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Nevada “Independent Adjuster” License Practice Exam Questions and Correct Answers (Verified Answers) Plus Rationales 2025
Typology: Exams
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C. 4 years D. Lifetime
D. Notify the insured
10.What does ACV stand for? A. Actual Covered Value B. Actual Cash Value C. Additional Claim Value D. Adjusted Cash Valuation
11.Depreciation is best defined as: A. Increase in property value B. Cost of labor C. Reduction in property value over time D. Market inflation
12.What is a deductible? A. The portion of the loss the insured must pay B. A bonus for filing a claim C. The total value of the policy D. The premium paid annually
13.What is the standard of proof in civil insurance claim cases? A. Beyond a reasonable doubt B. Preponderance of the evidence C. Absolute certainty D. Clear and convincing
14.Who determines the amount of loss in a disputed claim when both parties cannot agree? A. The court B. Appraisers and umpire through appraisal process C. The adjuster D. The insurance commissioner
15.What type of policy pays based on the cost to replace without depreciation? A. ACV policy B. Replacement cost policy C. Indemnity policy D. Umbrella policy
19.What is the role of an umpire in the appraisal process? A. Represent the insured B. Resolve disputes between appraisers C. Issue policy endorsements D. Act as a mediator for settlement offers
20.A written statement made under oath is known as: A. Notice of loss B. Sworn proof of loss C. Waiver D. Declaration
21.What is insurable interest? A. When the insured causes the damage B. When the insured benefits from the preservation of the property C. When the insured has no stake in the property D. When the insurer profits
22.Which type of adjuster works for the public and not for the insurer?
A. Independent adjuster B. Staff adjuster C. Public adjuster D. General adjuster
23.What is salvage? A. Property not covered by insurance B. Property that can be recovered and sold after a loss C. Unclaimed property D. A denied claim
24.What is proximate cause? A. The last event in the loss B. The direct cause of loss without which the damage would not have occurred C. A contributing factor D. The insurer's decision
25.What type of coverage pays for damages the insured is legally liable for? A. Property coverage B. Liability coverage
D. The deductible is waived
29.Who is the first party in an insurance contract? A. The third party B. The insured (policyholder) C. The agent D. The adjuster
30.In liability claims, who is the third party? A. The insurer B. The claimant who suffered damage C. The underwriter D. The adjuster
31.Which of the following is NOT a duty of the insured after a loss? A. Protect the property from further damage B. Notify the insurer promptly C. Repair the damage before inspection D. Cooperate with the investigation
32.Which best defines a waiver? A. Fraudulent act B. Intentional relinquishment of a known right C. Temporary policy D. Contract amendment
33.What is a non-waiver agreement? A. Policy endorsement B. An agreement signed to reserve rights for both parties C. A denial letter D. Replacement cost coverage
34.What is the purpose of policy exclusions? A. To increase coverage B. To define what is not covered by the policy C. To clarify premiums D. To list deductibles
35.What is moral hazard?
D. Insurance premiums
39.What type of adjuster is employed directly by an insurance company? A. Public adjuster B. Staff adjuster C. Independent adjuster D. Freelance adjuster
40.The financial responsibility of the insured in a liability claim is called: A. Insurable interest B. Legal liability C. Coinsurance D. Deductible
41.What is a proof of loss used for? A. Issuing the policy B. Documenting and validating the claim C. Requesting premium refund D. Scheduling repairs
42.Which party usually initiates the appraisal clause? A. The insurer only B. Either the insurer or insured C. The adjuster D. The agent
43.What is the term for ending an insurance policy before its expiration? A. Endorsement B. Cancellation C. Lapse D. Subrogation
44.Which form of property valuation provides the least payout? A. Actual cash value (ACV) B. Replacement cost C. Stated value D. Agreed value
A. Nothing B. They may face license revocation and legal penalties C. The insurer is fined D. The policy is voided
49.When must a licensee report a criminal conviction to the Division? A. Only for felonies B. Only when renewing the license C. Within 30 days of the conviction D. Within a year
50.What is the penalty for acting as an adjuster without a license in Nevada? A. Warning letter B. Fine and/or imprisonment C. Temporary license issued D. Additional training required
51. What is a binder in insurance? A. A canceled policy B. A temporary agreement providing coverage before the policy is issued C. A premium notice
D. A formal rejection of a claim
52. What is an endorsement in an insurance policy? A. Cancellation form B. Deductible waiver C. A written amendment to the policy D. Claim summary
53. What is the purpose of the declarations page in a policy? A. Define covered perils B. Explain exclusions C. Summarize the key policy details D. Describe arbitration process
54. What does “aggregate limit” mean in liability insurance? A. Deductible B. Per occurrence limit C. Maximum the insurer will pay during the policy period D. Value of the property
D. The Department of Insurance
58. A claim file must be maintained for how long in Nevada? A. 1 year B. 5 years C. 3 years from date of claim closure D. Indefinitely
59. A policy’s insuring agreement outlines: A. The exclusions B. The promises and coverage provided C. The conditions D. The claim filing process
60. Which of the following is a common liability exclusion? A. Bodily injury B. Property damage to others C. Intentional acts D. Negligence
61. What is a non-admitted insurer? A. Insurer licensed in all 50 states B. Insurer not licensed in the state but allowed to sell surplus lines C. Insurer that offers life policies D. Public adjusting company
62. In Nevada, an adjuster must maintain ethical conduct to avoid: A. Customer complaints B. High loss ratios C. License suspension or revocation D. Low ratings
63. When must a licensee notify the Division of Insurance of a name change? A. At renewal B. Within 60 days C. Every December D. Within 30 days
64. What is required before an adjuster license is issued in Nevada? A. Life insurance experience B. Passing the state exam and background check C. College degree D. Sponsored by an agency