All-Lines Insurance Adjuster Examination

1.After a kitchen fire ruins Maya Chen's cabinets, which item in the claim is a peril?

2.Which situation is a moral hazard on a property claim?

3.Leon leaves his sedan unlocked, with the keys on the seat, every night. No theft has occurred. How is this conduct classified?

4.After a customer falls, the adjuster sees a broken handrail on the entry stairs. The broken handrail is best described as:

5.Property insurance is a contract of indemnity. A covered fire destroys a sofa. What should the settlement accomplish?

6.A dining table costs $2,000 to replace and is 25 percent depreciated. Before any deductible, what is its actual cash value?

7.Nora Voss insured her laptop, then sold it and was paid in full. It was stolen a week later from the buyer's car. Nora kept no interest. What is the result of Nora's claim?

8.A river overflows and floods the first floor of Samir Patel's house. He has a standard homeowners policy and no flood policy. How should the water damage be treated?

9.An earthquake cracks Helen Cho's foundation. Her only property policy is a standard homeowners policy with no earthquake coverage. The adjuster should:

10.A supply line inside Jonah Reed's wall suddenly bursts and soaks the drywall. No river, surface water, or drain backup is involved. Which statement is correct?

11.Carla Diaz backs into a neighbor's parked truck and dents the tailgate. Carla's liability coverage is for:

12.Priya Shah's sedan leaves the roadway and strikes a guardrail. No animal, theft, or hail is involved. Damage to Priya's sedan is:

13.A deer runs into the side of Omar Hassan's moving car and damages a fender. He carries both collision and comprehensive. Which coverage applies to the fender?

14.Thieves take Elaine Brooks's car from a parking lot, and the car is not recovered. Which coverage applies to Elaine's car?

15.Hail dents the hood and roof of Luis Ortega's parked car. Which statement is correct?

16.A garage fire burns Andre Wilson's parked pickup. Andre is the only owner. The damage to the pickup is paid under:

17.Creek water rises and ruins the interior of Marco Lane's sedan in his driveway. Marco has comprehensive coverage. The sedan's flood damage is:

18.A stone thrown up by a passing truck cracks Diane Kowalski's windshield. No other part of the car is damaged. The windshield loss is:

19.Before recommending payment on a negligence claim, which elements must the adjuster find?

20.A driver runs a red light and stops just short of a pedestrian. There is no contact, no injury, and no property damage. Why is there no negligence payment?

21.A grocery owes its shoppers reasonable care against foreseeable hazards in the aisles. That obligation is which negligence element?

22.An employee mops a grocery aisle and leaves a large unmarked puddle for two hours. A customer then slips. Which element do those store facts most directly support?

23.A roofer drops a hammer from a scaffold. The hammer hits a parked bicycle and cracks the frame. Which element links the dropped hammer to the cracked frame?

24.In a comparative-negligence state, a claimant has $40,000 in damages and is 20 percent at fault. The insured is 80 percent at fault. What is the recovery before any policy limit?

25.Rita Alvarez was 40 percent at fault in a crash. Her claim will follow the fault rules where the crash occurred. Which approach is correct?

26.An auto policy shows split limits of 100/300/50. What do those three figures mean?

27.Limits are 100/300/50. One person has $140,000 of bodily injury, nobody else is hurt, and there is no fault reduction. What is the most paid for that person's bodily injury?

28.Four people each have $100,000 of bodily injury from one crash. Limits are 100/300/50, and each injury stays within the per-person cap. What is the most paid for all bodily injury combined?

29.The insured knocks down a neighbor's masonry wall worth $72,000. Limits are 100/300/50, and nobody is injured. What does liability pay for the wall?

30.Which task belongs to an all-lines adjuster who is assigned a claim?

31.What does a reservation-of-rights letter tell the insured?

32.Why would the insurer and the insured sign a nonwaiver agreement before a coverage investigation continues?

33.On a first-party property claim, a proof of loss is:

34.The insured and insurer agree that wind is covered, but they disagree on the cost to repair the roof. Which procedure addresses that dispute?

35.The insurer denies a claim because the damage was caused by excluded flood. The insured demands appraisal. What can appraisal decide?

36.An insurer pays a covered kitchen-fire claim, then confirms a negligent remodeler started the fire. Subrogation lets the insurer:

37.After paying a total loss on a burned piano, the insurer takes the damaged instrument, which still has some value. That remaining value is:

38.Which description of these two recoveries is correct?

39.Which act by an adjuster is a misrepresentation?

40.The adjuster has measured a covered fence repair at $4,200. Which statement to the insured is proper?

41.A building worth $250,000 is insured for $150,000 with 80 percent coinsurance and a $1,000 deductible. A covered fire causes a $40,000 loss. What is paid?

42.A shop worth $100,000 is insured for $80,000 with 80 percent coinsurance and a $500 deductible. A covered loss is $16,000. What is paid?

43.A covered shed would cost $8,000 to replace and is 25 percent depreciated. The policy pays actual cash value and has a $500 deductible. What is paid?

44.A covered roof has a replacement cost of $20,000 and depreciation of $4,000. The deductible is $1,000 and the limit is adequate. Replacement cost is paid only after the roof is replaced, and the insured replaces it. What is the total payment?

45.A porch roof has a replacement cost of $12,000 and depreciation of $3,000. The deductible is $500. Actual cash value is paid until replacement is finished, and the porch is not rebuilt yet. What is paid now?

46.Two siblings each own half of a cottage. Only one is the named insured, and nothing gives him the other half. A covered fire causes a $60,000 loss. What is the most he can collect for his own interest?

47.The homeowner commits arson, and the insurer denies the owner's claim. A standard mortgage clause protects the lender, whose balance is $90,000. The fire damage exceeds that balance. What may the lender recover?

48.A lender is named only on a simple loss-payable clause, not a standard mortgage clause. The insured's claim is denied for material concealment. How does that clause treat the lender?

49.The Berg family leaves their furniture in place and travels for three weeks. Nobody stays in the house. For a property claim, the house is:

50.The policy suspends vandalism coverage after 60 consecutive days of vacancy. A house has been empty of people and contents for 75 days when vandals break the windows. What is the result?

51.Sparks leave a fireplace, ignite a rug, and the fire spreads to a sofa. How should the sofa damage be classified?

52.A fire burns only inside the fireplace. Heat discolors the brick lining of that firebox, and nothing in the room ignites. Which statement is correct?

53.A washer hose has dripped for eight months and slowly stained the laundry floor. There was no sudden burst. The policy excludes wear, deterioration, and gradual seepage. The adjuster should:

54.An owner lends a car to a friend the owner knows has a suspended license and has just been drinking. The friend negligently injures a cyclist. Which theory reaches the owner, apart from the friend's own negligence?

55.An adjuster inspects hail dents in a metal roof. Which file practice is proper?

56.In one storm, wind tears shingles off a roof, and later a river covers the first floor. The homeowners policy covers wind and excludes flood. How should the loss be settled?

57.A covered tree impact opens a roof, and rain is about to enter. The policy requires the insured to protect the property from further damage. Which expense fits that duty?

58.A tenant negligently starts a kitchen fire that causes $28,000 of damage to the rented unit. The tenant's policy includes fire-legal-liability coverage with a $50,000 limit for the rented premises. What does that coverage pay?

59.Hail breaks a skylight on June 2. On August 19, burglars steal a television. The policy applies a separate deductible to each occurrence. How many deductibles apply?

60.Two policies cover the same $24,000 building loss and share pro rata by limits. Policy A has a $90,000 limit and Policy B has a $30,000 limit. No deductible applies. What does Policy A pay?

61.A covered liability judgment is $180,000. The underlying policy pays its $100,000 limit. An umbrella is excess for this judgment and has a $1,000,000 limit. What does the umbrella pay?

62.A lease signed before a fire contains a mutual waiver of subrogation, and the tenant's policy permits that waiver. After paying the tenant's covered contents claim, may that insurer pursue the landlord?

63.Before payment, an insured signs a full release of the plumber who caused a covered water loss and gets nothing in return. The release destroys the insurer's recovery, and the policy allows a reduction to the extent subrogation is prejudiced. What may the insurer do?

64.A covered machine is a total loss. Actual cash value is $9,000, the deductible is $1,000, and salvage is worth $1,500. The insured keeps the salvage. What is paid?

65.A covered camera outfit is a total loss. Actual cash value is $14,000 and the deductible is $500. Salvage is worth $2,000, and the insurer takes the salvage. What is paid to the insured?

66.A covered boat can be repaired for $4,000. Its actual cash value is $18,000 and the deductible is $500. The owner wants the insurer to accept abandonment and pay a total loss. The policy does not require the insurer to accept abandonment. What is the correct settlement?

67.A scheduled pair of lamps is worth $3,000 together. One lamp is stolen. The remaining lamp is worth $600 alone. The policy pays the reduction in value of the pair, and the insured keeps the remaining lamp. Ignoring any deductible, what is paid?

68.A collision totals a car with an actual cash value of $11,000. The collision deductible is $500, and the insured still owes a lender $16,000. There is no gap coverage. What does collision pay?

69.A policy specifically insures Warehouse North for $150,000 and Warehouse South for $250,000. It is not blanket coverage. A covered fire at Warehouse North causes a $120,000 loss, and the deductible is $1,000. What is paid?

70.A covered fire closes a bakery. Covered business income is $2,000 a day, the policy waiting period is 72 hours, and the bakery is closed for 12 days. The limit is adequate. What is the business-income payment?

71.After a covered fire, a clinic rents a temporary suite and pays to reconnect its phones. Those costs are above normal expenses and are not lost profit. Which coverage is designed for them?

72.A covered fire makes a home unlivable for 6 nights. The family pays $160 a night for a hotel and $30 a night for meals above their normal food cost. Their $1,800 mortgage still comes due. Additional living expense covers only the increase in living cost. What is payable?

73.A homeowner hires a roofing company as an independent contractor. The company's employee negligently drops a tool and injures a passerby. The homeowner did not control the work and was not personally careless. Which statement is correct?

74.An employee is hurt while doing the job and asks the workers compensation adjuster to apply the national weekly benefit. Which response is correct?

75.After a house fire, the homeowner hires a public adjuster. A staff adjuster employed by the insurer handles the same loss. Which statement is correct?

76.A covered fire requires a $15,000 roof repair. Meeting current code would add $6,000. The policy excludes ordinance or law costs, and there is no ordinance endorsement. The deductible is $1,000. What is paid?

77.A covered fire repair costs $10,000, and a required code upgrade adds $4,000. An ordinance-or-law endorsement covers that upgrade. One $500 deductible applies to the combined covered loss. What is paid?

78.Wind, a covered peril, blows a neighbor's healthy tree onto the insured's roof. The investigation finds the neighbor was not negligent. Which result is correct?

79.A neighbor is legally responsible for a dead tree that crushed the insured's garage roof. The insurer pays the insured's covered property loss. What may the insurer do next?

80.An at-fault driver has a $25,000 bodily-injury limit. The insured's damages are $90,000, and the insured's underinsured-motorist limit is $100,000. Which statement is correct?

81.A grocery employee negligently rear-ends a car while driving the store van from one delivery to the next. Which statement is correct?

82.A clerk finishes the workday, drives a personal car two hours to a lake party, and negligently hits a cyclist in that parking lot. Which statement is correct?

83.Store video shows spilled juice on the floor for 40 minutes while employees walk past it. A shopper then slips. Which conclusion fits a negligence analysis?

84.A liability policy has a $100,000 limit per occurrence and a $200,000 general aggregate. Three separate covered occurrences evaluate at $100,000, $80,000, and $70,000, in that order. What is paid on the third occurrence?

85.A dry cleaner negligently ruins a customer's suit. The customer's insurer pays the customer and the policy preserves subrogation. What may that insurer do next?

86.A repair shop damages a customer's car while replacing the brakes. The shop's general liability policy excludes property of others in the shop's care, custody, or control. Which coverage should the adjuster review for that car?

87.A jeweler loses a customer's ring while sizing it in the shop. General liability excludes personal property in the insured's care, custody, or control. Which statement is correct?

88.A plumber's finished joint is defective and leaks, ruining a customer's cabinet. The liability policy excludes the cost to redo the plumber's own faulty work but covers resulting damage to the customer's other property. What is payable?

89.A toy maker learns a wheel can come off. Nobody has been hurt. The policy excludes product-recall expense and covers bodily injury a defective product actually causes. Which cost does the recall exclusion remove?

90.A ladder the insured sold collapses and injures a customer on May 10. The claim is made on August 10. The insured's occurrence liability policy was in force on May 10. Which timing rule applies?

91.A claims-made liability policy has a retroactive date of September 1, 2025. The injury occurs on August 20, 2025, and the claim is first made during the policy period. What is the result?

92.A claims-made policy expires on March 1 and provides a 60-day extended reporting period. The injury occurred during the policy period and after the retroactive date. The claim is first made on April 10. Which statement is correct?

93.A building owner holds a certificate that calls the owner an additional insured on a contractor's policy. The policy itself has no additional-insured endorsement. A visitor is injured. What controls coverage?

94.A building owner is an additional insured on a painter's liability policy only for injury arising out of the painter's ongoing work. A visitor trips on the owner's torn carpet in a room the painter never entered. Which statement is correct?

95.A contract says a vendor will indemnify a market for any injury in the market. The vendor's liability policy covers only liability assumed in an insured contract, as the policy defines that term. What should the adjuster do?

96.A lawsuit alleges that the insured negligently injured a guest, and those allegations fall inside liability coverage. Which duty comes into play?

97.An insurer defends a lawsuit but is unsure whether an exclusion applies, so it sends a reservation of rights. What is the effect?

98.A property policy requires an examination under oath. Who can be required to attend under that contract?

99.The insured will not give a statement, will not appear at the liability trial, and will not share crash photos. The policy requires cooperation, and the refusal materially hurts the defense. How may the insurer treat that refusal?

100.Without telling the insurer, the insured writes to a claimant and promises to pay $45,000 the next day. The liability policy bars voluntary payments except for first aid. How should that promise be treated?

101.An adjuster's settlement authority is $15,000. A covered liability claim evaluates at $22,000, and the claimant will accept $22,000. What should the adjuster do?

102.A claimant asks whether a paper is only a receipt for a partial payment. The paper is a full release of all claims. What must the adjuster say?

103.A guest trips on the insured's sidewalk and has a $650 urgent-care bill. Homeowners medical payments cover others up to $1,000 a person regardless of fault. The insured was not negligent. What do medical payments pay?

104.The named insured breaks a wrist while moving his own furniture. No guest is involved. Medical payments to others applies only to other people. What is payable under that coverage?

105.The insured's child accidentally breaks a neighbor's window with a ball. Damage-to-property-of-others coverage pays up to $1,200 regardless of legal liability, but not for intentional damage. The window costs $450. What is paid?

106.During an argument, the insured deliberately slashes a neighbor's tires. The liability policy covers accidents and excludes damage the insured expected or intended. How should the tire claim be handled?

107.Limits are 100/300/50. One crash causes bodily injuries of $120,000, $70,000, and $20,000, plus $10,000 of property damage. The insured is entirely at fault. What is the total liability payment?

108.In a comparative-negligence state, a claimant has $25,000 in medical bills, $5,000 in lost wages, and $10,000 for pain and suffering. The claimant is 25 percent at fault. The per-person limit is $100,000. What is the bodily-injury payment?