Free Property and Casualty Adjuster Practice Questions

Sample Practice Questions

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

1. 1What minimum age must an individual meet before Minnesota may approve a resident adjuster application?

   1. A. 18 years
   2. B. 19 years
   3. C. 21 years
   4. D. 25 years

   Answer: A

   Explanation: Section 72B.041 says the individual "is at least 18 years of age." The applicant therefore must be 18 or older.

   Reference: Minnesota Statutes 2025, Chapter 72B — section 72B.041, subdivision 1(a)(1)

2. 2A homeowners form names only fire, wind, and theft as covered causes of loss. A separate accidental water loss is not listed. Which analysis follows the form's peril structure?

   1. A. The loss lacks a listed covered peril under this named-perils form.
   2. B. The loss is covered unless the form also lists water as an exclusion.
   3. C. The loss is covered because accidental causes need not be listed.
   4. D. The loss is covered whenever it occurs during the policy period.

   Answer: A

   Explanation: "named-perils policy, which will list the types of losses covered" Fire, wind and theft are listed; this separate water cause is not. The absence of an exclusion, an accidental cause, or a timely loss does not add an unlisted peril to a named-perils grant.

   Reference: NAIC — Understanding Your Homeowners or Renter's Policy — The Parts of Your Policy — insuring agreement

3. 3A loss occurs at one of several properties owned by an insured. Which policy information should the adjuster first compare with the reported loss location and date?

   1. A. The insuring agreement.
   2. B. The declarations page.
   3. C. The general conditions.
   4. D. The attached endorsements.

   Answer: B

   Explanation: "identifies the policy number, the effective dates, the address of the insured property" Declarations identify the insured location and policy period. Those facts establish whether this policy is the one to analyze for this loss.

   Reference: NAIC — Understanding Your Homeowners or Renter's Policy — The Parts of Your Policy — declaration/information page

4. 4A covered Minnesota building is a total loss from fire. What policy limitation is prohibited by the state's valued-policy rule?

   1. A. A provision requiring prompt notice of loss
   2. B. A provision allowing subrogation after payment
   3. C. A provision requiring proof of loss
   4. D. A provision limiting payment below the amount of insurance on the building

   Answer: D

   Explanation: The prohibited limitation would reduce payment to "less than the amount of insurance" on the building. The other provisions do not impose that forbidden valuation limit.

   Reference: Minnesota Statutes 2025, Section 65A.01 — section 65A.01, subdivision 5

5. 5A condominium unit owner reports fire damage to personal belongings and the unit's interior walls, floors, and ceiling. Which policy form is designed to address these unit-owner interests?

   1. A. The Dwelling Fire Form.
   2. B. The Condominium Unit Owners Form.
   3. C. The Tenants Form.
   4. D. The Special Form.

   Answer: B

   Explanation: "property and your walls, floors and ceiling against all of the perils in the Broad Form." The NAIC describes the unit-owner form as covering personal property and interior surfaces. The other forms insure different interests or exposures.

   Reference: NAIC — A Consumer's Guide to Home Insurance — Types of Policies — Condominium Unit Owners Form

6. 6When does Minnesota prohibit reducing a property settlement for depreciation?

   1. A. Whenever the item can be repaired
   2. B. Whenever the policy has a deductible
   3. C. When the item was not adversely affected by age, use, or obsolescence
   4. D. When the claimant submits only one estimate

   Answer: C

   Explanation: Depreciation is prohibited when the item was not adversely affected by "age, use, or obsolescence." Repairability, a deductible, or the number of estimates does not establish that condition.

   Reference: Minnesota Statutes 2025, Section 72A.201 — section 72A.201, subdivision 5(9)

7. 7Which application must a Minnesota resident individual use when applying for an adjuster license?

   1. A. Uniform Business Entity Application
   2. B. NAIC Uniform Individual Application
   3. C. Uniform Consent to Service Application
   4. D. NAIC Uniform Appointment Application

   Answer: B

   Explanation: The statute requires application on the "National Association of Insurance Commissioners (NAIC) Uniform Individual Application." That is the prescribed form for an individual.

   Reference: Minnesota Statutes 2025, Chapter 72B — section 72B.041, subdivision 1(a)

8. 8A guest is injured at an insured's home and alleges the insured was negligent. Which homeowners coverage addresses the insured's potential legal obligation to that guest?

   1. A. Dwelling coverage.
   2. B. Other structures coverage.
   3. C. Personal liability coverage.
   4. D. Loss of use coverage.

   Answer: C

   Explanation: "The liability section includes the amount of coverage you have for personal liability" The guest's alleged injury is a third-party liability exposure. The other coverages address first-party property or living expenses.

   Reference: NAIC — Understanding Your Homeowners or Renter's Policy — What to Look for on a Declarations or Information Page — Liability Coverages

9. 9A homeowners insuring agreement broadly describes covered property, but an attached endorsement changes that grant for a particular item. Which text controls the item's coverage as changed?

   1. A. The declarations and the insurer's premium notice.
   2. B. The exclusions and the loss inventory alone.
   3. C. The conditions and the claim report alone.
   4. D. The insuring agreement and the attached endorsement.

   Answer: D

   Explanation: "can be modified by endorsements later in the policy" The grant is not read in isolation: an endorsement can modify it. The other choices ignore or replace binding policy language.

   Reference: NAIC — Understanding Your Homeowners or Renter's Policy — The Parts of Your Policy — insuring agreement

10. 10Under Minnesota's non-health claims rule, a claim is not settled promptly after notice. By when must the insurer acknowledge the notification of claim?

    1. A. Within ten business days
    2. B. Within five business days
    3. C. Within 15 working days
    4. D. Within 30 business days

    Answer: A

    Explanation: Failing to acknowledge a non-health claim "within ten business days" is an unfair settlement practice unless the claim is settled within that period.

    Reference: Minnesota Statutes 2025, Section 72A.201 — section 72A.201, subdivision 4(1)