ILLINOIS PUBLIC ADJUSTER MAIN EXAMINATION SET
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Specified(Named Perils) - ✔✔Covered, Ex. Fire and lightning
✔✔Special Form(Open Perils) - ✔✔Not covered, Ex. Wear and Tear
✔✔Direct loss - ✔✔Fire and vandalism
✔✔Indirect loss - ✔✔Renting another place to live
✔✔ACV - ✔✔Replacement cost minus depreciation
✔✔RCV - ✔✔cost to replace with like, kind and quality at todays replacement cost
✔✔FRC - ✔✔replace damaged with functional equivalent
✔✔Market Value - ✔✔based upon free market conditions
✔✔Agreed value - ✔✔insured and insurer agree to amount of coverage to be written for
the policy term
✔✔Stated amount - ✔✔least of (1) Stated amount, (2) ACV, (3) cost of repair
✔✔Frame construction - ✔✔Wood
✔✔Masonry Construction - ✔✔Brick, concrete
✔✔Joisted masonry - ✔✔Walls masonry, floor wood
✔✔Noncombustible - ✔✔Metal
✔✔Masonry noncombustible - ✔✔Walls masonry, floor noncomb
✔✔Contributory Negligence - ✔✔Both negligent and guilty
✔✔Comparative negligence - ✔✔percentage of negligence
✔✔Parts of Policy structure - ✔✔Definitions, Declaration page, Insuring agreement,
conditions, exclusions, endorsements
✔✔Policy periods - ✔✔12 to 6 months
, ✔✔Deductibles - ✔✔Dollar, percentage, and time deductible
✔✔Pro Rata - ✔✔prorates loss payments among policies that are concurrent
✔✔Primary coverage - ✔✔Pays first
✔✔excess coverage - ✔✔pays after primary
✔✔Coinsurance - ✔✔Requires insured to carry insurance coverage to a specified
percentage
✔✔Blanket insurance - ✔✔provided to all locations
✔✔Occupancy - ✔✔Contents but no people
✔✔Vacancy - ✔✔No content and no people
✔✔Percentage building must be rented - ✔✔31%
✔✔Assignment - ✔✔prohibited unless agreed with insured
✔✔Waiver - ✔✔voluntary relinquishment
✔✔Personal property is adjusted on a ..... - ✔✔ACV basis
✔✔Buildings are adjusted on a .... - ✔✔Replacement cost without depreciation
✔✔3rd party provisions - ✔✔Standard Mortgage Clause, Loss Payment clause, No
benefit to bailee
✔✔Dwelling policy provides insurance for residential properties up to.. - ✔✔4 units
occupied by no more than 5 roomers
✔✔Basic form - ✔✔Covers named perils and is the most basic and standard
✔✔Broad form - ✔✔has additional perils such as weight of snow,
✔✔Special form - ✔✔all coverage unless specifically excluded
✔✔coverage A - ✔✔covers the dwelling
✔✔Coverage B - ✔✔other structures
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔Specified(Named Perils) - ✔✔Covered, Ex. Fire and lightning
✔✔Special Form(Open Perils) - ✔✔Not covered, Ex. Wear and Tear
✔✔Direct loss - ✔✔Fire and vandalism
✔✔Indirect loss - ✔✔Renting another place to live
✔✔ACV - ✔✔Replacement cost minus depreciation
✔✔RCV - ✔✔cost to replace with like, kind and quality at todays replacement cost
✔✔FRC - ✔✔replace damaged with functional equivalent
✔✔Market Value - ✔✔based upon free market conditions
✔✔Agreed value - ✔✔insured and insurer agree to amount of coverage to be written for
the policy term
✔✔Stated amount - ✔✔least of (1) Stated amount, (2) ACV, (3) cost of repair
✔✔Frame construction - ✔✔Wood
✔✔Masonry Construction - ✔✔Brick, concrete
✔✔Joisted masonry - ✔✔Walls masonry, floor wood
✔✔Noncombustible - ✔✔Metal
✔✔Masonry noncombustible - ✔✔Walls masonry, floor noncomb
✔✔Contributory Negligence - ✔✔Both negligent and guilty
✔✔Comparative negligence - ✔✔percentage of negligence
✔✔Parts of Policy structure - ✔✔Definitions, Declaration page, Insuring agreement,
conditions, exclusions, endorsements
✔✔Policy periods - ✔✔12 to 6 months
, ✔✔Deductibles - ✔✔Dollar, percentage, and time deductible
✔✔Pro Rata - ✔✔prorates loss payments among policies that are concurrent
✔✔Primary coverage - ✔✔Pays first
✔✔excess coverage - ✔✔pays after primary
✔✔Coinsurance - ✔✔Requires insured to carry insurance coverage to a specified
percentage
✔✔Blanket insurance - ✔✔provided to all locations
✔✔Occupancy - ✔✔Contents but no people
✔✔Vacancy - ✔✔No content and no people
✔✔Percentage building must be rented - ✔✔31%
✔✔Assignment - ✔✔prohibited unless agreed with insured
✔✔Waiver - ✔✔voluntary relinquishment
✔✔Personal property is adjusted on a ..... - ✔✔ACV basis
✔✔Buildings are adjusted on a .... - ✔✔Replacement cost without depreciation
✔✔3rd party provisions - ✔✔Standard Mortgage Clause, Loss Payment clause, No
benefit to bailee
✔✔Dwelling policy provides insurance for residential properties up to.. - ✔✔4 units
occupied by no more than 5 roomers
✔✔Basic form - ✔✔Covers named perils and is the most basic and standard
✔✔Broad form - ✔✔has additional perils such as weight of snow,
✔✔Special form - ✔✔all coverage unless specifically excluded
✔✔coverage A - ✔✔covers the dwelling
✔✔Coverage B - ✔✔other structures
