©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
AZ adjusterpro exam Questions With
Correct Answers
Covered by other insurance (boiler and machinery) - answer✔windstorm or hail
explosion
fire or combustion explosion
internal furnace explosion
social insurance - answer✔non profit, mandatory participation, benefits prescribed by the law,
designed to meet general needs of the public, gov. has monopoly
Private Insurers - answer✔sells insurance based on consumer preferences, offers a wide variety
of insurance products, typically exists to benefit a group or profit, insured party voluntarily
participates
Stock Insurance Companies - answer✔always for profit, usually publicly-traded, stockholders
provide capital and participate in profits or losses, non-participating insurers: no dividends go to
policyholders
Mutual Insurance Companies - answer✔owned by policyholders (no shareholders),
policyholders elect board of directors
participating insurers: policyholders participate in dividends
Reciprocal Insurers - answer✔a group of people or organizations that insure each other,
unincorporated, non-profit, operated by attorney-in-fact, members pay into individual accounts,
cost of claims shared by the whole group
Surplus Lines - answer✔people can get surplus lines when they are denied coverage by standard
insurers for multiple reasons
Surplus (Excess) Lines Insurance - answer✔is a last resort, is not available in the standard
market and must meet certain conditions
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
Blanket coverage vs. specific limits - answer✔Blanket coverage "blankets" more than one
property, type of property, or coverage under a single limit. Specific limits are limits that apply
to one specific type of property
Estoppel - answer✔A legal principle that prohibits a party from asserting a claim or right that is
inconsistent with that party's past statement or conduct on which another party has detrimentally
relied. A estoppel is a type of implied waiver
6 Qualifications of Insurable Risk - answer✔1.) Adequate Premiums 2.) Definable Risk 3.)
Unexpected Losses 4.) Substantial losses 5.) Exclusions 6.) Law of Large Numbers
Adequate Premiums - answer✔Insurance must be able to cover claims with premium incomes
Exclusions - answer✔The insurer must exclude coverage for large-scale disasters and
catastrophic events
Proximate cause - answer✔when there is a unbroken chain of events between an occurrence and
a loss, then that occurrence is the proximate cause of the loss.
original occurrence - answer✔causes damage that leads to more damage meaning- that the
original occurrence is the proximate cause of the loss
First party claim - answer✔a claim made by the policyholder on her own policy
Third party claim - answer✔a claim made by anyone other than the policyholder
5 steps to the claims process - answer✔1. Claimant contacts insurer and files the claim
2. The insurer acknowledges the claim and requests all items necessary to prove the loss
3. The adjuster investigates the claim and determines whether it is valid
4. If the claim is valid, the adjuster evaluates the claim
5. Insurer accepts or rejects the claim
Vicarious Liability - answer✔the transfer of negligence from one party to another
4 elements of negligence - answer✔1. defendant has legal duty to act or not act in a prescribed
matter
2. defendant failed to act accordingly (breach of duty)
3. plaintiff suffered actual loss or injury due to defendants action/inaction
4. loss of injury to plaintiff was a direct result of breach of duty of the defendant
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
3 Degrees of Liability - answer✔1.)Full Liability - The insured party is 100% at fault for
damages to a third party.
2.)Partial Liability - the insured party is only partially at fault or shares fault with a third party.
3.)No Liability - the insured party has 0% or no liability in the damage to a third party.
Assumption of Risk - answer✔the claimant knew he had the potential to experience damage or
risk
Contributory Negligence - answer✔can be understood as, "if you hadn't played part in the
negligence, you would not have experience's the damages" therefore you get no indemnification
Comparative Negligence - answer✔an adjuster may seek to suggest a claimant was a %
responsible and the policy holder a percentage responsible for damages
Reservation of rights or non waiver agreement is issued when... - answer✔the case may not fall
under the items of the insurance policy
special damages - answer✔A form of compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured person's loss, such as medical
expenses, repair bills, or lost wages
general damages - answer✔compensatory damages determined by the court and awarded for
intangible. emotional losses that are not quantifiable
punitive damages - answer✔money awarded to punish bad and shocking misconduct such as
intentional acts like slander, fraud, violence, oppression, or recklessness
Statue of limitations - answer✔a law limiting the amount of time an injured party has to file a
complaint after an occurrence
Discovery Rule - answer✔statues of limitations run from when a injury is, or should have been,
discovered
wrongful death act - answer✔Law that defines the rights of individuals who are associated with
someone who was killed because of a negligent act.
Waiver of Sovereign Immunity - answer✔sovereign immunity: law that restricts people from
suing governmental entities
waiver of sovereign immunity: law that allows individuals to sue governmental entities for
damage in certain cases
10/30/2024 10:31 PM
AZ adjusterpro exam Questions With
Correct Answers
Covered by other insurance (boiler and machinery) - answer✔windstorm or hail
explosion
fire or combustion explosion
internal furnace explosion
social insurance - answer✔non profit, mandatory participation, benefits prescribed by the law,
designed to meet general needs of the public, gov. has monopoly
Private Insurers - answer✔sells insurance based on consumer preferences, offers a wide variety
of insurance products, typically exists to benefit a group or profit, insured party voluntarily
participates
Stock Insurance Companies - answer✔always for profit, usually publicly-traded, stockholders
provide capital and participate in profits or losses, non-participating insurers: no dividends go to
policyholders
Mutual Insurance Companies - answer✔owned by policyholders (no shareholders),
policyholders elect board of directors
participating insurers: policyholders participate in dividends
Reciprocal Insurers - answer✔a group of people or organizations that insure each other,
unincorporated, non-profit, operated by attorney-in-fact, members pay into individual accounts,
cost of claims shared by the whole group
Surplus Lines - answer✔people can get surplus lines when they are denied coverage by standard
insurers for multiple reasons
Surplus (Excess) Lines Insurance - answer✔is a last resort, is not available in the standard
market and must meet certain conditions
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
Blanket coverage vs. specific limits - answer✔Blanket coverage "blankets" more than one
property, type of property, or coverage under a single limit. Specific limits are limits that apply
to one specific type of property
Estoppel - answer✔A legal principle that prohibits a party from asserting a claim or right that is
inconsistent with that party's past statement or conduct on which another party has detrimentally
relied. A estoppel is a type of implied waiver
6 Qualifications of Insurable Risk - answer✔1.) Adequate Premiums 2.) Definable Risk 3.)
Unexpected Losses 4.) Substantial losses 5.) Exclusions 6.) Law of Large Numbers
Adequate Premiums - answer✔Insurance must be able to cover claims with premium incomes
Exclusions - answer✔The insurer must exclude coverage for large-scale disasters and
catastrophic events
Proximate cause - answer✔when there is a unbroken chain of events between an occurrence and
a loss, then that occurrence is the proximate cause of the loss.
original occurrence - answer✔causes damage that leads to more damage meaning- that the
original occurrence is the proximate cause of the loss
First party claim - answer✔a claim made by the policyholder on her own policy
Third party claim - answer✔a claim made by anyone other than the policyholder
5 steps to the claims process - answer✔1. Claimant contacts insurer and files the claim
2. The insurer acknowledges the claim and requests all items necessary to prove the loss
3. The adjuster investigates the claim and determines whether it is valid
4. If the claim is valid, the adjuster evaluates the claim
5. Insurer accepts or rejects the claim
Vicarious Liability - answer✔the transfer of negligence from one party to another
4 elements of negligence - answer✔1. defendant has legal duty to act or not act in a prescribed
matter
2. defendant failed to act accordingly (breach of duty)
3. plaintiff suffered actual loss or injury due to defendants action/inaction
4. loss of injury to plaintiff was a direct result of breach of duty of the defendant
, ©THEBRIGHT EXAM SOLUTIONS
10/30/2024 10:31 PM
3 Degrees of Liability - answer✔1.)Full Liability - The insured party is 100% at fault for
damages to a third party.
2.)Partial Liability - the insured party is only partially at fault or shares fault with a third party.
3.)No Liability - the insured party has 0% or no liability in the damage to a third party.
Assumption of Risk - answer✔the claimant knew he had the potential to experience damage or
risk
Contributory Negligence - answer✔can be understood as, "if you hadn't played part in the
negligence, you would not have experience's the damages" therefore you get no indemnification
Comparative Negligence - answer✔an adjuster may seek to suggest a claimant was a %
responsible and the policy holder a percentage responsible for damages
Reservation of rights or non waiver agreement is issued when... - answer✔the case may not fall
under the items of the insurance policy
special damages - answer✔A form of compensatory damages that awards a sum of money for
specific, identifiable expenses associated with the injured person's loss, such as medical
expenses, repair bills, or lost wages
general damages - answer✔compensatory damages determined by the court and awarded for
intangible. emotional losses that are not quantifiable
punitive damages - answer✔money awarded to punish bad and shocking misconduct such as
intentional acts like slander, fraud, violence, oppression, or recklessness
Statue of limitations - answer✔a law limiting the amount of time an injured party has to file a
complaint after an occurrence
Discovery Rule - answer✔statues of limitations run from when a injury is, or should have been,
discovered
wrongful death act - answer✔Law that defines the rights of individuals who are associated with
someone who was killed because of a negligent act.
Waiver of Sovereign Immunity - answer✔sovereign immunity: law that restricts people from
suing governmental entities
waiver of sovereign immunity: law that allows individuals to sue governmental entities for
damage in certain cases
