Illinois Public Adjuster Final Exam Study Guide 2025/2026 Accurate Questions And Correct Detailed Answers With Rationales || 100% Guaranteed Pass Newest Version

ILLINOIS PUBLIC ADJUSTER FINAL EXAM STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES || 100% GUARANTEED PASS NEWEST VERSION 1. Insurance - ANSWER arrangement between insured and insurer 2. Insurance Contract - ANSWER 2 Parties: - 1st: Named Insured - 2nd: Insurer(insurance company agrees to indemnify any risks) 3. Property Insurance - ANSWER Insurer promises to pay covered cost 4. Contract - ANSWER A legally bonding agreement that includes 4 elements - Consideration - Legality - Agreement - Parties 5. Idemnity - ANSWER Made financially whole 6. Conditional - ANSWER One parties obligation due to the performance of the other party 7. Adhesion - ANSWER Written by one party only 8. Exception for Insurance - ANSWER Doctrine of reasonable expectations 9. Uninsurability - ANSWER - Losses caused intentionally - Losses that are inevitable or latent defects - Controllable losses 10. Contract between Public Adjuster and Insured - ANSWER Must include: names and license number of the public adjuster effective date of use formatted in no less than 10 font; full name of the person signing the contact, form number and edition of the form must be on the lower left hand corner for it to be approved, home state, business address and phone number, the title "Public Adjuster Contract" printed at the head of the contract form Insureds: full name, street address, insurance company name, and policy number A description of loss & it's location description of services to be provided to the insured A place for the signatures of the public adjuster and the insured The date and time the contract was signed by the adjuster and the insured. Attestation language stating that the public adjuster is fully bonded as required by state law Disclosure of full salary, fee, commission, compensation/ considerations the public adjuster is to receive for services 11. Notices that must be included in contract between PA & insured - ANSWER - Any public adjuster contract will be voidable for 5 business days after execution at the option of the insured - any contract with a public adjuster that is executed within the five day period after the loss producing occurrence is voidable for 10 days after execution - if the insurer pays or commits in writing to pay the policy limit within five business days after the date of the loss is reported to the insurance company the public adjuster will not receive a commission, only compensation for services provided 12. Right to rescind the contract - ANSWER If the insured exercises the right to resend the contract anything of value given by the insured under the contract must be returned to the insured within 15 Business days following the receipt by the public adjuster of the cancellation notice 13. Client disclosure - ANSWER If the client of the public adjuster chooses a company, contractor or any other vendor in which the public adjuster holds any ownership or equitable interest then that interest must be disclosed to the client. 14. Required disclosures - ANSWER The public adjuster must provide written disclosures regarding financial interests, the claim process and the "consumer rights notice" before the insured signs a public adjuster contract. 15. The public adjuster will be responsible for costs - ANSWER If the public adjuster refers the insured to a contractor the public adjuster warrants that all work will be performed in a workmanlike manner if it is not completed in that manner then the: 16. Deductible amount, net claim payment - ANSWER A public adjuster commission, charges or fees must not include the _______, and will only be based on _______ made by the insurer. 17. What are the insured's in the event of a loss? (along with paying the premium) - ANSWER - PROTECT the damaged property from further loss -REPORT the loss to the insurer -COOPERATE with the insurer during the entire adjustment process -PROVE the loss 18. What is the Replacement Cost Value policy ? (consider deductible) - ANSWER You get the full value of the damage MINUS deductible. You WILL get the depreciation. 19. What is the Actual Cash Value policy ? (consider deductible) - ANSWER You will receive the the full value of damage MINUS depreciation MINUS deductible. You will NOT get the deductible. 20. Insurable Interest - ANSWER -there is always a limit on recovery, claimant will never recover more than the limit. - having something to lose if the property is lost, damaged or destroyed. When have financial stake in the property. 21. Coinsurance - ANSWER COMMERCIAL - building and personal property form contains a standard coinsurance clause, with an 80% to value replacement. RESIDENTIAL - losses are settled at replacement cost as long as the policy limits are 80% and the repair is done. 22. Abandonment - ANSWER No insured may abandon covered property in a covered loss 23. Fraud - ANSWER Fruad by the insured at any time voids the contract 24. Appraisal - ANSWER If dispute over the amount of a covered loss, (not if it is covered but the actual amount), either party can call for appraisal. An UMPIRE is hired to settle between the two parties 25. Right of assignment - ANSWER A named insured may transfer/assign the policy to another party only with written consent of the insurer 26. Which of the following does the Director not have the power or duty to do? (A. Enact laws regarding insurance practices (B. Enforce insurance laws that are in the Illinois legal code (C. Adopt rules and regulations to enforce the insurance laws (D. Examine every Illinois insurance licensee - ANSWER A. Enact laws regarding insurance practices 27. Who of the following represents the insured in a claim? - An independent adjuster - A company adjuster - A public adjuster - A bailee - ANSWER (C. A public adjuster 28. Which of the following would not be negotiated by a public adjuster? - The amount of damage - The cause of the loss - The amount of depreciation - The extent of the damage - ANSWER (B. The cause of the loss 29. Which of the following is not required to become a public adjuster? (A. Successful passing of a state-sponsored exam (B. A copy of the public adjuster's proposed contract for insureds (C. A map of the public adjusters marketing territories (D. A surety bond with a face amount of $20,000 - ANSWER (C. A map of the public adjusters marketing territories 30. If a public adjuster moves, how soon must he or she inform the Director? - Within 15 days - Within 30 days - Within 60 days - At the time of renewing the license - ANSWER (B. Within 30 days 31. Which of the following might result in termination of a public adjuster's license? - Failure to file a state income tax return - Being convicted of any misdemeanor - Failing to provide the Director with a copy of the signed contract with each insured - Cancellation of the public adjuster's business insurance - ANSWER (A. Failure to file a state income tax return 32. It is allowable for a public adjuster to... - Solicit new clients from 7pm to 8am - State that he or she is licensed - State that he or she represents the fire department - State that he or she represents the insurance company - ANSWER (B. State that he or she is licensed 33. When may a public adjuster solicit new clients? - While a loss-producing occurrence is continuing - Between 8am and 7pm - While the fire department is engaged at the damaged premises - Immediately after the state examination is passed - ANSWER (B. Between 8am and 7pm 34. Which of the following is not a reason for the Director to revoke or refuse to renew a public adjuster's license? - Being convicted of a felony involving dishonesty or fraud - Engaging in the unauthorized practice of law - Failing to pay tax due to the Department of Revenue - Having its businessowners insurance policy canceled - ANSWER (D. Having its businessowners insurance policy canceled