New Jersey Public Adjuster Exam Review 2026/2027 A+ Grade Questions and
Answers Complete Study Guide
Public Adjuster License - (answer)A solicitors/adjusters license is valid for two years and must be
renewed every two years
Public Adjuster Bond - (answer)$10,000 bond is required for solicitors/adjusters
Proof of Loss - (answer)documentation of loss required of a policy owner by an insurance company; must
usually be filed within 60 days after the request of the insured or according to policy provision, 60 days
after the date of loss
Loss to a Pair or Set - (answer)(1) repair or replace any part to restore the pair or set to its value before
the loss or
(2) pay the difference between actual cash value before and after the loss
Insurer - (answer)company offering protection through the sale of an insurance policy to an insured
Insured - (answer)party covered by an insurance policy
Policy Period - (answer)the inception date and expiration date of the policy
Limit of Liability - (answer)maximum amount of coverage available under a liability insurance policy
Insurable Interest - (answer)expectation of a monetary loss that can be covered by insurance. Owner of
the property.
Mortgage Clause - (answer)attachment to a property insurance policy to protect the interest of the
mortgage in the mortgaged property. If the property is damaged or destroyed the mortgage is
indemnified up to his or her stated interest in the property.
, New Jersey Public Adjuster Exam Review 2026/2027 A+ Grade Questions and
Answers Complete Study Guide
Market Value - (answer)value of property as established by the price a willing buyer would pay for
property purchased from a willing seller
Agreed Value - (answer)a stipulated agreement between the insurance company and the insured that
the amount of insurance coverage under the policy is sufficient to be in compliance with the coinsurance
requirement.
Depreciation - (answer)actual or accounting recognition of the decrease in the value of a hard asset
(property) over a period of time
Recoverable Depreciation(Holdback) - (answer)although replacement cost policies provide for
replacement of damaged property at current prices, certain conditions must be met before you can
collect the full amount for the loss. The insurance company will make an offer of settlement, then
withhold a portion of the money until the repairs are actually made. You must provide receipts showing
that you incurred a cost of equal or greater than the offer of settlement in order for you to receive all of
the holdback moneys.
Non-Recoverable Depreciation - (answer)actual cash value policies state that an offer of settlement is
based on the actual cash value of the property at the time of the loss, therefore, any depreciation
applied because of age, deterioration, etc. is not recoverable.
Endorsement - (answer)written agreement attached to a policy to add or subtract insurance coverage's.
Once attached the endorsement takes precedence over the original provisions of the policy
Chance of Loss - (answer)chance that an event will occur
Risk - (answer)uncertainty of a financial loss-term used to designate an insured or a peril insured against
Hazard - (answer)a condition that may create or increase the chance of loss arising from a given peril
Answers Complete Study Guide
Public Adjuster License - (answer)A solicitors/adjusters license is valid for two years and must be
renewed every two years
Public Adjuster Bond - (answer)$10,000 bond is required for solicitors/adjusters
Proof of Loss - (answer)documentation of loss required of a policy owner by an insurance company; must
usually be filed within 60 days after the request of the insured or according to policy provision, 60 days
after the date of loss
Loss to a Pair or Set - (answer)(1) repair or replace any part to restore the pair or set to its value before
the loss or
(2) pay the difference between actual cash value before and after the loss
Insurer - (answer)company offering protection through the sale of an insurance policy to an insured
Insured - (answer)party covered by an insurance policy
Policy Period - (answer)the inception date and expiration date of the policy
Limit of Liability - (answer)maximum amount of coverage available under a liability insurance policy
Insurable Interest - (answer)expectation of a monetary loss that can be covered by insurance. Owner of
the property.
Mortgage Clause - (answer)attachment to a property insurance policy to protect the interest of the
mortgage in the mortgaged property. If the property is damaged or destroyed the mortgage is
indemnified up to his or her stated interest in the property.
, New Jersey Public Adjuster Exam Review 2026/2027 A+ Grade Questions and
Answers Complete Study Guide
Market Value - (answer)value of property as established by the price a willing buyer would pay for
property purchased from a willing seller
Agreed Value - (answer)a stipulated agreement between the insurance company and the insured that
the amount of insurance coverage under the policy is sufficient to be in compliance with the coinsurance
requirement.
Depreciation - (answer)actual or accounting recognition of the decrease in the value of a hard asset
(property) over a period of time
Recoverable Depreciation(Holdback) - (answer)although replacement cost policies provide for
replacement of damaged property at current prices, certain conditions must be met before you can
collect the full amount for the loss. The insurance company will make an offer of settlement, then
withhold a portion of the money until the repairs are actually made. You must provide receipts showing
that you incurred a cost of equal or greater than the offer of settlement in order for you to receive all of
the holdback moneys.
Non-Recoverable Depreciation - (answer)actual cash value policies state that an offer of settlement is
based on the actual cash value of the property at the time of the loss, therefore, any depreciation
applied because of age, deterioration, etc. is not recoverable.
Endorsement - (answer)written agreement attached to a policy to add or subtract insurance coverage's.
Once attached the endorsement takes precedence over the original provisions of the policy
Chance of Loss - (answer)chance that an event will occur
Risk - (answer)uncertainty of a financial loss-term used to designate an insured or a peril insured against
Hazard - (answer)a condition that may create or increase the chance of loss arising from a given peril
