ILLINOIS PUBLIC ADJUSTER EXAM 2 ACCURATE
CURRENTLY TESTING EXAM VERSIONS WITH 100
QUESTIONS AND ANSWERS WITH RATIONALES EACH |
EXPERT VERIFIED FOR GUARANTEED PASS | LATEST
UPDATE | 2025/2026
1)
Which of the following could result in termination of the public adjuster’s license by the
Director?
A. Advancing funds to an insured while waiting for the claim to be resolved
B. Charging more than 25% commission
C. Soliciting more than three homeowners on the same day
D. Avoiding certain counties during solicitations
Correct Answer: A
Rationale: Illinois prohibits public adjusters from advancing funds to insureds (it’s viewed as
an improper inducement). B may be restricted by contract/market but isn’t a per se revocation
trigger. C and D are not statutory grounds for revocation.
2)
Which of the following most accurately describes actual cash value?
A. Replacement cost minus depreciation
B. Replacement cost plus depreciation
C. Replacement cost with no deduction for depreciation
D. Price paid minus inflation
Correct Answer: A
Rationale: ACV is generally RCV – depreciation. B and D aren’t recognized ACV formulas. C
describes replacement cost, not ACV.
1
,3)
An insurer must notify the public adjuster if a homeowner’s claim remains undecided for
how many days after receiving proof of loss?
A. 10 days
B. 10 days after date of loss
C. 25 days after the date of loss
D. 25 days after receiving proof of loss
Correct Answer: D
Rationale: Illinois requires notice to the public adjuster when a homeowner claim remains
undecided 25 days after receipt of the proof of loss. The other timeframes don’t match this
rule.
4)
Which of the following would not be negotiated by a public adjuster?
A. The amount of damage
B. The cause of the loss
C. The amount of depreciation
D. The extent of the damage
Correct Answer: B
Rationale: Public adjusters negotiate amount/extent/depreciation. Cause of loss is a coverage
question/legal determination that is the insurer’s decision (and ultimately courts), not a
negotiation point for the PA.
5)
In order to renew a public adjuster license, a licensee must complete how many hours of
CE?
2
,A. 24 hours every year
B. 24 hours every two years
C. 24 hours of college-level classes every two years
D. 24 hours of ethics every two years
Correct Answer: B
Rationale: Illinois PAs must complete 24 hours of approved CE biennially. College
coursework (C) is not the required format. Ethics alone (D) is not the entire CE requirement.
6)
Which of the following is not a reason for the Director to revoke or refuse to renew a public
adjuster’s license?
A. Felony involving dishonesty or fraud
B. Engaging in the unauthorized practice of law
C. Failing to pay tax due to the Department of Revenue
D. Having its businessowners insurance policy canceled
Correct Answer: D
Rationale: Grounds include fraud felonies, UPL, and tax delinquencies. Having your BOP
canceled isn’t a listed licensure ground.
7)
When may a public adjuster solicit new clients?
A. While a loss-producing occurrence is continuing
B. Between 8 a.m. and 7 p.m.
C. While the fire department is engaged at the premises
D. Immediately after passing the state exam
Correct Answer: B
Rationale: Illinois limits solicitation hours to 8 a.m.–7 p.m. Soliciting during an active
emergency scene (A/C) is prohibited; licensure is required beyond just passing the exam (D).
3
, 8)
If a public adjuster moves, how soon must the Director be informed?
A. 15 days
B. 30 days
C. 60 days
D. At renewal
Correct Answer: B
Rationale: Address changes must be reported within 30 days. The other timeframes don’t
satisfy the statute.
9)
Which of the following might result in termination of a public adjuster’s license?
A. Failure to file a state income tax return
B. Being convicted of any misdemeanor
C. Failing to provide the Director a copy of each signed contract
D. Cancellation of the public adjuster’s business insurance
Correct Answer: A
Rationale: Tax compliance is a licensure condition; failure to file can trigger revocation. Not
every misdemeanor (B) is disqualifying. C is a record-keeping compliance issue (enforceable)
but not an automatic revocation. D is not a listed ground.
10)
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 in the Illinois code
C. Adopt rules and regulations to enforce the insurance laws
4
CURRENTLY TESTING EXAM VERSIONS WITH 100
QUESTIONS AND ANSWERS WITH RATIONALES EACH |
EXPERT VERIFIED FOR GUARANTEED PASS | LATEST
UPDATE | 2025/2026
1)
Which of the following could result in termination of the public adjuster’s license by the
Director?
A. Advancing funds to an insured while waiting for the claim to be resolved
B. Charging more than 25% commission
C. Soliciting more than three homeowners on the same day
D. Avoiding certain counties during solicitations
Correct Answer: A
Rationale: Illinois prohibits public adjusters from advancing funds to insureds (it’s viewed as
an improper inducement). B may be restricted by contract/market but isn’t a per se revocation
trigger. C and D are not statutory grounds for revocation.
2)
Which of the following most accurately describes actual cash value?
A. Replacement cost minus depreciation
B. Replacement cost plus depreciation
C. Replacement cost with no deduction for depreciation
D. Price paid minus inflation
Correct Answer: A
Rationale: ACV is generally RCV – depreciation. B and D aren’t recognized ACV formulas. C
describes replacement cost, not ACV.
1
,3)
An insurer must notify the public adjuster if a homeowner’s claim remains undecided for
how many days after receiving proof of loss?
A. 10 days
B. 10 days after date of loss
C. 25 days after the date of loss
D. 25 days after receiving proof of loss
Correct Answer: D
Rationale: Illinois requires notice to the public adjuster when a homeowner claim remains
undecided 25 days after receipt of the proof of loss. The other timeframes don’t match this
rule.
4)
Which of the following would not be negotiated by a public adjuster?
A. The amount of damage
B. The cause of the loss
C. The amount of depreciation
D. The extent of the damage
Correct Answer: B
Rationale: Public adjusters negotiate amount/extent/depreciation. Cause of loss is a coverage
question/legal determination that is the insurer’s decision (and ultimately courts), not a
negotiation point for the PA.
5)
In order to renew a public adjuster license, a licensee must complete how many hours of
CE?
2
,A. 24 hours every year
B. 24 hours every two years
C. 24 hours of college-level classes every two years
D. 24 hours of ethics every two years
Correct Answer: B
Rationale: Illinois PAs must complete 24 hours of approved CE biennially. College
coursework (C) is not the required format. Ethics alone (D) is not the entire CE requirement.
6)
Which of the following is not a reason for the Director to revoke or refuse to renew a public
adjuster’s license?
A. Felony involving dishonesty or fraud
B. Engaging in the unauthorized practice of law
C. Failing to pay tax due to the Department of Revenue
D. Having its businessowners insurance policy canceled
Correct Answer: D
Rationale: Grounds include fraud felonies, UPL, and tax delinquencies. Having your BOP
canceled isn’t a listed licensure ground.
7)
When may a public adjuster solicit new clients?
A. While a loss-producing occurrence is continuing
B. Between 8 a.m. and 7 p.m.
C. While the fire department is engaged at the premises
D. Immediately after passing the state exam
Correct Answer: B
Rationale: Illinois limits solicitation hours to 8 a.m.–7 p.m. Soliciting during an active
emergency scene (A/C) is prohibited; licensure is required beyond just passing the exam (D).
3
, 8)
If a public adjuster moves, how soon must the Director be informed?
A. 15 days
B. 30 days
C. 60 days
D. At renewal
Correct Answer: B
Rationale: Address changes must be reported within 30 days. The other timeframes don’t
satisfy the statute.
9)
Which of the following might result in termination of a public adjuster’s license?
A. Failure to file a state income tax return
B. Being convicted of any misdemeanor
C. Failing to provide the Director a copy of each signed contract
D. Cancellation of the public adjuster’s business insurance
Correct Answer: A
Rationale: Tax compliance is a licensure condition; failure to file can trigger revocation. Not
every misdemeanor (B) is disqualifying. C is a record-keeping compliance issue (enforceable)
but not an automatic revocation. D is not a listed ground.
10)
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 in the Illinois code
C. Adopt rules and regulations to enforce the insurance laws
4
