Free Adjuster Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Adjuster practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Alaska property loss results from a dominant covered cause and a secondary excluded cause. How does Alaska's claim guidance address causation?

   1. A. Coverage is determined by the dominant cause
   2. B. The smallest contributing cause always controls
   3. C. The latest event always controls
   4. D. Coverage is automatically split equally

   Answer: A

   Explanation: The official checklist says an insurer may not deny when an insured risk "is the dominant cause of a loss" and an excluded risk is secondary.

   Reference: STATE OF ALASKA — AS 21.36.096, Concurrent Causation

2. 2An Alaska resident independent adjuster is renewing a full two-year license. How many approved continuing-education credit hours are ordinarily required during that license period?

   1. A. 16 credit hours
   2. B. 20 credit hours
   3. C. 24 credit hours
   4. D. 30 credit hours

   Answer: C

   Explanation: Alaska requires the stated total for a full renewal period: "must have 24 continuing education credit hours."

   Reference: Ce Regs — 3 AAC 907.465.3509

3. 3An Alaska corporation's officer owns exactly 10 percent of the business. How does the official employer guide treat the officer for workers' compensation coverage?

   1. A. The officer is automatically exempt
   2. B. The officer is automatically a covered temporary worker
   3. C. The officer must join the Assigned Risk Pool personally
   4. D. The officer is treated as a public employee

   Answer: A

   Explanation: The Alaska guide applies a "minimum 10% ownership interest" and states that qualifying officers and directors are "automatically exempt."

   Reference: Wc Employer Guide — Ownership exemptions, page 4

4. 4Which policy mechanism may resolve a first-party Alaska vehicle valuation dispute instead of the regulatory reopening remedies?

   1. A. Appraisal
   2. B. Premium audit
   3. C. Policy assignment
   4. D. Binder extension

   Answer: A

   Explanation: For a first-party claimant, the insurer may "conclude the loss settlement using the appraisal provisions of the policy."

   Reference: Total Loss Regs — Discussion of 3 AAC 26.080(j)

5. 5At the end of an Alaska independent adjuster's license period, the adjuster has completed more continuing-education hours than required. What is the maximum number that may be carried into the next license period?

   1. A. 6 hours
   2. B. 8 hours
   3. C. 12 hours
   4. D. 24 hours

   Answer: B

   Explanation: The statutory carryover ceiling is "a maximum of eight hours" for the next license period.

   Reference: Alaska State Legislature — AS 21.27.020(f)(3)

6. 6Do part-time or temporary employees fall outside Alaska's workers' compensation requirement solely because of limited hours or duration?

   1. A. No, those features alone do not create an exemption
   2. B. Yes, all part-time workers are exempt
   3. C. Yes, all temporary workers are exempt
   4. D. Yes, anyone working fewer than 30 days is exempt

   Answer: A

   Explanation: Limited hours or duration do not change the rule because "There are no exemptions" based solely on those features.

   Reference: Wc Employer Guide — Employees required to be insured, page 5

7. 7An insurer adjusts damage to a business machine pledged to a lender. The policy names that lender in a loss payable clause. Who may receive payment under that clause?

   1. A. The lender named in the clause with a financial interest in the machine
   2. B. The selling broker named on the policy with a commission interest
   3. C. The repair vendor named in the estimate with a service interest
   4. D. The insurer's reinsurer named in the treaty with a risk interest

   Answer: A

   Explanation: "The loss payee must have an insurable interest"; a lienholding lender named in the loss payable clause has that interest and is the authorized recipient under the clause. The broker, vendor, and reinsurer have different contractual roles.

   Reference: California Department of Insurance, Commercial Insurance Guide — Glossary, Loss Payable Clause

8. 8An Alaska license applicant signs an application containing material statements the applicant knows are false. Which licensing consequence is expressly associated with the truthfulness declaration?

   1. A. Automatic conversion to a temporary license
   2. B. Denial, nonrenewal, suspension, or revocation
   3. C. Mandatory appointment by an insurer
   4. D. Waiver of the examination requirement

   Answer: B

   Explanation: The application declaration is made "subject to penalty of denial, nonrenewal, suspension, or revocation" if its statements are not truthful and complete.

   Reference: Alaska State Legislature — Section 17, AS 21.27.040(a)

9. 9A family member performs paid work for a for-profit Alaska business but has no qualifying ownership interest. Does the family relationship create a workers' compensation exemption?

   1. A. No, family status alone creates no exemption
   2. B. Yes, every family member is exempt
   3. C. Yes, if the work is part-time
   4. D. Yes, if compensation is paid in cash

   Answer: A

   Explanation: For a for-profit business, "There are no exemptions for family, friends" merely because of that relationship.

   Reference: Wc Employer Guide — Family, friends, and volunteers, page 5

10. 10A personal auto policy names one person in its Declarations. Under the policy's definitions, which other member of that person's household is also included in the terms "you" and "your"?

    1. A. The resident adult child of the named insured
    2. B. The resident sibling of the named insured
    3. C. The resident spouse of the named insured
    4. D. The resident parent of the named insured

    Answer: C

    Explanation: The policy defines "you" as the named insured shown in the Declarations and also "The spouse if a resident of the same household." Other resident relatives can be insured under separate provisions, but residence alone does not place them in this definition.

    Reference: ISO Personal Auto Policy, filed with Nevada Division of Insurance — PP 00 01 06 98, Definitions A.1–2