle during a road rage incident
C. The insured strikes a pedestrian who jaywalked
D. The insured damages a guardrail while swerving to avoid an animal
Correct Answer: B. The insured intentionally rams another vehicle during a road
rage incident [CORRECT]
Rationale: Standard auto policies contain an intentional acts exclusion that bars
coverage for bodily injury or property damage expected or intended by the insured.
Accidents, even involving negligence, are covered; intentional acts are not.
STATE FARM AUTO ADJUSTER CERTIFICATION EXAM
2026/2027 | Complete Q&A | Claims Adjuster Test Prep |
Pass Guaranteed - A+ Graded
Section 1: Auto Insurance Policy Fundamentals & Coverage
(Questions 1-20)
Question 1
Which of the following coverages pays for damage to the insured's vehicle caused by
hitting a deer?
A. Collision coverage
B. Comprehensive coverage
C. Uninsured Motorist Property Damage
D. Liability coverage
Correct Answer: B. Comprehensive coverage [CORRECT]
Rationale: Comprehensive coverage (also called "other than collision") covers
damage from animal strikes, theft, vandalism, fire, and weather events. Collision
covers impact with another vehicle or object. Liability covers damage to others.
UMPD covers damage caused by an uninsured driver.
Question 2
An insured has a split limit liability policy of 100/300/50. The insured causes an
accident resulting in $120,000 in bodily injury to one person and $40,000 in property
damage. How much will the insurer pay?
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A. $140,000
B. $150,000
C. $90,000
D. $100,000
Correct Answer: B. $150,000 [CORRECT]
Rationale: Split limits 100/300/50 mean $100,000 per person bodily injury, $300,000
per accident bodily injury, and $50,000 property damage. The insurer pays $100,000
(max per person) + $40,000 (property damage within $50,000 limit) = $140,000.
Wait—recalculating: $100,000 per person cap applies, so $100,000 BI + $40,000 PD =
$140,000 total. The correct answer is B. $150,000 is incorrect. Let me fix this.
Actually, $100,000 (capped at per person limit) + $40,000 PD = $140,000. But
$140,000 is option A. However, I need to make sure my rationale is correct. Per
person limit is $100,000, so $120,000 claim is capped at $100,000. Property damage
is $40,000 which is under $50,000. Total = $140,000. So A is correct, not B. Let me fix
the answer.
Correct Answer: A. $140,000 [CORRECT]
Rationale: Split limits 100/300/50 mean $100,000 per person bodily injury, $300,000
per accident bodily injury, and $50,000 property damage. The $120,000 bodily injury
to one person is capped at the $100,000 per person limit. The $40,000 property
damage is within the $50,000 limit. Total payment = $100,000 + $40,000 = $140,000.
Question 3
Under a standard auto policy, which of the following is typically EXCLUDED from
collision coverage?
A. Damage from rolling the vehicle
B. Damage from hitting a stationary object
C. Mechanical breakdown due to wear and tear
D. Damage from impact with another vehicle
Correct Answer: C. Mechanical breakdown due to wear and tear [CORRECT]
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Rationale: Collision coverage applies to overturning or impact with another vehicle or
object. Mechanical breakdown and wear and tear are standard exclusions under both
collision and comprehensive coverage per ISO policy forms.
Question 4
A policyholder carries $500 collision deductible and $250 comprehensive deductible.
A hailstorm causes $3,200 in damage to the vehicle. How much will the insurer pay?
A. $3,200
B. $2,950
C. $2,700
D. $0
Correct Answer: B. $2,950 [CORRECT]
Rationale: Hail damage falls under comprehensive coverage. The comprehensive
deductible is $250. Insurer pays $3,200 - $250 = $2,950. Collision deductible does
not apply to comprehensive claims.
Question 5
Personal Injury Protection (PIP) coverage typically does NOT cover which of the
following?
A. Medical expenses for the insured driver
B. Lost wages for the insured driver
C. Pain and suffering damages
D. Funeral expenses
Correct Answer: C. Pain and suffering damages [CORRECT]
Rationale: PIP is a no-fault coverage that pays for medical expenses, lost wages,
funeral expenses, and essential services regardless of fault. Pain and suffering are
general damages recoverable through liability claims or bodily injury lawsuits, not
through PIP.
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Question 6
An insured has Uninsured Motorist Bodily Injury coverage with limits of $50,000 per
person/$100,000 per accident. The insured is struck by an uninsured driver and
sustains $75,000 in medical bills and lost wages. The insured also has $25,000 in
MedPay coverage. How much can the insured recover from the UMBI coverage?
A. $100,000
B. $75,000
C. $50,000
D. $25,000
Correct Answer: C. $50,000 [CORRECT]
Rationale: UMBI per person limit is $50,000, which caps recovery regardless of total
damages. MedPay is typically primary and may reduce UMBI recovery depending on
state regulations and policy terms, but the per person limit of $50,000 is the
maximum available under this coverage.
Question 7
Which of the following scenarios would MOST likely trigger a coverage denial under
a standard auto liability policy?
A. The insured accidentally backs into a neighbor's mailbox
B. The insured intentionally rams another vehicle during a road rage incident
C. The insured strikes a pedestrian who jaywalked
D. The insured damages a guardrail while swerving to avoid an animal
Correct Answer: B. The insured intentionally rams another vehicle during a road
rage incident [CORRECT]
Rationale: Standard auto policies contain an intentional acts exclusion that bars
coverage for bodily injury or property damage expected or intended by the insured.
Accidents, even involving negligence, are covered; intentional acts are not.
