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Free Arizona Examination for Property and Casualty Insurance Adjuster Series 13-36 Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Arizona Examination for Property and Casualty Insurance Adjuster Series 13-36 practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1Before an Arizona adjuster begins handling claims under a business name different from the adjuster's legal name, what must occur?

    1. A. Notify the Director on the prescribed form before using the name
    2. B. Notify the Director in writing within 30 days after first using the name
    3. C. Register the name only after the first claim is closed
    4. D. Wait until the next license renewal to disclose the name

    Answer: A

    Explanation: A.R.S. § 20-297(A) requires notice before use: "shall notify the director on a form prescribed by the director before using the assumed name."

    Reference: 20-297 - Assumed business name; trade name — A.R.S. § 20-297(A)

  2. 2After floodwater enters a home's lower level, which feature makes that level a basement under the NFIP definition?

    1. A. Its floor is below ground level on every side.
    2. B. Its floor is below ground level on two sides.
    3. C. Its floor is at ground level on every side.
    4. D. Its floor is below ground level on one side.

    Answer: A

    Explanation: "a floor that is below ground level on all sides" The NFIP uses the all-sides floor criterion. A room meeting it is subject to the policy's restricted basement coverage.

    Reference: FEMA, What Does Flood Insurance Cover in a Basement? — Basement Classification

  3. 3A business funds expected small losses from its own budget instead of transferring them to an insurer. Which risk-handling method is it using?

    1. A. Retention
    2. B. Avoidance
    3. C. Reduction
    4. D. Transfer

    Answer: A

    Explanation: "a mechanism of internal fund allocation for loss exposure" The business keeps the exposure and allocates internal funds, the NAIC definition of retention.

    Reference: NAIC, Glossary of Insurance Terms — Glossary, Retention

  4. 4A landlord wants a policy for the building, fixtures and maintenance appliances in a house rented to tenants. Which residential policy form is designed for that nonowner-occupied property?

    1. A. HO-4 renters contents form
    2. B. Dwelling property form
    3. C. HO-6 unit owners form
    4. D. HO-3 homeowners special form

    Answer: B

    Explanation: "Dwelling policies may be used to cover owner and nonowner-occupied residences" The landlord owns the rented structure, which is a dwelling-policy subject; the other listed forms address tenant, unit-owner or standard homeowners interests.

    Reference: NAIC, Home Sharing and Insurance — Dwelling Policy Coverage Options and Limitations, p. 4

  5. 5A tenant wants coverage for furniture inside a rented apartment and personal liability, but does not own the building. Which homeowners form fits that interest?

    1. A. HO-3 Special
    2. B. HO-5 Comprehensive
    3. C. HO-4 Contents Broad
    4. D. HO-6 Unit-Owners

    Answer: C

    Explanation: "Renters (HO-4): Designed for tenants." Arizona DIFI says it covers tenant possessions and liability without covering the building.

    Reference: Arizona DIFI, Homeowners Insurance — Types of Home Policies, Renters (HO-4)

  6. 6An insured driver causes an accident that injures a pedestrian. The pedestrian seeks medical expenses and lost wages. Which personal-auto coverage is intended for this legally owed injury claim?

    1. A. Bodily injury liability coverage
    2. B. Collision physical damage coverage
    3. C. Other-than-collision damage coverage
    4. D. Underinsured motorist coverage

    Answer: A

    Explanation: "Bodily injury coverage is a type of liability insurance." It pays injury damages the insured owes to others, not the insured driver's own medical expenses or damage to the insured car.

    Reference: Arizona DIFI, 2023 Arizona Auto Premium Report — Coverages, Bodily Injury Coverage, p. 2

  7. 7An employee uses her personally owned car on a delivery for her employer and injures another driver. Which commercial-auto exposure should the employer review for liability protection?

    1. A. Owned autos listed in the company fleet
    2. B. Hired autos leased by the business
    3. C. Nonowned autos used for company business
    4. D. Physical damage to a company-owned auto

    Answer: C

    Explanation: "non-owned vehicles, including employees’ cars driven for company business." That describes the employee-owned car used on the employer's delivery.

    Reference: NAIC, Small Business Insurance — What's commercial auto insurance?

  8. 8A business faces a lawsuit alleging that its printed advertisement libeled a competitor and damaged its reputation. Which CGL coverage category should the adjuster examine?

    1. A. Bodily injury liability
    2. B. Property damage liability
    3. C. Personal and advertising injury
    4. D. Medical payments to others

    Answer: C

    Explanation: "Personal injury including slander and libel" The alleged written reputational harm is libel, within personal and advertising injury rather than bodily harm, tangible-property damage or no-fault medical payments.

    Reference: NAIC, Small Business Insurance — What's general liability insurance?

  9. 9A covered liability claim totals $175,000. The primary policy pays up to its $100,000 limit, and an excess policy attaches immediately above that amount with ample remaining limit. How much of this loss belongs to the excess layer?

    1. A. $0
    2. B. $75,000
    3. C. $100,000
    4. D. $175,000

    Answer: B

    Explanation: "above a specific amount set forth in a basic policy issued by the primary insurer" The excess layer attaches after the first $100,000. It responds to $175,000 minus $100,000, or $75,000.

    Reference: NAIC, Glossary of Insurance Terms — Glossary, Umbrella and Excess (Commercial)

  10. 10During a first call about storm damage, an insured gives a name and policy number. Which additional information directly describes the nature and scope of the property loss?

    1. A. The property's address and ownership details
    2. B. The contact details for possible witnesses
    3. C. What happened and the type and extent of damage
    4. D. The date and location of the reported occurrence

    Answer: C

    Explanation: "to briefly explain what happened and describe the type and extent of the property damage." The first notice needs the event and loss description. Identity, witnesses, and date or location may help intake but do not by themselves describe nature and extent.

    Reference: NAIC, Post-Disaster Claims Guide — What do I need to know when I call to make a claim?, p. 6

Topics in this practice bank

These topics describe the available practice for Arizona Examination for Property and Casualty Insurance Adjuster Series 13-36. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing requirements (20-321, 321.01)
    • Assumed name (20-297)
    • Qualifications
    • License application requirements
    • Licensing exceptions
    • Number of exam attempts 20-284(H)
    • Maintenance and duration
    • Expiration, surrender and renewal (20-289, 321.02)
    • Inactive status during military service (20-289.01)
    • Report of actions (20-301, 321.02)
    • Change of personal contact information (20-286(C))
    • Disciplinary actions
    • Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296, 321.02)
    • Cease and desist orders (20-292, 321.02)
    • Claim settlement laws and regulations (20-461, 462; Rule R20-6-801; RR R20-5- 163)
    • Insurance fraud (20-463, 466–466.04)
  • Federal Laws and Regulations
    • National Flood Insurance Program (NFIP)
    • Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
    • Prohibited Persons in Insurance (18 United States Code (USC) Sections 1033 and 1034) waiver
    • Terrorism Insurance Program (15 USC 6701; Public Law 107-297, 109-144, 110-160)
  • General Insurance Concepts
    • Risk
    • Methods of Handling Risk (e.g., Avoidance, Retention, Sharing, Reduction, Transfer)
    • Elements of Insurable Risks
    • Definitions (e.g., Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Mutual, Stock
    • Admitted, Non-Admitted
    • Foreign, Domestic, Alien
    • Elements of a Contract
    • Consideration
    • Competent Parties
    • Legal Purpose
    • Offer
    • Acceptance
    • Authority and Powers of Producers
    • Express
    • Implied
    • Apparent
    • The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Reasonable Expectations
    • Indemnity
    • Good Faith
    • Fraud
    • Warranties, Representations, Misrepresentations, and Concealment
  • Property and Casualty Insurance Basics
    • Insurable Interest
    • Liability
    • Absolute
    • Strict
    • Vicarious
    • Underwriting
    • Purpose
    • Process
    • Results
    • Rate Development
    • Types
    • Components
    • Basis
    • Types of Hazards
    • Types of Perils
    • Types of Loss
    • Direct
    • Indirect
    • Loss Valuation
    • Actual Cash Value
    • Replacement Cost
    • Functional Replacement Cost
    • Market Value
    • Agreed Value
    • Valued Policy
    • Basic Types of Construction
    • Negligence
    • Torts
    • Elements of a Negligent Act
    • Defense Against Negligence
    • Accident versus Occurrence
    • Policy Structure
    • Declarations
    • Definitions
    • Insuring Agreement
    • Additional/Supplementary Coverage
    • Conditions
    • Exclusions
    • Endorsements
    • Policy Clauses
    • Insureds
    • Policy Period
    • Policy Territory
    • Cancellation and Non-Renewal
    • Deductibles
    • Other Insurance
    • Nonconcurrency
    • Primary and Excess
    • Pro Rata
    • Contribution by Equal Shares
    • Limits of Liability
    • Per Accident
    • Per Occurrence
    • Per Person
    • Aggregate
    • Split Limits
    • Combined Single Limit
    • Coinsurance
    • Purpose
    • Definition
    • Calculation
    • Penalties
    • Total versus Partial Loss
    • Specific, Scheduled, and Blanket Insurance
    • Vacant versus Unoccupied
    • Named Insured Provisions
    • First Named Insured versus Other Insureds
    • Duties After Loss
    • Assignment
    • Waiver of Rights
    • Insurer Provisions
    • Liberalization
    • Subrogation
    • Claim Settlement Options
    • Duty to Defend
    • Third-Party Provisions
    • Standard Mortgage Clause
    • Loss Payable Clause
    • No Benefit to the Bailee
  • Dwelling Policy Concepts
    • Purpose and Eligibility
    • Perils Insured Against
    • Basic
    • Broad
    • Special
    • Property Coverages
    • Coverage A - Dwelling
    • Coverage B - Other Structures
    • Coverage C - Personal Property
    • Coverage D - Fair Rental Value
    • Coverage E - Additional Living Expenses
    • Other Coverages
    • Dwelling Property Conditions
    • Dwelling Property Exclusions
    • Dwelling Property Endorsements
    • Personal Liability Supplement
    • Coverage L - Personal Liability
    • Coverage M - Medical Payments to Others
  • Homeowners Policy Concepts
    • Definitions
    • Eligibility and Purpose
    • Homeowners Policy Coverage Forms
    • Broad (HO-2)
    • Special (HO-3)
    • Contents Broad (HO-4)
    • Comprehensive (HO-5)
    • Unit-Owners (HO-6)
    • Modified Coverages (HO-8)
    • Section I - Property Coverages
    • Coverage A - Dwelling
    • Coverage B - Other Structures
    • Coverage C - Personal Property
    • Coverage D - Loss of Use
    • Additional Coverages
    • Section II - Liability Coverages
    • Coverage E - Personal Liability
    • Coverage F - Medical Payments to Others
    • Additional Coverages
    • Homeowners Policy Exclusions
    • Section I-Property Covered Exclusions
    • Section II - Liability Covered Exclusions
    • Homeowners Policy Conditions
    • Homeowners Policy Endorsements
    • Business Pursuits
    • Earthquake
    • Home Day Care
    • Personal Injury
    • Personal Property Replacement Cost
    • Watercraft
    • Ordinance or Law
    • Scheduled Personal Property/Personal Articles Floater
  • Personal Automobile Policy
    • Definitions
    • Personal Injury Protection Definitions
    • Liability Coverage
    • Bodily Injury and Property Damage
    • Supplementary Payments
    • Exclusions
    • Medical Payments Coverage
    • Uninsured and Underinsured Motorists Coverage
    • Definitions
    • Bodily Injury
    • UM and UIM Rejection
    • Coverage for Damage to your Automobile
    • Collision
    • Other than Collision (Comprehensive)
    • Deductibles
    • Exclusions
    • Duties after an Accident or Loss
    • General Provisions
    • Endorsements
    • Towing and Labor Costs
    • Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use
    • Joint Ownership Coverage
    • Rental Vehicle Coverage
  • Commercial Automobile Policy
    • Commercial Automobile Coverage Forms
    • Covered Automobiles
    • Hired Automobiles
    • Non-owned Automobiles
    • Liability
    • Physical Damage
    • Exclusions
    • Conditions
    • Definitions
    • Selected Endorsements
    • Lessor - Additional Insured and Loss Payee
    • Mobile Equipment
    • Property Protection Coverage
    • Broad Form Products
    • Employees as Insureds
  • Commercial Property Policies
    • Commercial Package Policy
    • Purpose
    • Definition
    • Coverages
    • Coverage Extensions
    • Commercial Policy Components
    • Declarations
    • Conditions
    • Insuring Agreements
    • Exclusions
    • Commercial Property Forms
    • Coverage Forms for Building and Business Personal Property
    • Builders Risk
    • Business Income
    • Extra Expense
    • Legal Liability
    • Cause of Loss Forms
    • Commercial Crime
    • Commercial Property Endorsements
    • Ordinance or Law
    • Peak Season Limit of Insurance
    • Spoilage
    • Value Reporting Form
    • Earthquake
    • Equipment Breakdown Coverages
    • Commercial Inland Marine - Purpose
    • Ocean Marine (Distinction Between Inland and Ocean)
    • Farm Property
    • Definitions
    • Conditions and Exclusions
    • Coverages
  • Commercial General Liability
    • Commercial Policy Components
    • Declarations
    • Conditions
    • Interline Endorsements
    • Commercial General Liability Coverages
    • Bodily Injury and Property Damage
    • Personal and Advertising Injury
    • Medical Payments
    • Conditions
    • Definitions
    • Exclusions
    • Occurrence versus Claims-made
    • Commercial General Liability Exposures
    • Premises and Operations
    • Products and Completed Operations
    • Contractual Liability
  • Other Types of Insurance Policies
    • Personal Umbrella, Commercial Umbrella, and Excess Policies
    • Underlying Limits
    • Self-Insured Retention
    • Mobile Home Policy (Insuring Agreement)
    • Earthquake Insurance (Insuring Agreement)
    • Deductible
  • Adjustment Process
    • Claim Notification Process
    • Date of Loss
    • Location
    • Parties Involved
    • Type of Loss (e.g., Liability, Property)
    • Investigation and Evaluation of Loss/Claim Information
    • Determination of Applicable Coverage
    • Inquiry into Relevant Information
    • Purpose of Loss Reserves
    • Remedies for Disputes
    • Appraisal
    • Mediation (Binding and Unbinding)
    • Arbitration (Binding and Unbinding)
    • Litigation
    • Finalization of Claim
    • Denial
    • Settlement
    • Closing Claim

How to use these free practice questions

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These are independent study questions, not actual examination items. For examination requirements and official information, view Arizona Examination for Property and Casualty Insurance Adjuster Series 13-36 details.