ILLINOIS PUBLIC ADJUSTER UPDATED EXAM TEST PAPER
QUESTIONS AND ANSWERS MARKED A+
✔✔______________ causes more property damage in the US than any other natural
disaster. - ✔✔Flood
✔✔Failing to examine a claimant under oath is and example of ________________. -
✔✔Unfair Claim settlement practice
✔✔Homeowner policy will provide which of the following for personal property located in
a storage facility? - ✔✔• 10% of the coverage C limit.
✔✔The insuring agreements of an equipment breakdown policy provides coverage for?
- ✔✔• First party coverages and property damage to property of others.
✔✔What kind of insurance is covered under TRIA - ✔✔• Workers Comp
✔✔The HO-3 policy does not cover loss of __________________ - ✔✔• A good renter
or favorable lease agreement
✔✔The max obligation of the Pennsylvania Property and Casualty Insurance Guaranty
association is __________ for covered claims other than return of unearned premium
claims. - ✔✔• $300,000
✔✔A release becomes "good" when? - ✔✔• The settlement check is cashed.
✔✔The DP-3 covers? - ✔✔• Open peril coverage on structures and broad form peril
coverage on contents
✔✔Steam boiler explodes. I have a BOP. Am I covered? - ✔✔• No! Separete equipment
breakdown coverage is required.
✔✔Under a commercial property policy, _________ is not a covered peril under the
basic cause of loss form? - ✔✔• Explosion
✔✔How often must admitted insurers be financially examined by the Pennsylvania
Department of Insurance? - ✔✔• Once every 5 years
✔✔The focus of Eeuipment Breakdown coverage is - ✔✔• Prevention of loss
✔✔Coverage C on a DP policy covers __________% of personal property limit on a
world wide basis? - ✔✔• 10%
, ✔✔Homeowners policy covers _________% of personal property on a world wide
basis? - ✔✔• 100% Full limit
✔✔Regular program flood insurance policy insures a single family residence for up to? -
✔✔• $250,000
✔✔Emergency Program flood insurance covers a single family residence for up to? -
✔✔• $35,000
✔✔Under the BOP policy, an office building is considered vacant when - ✔✔• 65% or
more of the total floor space is not being used
✔✔When insurer receives proof of loss, it must deny or accept the claim within
________ days? - ✔✔• 15 days
✔✔Flood insurance can be purchased by? - ✔✔• Any licensed property agent
✔✔What crop insurance policy insures the entire acreage rather than an individual
crop? - ✔✔• Adjusted Gross Revenue
✔✔Which of the following is the term used to describe the determination by a health
benefit plan, based on the information presented at the time by the health care provider,
that health care services proposed by the health care provider are medically necessary.
- ✔✔• Preauthorization/precertification.
✔✔All licensees are required to notify the insurance department of any change in
address within _____ days? - ✔✔• 30 days
✔✔The DP 2 and 3 (broad and special) provide coverage for ______________ which
the dp 1 does not. - ✔✔• Coverage for building collapse and coverage for lawns, plants,
trees, and shrubs.
✔✔The HO-6 (condo) form covers other structures for the full limit? TF? - ✔✔T
✔✔A large tree has fallen into Paul's yard caused by wind. The claims service
representative advises Paul to call a contractor to remove the tree and send the bill to
the insurance company. The bill is $1,200. However, the policy coverage for the debris
removal of a tree that has fallen by wind is only $500 unless the tree hits the house,
which was not the case. What should the adjuster do? - ✔✔• The consumer relied on
the statements of the claims representative so the insurance company would be
estopped from denying the claim. The insurer had already waived its right to deny full
payment of the claim because of the statements of the claims representative. Therefore,
the $1,200 should be paid.
QUESTIONS AND ANSWERS MARKED A+
✔✔______________ causes more property damage in the US than any other natural
disaster. - ✔✔Flood
✔✔Failing to examine a claimant under oath is and example of ________________. -
✔✔Unfair Claim settlement practice
✔✔Homeowner policy will provide which of the following for personal property located in
a storage facility? - ✔✔• 10% of the coverage C limit.
✔✔The insuring agreements of an equipment breakdown policy provides coverage for?
- ✔✔• First party coverages and property damage to property of others.
✔✔What kind of insurance is covered under TRIA - ✔✔• Workers Comp
✔✔The HO-3 policy does not cover loss of __________________ - ✔✔• A good renter
or favorable lease agreement
✔✔The max obligation of the Pennsylvania Property and Casualty Insurance Guaranty
association is __________ for covered claims other than return of unearned premium
claims. - ✔✔• $300,000
✔✔A release becomes "good" when? - ✔✔• The settlement check is cashed.
✔✔The DP-3 covers? - ✔✔• Open peril coverage on structures and broad form peril
coverage on contents
✔✔Steam boiler explodes. I have a BOP. Am I covered? - ✔✔• No! Separete equipment
breakdown coverage is required.
✔✔Under a commercial property policy, _________ is not a covered peril under the
basic cause of loss form? - ✔✔• Explosion
✔✔How often must admitted insurers be financially examined by the Pennsylvania
Department of Insurance? - ✔✔• Once every 5 years
✔✔The focus of Eeuipment Breakdown coverage is - ✔✔• Prevention of loss
✔✔Coverage C on a DP policy covers __________% of personal property limit on a
world wide basis? - ✔✔• 10%
, ✔✔Homeowners policy covers _________% of personal property on a world wide
basis? - ✔✔• 100% Full limit
✔✔Regular program flood insurance policy insures a single family residence for up to? -
✔✔• $250,000
✔✔Emergency Program flood insurance covers a single family residence for up to? -
✔✔• $35,000
✔✔Under the BOP policy, an office building is considered vacant when - ✔✔• 65% or
more of the total floor space is not being used
✔✔When insurer receives proof of loss, it must deny or accept the claim within
________ days? - ✔✔• 15 days
✔✔Flood insurance can be purchased by? - ✔✔• Any licensed property agent
✔✔What crop insurance policy insures the entire acreage rather than an individual
crop? - ✔✔• Adjusted Gross Revenue
✔✔Which of the following is the term used to describe the determination by a health
benefit plan, based on the information presented at the time by the health care provider,
that health care services proposed by the health care provider are medically necessary.
- ✔✔• Preauthorization/precertification.
✔✔All licensees are required to notify the insurance department of any change in
address within _____ days? - ✔✔• 30 days
✔✔The DP 2 and 3 (broad and special) provide coverage for ______________ which
the dp 1 does not. - ✔✔• Coverage for building collapse and coverage for lawns, plants,
trees, and shrubs.
✔✔The HO-6 (condo) form covers other structures for the full limit? TF? - ✔✔T
✔✔A large tree has fallen into Paul's yard caused by wind. The claims service
representative advises Paul to call a contractor to remove the tree and send the bill to
the insurance company. The bill is $1,200. However, the policy coverage for the debris
removal of a tree that has fallen by wind is only $500 unless the tree hits the house,
which was not the case. What should the adjuster do? - ✔✔• The consumer relied on
the statements of the claims representative so the insurance company would be
estopped from denying the claim. The insurer had already waived its right to deny full
payment of the claim because of the statements of the claims representative. Therefore,
the $1,200 should be paid.
