ILLINOIS PUBLIC ADJUSTER PRACTICE EXAM 2025/2026
QUESTIONS AND ANSWERS GRADED A+
✔✔Abandonment - ✔✔No insured may abandon property in the event of a covered loss
✔✔Right of Appraisal - ✔✔Dispute over amount of covered loss any 2 of these 3 people
agree on total costs of the loss, dispute is settled at that amount
✔✔Right if Assignment - ✔✔Named insured may transfer or assign policy to the party
only w/written consent of insured
✔✔Right of Subragation - ✔✔An insurer cannot subrogate against it insured
✔✔Right of Cancelation - ✔✔Insured may cancel at any time w/out a prior notice.
Insurer MUST give a prior notice and follow strict laws
✔✔Additional Interests - ✔✔Any party other than named insured
✔✔Bailment - ✔✔temporarily relinquishes property to another for some service
✔✔Blanket Limit - ✔✔A blanket limit for a group of items
✔✔Specific Limits - ✔✔Specific is specific limit for items
✔✔Concurrent - ✔✔More than one policy covers a loss, and policies cover same
property
✔✔Nonconcurrent - ✔✔Two policies cover loss and different terms and conditions
✔✔Estoppel - ✔✔To "estop" is to legally impede prevent or stop. A prohibition against a
position previously taken
✔✔Voiding - ✔✔Fraud at anytime will be voided
✔✔Cancelation - ✔✔A mid-term termination(if insured cancels, then 90% will be
returned); however, (if insurer cancels, then 100% will be returned
✔✔Non-Renewed - ✔✔Non-renewal is the end-of-term termination
✔✔Waiver - ✔✔Voluntarily giving up a known right
✔✔Declarations - ✔✔One of the 5 principal components.
Policy holder specifications
, ✔✔Insuring Agreement - ✔✔One of the 5 principal components
Clauses that express the insurers obligations under the policy. They state what IS
covered
✔✔Exclusions - ✔✔One of the 5 principal components
Words or clauses the limit the insurers obligations. They state what is NOT covered
✔✔Definitions - ✔✔One of the 5 principal components
Terms in the policy that are specifically defined... accordance w/reasonable expectation
doctrine
✔✔Conditions - ✔✔One of the 5 principal components
Rules used in settling covered losses, and rights of insurer, mortgagees
✔✔Note for 5 Principal Components - ✔✔Policy may have one or more endorsements
attached to policy
✔✔Part One: Standard Fire Policy
Coverage Section:
- Covered Property is? - ✔✔Property described on declarations page ( direct loss
coverage is loss only; no indirect loss)
✔✔Part One: Standard Fire Policy
Coverage Section:
- Excluded Property is? - ✔✔Property like accounts, bills currency, deeds, evidence of
debt, money, security, bullions, and manuscripts
✔✔Part One: Standard Fire Policy
Perils Insured Against Sections: - ✔✔- Fire and Lightning
- Excluded Perils such as war, actions of civil authority( except actions to prevent
spread of fire), neglect of insured to save or preserve property
✔✔Part One: Standard Fire Policy
Conditions Section: - ✔✔- Duties of Insured: Protect, Report, Cooperate, Prove(within
60 days of loss
- Pro-Rata liability policy will pay only its proportion of covered loss when there is other
insurance
- Fraud will VOID entire policy
- Right to Salvage is when insurer retains rights to salvage
- Rights of Cancelation is okay if insurer may cancel with a 5 day notice with proof of
mailing and full refund
✔✔Part Two: Homeowners(HO) Insurance
Eligibility for HO Insurance:
QUESTIONS AND ANSWERS GRADED A+
✔✔Abandonment - ✔✔No insured may abandon property in the event of a covered loss
✔✔Right of Appraisal - ✔✔Dispute over amount of covered loss any 2 of these 3 people
agree on total costs of the loss, dispute is settled at that amount
✔✔Right if Assignment - ✔✔Named insured may transfer or assign policy to the party
only w/written consent of insured
✔✔Right of Subragation - ✔✔An insurer cannot subrogate against it insured
✔✔Right of Cancelation - ✔✔Insured may cancel at any time w/out a prior notice.
Insurer MUST give a prior notice and follow strict laws
✔✔Additional Interests - ✔✔Any party other than named insured
✔✔Bailment - ✔✔temporarily relinquishes property to another for some service
✔✔Blanket Limit - ✔✔A blanket limit for a group of items
✔✔Specific Limits - ✔✔Specific is specific limit for items
✔✔Concurrent - ✔✔More than one policy covers a loss, and policies cover same
property
✔✔Nonconcurrent - ✔✔Two policies cover loss and different terms and conditions
✔✔Estoppel - ✔✔To "estop" is to legally impede prevent or stop. A prohibition against a
position previously taken
✔✔Voiding - ✔✔Fraud at anytime will be voided
✔✔Cancelation - ✔✔A mid-term termination(if insured cancels, then 90% will be
returned); however, (if insurer cancels, then 100% will be returned
✔✔Non-Renewed - ✔✔Non-renewal is the end-of-term termination
✔✔Waiver - ✔✔Voluntarily giving up a known right
✔✔Declarations - ✔✔One of the 5 principal components.
Policy holder specifications
, ✔✔Insuring Agreement - ✔✔One of the 5 principal components
Clauses that express the insurers obligations under the policy. They state what IS
covered
✔✔Exclusions - ✔✔One of the 5 principal components
Words or clauses the limit the insurers obligations. They state what is NOT covered
✔✔Definitions - ✔✔One of the 5 principal components
Terms in the policy that are specifically defined... accordance w/reasonable expectation
doctrine
✔✔Conditions - ✔✔One of the 5 principal components
Rules used in settling covered losses, and rights of insurer, mortgagees
✔✔Note for 5 Principal Components - ✔✔Policy may have one or more endorsements
attached to policy
✔✔Part One: Standard Fire Policy
Coverage Section:
- Covered Property is? - ✔✔Property described on declarations page ( direct loss
coverage is loss only; no indirect loss)
✔✔Part One: Standard Fire Policy
Coverage Section:
- Excluded Property is? - ✔✔Property like accounts, bills currency, deeds, evidence of
debt, money, security, bullions, and manuscripts
✔✔Part One: Standard Fire Policy
Perils Insured Against Sections: - ✔✔- Fire and Lightning
- Excluded Perils such as war, actions of civil authority( except actions to prevent
spread of fire), neglect of insured to save or preserve property
✔✔Part One: Standard Fire Policy
Conditions Section: - ✔✔- Duties of Insured: Protect, Report, Cooperate, Prove(within
60 days of loss
- Pro-Rata liability policy will pay only its proportion of covered loss when there is other
insurance
- Fraud will VOID entire policy
- Right to Salvage is when insurer retains rights to salvage
- Rights of Cancelation is okay if insurer may cancel with a 5 day notice with proof of
mailing and full refund
✔✔Part Two: Homeowners(HO) Insurance
Eligibility for HO Insurance:
