Louisiana Claims Adjuster Exam
Questions & Answers 100%
Correct
Course
Louisiana Claims Adjuster
1. What is the primary responsibility of a claims adjuster?
A. Selling insurance policies
B. Investigating, evaluating, and settling insurance claims
C. Underwriting new policies
D. Managing company investments
Correct Answer: B. Investigating, evaluating, and settling insurance claims
Rationale: Claims adjusters assess losses, determine coverage, and negotiate fair settlements on
behalf of the insurer or insured.
2. Which document is most important when beginning a property damage claim
investigation?
A. Driver’s license
B. Insurance policy declaration page
C. Tax return
D. Vehicle registration only
Correct Answer: B. Insurance policy declaration page
Rationale: The declarations page outlines coverage limits, deductibles, and insured details
needed for claim evaluation.
3. What is the purpose of subrogation in insurance claims?
A. To deny claims automatically
B. To transfer claim liability to another party responsible for the loss
C. To increase premiums
D. To cancel policies after loss
Correct Answer: B. To transfer claim liability to another party responsible for the loss
Rationale: Subrogation allows insurers to recover claim costs from the at-fault party.
4. Which type of claim involves physical damage to a building?
,A. Liability claim
B. Property claim
C. Life insurance claim
D. Workers’ compensation claim
Correct Answer: B. Property claim
Rationale: Property claims involve damage or loss to real or personal property.
5. What is the first step in handling a new insurance claim?
A. Issue payment immediately
B. Verify coverage and policy status
C. Close the claim file
D. Assign blame to insured
Correct Answer: B. Verify coverage and policy status
Rationale: Adjusters must confirm coverage before proceeding with investigation or payment.
6. Which principle requires insurers to act fairly and in good faith?
A. Indemnity principle
B. Utmost good faith
C. Salvage principle
D. Contribution rule
Correct Answer: B. Utmost good faith
Rationale: Insurance contracts require honesty and fair dealing from both insurer and insured.
7. What is the purpose of an adjuster’s estimate?
A. To set premium rates
B. To calculate repair or replacement costs for a loss
C. To cancel insurance coverage
D. To determine criminal liability
Correct Answer: B. To calculate repair or replacement costs for a loss
Rationale: Estimates provide the financial basis for settlement decisions.
8. Which factor is MOST important when determining liability in an auto claim?
A. Vehicle color
B. Fault and negligence
C. Driver age only
D. Insurance company size
,Correct Answer: B. Fault and negligence
Rationale: Liability is based on who is legally responsible for causing the accident.
9. What does “deductible” mean in an insurance policy?
A. Amount paid by insurer before policy starts
B. Amount insured must pay before insurance coverage applies
C. Bonus paid to adjuster
D. Legal penalty for fraud
Correct Answer: B. Amount insured must pay before insurance coverage applies
Rationale: The deductible is the insured’s out-of-pocket share of a loss.
10. Which action is considered insurance fraud?
A. Filing a legitimate claim
B. Inflating damages to receive higher payment
C. Reporting a loss promptly
D. Cooperating with an adjuster
Correct Answer: B. Inflating damages to receive higher payment
Rationale: Misrepresenting or exaggerating a claim is intentional fraud and is illegal.
11. What is the purpose of a recorded statement in a claims investigation?
A. To increase claim payment
B. To obtain a formal account of the incident from the insured or claimant
C. To cancel insurance coverage
D. To determine policy premiums
Correct Answer: B. To obtain a formal account of the incident from the insured or claimant
Rationale: Recorded statements help adjusters document facts and clarify details about the loss.
12. Which factor is MOST important when evaluating bodily injury claims?
A. Vehicle color
B. Medical documentation and causation
C. Weather conditions only
D. Insurance company size
Correct Answer: B. Medical documentation and causation
Rationale: Medical evidence establishes the extent and cause of injuries.
13. What is the role of an independent adjuster?
, A. Works exclusively for the insured
B. Works on behalf of an insurance company on a contract basis
C. Only sells insurance policies
D. Handles criminal investigations
Correct Answer: B. Works on behalf of an insurance company on a contract basis
Rationale: Independent adjusters are hired per assignment but represent insurers in claims
handling.
14. What is “actual cash value” (ACV)?
A. Replacement cost minus depreciation
B. Original purchase price only
C. Market value after inflation
D. Policy limit amount
Correct Answer: A. Replacement cost minus depreciation
Rationale: ACV reflects the value of property considering age and wear.
15. What is the purpose of an insurance policy deductible?
A. To increase claim fraud
B. To share risk between insurer and insured
C. To eliminate coverage
D. To increase premiums
Correct Answer: B. To share risk between insurer and insured
Rationale: Deductibles ensure the insured participates in minor loss costs.
16. Which document defines coverage limits and exclusions?
A. Police report
B. Insurance policy contract
C. Repair estimate
D. Medical bill
Correct Answer: B. Insurance policy contract
Rationale: The policy contract outlines what is covered and excluded.
17. What is “comparative negligence”?
A. Only one party is at fault
B. Fault is shared between parties based on percentage
Questions & Answers 100%
Correct
Course
Louisiana Claims Adjuster
1. What is the primary responsibility of a claims adjuster?
A. Selling insurance policies
B. Investigating, evaluating, and settling insurance claims
C. Underwriting new policies
D. Managing company investments
Correct Answer: B. Investigating, evaluating, and settling insurance claims
Rationale: Claims adjusters assess losses, determine coverage, and negotiate fair settlements on
behalf of the insurer or insured.
2. Which document is most important when beginning a property damage claim
investigation?
A. Driver’s license
B. Insurance policy declaration page
C. Tax return
D. Vehicle registration only
Correct Answer: B. Insurance policy declaration page
Rationale: The declarations page outlines coverage limits, deductibles, and insured details
needed for claim evaluation.
3. What is the purpose of subrogation in insurance claims?
A. To deny claims automatically
B. To transfer claim liability to another party responsible for the loss
C. To increase premiums
D. To cancel policies after loss
Correct Answer: B. To transfer claim liability to another party responsible for the loss
Rationale: Subrogation allows insurers to recover claim costs from the at-fault party.
4. Which type of claim involves physical damage to a building?
,A. Liability claim
B. Property claim
C. Life insurance claim
D. Workers’ compensation claim
Correct Answer: B. Property claim
Rationale: Property claims involve damage or loss to real or personal property.
5. What is the first step in handling a new insurance claim?
A. Issue payment immediately
B. Verify coverage and policy status
C. Close the claim file
D. Assign blame to insured
Correct Answer: B. Verify coverage and policy status
Rationale: Adjusters must confirm coverage before proceeding with investigation or payment.
6. Which principle requires insurers to act fairly and in good faith?
A. Indemnity principle
B. Utmost good faith
C. Salvage principle
D. Contribution rule
Correct Answer: B. Utmost good faith
Rationale: Insurance contracts require honesty and fair dealing from both insurer and insured.
7. What is the purpose of an adjuster’s estimate?
A. To set premium rates
B. To calculate repair or replacement costs for a loss
C. To cancel insurance coverage
D. To determine criminal liability
Correct Answer: B. To calculate repair or replacement costs for a loss
Rationale: Estimates provide the financial basis for settlement decisions.
8. Which factor is MOST important when determining liability in an auto claim?
A. Vehicle color
B. Fault and negligence
C. Driver age only
D. Insurance company size
,Correct Answer: B. Fault and negligence
Rationale: Liability is based on who is legally responsible for causing the accident.
9. What does “deductible” mean in an insurance policy?
A. Amount paid by insurer before policy starts
B. Amount insured must pay before insurance coverage applies
C. Bonus paid to adjuster
D. Legal penalty for fraud
Correct Answer: B. Amount insured must pay before insurance coverage applies
Rationale: The deductible is the insured’s out-of-pocket share of a loss.
10. Which action is considered insurance fraud?
A. Filing a legitimate claim
B. Inflating damages to receive higher payment
C. Reporting a loss promptly
D. Cooperating with an adjuster
Correct Answer: B. Inflating damages to receive higher payment
Rationale: Misrepresenting or exaggerating a claim is intentional fraud and is illegal.
11. What is the purpose of a recorded statement in a claims investigation?
A. To increase claim payment
B. To obtain a formal account of the incident from the insured or claimant
C. To cancel insurance coverage
D. To determine policy premiums
Correct Answer: B. To obtain a formal account of the incident from the insured or claimant
Rationale: Recorded statements help adjusters document facts and clarify details about the loss.
12. Which factor is MOST important when evaluating bodily injury claims?
A. Vehicle color
B. Medical documentation and causation
C. Weather conditions only
D. Insurance company size
Correct Answer: B. Medical documentation and causation
Rationale: Medical evidence establishes the extent and cause of injuries.
13. What is the role of an independent adjuster?
, A. Works exclusively for the insured
B. Works on behalf of an insurance company on a contract basis
C. Only sells insurance policies
D. Handles criminal investigations
Correct Answer: B. Works on behalf of an insurance company on a contract basis
Rationale: Independent adjusters are hired per assignment but represent insurers in claims
handling.
14. What is “actual cash value” (ACV)?
A. Replacement cost minus depreciation
B. Original purchase price only
C. Market value after inflation
D. Policy limit amount
Correct Answer: A. Replacement cost minus depreciation
Rationale: ACV reflects the value of property considering age and wear.
15. What is the purpose of an insurance policy deductible?
A. To increase claim fraud
B. To share risk between insurer and insured
C. To eliminate coverage
D. To increase premiums
Correct Answer: B. To share risk between insurer and insured
Rationale: Deductibles ensure the insured participates in minor loss costs.
16. Which document defines coverage limits and exclusions?
A. Police report
B. Insurance policy contract
C. Repair estimate
D. Medical bill
Correct Answer: B. Insurance policy contract
Rationale: The policy contract outlines what is covered and excluded.
17. What is “comparative negligence”?
A. Only one party is at fault
B. Fault is shared between parties based on percentage
