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Free Washington Insurance Adjuster Practice Questions

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Sample Practice Questions

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

  1. 1A Washington adjuster applicant has a prior felony conviction involving breach of trust. Before working in insurance, what federal-law condition must the applicant satisfy?

    1. A. Obtain written consent from the insurance regulator in the state of residence.
    2. B. Complete the adjuster examination required for a state adjuster license.
    3. C. Submit fingerprints required for a resident state license application.
    4. D. Secure an adjuster license authorizing insurance claim transactions.

    Answer: A

    Explanation: "It's a crime to work in the insurance industry without one." The conviction triggers a written-consent requirement before insurance work.

    Reference: Office of the Insurance Commissioner — Criminal offense licensing guidance — Felony convictions involving dishonesty or breach of trust

  2. 2A Washington adjuster asks which official is charged with executing duties and enforcing the state Insurance Code. Who is it?

    1. A. Insurance Commissioner
    2. B. Attorney General
    3. C. Director of Financial Institutions
    4. D. Secretary of State

    Answer: A

    Explanation: RCW 48.02.060(2) says the commissioner "must execute his or her duties and must enforce the provisions of this code." Therefore the Insurance Commissioner is responsible.

    Reference: Rcw 48 02 — RCW 48.02.060(2)

  3. 3A business pays a premium so an insurer will bear specified financial consequences of a future fire. Which risk-handling method does that describe?

    1. A. Avoidance, by eliminating the possibility of a fire at the premises.
    2. B. Retention, by keeping the loss obligation entirely with the business.
    3. C. Transfer, by placing specified loss obligations with an insurer.
    4. D. Reduction, by physically lowering the chance of a fire occurring.

    Answer: C

    Explanation: "an insurance contract represents a bundle of services provided to insureds that includes but is not limited to risk transfer." Paying a premium for the insurer to bear specified losses is transfer; avoidance, retention and reduction describe different risk-handling actions.

    Reference: NAIC — A Regulator's Introduction to the Insurance Industry — Insurance Contracts and Risk Transfer

  4. 4A landlord's dwelling policy covers a rented house, while the tenant has a separate renters policy. Fire damages the tenant's own furniture. Which policy should the adjuster examine for the furniture claim?

    1. A. The landlord's dwelling policy for damage to the structure.
    2. B. The landlord's fair-rental-value protection for lost rent.
    3. C. The tenant's renters policy for personal belongings.
    4. D. The landlord's liability coverage for third-party injury.

    Answer: C

    Explanation: "Tenant possessions are not covered in landlord insurance policies." Because the furniture belongs to the tenant, the tenant's separate renters coverage is the relevant policy to examine.

    Reference: NAIC — Leaving Home: Insurance Considerations for a Move — Landlord insurance policy — rental property paragraph

  5. 5A homeowner's detached garage is damaged by a covered windstorm. Which property coverage category normally addresses this building?

    1. A. Coverage A for the insured dwelling and attached structures.
    2. B. Coverage B for permanent separate structures on the premises.
    3. C. Coverage C for household belongings and personal contents.
    4. D. Coverage D for extra living expenses during home repairs.

    Answer: B

    Explanation: "This is coverage to repair or replace other permanent, separate, unattached structures on your property." A detached garage is a separate structure, not the dwelling or contents.

    Reference: Washington OIC — Learn how home insurance works — What a typical homeowner policy covers — Coverage for other structures

  6. 6A small business wants one package that commonly includes property protection, business interruption, and general liability. Which policy type matches that combination?

    1. A. Businessowner's policy
    2. B. Commercial general liability policy
    3. C. Commercial property policy
    4. D. Commercial automobile policy

    Answer: A

    Explanation: "A business owner’s policy - sometimes called a BOP - is a "package" product that typically includes property, business interruption/continuation and liability insurance." The BOP is the package described; standalone lines do not by themselves combine all three.

    Reference: NAIC — Small Business Insurance — What's a business owners policy?

  7. 7A driver strikes a guardrail and damages her insured car. Which first-party auto coverage is designed for this loss?

    1. A. Collision coverage
    2. B. Comprehensive coverage
    3. C. Bodily-injury liability coverage
    4. D. Uninsured-motorist coverage

    Answer: A

    Explanation: "This pays for damage to your car if you collide with another car or object or your car flips over." Impact with the guardrail is collision damage to the insured vehicle.

    Reference: Washington OIC — Learn how auto insurance works — Standard types of auto coverage — Collision

  8. 8A customer trips at a store, breaks an arm, and brings a liability claim against the business. Which CGL harm category does this claim present?

    1. A. Personal injury
    2. B. Property damage
    3. C. Bodily injury
    4. D. Advertising injury

    Answer: C

    Explanation: "Liability insurance, also called commercial general liability (CGL), covers four categories of events for which you could be held responsible: Bodily injury Damage to others' property" The customer's broken arm is bodily injury to a third party.

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

  9. 9A personal umbrella policy is written above a specified underlying liability amount. When does that layer become relevant?

    1. A. Before any loss is charged against the underlying liability coverage.
    2. B. After the specified underlying amount is reached for covered liability.
    3. C. Only when damage is to the insured's own home or automobile.
    4. D. Only when no primary liability insurance exists for the insured.

    Answer: B

    Explanation: "Umbrella and Excess (Personal) - non-business liability protection for individuals above a specific amount set forth in a basic policy issued by the primary insurer" The umbrella layer is above the specified underlying amount.

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

  10. 10In a Washington policy appraisal, which role resolves issues that the insurer's and insured's appraisers cannot agree upon?

    1. A. Insurance producer
    2. B. Public adjuster
    3. C. Appraisal umpire
    4. D. Surplus line broker

    Answer: C

    Explanation: RCW 48.17.010(1)(d)(ii) describes the umpire as the person "who is charged with resolving issues that the appraisers are unable to agree upon during the course of an appraisal." The correct role is the appraisal umpire.

    Reference: Rcw 48 17 — RCW 48.17.010(1)(d)(ii)

Topics in this practice bank

These topics describe the available practice for Washington Insurance Adjuster. Review the examination outline and its sources for scope and allocation details.

  • Federal Laws and Regulations (5 items)
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose
    • 18 United States Code (USC) Sections 1033 and 1034 - Purpose — Prohibited Persons in Insurance, waiver required
    • National Flood Insurance Program (NFIP)
    • Terrorism Risk Insurance Act
    • Motor Carrier Act (MCS-90 and Others)
    • Privacy (Gramm-Leach-Bliley)
  • Licensing and Regulation (20 items)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Commissioner
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Commissioner — Broad powers (RCW: 48.01.010, .020, .030, 040, .053, .060, .070, .080, .150, .190, .250; 48.02.010, .020, .060, .080, .100, .160)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Commissioner — Examination of records (Ref: 48.03.010-.030; WAC 284-03-015)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Commissioner — Notice of hearing (RCW: 48.04.010-.140)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Persons required to be licensed (RCW: 48.17.060, 48.17.460, 48.17.110)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Persons required to be licensed (RCW: 48.17.060, 48.17.460, 48.17.110) — Adjuster (RCW 48.17.010; 48.17.380,48.17.390; 48.17.410, .430, 48.17.470, WAC 284-17-06, 284-17- 123, 284-17-125, 284-17-130, .423)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Persons required to be licensed (RCW: 48.17.060, 48.17.460, 48.17.110) — Exemptions (RCW: 48.17..110)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Penalties for noncompliance (RCW 48.17.125)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Penalties for noncompliance (RCW 48.17.125) — Refusal/nonrenewal (RCW: 48.17.530, .540)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Penalties for noncompliance (RCW 48.17.125) — Suspension/revocation/probation (Ref: 48.17.530, .540, .550)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Penalties for noncompliance (RCW 48.17.125) — Fines (RCW 48.17.560)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license — Renewal (WAC 284-17-423; 48.14.010(1)(i))
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license — Continuing education -exemption (WAC 284-17-222)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license — Late renewal/reinstatement (WAC 284-17-490; RCW 48.17.170)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license — Reporting of actions (Ref: 48.17.597)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Licensing — Maintenance and duration of license — Licensing Process (Ref: WAC 284-17-, .005, .065)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Purpose
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Definitions
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Definitions — First Party Claimant
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Definitions — Third Party Claimant (WAC 284-30-320)
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Definitions — Insurer
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Unfair Claims Settlement Practices
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Unfair Claims Settlement Practices — Misrepresentation
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Unfair Claims Settlement Practices — Failure to Acknowledge Pertinent Communications
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Unfair Claims Settlement Practices — Standards for Prompt Investigations of Claims
    • Washington Laws, Rules and Regulations Common to Adjuster Insurance — Trade Practices — Unfair Claims Settlement Practices — Standards for Prompt, Fair and Equitable Settlements
  • General Insurance Concepts (10 items)
    • Risk
    • Risk — Methods of Handling Risk (e.g., Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk — Elements of Insurable Risks
    • Risk — Definitions (e.g., Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers — Mutual, Stock
    • Classifications of Insurers — Admitted, Non-Admitted
    • Classifications of Insurers — Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract — Consideration
    • Elements of a Contract — Competent Parties
    • Elements of a Contract — Legal Purpose
    • Elements of a Contract — Offer
    • Elements of a Contract — Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers — Express
    • Authority and Powers of Producers — Implied
    • Authority and Powers of Producers — Apparent
    • Authority and Powers of Producers — The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts — Reasonable Expectations
    • Legal Interpretations Affecting Contracts — Indemnity
    • Legal Interpretations Affecting Contracts — Good Faith
    • Legal Interpretations Affecting Contracts — Fraud
    • Legal Interpretations Affecting Contracts — Warranties, Representations, Misrepresentations, and Concealment
  • Property and Casualty Insurance Basics (20 items)
    • Insurable Interest
    • Liability
    • Liability — Absolute
    • Liability — Strict
    • Liability — Vicarious
    • Underwriting
    • Underwriting — Purpose
    • Underwriting — Process
    • Underwriting — Results
    • Rate Development
    • Rate Development — Types
    • Rate Development — Components
    • Rate Development — Basis
    • Types of Hazards
    • Types of Perils
    • Types of Loss
    • Types of Loss — Direct
    • Types of Loss — Indirect
    • Loss Valuation
    • Loss Valuation — Actual Cash Value
    • Loss Valuation — Replacement Cost
    • Loss Valuation — Market Value
    • Loss Valuation — Agreed Value
    • Loss Valuation — Valued Policy
    • Loss Valuation — Functional Replacement Cost
    • Basic Types of Construction
    • Negligence
    • Negligence — Torts
    • Negligence — Elements of a Negligent Act
    • Negligence — Defense Against Negligence
    • Accident versus Occurrence
    • Policy Structure
    • Policy Structure — Declarations
    • Policy Structure — Definitions
    • Policy Structure — Insuring Agreement
    • Policy Structure — Supplementary Coverage
    • Policy Structure — Conditions
    • Policy Structure — Exclusions
    • Policy Structure — Endorsements
    • Policy Clauses
    • Policy Clauses — Insureds
    • Policy Clauses — Policy Period
    • Policy Clauses — Policy Territory
    • Policy Clauses — Cancellation and Non-Renewal
    • Policy Clauses — Deductibles
    • Policy Clauses — Other Insurance
    • Policy Clauses — Other Insurance — Nonconcurrency
    • Policy Clauses — Other Insurance — Primary and Excess
    • Policy Clauses — Other Insurance — Pro Rata
    • Policy Clauses — Other Insurance — Contribution by Equal Shares
    • Limits of Liability
    • Limits of Liability — Per Accident
    • Limits of Liability — Per Occurrence
    • Limits of Liability — Per Person
    • Limits of Liability — Aggregate
    • Limits of Liability — Split Limits
    • Limits of Liability — Combined Single Limit
    • Coinsurance
    • Coinsurance — Purpose
    • Coinsurance — Definition
    • Coinsurance — Calculation
    • Coinsurance — Penalties
    • Coinsurance — Total versus Partial Loss
    • Specific, Scheduled, and Blanket Insurance
    • Vacant versus Unoccupied
    • Named Insured Provisions
    • Named Insured Provisions — First Named Insured versus Other Insureds
    • Named Insured Provisions — Duties After Loss
    • Named Insured Provisions — Assignment
    • Named Insured Provisions — Waiver of Rights
    • Insurer Provisions
    • Insurer Provisions — Liberalization
    • Insurer Provisions — Subrogation
    • Insurer Provisions — Claim Settlement Options
    • Insurer Provisions — Duty to Defend
    • Third-Party Provisions
    • Third-Party Provisions — Standard Mortgage Clause
    • Third-Party Provisions — Loss Payable Clause
    • Third-Party Provisions — No Benefit to the Bailee
  • Dwelling Policy Concepts (4 items)
    • Purpose and Eligibility
    • Perils Insured Against
    • Perils Insured Against — Basic
    • Perils Insured Against — Broad
    • Perils Insured Against — Special
    • Property Coverages
    • Property Coverages — Coverage A - Dwelling
    • Property Coverages — Coverage B - Other Structures
    • Property Coverages — Coverage C - Personal Property
    • Property Coverages — Coverage D - Fair Rental Value
    • Property Coverages — Coverage E - Additional Living Expenses
    • Property Coverages — Other Coverages
    • Dwelling Property Conditions
    • Dwelling Property Exclusions
    • Dwelling Property Endorsements
    • Personal Liability Supplement
    • Personal Liability Supplement — Coverage L - Personal Liability
    • Personal Liability Supplement — Coverage M - Medical Payments to Others
  • Homeowners Policy Concepts (9 items)
    • Definitions
    • Eligibility and Purpose
    • Homeowners Policy Coverage Forms
    • Homeowners Policy Coverage Forms — Broad (HO-2)
    • Homeowners Policy Coverage Forms — Special (HO-3)
    • Homeowners Policy Coverage Forms — Contents Broad (HO-4)
    • Homeowners Policy Coverage Forms — Comprehensive (HO-5)
    • Homeowners Policy Coverage Forms — Unit-Owners (HO-6)
    • Homeowners Policy Coverage Forms — Modified Coverages (HO-8)
    • Section I - Property Coverages
    • Section I - Property Coverages — Coverage A - Dwelling
    • Section I - Property Coverages — Coverage B - Other Structures
    • Section I - Property Coverages — Coverage C - Personal Property
    • Section I - Property Coverages — Coverage D - Loss of Use
    • Section I - Property Coverages — Additional Coverages
    • Section II - Liability Coverages
    • Section II - Liability Coverages — Coverage E - Personal Liability
    • Section II - Liability Coverages — Coverage F - Medical Payments to Others
    • Section II - Liability Coverages — Additional Coverages
    • Homeowners Policy Exclusions
    • Homeowners Policy Exclusions — Section I-Property Covered Exclusions
    • Homeowners Policy Exclusions — Section II - Liability Covered Exclusions
    • Homeowners Policy Conditions
    • Homeowners Policy Endorsements
    • Homeowners Policy Endorsements — Ordinance or Law
    • Homeowners Policy Endorsements — Business Pursuits
    • Homeowners Policy Endorsements — Earthquake
    • Homeowners Policy Endorsements — Home Day Care
    • Homeowners Policy Endorsements — Personal Injury
    • Homeowners Policy Endorsements — Personal Property Replacement Cost
    • Homeowners Policy Endorsements — Watercraft
    • Scheduled Personal Property/Personal Articles Floater
  • Commercial Property Policies (3 items)
    • Commercial Package Policy
    • Commercial Package Policy — Purpose
    • Commercial Package Policy — Definition
    • Commercial Package Policy — Coverage Parts
    • Commercial Package Policy — Coverage Extensions
    • Commercial Policy Components
    • Commercial Policy Components — Declarations
    • Commercial Policy Components — Conditions
    • Commercial Policy Components — Insuring Agreements
    • Commercial Policy Components — Exclusions
    • Commercial Property Forms
    • Commercial Property Forms — Coverage Forms for Building and Business Personal Property
    • Commercial Property Forms — Builders Risk
    • Commercial Property Forms — Business Income
    • Commercial Property Forms — Extra Expense
    • Commercial Property Forms — Legal Liability
    • Commercial Property Forms — Cause of Loss Forms
    • Commercial Property Forms — Commercial Crime
    • Commercial Property Endorsements
    • Commercial Property Endorsements — Ordinance or Law
    • Commercial Property Endorsements — Peak Season Limit of Insurance
    • Commercial Property Endorsements — Spoilage
    • Commercial Property Endorsements — Value Reporting Form
    • Commercial Property Endorsements — Earthquake
    • Commercial Property Endorsements — Equipment Breakdown Coverages
    • Commercial Inland Marine - Purpose
    • Ocean Marine (Distinction Between Inland and Ocean)
    • Farm Property
    • Farm Property — Definitions
    • Farm Property — Conditions and Exclusions
    • Farm Property — Coverages
  • Personal Automobile Policy (9 items)
    • Definitions
    • Personal Injury Protection Definitions
    • General Provisions
    • Duties After an Accident or Loss
    • Endorsements
    • Endorsements — Towing and Labor Costs
    • Endorsements — Extended Non-Owned Coverage - Vehicles Furnished or Available for Regular Use
    • Endorsements — Joint Ownership Coverage
    • Endorsements — Rental Vehicle Coverage
    • Liability Coverage
    • Liability Coverage — Bodily Injury and Property Damage
    • Liability Coverage — Supplementary Payments
    • Liability Coverage — Exclusions
    • Medical Payments Coverage
    • Uninsured and Underinsured Motorist Coverage
    • Uninsured and Underinsured Motorist Coverage — Definitions
    • Uninsured and Underinsured Motorist Coverage — Bodily Injury
    • Uninsured and Underinsured Motorist Coverage — UM and UIM Rejection
    • Coverage for Damage to your Automobile
    • Coverage for Damage to your Automobile — Collision
    • Coverage for Damage to your Automobile — Other than Collision (Comprehensive)
    • Coverage for Damage to your Automobile — Deductibles
    • Coverage for Damage to your Automobile — Exclusions
  • Commercial Automobile Policy (3 items)
    • Commercial Automobile Coverage Forms
    • Covered Automobiles
    • Covered Automobiles — Hired Automobiles
    • Covered Automobiles — Non-owned Automobiles
    • Definitions
    • Conditions
    • Selected Endorsements
    • Selected Endorsements — Lessor - Additional Insured and Loss Payee
    • Selected Endorsements — Mobile Equipment
    • Selected Endorsements — Property Protection Coverage
    • Selected Endorsements — Broad Form Products
    • Selected Endorsements — Employees as Insureds
    • Exclusions
    • Physical Damage
  • Commercial General Liability (3 items)
    • Commercial Policy Components
    • Commercial Policy Components — Declarations
    • Commercial Policy Components — Conditions
    • Commercial Policy Components — Interline Endorsements
    • Commercial General Liability Coverages
    • Commercial General Liability Coverages — Bodily Injury and Property Damage
    • Commercial General Liability Coverages — Personal and Advertising Injury
    • Commercial General Liability Coverages — Medical Payments
    • Commercial General Liability Coverages — Conditions
    • Commercial General Liability Coverages — Definitions
    • Commercial General Liability Coverages — Exclusions
    • Occurrence Policy versus Claims-Made Policy
    • Commercial General Liability Exposures
    • Commercial General Liability Exposures — Premises and Operations
    • Commercial General Liability Exposures — Products and Completed Operations
    • Commercial General Liability Exposures — Contractual Liability
  • Other Types of Insurance Policies (1 item)
    • Personal Umbrella, Commercial Umbrella, and Excess Policies
    • Personal Umbrella, Commercial Umbrella, and Excess Policies — Underlying Limits
    • Personal Umbrella, Commercial Umbrella, and Excess Policies — Self-Insured Retention
    • Mobile Home Policy (Insuring Agreement)
    • Earthquake Insurance (Insuring Agreement)
    • Earthquake Insurance (Insuring Agreement) — Deductible
  • Adjustment Process (13 items)
    • Claim Notification Process
    • Claim Notification Process — Date of Loss
    • Claim Notification Process — Location
    • Claim Notification Process — Parties Involved
    • Claim Notification Process — Type of Loss (e.g. Liability, Property)
    • Investigation and Evaluation of Loss/Claim Information
    • Investigation and Evaluation of Loss/Claim Information — Determination of Applicable Coverage
    • Investigation and Evaluation of Loss/Claim Information — Inquiry into Relevant Information
    • Investigation and Evaluation of Loss/Claim Information — Purpose of Loss Reserves
    • Remedies for Disputes
    • Remedies for Disputes — Appraisal
    • Remedies for Disputes — Mediation (Binding and Unbinding)
    • Remedies for Disputes — Arbitration (Binding and Unbinding)
    • Remedies for Disputes — Litigation
    • Finalization of Claim
    • Finalization of Claim — Denial
    • Finalization of Claim — Settlement
    • Finalization of Claim — Closing Claim

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