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 MT-MLADJ exam has 88 questions and runs 1 hours 45 minutes.
These 10 free MT-MLADJ questions are organized by exam domain, so you can see how each part of the Montana Multi-Line Adjuster Exam blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: Types of Property Policies
Question 1
Wind tears an opening in a home's roof. Rain enters through that opening and damages an upstairs ceiling and furniture. Later in the same storm, surface runoff enters the basement and damages separate furniture. The HO-3 homeowners policy covers wind damage and rain damage to the building and contents when wind first creates an opening, but excludes surface water. The sources of the two water losses are established. Which damage belongs in the covered homeowners claim?
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Correct answer: C - The roof, upstairs ceiling, and upstairs furniture, but not the basement furniture
Question 2
A covered kitchen fire closes a restaurant for the entire covered restoration period. Its records support $100,000 in sales that would have occurred, $60,000 in operating costs avoided during the closure, and $25,000 in normal operating expenses that continued. There were no extra expenses. Before any limit or deductible, the business income loss is:
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Correct answer: D - $40,000
Domain 2: Types of Casualty Policies
Question 3
Six months after a contractor finishes and turns over a deck at a customer's home, a railing installed by the contractor fails and injures a visitor. The owner demands replacement of the defective railing, and the visitor seeks damages for bodily injury. The contractor's commercial general liability policy includes completed-operations coverage. Its applicable 'your work' exclusion removes the cost of correcting the contractor's defective work, not resulting bodily injury. No other exclusion applies. Which analysis correctly separates the demands?
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Correct answer: D - The injury is a completed-operations claim; the railing correction is excluded
Domain 4: Insurance Terms and Related Concepts
Question 4
A warehouse has a replacement value of $800,000 and is insured for $480,000 under an 80% coinsurance clause. A covered fire causes $120,000 of repairable building damage. Replacement-cost settlement applies, and the $5,000 deductible is subtracted after any coinsurance adjustment. What is the insurer's payment for this partial loss?
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Correct answer: A - $85,000
Question 5
Inspection of an owner-insured commercial building shows 70% of its floor area under lease but only 24% used for tenants' customary operations. That condition has persisted for 75 days; the remaining space is empty, with no construction or renovation. Under the policy, vacancy exists unless at least 31% is rented and used for customary operations or used by the owner for customary operations. After more than 60 vacant days, vandalism is excluded; other covered causes are subject to a 15% reduction. On day 75, vandals spray-paint walls and smash interior partitions. What does the occupancy evidence establish?
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Correct answer: D - Vandalism is excluded because qualifying use stayed below 31% for more than 60 consecutive days
Domain 5: Policy Provisions and Contract Law
Question 6
At a water-loss inspection, an adjuster finds standing water around electrical equipment in the basement. Power has not been disconnected, and reaching the main breaker would require entering the water. The homeowner offers to go downstairs and switch it off so the inspection can begin. The adjuster's immediate instruction should be to:
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Correct answer: A - Keep everyone out and have a qualified electrician arrange safe power isolation
Question 7
Coverage for wind damage is agreed, but the owner and insurer disagree on the cost of repairs. Their policy's appraisal clause makes an amount-of-loss award effective when any two of the two appraisers and the umpire agree. The owner's appraiser and the umpire sign an award; the insurer's appraiser dissents. With no challenge to the panel's qualifications or conduct, how should the adjuster use the award?
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Correct answer: B - Use the award as the amount of loss, then apply the policy's deductible and applicable limit
Domain 6: Montana Statutes and Rules Pertinent to All Adjusters
Question 8
The insurer agrees that a displaced homeowner's hotel expenses are covered and payable under loss-of-use coverage. The amount owed for damaged belongings remains disputed. A supervisor directs the adjuster to withhold the hotel payment until the homeowner signs a release settling both coverages. Which response complies with Montana's claims-settlement standards?
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Correct answer: C - Issue the hotel payment without conditioning it on settlement of the contents dispute
Domain 7: Montana Statutes and Rules Pertinent to Property Insurance Only
Question 9
A Montana building is wholly destroyed by a covered fire. The owner's insurance on the building is $360,000; a post-loss appraisal estimates its pre-loss actual cash value at $275,000. There is no criminal fault, procurement fraud, deductible, or competing insurance. The adjuster proposes using the lower appraisal because it better reflects the building's age. Which valuation governs this total loss?
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Correct answer: A - The amount of insurance written, which Montana's valued-policy law makes conclusive
Domain 8: Montana Statutes and Rules Pertinent to Casualty Insurance Only
Question 10
In a Montana auto accident involving only two drivers, the injured claimant has $40,000 in proven bodily-injury damages. Fault is allocated 20% to the claimant and 80% to the insured driver. The driver's liability policy carries Montana's minimum limits of 25/50/20, and no other person is injured. Coverage is undisputed. Excluding interest and defense costs, what is the liability insurer's maximum indemnity payment?