ILLINOIS PUBLIC ADJUSTER EXAM VERSION 1
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Extra expenses are covered on a commercial property
policy when: (A. they reduce the business income loss (B. costs
are incurred to prepare a proof of loss document (C. the limit is
exhausted paying for direct loss (D. the inflation of the building
value exceeds 4% in one year
Answer:
(A. they reduce the business income loss
Question 2: A manufacturing plant with business income and extra
expense coverage is highly damaged in a fire. During the
reconstruction period, the chief financialofficer (who works at the
company headquarters which is located four hours away) is
required to drive several times to the plant to dig out records and
files. He is paid $12,000 in salary for this time period, and he
submits $2500 in travel expenses. How much would be covered by
business income and extra expense?
A. Nothing
B. $12,000
C. $14,500
D. $14,500 minus the deductible
Answer:
(C. $14,500
Question 3: Commercial property insurance would exclude which
of the following acts of vandalism? (A. Spray painting on a
,building's walls (B. Chemicals thrown onto a building's roof (C.
Damage to an advertising sign located on the sidewalk (D. Bricks
thrown through a building's windows
Answer:
(C. Damage to an advertising sign located on the sidewalk
Question 4: Stock-in-sight should be adjusted by using or
inspecting which of the following? (A. Ledgers and journals (B.
Physical inventory (C. Wholesale receipts (D. Bank statements
Answer:
(B. Physical inventory
Question 5: Stock-out-of-sight would not be settled using which of
the following? (A. Disbursements journal (B. Wholesale receipts (C.
Advanced budget (D. Bank statements
Answer:
(C. Advanced budget
Question 6: A commercial insured has purchased an inland marine
policy covering a sign, with alimit of $20,000 and a 5% deductible.
There was a covered loss of $10,000 to the sign. How much will the
insured receive? (A. $9000 (B. $9500 (C. $10,000 (D. $19,500
Answer:
(A. $9000
Question 7: Why is there a 30-day waiting period for flood
insurance? (A. To allow the insurer time to inspect the building (B.
To provide sufficient time for underwriting and checking of flood
,zones (C. To prevent abuse to the insurance system (D. To allow an
applicant to complete an elevation certificate
Answer:
(C. To prevent abuse to the insurance system
Question 8: Which of the following is not covered by a flood
policy? (A. Artwork and furs (B. Carpeting above the basement
floor (C. Air conditioning units (D. Additional living expenses
Answer:
(D. Additional living expenses
Question 9: Which of the following is false about Increased Cost of
Compliance (ICC) coverage in a commercial flood policy? (A. It
provides up to $30,000 of the cost to elevate, demolish, or relocate
the property after a flood loss (B. A flood-damaged building must
have been declared substantially damaged in order for ICC
coverage to apply (C. A separate deductible of$500 applies (D.
Flood policies automatically include ICC coverage for al eligible
properties
Answer:
(C. A separate deductible of$500 applies
Question 10: Which is not a type of window? (A. Casement (B.
Double hung (C. Horizontal slider (D. Pocket
Answer:
(D. Pocket
, Question 11: When may a truss be notched or grooved? (A. Under
the supervision of a certified engineer (B. When the notches are
less than 2" and are spaced at least 12" apart (C. When they
improve the appearance of the completed structure (D. Never
Answer:
(A. Under the supervision of a certified engineer
Question 12: A concrete wall is being built that is 4 feet high, 50
feet long and 12 inches thick. Rounding up to the nearest whole
number, how many cubic yards of concrete should be ordered? (A.
4 (B. 7 (C. 8 (D. 10
Answer:
(C. 8
Question 13: A hip roof is 42 feet long and 24 feet wide. How long is
the ridge? (A. 18 feet (B. 20feet (C. 24feet (D. 30 feet
Answer:
(A. 18 feet
Question 14: A gable roof 32 feet long is to have rafters installed 16
inches on center. How many rafters are needed? (A. 25 (B. 45 (C. 50
(D. 88
Answer:
(C. 50
Question 15: What is the maximum rise of stairs in most building
codes? (A. 3 to 4 inches (B. 5 to 6 inches (C. 7 to 8 inches (D. 9 to
10inches
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Extra expenses are covered on a commercial property
policy when: (A. they reduce the business income loss (B. costs
are incurred to prepare a proof of loss document (C. the limit is
exhausted paying for direct loss (D. the inflation of the building
value exceeds 4% in one year
Answer:
(A. they reduce the business income loss
Question 2: A manufacturing plant with business income and extra
expense coverage is highly damaged in a fire. During the
reconstruction period, the chief financialofficer (who works at the
company headquarters which is located four hours away) is
required to drive several times to the plant to dig out records and
files. He is paid $12,000 in salary for this time period, and he
submits $2500 in travel expenses. How much would be covered by
business income and extra expense?
A. Nothing
B. $12,000
C. $14,500
D. $14,500 minus the deductible
Answer:
(C. $14,500
Question 3: Commercial property insurance would exclude which
of the following acts of vandalism? (A. Spray painting on a
,building's walls (B. Chemicals thrown onto a building's roof (C.
Damage to an advertising sign located on the sidewalk (D. Bricks
thrown through a building's windows
Answer:
(C. Damage to an advertising sign located on the sidewalk
Question 4: Stock-in-sight should be adjusted by using or
inspecting which of the following? (A. Ledgers and journals (B.
Physical inventory (C. Wholesale receipts (D. Bank statements
Answer:
(B. Physical inventory
Question 5: Stock-out-of-sight would not be settled using which of
the following? (A. Disbursements journal (B. Wholesale receipts (C.
Advanced budget (D. Bank statements
Answer:
(C. Advanced budget
Question 6: A commercial insured has purchased an inland marine
policy covering a sign, with alimit of $20,000 and a 5% deductible.
There was a covered loss of $10,000 to the sign. How much will the
insured receive? (A. $9000 (B. $9500 (C. $10,000 (D. $19,500
Answer:
(A. $9000
Question 7: Why is there a 30-day waiting period for flood
insurance? (A. To allow the insurer time to inspect the building (B.
To provide sufficient time for underwriting and checking of flood
,zones (C. To prevent abuse to the insurance system (D. To allow an
applicant to complete an elevation certificate
Answer:
(C. To prevent abuse to the insurance system
Question 8: Which of the following is not covered by a flood
policy? (A. Artwork and furs (B. Carpeting above the basement
floor (C. Air conditioning units (D. Additional living expenses
Answer:
(D. Additional living expenses
Question 9: Which of the following is false about Increased Cost of
Compliance (ICC) coverage in a commercial flood policy? (A. It
provides up to $30,000 of the cost to elevate, demolish, or relocate
the property after a flood loss (B. A flood-damaged building must
have been declared substantially damaged in order for ICC
coverage to apply (C. A separate deductible of$500 applies (D.
Flood policies automatically include ICC coverage for al eligible
properties
Answer:
(C. A separate deductible of$500 applies
Question 10: Which is not a type of window? (A. Casement (B.
Double hung (C. Horizontal slider (D. Pocket
Answer:
(D. Pocket
, Question 11: When may a truss be notched or grooved? (A. Under
the supervision of a certified engineer (B. When the notches are
less than 2" and are spaced at least 12" apart (C. When they
improve the appearance of the completed structure (D. Never
Answer:
(A. Under the supervision of a certified engineer
Question 12: A concrete wall is being built that is 4 feet high, 50
feet long and 12 inches thick. Rounding up to the nearest whole
number, how many cubic yards of concrete should be ordered? (A.
4 (B. 7 (C. 8 (D. 10
Answer:
(C. 8
Question 13: A hip roof is 42 feet long and 24 feet wide. How long is
the ridge? (A. 18 feet (B. 20feet (C. 24feet (D. 30 feet
Answer:
(A. 18 feet
Question 14: A gable roof 32 feet long is to have rafters installed 16
inches on center. How many rafters are needed? (A. 25 (B. 45 (C. 50
(D. 88
Answer:
(C. 50
Question 15: What is the maximum rise of stairs in most building
codes? (A. 3 to 4 inches (B. 5 to 6 inches (C. 7 to 8 inches (D. 9 to
10inches
