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The AZAPC exam has 150 questions and runs 2 hours 30 minutes.
These 10 free AZAPC questions are organized by exam domain, so you can see how each part of the Arizona Adjuster (Property & Casualty) Exam blueprint is tested. Reveal the answer and explanation under each question.
Upon receiving a properly executed proof of loss, an Arizona insurer determines that a reasonable investigation cannot be completed within 15 working days. What must the insurer do next?
Correct answer: B - Notify the claimant within 15 working days, explain why more time is needed, and send status letters every 45 days while the investigation remains incomplete
To support an Arizona adjuster examination waiver, a current claims-certificate program provides 40 hours of preexamination coursework, a proctored competency examination, and 18 hours of continuing education every two years. How should the application be treated?
Correct answer: A - The waiver is unavailable because Arizona requires at least 24 CE hours every two years
Suppose a standardized property policy contains a genuine, unresolved ambiguity in an exclusion drafted by the insurer. Which contract principle most directly controls the interpretation?
Correct answer: D - Adhesion, so the genuine ambiguity is ordinarily construed against the insurer as drafter
Total compensatory damages are $240,000, the claimant is 25% at fault under Arizona pure comparative fault, and the insured's applicable liability limit is $150,000. With no other adjustments, what is the insurer's maximum indemnity exposure?
Correct answer: B - $150,000
The replacement value of a commercial building is $800,000. Its policy has an 80% coinsurance requirement, a $480,000 limit, and a $5,000 deductible. Following a $160,000 covered loss, what amount is payable before salvage or other insurance?
Correct answer: A - $115,000
The complaint in a liability suit alleges bodily injury during the policy period from conduct potentially within coverage. Information developed outside the complaint may support an exclusion, but that issue is not yet established. Which initial claim-handling decision is most defensible?
Correct answer: C - Defend under a timely, specific reservation while investigating the possible exclusion
Following a severe windstorm, part of a store roof is open to continuing rain. The fire department has found no active fire, the affected electrical area has been de-energized, and inspection cannot occur until the next morning. What instruction best protects both the property and the claim?
Correct answer: D - Use reasonable temporary protection, document the conditions and expenses, and retain damaged materials when feasible
During a coverage investigation, the insurer and insured sign a document allowing the investigation and defense to continue without either party surrendering the rights stated in the document. What instrument did they create?
Correct answer: B - Nonwaiver agreement
After the first-field report, an engineer changes the likely cause of loss, a revised estimate materially increases the reserve, and a coverage issue remains unresolved. The claim is not ready for disposition. Which report should the adjuster issue now?
Correct answer: A - An interim or status report updating the cause, reserve, open issues, and next actions
Replacement-cost damage totals $50,000, actual cash value is $35,000, and the deductible is $2,000. After an initial $33,000 payment, the insured completes qualifying repairs for $44,000. The policy caps total recovery at the least of the applicable limit, replacement cost, or amount actually and necessarily spent, less the deductible. How much additional payment is due?
Correct answer: C - $9,000
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