10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NM-ADJ exam has 50 questions and runs 1 hour.
These 10 free NM-ADJ questions are organized by exam domain, so you can see how each part of the New Mexico Independent and Staff Adjuster P/C and W/C Insurance Exam blueprint is tested. Reveal the answer and explanation under each question.
A covered property loss has a $30,000 replacement cost, $7,500 of allowed depreciation, a $1,000 deductible, no coinsurance penalty, and adequate limits. After receiving the actual-cash-value payment, the insured completes covered replacement for $29,000. What is the insurer's total payment after the replacement-cost claim is completed?
Correct answer: A - $28,000
An insured shows that covered property sustained accidental direct physical loss during the policy period under an open-peril form. The insurer contends that an exclusion applies. Which allocation of proof is most accurate?
Correct answer: C - The insured shows direct physical loss; the insurer proves the exclusion
An adjuster finds objective inconsistencies suggesting that a fire may have been intentionally set, but the cause and the insured's involvement remain unresolved. What is the best coverage-handling step at this stage?
Correct answer: D - Continue a fair investigation under a specific reservation of rights
After a severe storm, an insured reports an odor of gas, a visibly leaning exterior wall, and no habitable rooms. The insured asks the adjuster to enter immediately and photograph the interior. What should the adjuster prioritize first?
Correct answer: C - Keep everyone out, call emergency services, then arrange qualified mitigation
A claimant accepts a final settlement for vehicle property damage, but treatment for bodily injury from the same accident is ongoing and no bodily-injury settlement has been reached. Which document best matches the parties' agreement?
Correct answer: A - A property-damage-only release that expressly reserves bodily injury
Under an unendorsed DP-3, an accidental paint spill damages the attached hardwood floor and an insured sofa. No exclusion applies, and paint spill is not a listed personal-property peril. Which coverage result is correct?
Correct answer: A - Coverage A may cover the floor; Coverage C does not cover the sofa
An unendorsed standard HO-3 has a $100,000 Coverage C limit. A $5,000 watch is destroyed in a covered house fire. Ignoring the deductible and valuation method, how does the standard $1,500 special limit for jewelry, watches, and furs affect the claim?
Correct answer: B - It does not cap the fire loss; the ordinary Coverage C limit applies
An insured swerves to avoid a deer, misses the animal, and strikes a guardrail. Under personal auto physical-damage coverage, how is the loss classified?
Correct answer: B - Collision, because the auto struck another object
A salesperson uses her own car on a company sales call and negligently injures a pedestrian. The employer neither owns, hires, rents, nor borrows the car. Which Business Auto covered-auto symbol most directly addresses the employer's liability exposure?
Correct answer: A - Symbol 9 - nonowned autos
A claims-made CGL policy runs from January 1 through December 31, 2026, with a retroactive date of January 1, 2024. A customer was injured by the insured's completed work in December 2023, and the first claim is made and reported in May 2026. No endorsement changes the trigger. Which conclusion is correct?
Correct answer: D - Not covered under this form because the injury occurred before the retroactive date
The NM-ADJ exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more NM-ADJ questions with explanations.
Continue in the free practice test →
View plans