Workers Compensation Adjuster Cheat Sheet.
The night-before summary, built like the exam.

Memorize the core valuation and claims rules first: actual cash value is commonly defined as replacement cost at the time of loss minus depreciation, and replacement cost value is the cost to repair or replace with new materials of like kind and quality with no deduction for depreciation. Know that policies commonly require a proof of loss within 60 days after the insurer's request. Also lock in the adjuster types — staff adjusters are salaried insurer employees, independent adjusters work for insurers on contract, and public adjusters represent the insured for a fee.

The biggest traps are lookalike concepts. Candidates confuse the appraisal clause with coverage disputes — appraisal sets only the amount of loss, while coverage questions stay with the courts. They mix up first-party claims, where the insured seeks payment from their own insurer, with third-party claims, where an outside claimant triggers the insured's liability coverage. And they confuse subrogation, the insurer's right to recover from the party who caused the loss, with salvage, the damaged property the insurer takes title to after paying a total loss.

Use it as a quick final review, not as your only study tool. Read through it once, then cover each definition and try to recite it from memory — ACV versus RCV, the proof-of-loss requirements, the appraisal process where each party picks an appraiser, the appraisers pick an umpire, and any two of the three set the amount of loss. Flag anything you stumble on, review just those items again in the morning, and stop studying early enough to get real sleep.

A cheat sheet alone is usually not enough — it condenses the must-know rules, but the exam tests whether you can apply them to claim scenarios. Concepts like recoverable depreciation, where the insurer pays ACV first and releases the withheld depreciation only after repairs are completed, show up as situational questions, not simple definitions. Use the cheat sheet to memorize the rules, then use practice questions to prove you can apply them under time pressure.

Know that adjusters owe a duty of good faith and fair dealing to the insured and must handle claims promptly and fairly. Memorize that most states adopt a version of the Unfair Claims Settlement Practices Act modeled on the NAIC, and that a single violation may be an unfair practice while a general business practice of violations triggers regulatory penalties. Also remember that bad faith — like denying a valid claim without a reasonable basis — can expose the insurer to extra-contractual and sometimes punitive damages.