Adjuster Exam Overview

1/29/2026

The final step between you and a career as a licensed insurance claims adjuster is the state licensing exam. This comprehensive test is designed to ensure you have the foundational knowledge and ethical grounding necessary to handle claims professionally and competently. While the thought of a major exam can be intimidating, understanding its structure, content, and the best ways to prepare can transform your anxiety into confidence.

This guide provides a detailed overview of the insurance adjuster exam. We will break down what to expect on test day, from the format and length to the key topics covered. More importantly, we'll share proven strategies and point you toward essential resources, likeadjuster pre-licensing courses and exam prep materials, that will help you walk into the exam room fully prepared to succeed.

What is the Insurance Adjuster Exam?

The insurance adjuster exam is a standardized test that aspiring adjusters must pass to obtain their license in most states. It is administered by each state’s Department of Insurance or a third-party testing provider on their behalf. The purpose of the exam is to verify that a candidate has a thorough understanding of insurance principles, policy provisions, and the state-specific laws and regulations that govern the claims process.

Passing this exam is a non-negotiable part of theadjuster licensing process in states that require it. It serves as a critical consumer protection measure, ensuring that individuals who manage claims are qualified, knowledgeable, and ethical.

Exam Structure and Format

While the specifics can vary by state, most adjuster licensing exams follow a similar structure.

Format: The test is almost universally a multiple-choice question exam. You will be presented with a question and several possible answers, and you must select the best one.
Number of Questions: The number of questions typically ranges from 100 to 150. These are divided between general insurance knowledge and state-specific rules.
Time Limit: You will have a set amount of time to complete the exam, usually between two and three hours. This requires not only knowledge but also good time management skills.
Passing Score: A passing score is generally 70% or higher. This means you must answer a significant majority of the questions correctly.

The exam is usually computer-based and taken at a designated testing center. Upon completion, you will often receive your score immediately, letting you know right away if you have passed.

Key Topics Covered on the Adjuster Exam

The adjuster exam is comprehensive, covering a broad range of subjects. Yourinsurance adjuster test will be broken into two main parts: a national or general section and a state-specific section.

General Section: Core Insurance Principles

This portion of the exam covers concepts that are universal across the insurance industry. Mastery of these topics is essential, as they form the bedrock of your knowledge as an adjuster.

1. Insurance Terms and Concepts

You will need a strong grasp of fundamental insurance terminology. This includes understanding definitions for terms like:

Indemnity
Insurable Interest
Risk and Peril
Actual Cash Value (ACV) vs. Replacement Cost
Deductibles and Premiums
Subrogation

2. Policy Structure and Provisions

This section dives into the anatomy of an insurance policy. You'll need to know the different parts of a policy and what they mean:

Declarations Page: Contains the basic information about the policyholder, property, and coverage.
Insuring Agreement: Outlines the promises the insurer makes to the insured.
Conditions: The rules and duties of both the insurer and the insured.
Exclusions: The perils and properties that are not covered by the policy.
Endorsements: Add-ons that modify the standard policy.

3. Types of Insurance Policies

The exam will test your knowledge of different lines of authority. For an All-Lines adjuster exam, you will need to understand various policy types.

Property Insurance: Covers policies for homes, commercial buildings, and personal property (e.g., Homeowners HO-3, Commercial Property policies).
Casualty (Liability) Insurance: Covers policies related to legal liability for bodily injury or property damage to others (e.g., Auto Insurance, Commercial General Liability).
Workers' Compensation: Understanding the basics ofworkers' compensation coverage and how it protects employees.
Other Lines: Depending on the license, this could include ocean marine, inland marine, surety bonds, and more.

4. Adjuster Duties and Responsibilities

The exam will include questions about the role of an adjuster. This involves understanding an adjuster’s responsibilities in the claims process, from the first notice of loss through investigation, evaluation, and settlement.

State-Specific Section: Laws and Regulations

This is often the most challenging part of the exam for many candidates. This section covers the unique laws, rules, and regulations for the state in which you are seeking your license. It is critical to use study materials that are tailored to your specific state.

Topics in this section include:

State Licensing Requirements: Rules for obtaining and maintaining your adjuster license, including continuing education.
Unfair Claims Practices Act: Laws that define and prohibit unfair or deceptive practices in claims handling.
Time-Sensitive Deadlines: State-mandated timelines for acknowledging claims, beginning investigations, and making payments.
Policy Cancellation and Non-Renewal Rules: Regulations governing how and when an insurer can terminate a policy.
State-Specific Policy Provisions: Any unique endorsements or rules that apply to policies written in that state.

How to Prepare for the Adjuster Exam

Success on the adjuster exam is directly proportional to the quality of your preparation. Simply reading a textbook is not enough. A strategic approach that combines structured learning with rigorous practice is the key to passing on your first try.

Step 1: Enroll in a High-Quality Exam Prep Course

This is the single most important step you can take. A dedicatedadjuster exam preparation course is an investment in your career. These programs are designed by industry experts who understand the exam inside and out. They provide a structured curriculum that covers all the necessary topics in a logical, easy-to-understand manner.

When choosing a course, look for one that offers:

Comprehensive Study Materials: Textbooks, online modules, and video lessons that cover both general and state-specific content.
Practice Exams: A large bank of practice questions and the ability to create simulated exams is crucial. This helps you gauge your progress and get comfortable with the test format.
Instructor Support: The ability to ask questions of an instructor can be invaluable when you encounter difficult concepts.
State-Specific Content: Ensure the course is tailored to the state exam you will be taking.

Step 2: Create a Dedicated Study Plan

Once you have your course materials, create a study schedule. The material is too dense to cram in a few days. Plan to study for at least 40-50 hours.

Break It Down: Divide the content into smaller, manageable sections. Focus on one chapter or topic at a time.
Be Consistent: Dedicate a specific time each day or week to studying. Consistency builds momentum and aids retention.
Prioritize Weak Areas: As you take practice quizzes, you will identify topics you struggle with. Allocate extra time to review these areas.

Step 3: Use Active Learning Techniques

Passive reading is not an effective way to learn technical information. Engage with the material actively.

Take Notes: Writing down key concepts helps reinforce them in your memory.
Use Flashcards: Create flashcards for key terms, definitions, and state-specific numbers (like timelines or coverage limits).
Explain It Aloud: Try to explain a concept in your own words, as if you were teaching it to someone else. If you can do this successfully, you truly understand it.

Step 4: Leverage Practice Exams

Practice exams are your most powerful preparation tool. They do more than just test your knowledge.

Build Stamina: Sitting for a two- or three-hour exam requires mental endurance. Practice exams help you build this.
Identify Knowledge Gaps: The results will show you exactly which topics you need to study more.
Master Time Management: Practice answering questions at a steady pace. Aim to spend about one minute per question to ensure you have enough time to finish and review your answers.
Reduce Test Anxiety: The more you simulate the exam environment, the more comfortable and less anxious you will feel on test day.

Resources for Exam Success

You don't have to prepare for the adjuster exam alone. There are numerous resources available to guide you through the process. AB Training Center partners with leading education providers to offer a full suite of exam prep solutions.

Online Pre-Licensing Courses: These courses offer the flexibility to study at your own pace from anywhere. They include a mix of video lectures, interactive quizzes, and printable materials to suit different learning styles.
Live Seminars: For those who prefer a classroom setting, instructor-led seminars provide direct access to experts and the opportunity to network with peers.
Exam Prep Materials: Even if your state doesn't require pre-licensing hours, exam prep materials, including study guides and practice test packages, are essential for ensuring you are ready.

By exploring the options for your state'sinsurance licensing, you can find the perfect program to fit your learning style and schedule.

On Test Day: Tips for Success

Your preparation has led to this moment. On the day of your exam, a few simple strategies can make a big difference.

Get a Good Night's Sleep: Arrive at the testing center well-rested and clear-headed.
Read Each Question Carefully: Pay close attention to keywords like "not," "except," and "always." A single word can change the meaning of a question.
Eliminate Incorrect Answers: If you are unsure of the correct answer, start by eliminating the options you know are wrong. This increases your odds of choosing the right one.
Don't Get Stuck: If you encounter a difficult question, mark it and move on. You can come back to it later if you have time. It's better to answer all the questions you know than to run out of time on one you don't.
Trust Your Preparation: You have put in the hours. Be confident in the knowledge you have gained.

Your Path Forward

The adjuster exam is a challenging but surmountable obstacle on your path to a new career. With a clear understanding of what the exam entails and a commitment to thorough preparation, you can pass with confidence. This exam is the gateway to a dynamic and rewarding profession where you will play a vital role in helping people recover from loss.

Take the first step today by exploring the exam preparation resources and pre-licensing courses available for your state. Your journey to becoming a licensed claims adjuster starts with a commitment to succeed on the exam.