ILLINOIS ADJUSTER LATEST 2026 CORE EXAM MANUAL
QUESTIONS AND ANSWERS MARKED A+
✔✔11. If a public adiuster signs a contract with an insured within 5 business days of a
fire loss, how long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days - ✔✔(C. 10 days
✔✔12. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years - ✔✔(D. Seven years
✔✔13. If a Public Adjuster has possession of funds that are not to be paid to the Public
Adjuster, what place would be most appropriate for the Public Adiuster to deposit the
funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office - ✔✔(B. A separate escrow
account
✔✔14. To whom may a public adjuster not give out any of the insured's information
without consent of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance - ✔✔(B. A contractor which is developing an repair
estimate
✔✔15. In order to renew a public adjuster license, a licenseemust complete how many
hours of continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years - ✔✔(B. 24 hours of approved
continuing education every two years
✔✔16. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
,(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation - ✔✔(C. Replacement cost at the time
of loss less depreciation
✔✔17. If the insured's full amount of appraised loss is upheld under the appraisal
clause of a fire and extended policy in Illinois, who pays the fees of the appraisers and
the umpire?
(A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire - ✔✔(D. The insurer
pays the fees of the appraisers and the umpire
✔✔18. An insurer must notify the public adjuster if a homeowner's claim remains
undecided for how many d a s ?
(A. 10 days after the date of loss
(B. 10 days after receiving proof of loss
(C. 25 days after the date of loss
(D. 25 days after receiving proof of loss - ✔✔(D. 25 days after receiving proof of loss
✔✔19. In Illinois, which of the following is not an allowable reason for cancellation by
the insurer of a fire and extended coverage policy?
(A. Nonpayment of premium
(B. Two or more claims filed with a total loss amount over $10,000
(C. The policy was obtained by fraud
(D. For any act which measurably increases the risk originally accepted - ✔✔(B. Two or
more claims filed with a total loss amount over $10,000
✔✔20. If there is a covered fire or explosion loss that exceeds $25,000 to a structure
located in Illinois, what must the insurer obtain before paying the claim?
(A. A sworn statement of the insured that repairs will be completed with reasonable
speed
(B. A copy of the licenses of all contractors that enter the premises for repair work
(C. A certificate that evidences no delinguent property taxes or unpaid demolition
expenses
(D. Written appraisals from two or more licensed contractors to do repai - ✔✔(C. A
certificate that evidences no delinguent property taxes or unpaid demolition expenses
✔✔21. For what period is insured's deadline to bring suit against the insurer tolled?
(A. From the date proof of loss is filed to the date a claim is denied
(B. From the date of loss to the date proof of loss is filed
(C. For a period of 30 days after a claim is denied
(D. For a period of 60 days after a claim is denied - ✔✔(A. From the date proof of loss is
filed to the date a claim is denied
, ✔✔22. Which of the following must an insurer do fi the period within which an insured
may sue is tolled under a fire and extended coverage policy?
(A. The insurer must file an action in court to compel the insured to sue
(B. Extend the policy for 30 more davs
(C. Tell the insured how many days remain before the time to sue expires
(D. Notify the insured of the appraisal clause - ✔✔(C. Tell the insured how many days
remain before the time to sue expires
✔✔23. The Illinois Guaranty Fund provides a mechanism for the payment of claims of
all the following EXCEPT:
(A.An alien insurance company
(B.A domestic insurance company
(C.A reciprocal insurance company
(D. A surplus lines company - ✔✔(D. A surplus lines company
✔✔24. The Illinois Guaranty Fund will cover claims when:
(A. An applicant is unable to obtain insurance coverage in the voluntary market
(B. The insurer is insolvent and under an Order of Liquidation
(C. A claim is not paid within 60 days
(D. An insurer fails to guaranty payment of a covered loss - ✔✔(B. The insurer is
insolvent and under an Order of Liquidation
✔✔25. What kind of loss or losses can commercial property insurance cover?
(A. Physical loss only
(B. Fixed property loss only
(C. Business income loss only
(D. Direct and indirect losses - ✔✔(D. Direct and indirect losses
✔✔26. Which is the broadest commercial causes of loss form?
(A. Basic
(B. Broad
(C. Special
(D. Deluxe - ✔✔(C. Special
✔✔27. To calculate a building limit for coinsurance purposes under a commercial
property policy, which of the following would not be deducted?
(A. Piping and plumbing above the ground floor
(B. The foundation
(C. Fences
(D. Patios - ✔✔(A. Piping and plumbing above the ground floor
✔✔28. An insured commercial building insured for $500,000 sustains $100,000 in fire
damage. Which of the following would not also be covered?
QUESTIONS AND ANSWERS MARKED A+
✔✔11. If a public adiuster signs a contract with an insured within 5 business days of a
fire loss, how long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days - ✔✔(C. 10 days
✔✔12. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years - ✔✔(D. Seven years
✔✔13. If a Public Adjuster has possession of funds that are not to be paid to the Public
Adjuster, what place would be most appropriate for the Public Adiuster to deposit the
funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office - ✔✔(B. A separate escrow
account
✔✔14. To whom may a public adjuster not give out any of the insured's information
without consent of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance - ✔✔(B. A contractor which is developing an repair
estimate
✔✔15. In order to renew a public adjuster license, a licenseemust complete how many
hours of continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years - ✔✔(B. 24 hours of approved
continuing education every two years
✔✔16. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
,(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation - ✔✔(C. Replacement cost at the time
of loss less depreciation
✔✔17. If the insured's full amount of appraised loss is upheld under the appraisal
clause of a fire and extended policy in Illinois, who pays the fees of the appraisers and
the umpire?
(A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire - ✔✔(D. The insurer
pays the fees of the appraisers and the umpire
✔✔18. An insurer must notify the public adjuster if a homeowner's claim remains
undecided for how many d a s ?
(A. 10 days after the date of loss
(B. 10 days after receiving proof of loss
(C. 25 days after the date of loss
(D. 25 days after receiving proof of loss - ✔✔(D. 25 days after receiving proof of loss
✔✔19. In Illinois, which of the following is not an allowable reason for cancellation by
the insurer of a fire and extended coverage policy?
(A. Nonpayment of premium
(B. Two or more claims filed with a total loss amount over $10,000
(C. The policy was obtained by fraud
(D. For any act which measurably increases the risk originally accepted - ✔✔(B. Two or
more claims filed with a total loss amount over $10,000
✔✔20. If there is a covered fire or explosion loss that exceeds $25,000 to a structure
located in Illinois, what must the insurer obtain before paying the claim?
(A. A sworn statement of the insured that repairs will be completed with reasonable
speed
(B. A copy of the licenses of all contractors that enter the premises for repair work
(C. A certificate that evidences no delinguent property taxes or unpaid demolition
expenses
(D. Written appraisals from two or more licensed contractors to do repai - ✔✔(C. A
certificate that evidences no delinguent property taxes or unpaid demolition expenses
✔✔21. For what period is insured's deadline to bring suit against the insurer tolled?
(A. From the date proof of loss is filed to the date a claim is denied
(B. From the date of loss to the date proof of loss is filed
(C. For a period of 30 days after a claim is denied
(D. For a period of 60 days after a claim is denied - ✔✔(A. From the date proof of loss is
filed to the date a claim is denied
, ✔✔22. Which of the following must an insurer do fi the period within which an insured
may sue is tolled under a fire and extended coverage policy?
(A. The insurer must file an action in court to compel the insured to sue
(B. Extend the policy for 30 more davs
(C. Tell the insured how many days remain before the time to sue expires
(D. Notify the insured of the appraisal clause - ✔✔(C. Tell the insured how many days
remain before the time to sue expires
✔✔23. The Illinois Guaranty Fund provides a mechanism for the payment of claims of
all the following EXCEPT:
(A.An alien insurance company
(B.A domestic insurance company
(C.A reciprocal insurance company
(D. A surplus lines company - ✔✔(D. A surplus lines company
✔✔24. The Illinois Guaranty Fund will cover claims when:
(A. An applicant is unable to obtain insurance coverage in the voluntary market
(B. The insurer is insolvent and under an Order of Liquidation
(C. A claim is not paid within 60 days
(D. An insurer fails to guaranty payment of a covered loss - ✔✔(B. The insurer is
insolvent and under an Order of Liquidation
✔✔25. What kind of loss or losses can commercial property insurance cover?
(A. Physical loss only
(B. Fixed property loss only
(C. Business income loss only
(D. Direct and indirect losses - ✔✔(D. Direct and indirect losses
✔✔26. Which is the broadest commercial causes of loss form?
(A. Basic
(B. Broad
(C. Special
(D. Deluxe - ✔✔(C. Special
✔✔27. To calculate a building limit for coinsurance purposes under a commercial
property policy, which of the following would not be deducted?
(A. Piping and plumbing above the ground floor
(B. The foundation
(C. Fences
(D. Patios - ✔✔(A. Piping and plumbing above the ground floor
✔✔28. An insured commercial building insured for $500,000 sustains $100,000 in fire
damage. Which of the following would not also be covered?
