Illinois Public Adjuster Exam Study
Guide — 2025/2026 Edition | 134
Questions
Real Exam-Based Questions and Verified Answers | 100% Accuracy | Paramedic
Program Admission Prep | Graded A+
Introduction
This comprehensive study guide includes 134 verified multiple-choice questions and
correct answers for the Illinois Public Adjuster Licensing Exam — 2025/2026 Edition. It
thoroughly covers key exam topics including insurance law, contracts, claims handling,
ethics, licensing requirements, and regulations relevant to Illinois public adjusters. Designed
for complete preparation and first-time success.
Answer Format
All correct answers are clearly marked in bold and green for efficient review and confident
preparation.
Questions 1–50: Insurance Law and Regulations
1. What is the minimum surety bond amount required for an Illinois
public adjuster license?
a) $10,000
b) $20,000
c) $50,000
d) $100,000
b) $20,000
Rationale: Illinois law (215 ILCS 5/1550) requires public adjusters to maintain a surety bond
of at least $20,000 as evidence of financial responsibility to protect clients and ensure
compliance with state regulations. A higher bond may be required in specific cases, but
$20,000 is the minimum.
2. Within how many days must a public adjuster notify the Department
of Insurance of a change in address?
a) 5 days
b) 10 days
c) 30 days
d) 60 days
c) 30 days
Rationale: Per 215 ILCS 5/1575, a public adjuster must notify the Illinois Department of
,Insurance of any change in address within 30 days to maintain accurate licensure information
and ensure compliance.
3. If a public adjuster contracts with an insured within 5 days of a loss,
how long does the insured have to void the contract?
a) 3 days
b) 5 days
c) 7 days
d) 10 days
b) 5 days
Rationale: Illinois law (215 ILCS 5/1570) provides a 5-day cooling-off period for insureds to
void a public adjuster contract signed within 5 days of a loss, protecting clients from hasty
decisions post-loss.
4. What is the maximum commission a public adjuster can charge in
Illinois?
a) 10%
b) 20%
c) 30%
d) No limit
d) No limit
Rationale: Illinois law (215 ILCS 5/1570) does not impose a statutory cap on public adjuster
commissions; the percentage is negotiated between the adjuster and the insured, ensuring
flexibility but requiring transparency.
5. Which of the following is NOT required to be submitted to the Illinois
Department of Insurance when applying for a public adjuster license?
a) Surety bond
b) Public adjuster contract
c) Copy of all business insurance policies
d) Proof of examination passage
c) Copy of all business insurance policies
Rationale: Per 215 ILCS 5/1550 and 50 Ill. Adm. Code 3118, applicants must submit a surety
bond, a sample public adjuster contract, and proof of exam passage, but business insurance
policies are not required for licensure.
6. How often must an Illinois public adjuster renew their license?
a) Annually
b) Biennially
c) Every 3 years
d) Every 5 years
b) Biennially
Rationale: Illinois public adjuster licenses must be renewed every two years, as mandated by
215 ILCS 5/1555, to ensure ongoing compliance with state regulations.
7. What is the minimum age requirement to become a licensed public
adjuster in Illinois?
a) 18
b) 21
c) 25
, d) No age requirement
b) 21
Rationale: Per 215 ILCS 5/1550, applicants for a public adjuster license in Illinois must be at
least 21 years old to ensure maturity and responsibility in handling claims.
8. Which of the following actions can result in the suspension of a public
adjuster’s license?
a) Negotiating a claim settlement
b) Failing to maintain a surety bond
c) Advertising services online
d) Charging a contingency fee
b) Failing to maintain a surety bond
Rationale: Failing to maintain the required $20,000 surety bond violates 215 ILCS 5/1550
and can lead to license suspension. Negotiating settlements, advertising, and contingency fees
are permissible.
9. What is the penalty for acting as a public adjuster without a license in
Illinois?
a) Class A misdemeanor
b) Class B misdemeanor
c) Felony
d) No penalty
a) Class A misdemeanor
Rationale: Per 215 ILCS 5/1585, acting as a public adjuster without a license is a Class A
misdemeanor, subject to fines and potential jail time.
10. How many days does a public adjuster have to respond to a
Department of Insurance inquiry?
a) 7 days
b) 15 days
c) 30 days
d) 60 days
b) 15 days
Rationale: Illinois regulations (50 Ill. Adm. Code 3118) require public adjusters to respond to
Department of Insurance inquiries within 15 days to ensure timely cooperation.
11. What must a public adjuster do if their surety bond is canceled?
a) Cease operations immediately
b) Notify the insured within 5 days
c) Continue operations for 30 days
d) No action required
a) Cease operations immediately
Rationale: Per 215 ILCS 5/1550, a public adjuster must cease operations immediately if their
surety bond is canceled, as it is a mandatory requirement for licensure.
12. Who regulates public adjusters in Illinois?
a) Illinois Department of Financial and Professional Regulation
b) Illinois Department of Insurance
c) Illinois Secretary of State
d) Illinois Attorney General
Guide — 2025/2026 Edition | 134
Questions
Real Exam-Based Questions and Verified Answers | 100% Accuracy | Paramedic
Program Admission Prep | Graded A+
Introduction
This comprehensive study guide includes 134 verified multiple-choice questions and
correct answers for the Illinois Public Adjuster Licensing Exam — 2025/2026 Edition. It
thoroughly covers key exam topics including insurance law, contracts, claims handling,
ethics, licensing requirements, and regulations relevant to Illinois public adjusters. Designed
for complete preparation and first-time success.
Answer Format
All correct answers are clearly marked in bold and green for efficient review and confident
preparation.
Questions 1–50: Insurance Law and Regulations
1. What is the minimum surety bond amount required for an Illinois
public adjuster license?
a) $10,000
b) $20,000
c) $50,000
d) $100,000
b) $20,000
Rationale: Illinois law (215 ILCS 5/1550) requires public adjusters to maintain a surety bond
of at least $20,000 as evidence of financial responsibility to protect clients and ensure
compliance with state regulations. A higher bond may be required in specific cases, but
$20,000 is the minimum.
2. Within how many days must a public adjuster notify the Department
of Insurance of a change in address?
a) 5 days
b) 10 days
c) 30 days
d) 60 days
c) 30 days
Rationale: Per 215 ILCS 5/1575, a public adjuster must notify the Illinois Department of
,Insurance of any change in address within 30 days to maintain accurate licensure information
and ensure compliance.
3. If a public adjuster contracts with an insured within 5 days of a loss,
how long does the insured have to void the contract?
a) 3 days
b) 5 days
c) 7 days
d) 10 days
b) 5 days
Rationale: Illinois law (215 ILCS 5/1570) provides a 5-day cooling-off period for insureds to
void a public adjuster contract signed within 5 days of a loss, protecting clients from hasty
decisions post-loss.
4. What is the maximum commission a public adjuster can charge in
Illinois?
a) 10%
b) 20%
c) 30%
d) No limit
d) No limit
Rationale: Illinois law (215 ILCS 5/1570) does not impose a statutory cap on public adjuster
commissions; the percentage is negotiated between the adjuster and the insured, ensuring
flexibility but requiring transparency.
5. Which of the following is NOT required to be submitted to the Illinois
Department of Insurance when applying for a public adjuster license?
a) Surety bond
b) Public adjuster contract
c) Copy of all business insurance policies
d) Proof of examination passage
c) Copy of all business insurance policies
Rationale: Per 215 ILCS 5/1550 and 50 Ill. Adm. Code 3118, applicants must submit a surety
bond, a sample public adjuster contract, and proof of exam passage, but business insurance
policies are not required for licensure.
6. How often must an Illinois public adjuster renew their license?
a) Annually
b) Biennially
c) Every 3 years
d) Every 5 years
b) Biennially
Rationale: Illinois public adjuster licenses must be renewed every two years, as mandated by
215 ILCS 5/1555, to ensure ongoing compliance with state regulations.
7. What is the minimum age requirement to become a licensed public
adjuster in Illinois?
a) 18
b) 21
c) 25
, d) No age requirement
b) 21
Rationale: Per 215 ILCS 5/1550, applicants for a public adjuster license in Illinois must be at
least 21 years old to ensure maturity and responsibility in handling claims.
8. Which of the following actions can result in the suspension of a public
adjuster’s license?
a) Negotiating a claim settlement
b) Failing to maintain a surety bond
c) Advertising services online
d) Charging a contingency fee
b) Failing to maintain a surety bond
Rationale: Failing to maintain the required $20,000 surety bond violates 215 ILCS 5/1550
and can lead to license suspension. Negotiating settlements, advertising, and contingency fees
are permissible.
9. What is the penalty for acting as a public adjuster without a license in
Illinois?
a) Class A misdemeanor
b) Class B misdemeanor
c) Felony
d) No penalty
a) Class A misdemeanor
Rationale: Per 215 ILCS 5/1585, acting as a public adjuster without a license is a Class A
misdemeanor, subject to fines and potential jail time.
10. How many days does a public adjuster have to respond to a
Department of Insurance inquiry?
a) 7 days
b) 15 days
c) 30 days
d) 60 days
b) 15 days
Rationale: Illinois regulations (50 Ill. Adm. Code 3118) require public adjusters to respond to
Department of Insurance inquiries within 15 days to ensure timely cooperation.
11. What must a public adjuster do if their surety bond is canceled?
a) Cease operations immediately
b) Notify the insured within 5 days
c) Continue operations for 30 days
d) No action required
a) Cease operations immediately
Rationale: Per 215 ILCS 5/1550, a public adjuster must cease operations immediately if their
surety bond is canceled, as it is a mandatory requirement for licensure.
12. Who regulates public adjusters in Illinois?
a) Illinois Department of Financial and Professional Regulation
b) Illinois Department of Insurance
c) Illinois Secretary of State
d) Illinois Attorney General
