ILLINOIS PUBLIC ADJUSTER EXAM PRACTICE
QUESTIONS AND ANSWERS
1. 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 - (ANSWERS)A. Enact laws regarding insurance
practices
2. Who of the following represents the insured in a claim?
(A. An independent adjuster
(B. A company adjuster
(C. A public adjuster
(D. A bailee - (ANSWERS)(C. A public adjuster
3. 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 - (ANSWERS)(B. The cause of the loss
4. 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 $20,000 - (ANSWERS)(C. A map of the public adjusters
marketing territories
5. If a public adjuster moves, how soon must he or she inform the Director?
(A. Within 15 days
(B. Within 30 days
(C. Within 60 days
(D. At the time of renewing the license - (ANSWERS)(B. Within 30 days
6. Which of the following might result in termination of a public adjuster's license?
(A. Failure to file a state income tax return
(B. Being convicted of any misdemeanor
(C. Failing to provide the Director with a copy of the signed contract with each insured
(D. Cancellation of the public adjuster's business insurance - (ANSWERS)(A. Failure to file a
state income tax return
7. It is allowable for a public adjuster to...
(A. Solicit new clients from 7pm to 8am
,ILLINOIS PUBLIC ADJUSTER EXAM PRACTICE
QUESTIONS AND ANSWERS
(B. State that he or she is licensed
#$%^&
(C. State that he or she represents the fire department
(D. State that he or she represents the insurance company - (ANSWERS)(B. State that he or she
is licensed
8. When may a public adjuster solicit new clients?
(A. While a loss-producing occurrence is continuing
(B. Between 8am and 7pm
(C. While the fire department is engaged at the damaged premises
(D. Immediately after the state examination is passed - (ANSWERS)(B. Between 8am and 7pm
9. Which of the following is not a reason for the Director to revoke or refuse to renew a public
adjuster's license?
(A. Being convicted of 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 - (ANSWERS)(D. Having its
businessowners insurance policy canceled
10. 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 homeowner's on the same day
(D. Avoiding certain counties during solicitations - (ANSWERS)(A. Advancing funds to an
insured while waiting for the claim to be resolved
11. If a public adiuster signs a contract with an insured within 5 business days of a fire loss, how
long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days - (ANSWERS)(C. 10 days
12. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years - (ANSWERS)(D. Seven years
, ILLINOIS PUBLIC ADJUSTER EXAM PRACTICE
QUESTIONS AND ANSWERS
13. If a Public Adjuster has possession of funds that are not to be paid to the Public Adjuster,
#$%^&
what place would be most appropriate for the Public Adiuster to deposit the funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office - (ANSWERS)(B. A separate escrow
account
14. To whom may a public adjuster not give out any of the insured's information without consent
of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance - (ANSWERS)(B. A contractor which is developing an repair
estimate
15. In order to renew a public adjuster license, a licenseemust complete how many hours of
continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years - (ANSWERS)(B. 24 hours of approved
continuing education every two years
16. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation - (ANSWERS)(C. Replacement cost at the
time of loss less depreciation
17. If the insured's full amount of appraised loss is upheld under the appraisal clause of a fire
and extended policy in Illinois, who pays the fees of the appraisers and the umpire?
(A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire - (ANSWERS)(D. The insurer pays
the fees of the appraisers and the umpire
QUESTIONS AND ANSWERS
1. 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 - (ANSWERS)A. Enact laws regarding insurance
practices
2. Who of the following represents the insured in a claim?
(A. An independent adjuster
(B. A company adjuster
(C. A public adjuster
(D. A bailee - (ANSWERS)(C. A public adjuster
3. 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 - (ANSWERS)(B. The cause of the loss
4. 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 $20,000 - (ANSWERS)(C. A map of the public adjusters
marketing territories
5. If a public adjuster moves, how soon must he or she inform the Director?
(A. Within 15 days
(B. Within 30 days
(C. Within 60 days
(D. At the time of renewing the license - (ANSWERS)(B. Within 30 days
6. Which of the following might result in termination of a public adjuster's license?
(A. Failure to file a state income tax return
(B. Being convicted of any misdemeanor
(C. Failing to provide the Director with a copy of the signed contract with each insured
(D. Cancellation of the public adjuster's business insurance - (ANSWERS)(A. Failure to file a
state income tax return
7. It is allowable for a public adjuster to...
(A. Solicit new clients from 7pm to 8am
,ILLINOIS PUBLIC ADJUSTER EXAM PRACTICE
QUESTIONS AND ANSWERS
(B. State that he or she is licensed
#$%^&
(C. State that he or she represents the fire department
(D. State that he or she represents the insurance company - (ANSWERS)(B. State that he or she
is licensed
8. When may a public adjuster solicit new clients?
(A. While a loss-producing occurrence is continuing
(B. Between 8am and 7pm
(C. While the fire department is engaged at the damaged premises
(D. Immediately after the state examination is passed - (ANSWERS)(B. Between 8am and 7pm
9. Which of the following is not a reason for the Director to revoke or refuse to renew a public
adjuster's license?
(A. Being convicted of 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 - (ANSWERS)(D. Having its
businessowners insurance policy canceled
10. 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 homeowner's on the same day
(D. Avoiding certain counties during solicitations - (ANSWERS)(A. Advancing funds to an
insured while waiting for the claim to be resolved
11. If a public adiuster signs a contract with an insured within 5 business days of a fire loss, how
long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days - (ANSWERS)(C. 10 days
12. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years - (ANSWERS)(D. Seven years
, ILLINOIS PUBLIC ADJUSTER EXAM PRACTICE
QUESTIONS AND ANSWERS
13. If a Public Adjuster has possession of funds that are not to be paid to the Public Adjuster,
#$%^&
what place would be most appropriate for the Public Adiuster to deposit the funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office - (ANSWERS)(B. A separate escrow
account
14. To whom may a public adjuster not give out any of the insured's information without consent
of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance - (ANSWERS)(B. A contractor which is developing an repair
estimate
15. In order to renew a public adjuster license, a licenseemust complete how many hours of
continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years - (ANSWERS)(B. 24 hours of approved
continuing education every two years
16. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation - (ANSWERS)(C. Replacement cost at the
time of loss less depreciation
17. If the insured's full amount of appraised loss is upheld under the appraisal clause of a fire
and extended policy in Illinois, who pays the fees of the appraisers and the umpire?
(A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire - (ANSWERS)(D. The insurer pays
the fees of the appraisers and the umpire
