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ILLINOIS PUBLIC ADJUSTER EXAM PREP 2025 | 120 UPDATED
PRACTICE QUESTIONS & VERIFIED ANSWERS | 100%
CORRECT ALREADY GRADED A+
Q1. What is the primary role of a public adjuster in Illinois?
A. Represent insurance companies in claims
B. Represent policyholders in insurance claims
C. Act as a neutral mediator between insurer and insured
D. Regulate insurance laws for the state
Answer: B. Represent policyholders in insurance claims
Rationale: Public adjusters are licensed professionals who advocate for the
insured, not the insurer.
Q2. In Illinois, a public adjuster license must be renewed:
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Answer: B. Every 2 years
Rationale: Illinois requires biennial license renewal to ensure compliance
with continuing education.
Q3. Which authority issues public adjuster licenses in Illinois?
A. Department of Commerce
B. Illinois Insurance Department
C. State Licensing Board
D. Federal Insurance Bureau
Answer: B. Illinois Insurance Department
Rationale: The Illinois Department of Insurance regulates adjusters and
licensing requirements.
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Q4. What is the minimum age requirement to apply for a public adjuster
license in Illinois?
A. 18 years
B. 19 years
C. 20 years
D. 21 years
Answer: A. 18 years
Rationale: Applicants must be legal adults to apply for a license.
Q5. A public adjuster’s contract with a client must include:
A. Adjuster’s insurance coverage details
B. Fee structure and services to be provided
C. Client’s previous insurance claim history
D. State approval number
Answer: B. Fee structure and services to be provided
Rationale: Contracts must be transparent, detailing compensation and
scope of work.
Q6. What is the maximum fee a public adjuster may charge in Illinois for
claims involving state-declared emergencies?
A. 5% of claim settlement
B. 7% of claim settlement
C. 10% of claim settlement
D. 15% of claim settlement
Answer: B. 7% of claim settlement
Rationale: Illinois caps fees at 7% during state-declared emergencies to
protect consumers.
Q7. What must public adjusters avoid when soliciting clients?
A. Advertising in newspapers
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B. Soliciting at or near disaster sites
C. Using business cards
D. Operating websites
Answer: B. Soliciting at or near disaster sites
Rationale: This is prohibited to prevent unethical exploitation of victims.
Q8. What is required before an applicant can sit for the Illinois Public
Adjuster Exam?
A. College degree
B. Pre-licensing education course
C. Prior work as an insurance agent
D. Sponsorship from an insurer
Answer: B. Pre-licensing education course
Rationale: Completion of state-approved education is mandatory before
testing.
Q9. Public adjusters in Illinois must maintain a minimum surety bond of:
A. $10,000
B. $20,000
C. $50,000
D. $100,000
Answer: C. $50,000
Rationale: Surety bonds protect consumers against fraud or misconduct by
adjusters.
Q10. The Illinois Department of Insurance may revoke a public adjuster’s
license for:
A. Advertising services
B. Charging reasonable fees
C. Fraudulent or dishonest practices
D. Representing multiple clients
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Answer: C. Fraudulent or dishonest practices
Rationale: Misrepresentation and fraud are grounds for disciplinary action.
Q11. When must a public adjuster provide the client with a copy of the
signed contract?
A. Within 24 hours
B. At the time of signing
C. Within 5 business days
D. At claim settlement
Answer: B. At the time of signing
Rationale: Clients must receive immediate documentation of their
agreement.
Q12. A continuing education requirement for Illinois public adjusters
includes:
A. 12 hours every 2 years
B. 24 hours every 2 years
C. 30 hours every 3 years
D. 36 hours every 4 years
Answer: B. 24 hours every 2 years
Rationale: CE ensures adjusters stay current with laws and practices.
Q13. Public adjusters may be disciplined if they:
A. Negotiate on behalf of policyholders
B. Refer clients to contractors for repair work with financial gain
C. Submit claims for clients
D. Collect service fees from policyholders
Answer: B. Refer clients to contractors for repair work with financial
gain
Rationale: Conflict of interest rules prohibit receiving kickbacks.
ILLINOIS PUBLIC ADJUSTER EXAM PREP 2025 | 120 UPDATED
PRACTICE QUESTIONS & VERIFIED ANSWERS | 100%
CORRECT ALREADY GRADED A+
Q1. What is the primary role of a public adjuster in Illinois?
A. Represent insurance companies in claims
B. Represent policyholders in insurance claims
C. Act as a neutral mediator between insurer and insured
D. Regulate insurance laws for the state
Answer: B. Represent policyholders in insurance claims
Rationale: Public adjusters are licensed professionals who advocate for the
insured, not the insurer.
Q2. In Illinois, a public adjuster license must be renewed:
A. Every year
B. Every 2 years
C. Every 3 years
D. Every 5 years
Answer: B. Every 2 years
Rationale: Illinois requires biennial license renewal to ensure compliance
with continuing education.
Q3. Which authority issues public adjuster licenses in Illinois?
A. Department of Commerce
B. Illinois Insurance Department
C. State Licensing Board
D. Federal Insurance Bureau
Answer: B. Illinois Insurance Department
Rationale: The Illinois Department of Insurance regulates adjusters and
licensing requirements.
,2|Page
Q4. What is the minimum age requirement to apply for a public adjuster
license in Illinois?
A. 18 years
B. 19 years
C. 20 years
D. 21 years
Answer: A. 18 years
Rationale: Applicants must be legal adults to apply for a license.
Q5. A public adjuster’s contract with a client must include:
A. Adjuster’s insurance coverage details
B. Fee structure and services to be provided
C. Client’s previous insurance claim history
D. State approval number
Answer: B. Fee structure and services to be provided
Rationale: Contracts must be transparent, detailing compensation and
scope of work.
Q6. What is the maximum fee a public adjuster may charge in Illinois for
claims involving state-declared emergencies?
A. 5% of claim settlement
B. 7% of claim settlement
C. 10% of claim settlement
D. 15% of claim settlement
Answer: B. 7% of claim settlement
Rationale: Illinois caps fees at 7% during state-declared emergencies to
protect consumers.
Q7. What must public adjusters avoid when soliciting clients?
A. Advertising in newspapers
,3|Page
B. Soliciting at or near disaster sites
C. Using business cards
D. Operating websites
Answer: B. Soliciting at or near disaster sites
Rationale: This is prohibited to prevent unethical exploitation of victims.
Q8. What is required before an applicant can sit for the Illinois Public
Adjuster Exam?
A. College degree
B. Pre-licensing education course
C. Prior work as an insurance agent
D. Sponsorship from an insurer
Answer: B. Pre-licensing education course
Rationale: Completion of state-approved education is mandatory before
testing.
Q9. Public adjusters in Illinois must maintain a minimum surety bond of:
A. $10,000
B. $20,000
C. $50,000
D. $100,000
Answer: C. $50,000
Rationale: Surety bonds protect consumers against fraud or misconduct by
adjusters.
Q10. The Illinois Department of Insurance may revoke a public adjuster’s
license for:
A. Advertising services
B. Charging reasonable fees
C. Fraudulent or dishonest practices
D. Representing multiple clients
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Answer: C. Fraudulent or dishonest practices
Rationale: Misrepresentation and fraud are grounds for disciplinary action.
Q11. When must a public adjuster provide the client with a copy of the
signed contract?
A. Within 24 hours
B. At the time of signing
C. Within 5 business days
D. At claim settlement
Answer: B. At the time of signing
Rationale: Clients must receive immediate documentation of their
agreement.
Q12. A continuing education requirement for Illinois public adjusters
includes:
A. 12 hours every 2 years
B. 24 hours every 2 years
C. 30 hours every 3 years
D. 36 hours every 4 years
Answer: B. 24 hours every 2 years
Rationale: CE ensures adjusters stay current with laws and practices.
Q13. Public adjusters may be disciplined if they:
A. Negotiate on behalf of policyholders
B. Refer clients to contractors for repair work with financial gain
C. Submit claims for clients
D. Collect service fees from policyholders
Answer: B. Refer clients to contractors for repair work with financial
gain
Rationale: Conflict of interest rules prohibit receiving kickbacks.
