ADJUSTER PRO INDIANA ADJUSTER'S
LICENSE EXAMINATION STUDY SHEET 2026
QUESTIONS WITH DETAILED SOLUTIONS
◉When a gas line explodes close to Georgia's business, it destroys
most of her landscaping, leveling trees and uprooting shrubs. Which
coverage extension could help cover the cost of replacing these
plants?. Answer: The Outdoor Property extension provides up to
$1,000 in coverage for damage to television and radio antennae,
detached signs, trees, plants, or shrubs.
◉In a commercial property policy, the Business Income Coverage
Form provides indemnification to the policyholder for the loss of
income during which of the following time frames?. Answer: From
72 hours after the initial damage until the business is up and
running again
◉XYZ Carpet Manufacturing's main factory burns down during the
night due to faulty electrical wiring. No longer able to manufacture
carpeting, XYZ Carpet faces a serious cash flow dilemma. Which
insurance coverage might help pay XYZ Carpet's bills while the
factory is repaired?. Answer: Business Income coverage
,◉ABC Paving owns a warehouse where they store all their pavers.
Lightning strikes the warehouse, which burns to the ground and
destroys the entire fleet of pavers. In order to complete the projects
they are currently working on, ABC Paving has to lease four pavers
from another company. What commercial insurance coverage might
pay for this expense?. Answer: Extra Expense
◉In a commercial property policy, Business Income Coverage would
pay for which of the following expenses?. Answer: Rent
◉In a commercial property policy, Extra Expense Coverage provides
indemnification to the policyholder for additional expenses incurred
during which of the following time frames?. Answer: From the point
of initial damage until the moment the business is up and running
again
◉Helen owns a manufacturing company. She maintains a
commercial property policy that includes Business Income and
Extra Expense coverage. One evening, a windstorm blows a tree
through the side of her building, leaving a hole in the wall and
damaging a production machine. When Helen has to rent another
machine to keep her business in operation, how long will she have to
wait before she can be indemnified for this indirect loss?. Answer: 0
hours—Extra Expense coverage kicks in immediately
◉Diana owns a manufacturing company. One evening, a windstorm
blows a tree through the side of her building, leaving a hole in the
,wall and damaging one of her production machines. Diana
temporarily fixes the hole with some plywood, but will have to rent a
new production machine until hers is repaired. Which coverage in
her commercial property policy could indemnify Diana for the cost
of the machine rental?. Answer: Extra Expense Coverage (Extra
Expense coverage is designed to help the insured business reduce
their loss of income in the event of a covered loss, (such as a
production machine to keep the business going).)
◉A fire breaks out in Anton's manufacturing plant, causing extensive
damage which will take at least three months to repair. In the
meantime, Anton has rent and employees who still need to be paid,
and many other expenses that can't wait until the business is up and
running again. Which coverage form of his commercial property
policy can help Anton with his cash flow?. Answer: Business Income
Coverage
◉XYZ Computer's production building for circuit boards is struck by
lightning, which results in a fire that burns down the entire facility.
XYZ Computer cannot continue the production of computers until
the facility is rebuilt. Which insurance coverage might indemnify
XYZ Computer for lost revenue until a new facility is built?. Answer:
Business Interruption (The Business Income Coverage Form (a.k.a.
Business Interruption Form) indemnifies the insured for lost income
due to damages caused by a covered loss, plus any continuing
operating expenses incurred during the period of restoration, such
as rent, salaries, utilities, taxes, etc.)
, ◉A fire in John's factory causes him to shut the doors for 90 days.
While repairs take place, John rents another building, along with
some machinery and manufacturing supplies, for $90,000. John's
total loss is $300,000, but by renting the new building and
equipment he manages to reduce that loss by $50,000. Assuming
John's commercial property policy includes Business Income
Coverage With Extra Expense, how much will his insurer indemnify
him?. Answer: $340,000 (John was able to reduce his total loss by
$50,000, making his total loss $250,000. The extra expense of the
equipment ($90,000) is then added to the total loss ($250,000)
giving us a total loss, with extra expenses, of $340,000.)
◉When Bill's business is interrupted because of a fire, he must
provide a profit and loss statement to his insurer so they can
determine an accurate amount of indemnification. Which three core
elements from the profit and loss statement are used to calculate the
net income?. Answer: Total revenue, cost of goods sold, operating
expenses
◉A fire in John's factory causes him to shut the doors for 90 days.
While repairs take place, John rents another building, along with
some machinery and manufacturing supplies, for $90,000. John's
total loss is $300,000, but by renting the new building and
equipment he manages to reduce that loss by $50,000. Assuming
John's commercial property policy provides Business Income
Coverage Without Extra Expense, how much will his insurer
indemnify him?. Answer: $300,000
LICENSE EXAMINATION STUDY SHEET 2026
QUESTIONS WITH DETAILED SOLUTIONS
◉When a gas line explodes close to Georgia's business, it destroys
most of her landscaping, leveling trees and uprooting shrubs. Which
coverage extension could help cover the cost of replacing these
plants?. Answer: The Outdoor Property extension provides up to
$1,000 in coverage for damage to television and radio antennae,
detached signs, trees, plants, or shrubs.
◉In a commercial property policy, the Business Income Coverage
Form provides indemnification to the policyholder for the loss of
income during which of the following time frames?. Answer: From
72 hours after the initial damage until the business is up and
running again
◉XYZ Carpet Manufacturing's main factory burns down during the
night due to faulty electrical wiring. No longer able to manufacture
carpeting, XYZ Carpet faces a serious cash flow dilemma. Which
insurance coverage might help pay XYZ Carpet's bills while the
factory is repaired?. Answer: Business Income coverage
,◉ABC Paving owns a warehouse where they store all their pavers.
Lightning strikes the warehouse, which burns to the ground and
destroys the entire fleet of pavers. In order to complete the projects
they are currently working on, ABC Paving has to lease four pavers
from another company. What commercial insurance coverage might
pay for this expense?. Answer: Extra Expense
◉In a commercial property policy, Business Income Coverage would
pay for which of the following expenses?. Answer: Rent
◉In a commercial property policy, Extra Expense Coverage provides
indemnification to the policyholder for additional expenses incurred
during which of the following time frames?. Answer: From the point
of initial damage until the moment the business is up and running
again
◉Helen owns a manufacturing company. She maintains a
commercial property policy that includes Business Income and
Extra Expense coverage. One evening, a windstorm blows a tree
through the side of her building, leaving a hole in the wall and
damaging a production machine. When Helen has to rent another
machine to keep her business in operation, how long will she have to
wait before she can be indemnified for this indirect loss?. Answer: 0
hours—Extra Expense coverage kicks in immediately
◉Diana owns a manufacturing company. One evening, a windstorm
blows a tree through the side of her building, leaving a hole in the
,wall and damaging one of her production machines. Diana
temporarily fixes the hole with some plywood, but will have to rent a
new production machine until hers is repaired. Which coverage in
her commercial property policy could indemnify Diana for the cost
of the machine rental?. Answer: Extra Expense Coverage (Extra
Expense coverage is designed to help the insured business reduce
their loss of income in the event of a covered loss, (such as a
production machine to keep the business going).)
◉A fire breaks out in Anton's manufacturing plant, causing extensive
damage which will take at least three months to repair. In the
meantime, Anton has rent and employees who still need to be paid,
and many other expenses that can't wait until the business is up and
running again. Which coverage form of his commercial property
policy can help Anton with his cash flow?. Answer: Business Income
Coverage
◉XYZ Computer's production building for circuit boards is struck by
lightning, which results in a fire that burns down the entire facility.
XYZ Computer cannot continue the production of computers until
the facility is rebuilt. Which insurance coverage might indemnify
XYZ Computer for lost revenue until a new facility is built?. Answer:
Business Interruption (The Business Income Coverage Form (a.k.a.
Business Interruption Form) indemnifies the insured for lost income
due to damages caused by a covered loss, plus any continuing
operating expenses incurred during the period of restoration, such
as rent, salaries, utilities, taxes, etc.)
, ◉A fire in John's factory causes him to shut the doors for 90 days.
While repairs take place, John rents another building, along with
some machinery and manufacturing supplies, for $90,000. John's
total loss is $300,000, but by renting the new building and
equipment he manages to reduce that loss by $50,000. Assuming
John's commercial property policy includes Business Income
Coverage With Extra Expense, how much will his insurer indemnify
him?. Answer: $340,000 (John was able to reduce his total loss by
$50,000, making his total loss $250,000. The extra expense of the
equipment ($90,000) is then added to the total loss ($250,000)
giving us a total loss, with extra expenses, of $340,000.)
◉When Bill's business is interrupted because of a fire, he must
provide a profit and loss statement to his insurer so they can
determine an accurate amount of indemnification. Which three core
elements from the profit and loss statement are used to calculate the
net income?. Answer: Total revenue, cost of goods sold, operating
expenses
◉A fire in John's factory causes him to shut the doors for 90 days.
While repairs take place, John rents another building, along with
some machinery and manufacturing supplies, for $90,000. John's
total loss is $300,000, but by renting the new building and
equipment he manages to reduce that loss by $50,000. Assuming
John's commercial property policy provides Business Income
Coverage Without Extra Expense, how much will his insurer
indemnify him?. Answer: $300,000
