LOUISIANA PUBLIC ADJUSTER LICENSE (LDI) – PRACTICE
EXAM Newest 2025 – 2026 Updated Questions From
Actual Exams Complete 100 Questions And Correct
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1. A public adjuster primarily represents which party in an insurance claim?
A. The insurance company
B. The state regulator
C. The policyholder
D. The contractor
Answer: C ✓
*(A public adjuster is contracted by and legally represents the insured, not the
insurer or state authority.)_
2. Which document establishes the terms of coverage between insurer and
insured?
A. Claim file
B. Insurance policy
C. Adjuster report
D. Loss register
Answer: B ✓
*(The insurance policy is the legal contract defining coverage, exclusions, and
obligations of both parties.)_
,3. What is the primary duty of a public adjuster during a claim?
A. Deny invalid claims
B. Investigate and document losses
C. Set premium rates
D. Approve policy renewals
Answer: B ✓
*(Public adjusters investigate, document, and negotiate claims on behalf of the
insured.)_
4. A policyholder hires a public adjuster after fire damage. What is the adjuster’s
first step?
A. Negotiate settlement
B. Submit lawsuit
C. Inspect and document the loss
D. Approve payment
Answer: C ✓
*(Initial loss inspection and documentation are essential before valuation or
negotiation begins.)_
5. Which of the following is considered a “covered peril”?
A. Intentional damage
B. Fire damage under standard policy
C. Wear and tear
D. Lack of maintenance
Answer: B ✓
*(Fire is typically a covered peril unless specifically excluded in the policy.)_
,6. What is indemnity in insurance terms?
A. Payment of agent commissions
B. Restoring insured to pre-loss condition
C. Cancellation of policy
D. Denial of coverage
Answer: B ✓
*(Indemnity means compensating the insured to restore them financially to their
pre-loss position.)_
7. Which action is prohibited for a licensed public adjuster?
A. Inspecting property
B. Negotiating claims
C. Acting on behalf of insurer
D. Documenting damage
Answer: C ✓
*(Public adjusters must not represent insurers, as they represent only the
insured.)_
8. What is depreciation in an insurance claim?
A. Increase in property value
B. Deduction for age and wear
C. Policy limit reduction
D. Premium adjustment
Answer: B ✓
*(Depreciation accounts for the reduced value of property due to age or
condition.)_
, 9. What does “ACV” stand for in insurance claims?
A. Actual Claim Value
B. Adjusted Coverage Value
C. Actual Cash Value
D. Annual Coverage Verification
Answer: C ✓
*(Actual Cash Value equals replacement cost minus depreciation.)_
10. Which principle requires honesty and transparency in claim handling?
A. Subrogation
B. Utmost good faith
C. Arbitration
D. Estoppel
Answer: B ✓
*(Insurance contracts require utmost good faith from both insurer and
insured.)_
11. What is a deductible?
A. Insurance payout limit
B. Portion paid by insurer only
C. Amount insured pays before coverage applies
D. Commission paid to adjuster
Answer: C ✓
*(A deductible is the amount the insured must pay out-of-pocket before
insurance coverage begins.)_
12. Which situation best describes a conflict of interest?
EXAM Newest 2025 – 2026 Updated Questions From
Actual Exams Complete 100 Questions And Correct
Detailed Answers (Verified Answers) |Already Graded
A+||Brand New!!
1. A public adjuster primarily represents which party in an insurance claim?
A. The insurance company
B. The state regulator
C. The policyholder
D. The contractor
Answer: C ✓
*(A public adjuster is contracted by and legally represents the insured, not the
insurer or state authority.)_
2. Which document establishes the terms of coverage between insurer and
insured?
A. Claim file
B. Insurance policy
C. Adjuster report
D. Loss register
Answer: B ✓
*(The insurance policy is the legal contract defining coverage, exclusions, and
obligations of both parties.)_
,3. What is the primary duty of a public adjuster during a claim?
A. Deny invalid claims
B. Investigate and document losses
C. Set premium rates
D. Approve policy renewals
Answer: B ✓
*(Public adjusters investigate, document, and negotiate claims on behalf of the
insured.)_
4. A policyholder hires a public adjuster after fire damage. What is the adjuster’s
first step?
A. Negotiate settlement
B. Submit lawsuit
C. Inspect and document the loss
D. Approve payment
Answer: C ✓
*(Initial loss inspection and documentation are essential before valuation or
negotiation begins.)_
5. Which of the following is considered a “covered peril”?
A. Intentional damage
B. Fire damage under standard policy
C. Wear and tear
D. Lack of maintenance
Answer: B ✓
*(Fire is typically a covered peril unless specifically excluded in the policy.)_
,6. What is indemnity in insurance terms?
A. Payment of agent commissions
B. Restoring insured to pre-loss condition
C. Cancellation of policy
D. Denial of coverage
Answer: B ✓
*(Indemnity means compensating the insured to restore them financially to their
pre-loss position.)_
7. Which action is prohibited for a licensed public adjuster?
A. Inspecting property
B. Negotiating claims
C. Acting on behalf of insurer
D. Documenting damage
Answer: C ✓
*(Public adjusters must not represent insurers, as they represent only the
insured.)_
8. What is depreciation in an insurance claim?
A. Increase in property value
B. Deduction for age and wear
C. Policy limit reduction
D. Premium adjustment
Answer: B ✓
*(Depreciation accounts for the reduced value of property due to age or
condition.)_
, 9. What does “ACV” stand for in insurance claims?
A. Actual Claim Value
B. Adjusted Coverage Value
C. Actual Cash Value
D. Annual Coverage Verification
Answer: C ✓
*(Actual Cash Value equals replacement cost minus depreciation.)_
10. Which principle requires honesty and transparency in claim handling?
A. Subrogation
B. Utmost good faith
C. Arbitration
D. Estoppel
Answer: B ✓
*(Insurance contracts require utmost good faith from both insurer and
insured.)_
11. What is a deductible?
A. Insurance payout limit
B. Portion paid by insurer only
C. Amount insured pays before coverage applies
D. Commission paid to adjuster
Answer: C ✓
*(A deductible is the amount the insured must pay out-of-pocket before
insurance coverage begins.)_
12. Which situation best describes a conflict of interest?
