NJ Public Adjustment review Exam Questions
and Answers (Latest Update 2023)
1). Public adjuster license
Ans: A solicitors/adjusters license is valid for two years and must be renewed every
two years
2). Public adjuster bond
Ans: $10,000 bond is required for solicitors/adjusters
3). Proof of loss
Ans: documentation of loss required of a policy owner by an insurance company;
must usually be filed within 60 days after the request of the insured or according to
policy provision, 60 days after the date of loss
4). Loss to a pair or set
Ans: (1) repair or replace any part to restore the pair or set to its value before the loss
or
(2) pay the difference between actual cash value before and after the loss
5). Insurer
Ans: company offering protection through the sale of an insurance policy to an
insured
6). Insured
Ans: party covered by an insurance policy
7). Policy period
Ans: the inception date and expiration date of the policy
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, 8). Limit of liability
Ans: maximum amount of coverage available under a liability insurance policy
9). Insurable interest
Ans: expectation of a monetary loss that can be covered by insurance. Owner of the
property.
10). Mortgage clause
Ans: attachment to a property insurance policy to protect the interest of the mortgage
in the mortgaged property. If the property is damaged or destroyed the mortgage is
indemnified up to his or her stated interest in the property.
11). Market value
Ans: value of property as established by the price a willing buyer would pay for
property purchased from a willing seller
12). Agreed value
Ans: a stipulated agreement between the insurance company and the insured that the
amount of insurance coverage under the policy is sufficient to be in compliance with the
coinsurance requirement.
13). Depreciation
Ans: actual or accounting recognition of the decrease in the value of a hard asset
(property) over a period of time
14). Recoverable depreciation(holdback)
Ans: although replacement cost policies provide for replacement of damaged
property at current prices, certain conditions must be met before you can collect the full
amount for the loss. The insurance company will make an offer of settlement, then
withhold a portion of the money until the repairs are actually made. You must provide
receipts showing that you incurred a cost of equal or greater than the offer of settlement
in order for you to receive all of the holdback moneys.
15). Non-recoverable depreciation
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and Answers (Latest Update 2023)
1). Public adjuster license
Ans: A solicitors/adjusters license is valid for two years and must be renewed every
two years
2). Public adjuster bond
Ans: $10,000 bond is required for solicitors/adjusters
3). Proof of loss
Ans: documentation of loss required of a policy owner by an insurance company;
must usually be filed within 60 days after the request of the insured or according to
policy provision, 60 days after the date of loss
4). Loss to a pair or set
Ans: (1) repair or replace any part to restore the pair or set to its value before the loss
or
(2) pay the difference between actual cash value before and after the loss
5). Insurer
Ans: company offering protection through the sale of an insurance policy to an
insured
6). Insured
Ans: party covered by an insurance policy
7). Policy period
Ans: the inception date and expiration date of the policy
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, 8). Limit of liability
Ans: maximum amount of coverage available under a liability insurance policy
9). Insurable interest
Ans: expectation of a monetary loss that can be covered by insurance. Owner of the
property.
10). Mortgage clause
Ans: attachment to a property insurance policy to protect the interest of the mortgage
in the mortgaged property. If the property is damaged or destroyed the mortgage is
indemnified up to his or her stated interest in the property.
11). Market value
Ans: value of property as established by the price a willing buyer would pay for
property purchased from a willing seller
12). Agreed value
Ans: a stipulated agreement between the insurance company and the insured that the
amount of insurance coverage under the policy is sufficient to be in compliance with the
coinsurance requirement.
13). Depreciation
Ans: actual or accounting recognition of the decrease in the value of a hard asset
(property) over a period of time
14). Recoverable depreciation(holdback)
Ans: although replacement cost policies provide for replacement of damaged
property at current prices, certain conditions must be met before you can collect the full
amount for the loss. The insurance company will make an offer of settlement, then
withhold a portion of the money until the repairs are actually made. You must provide
receipts showing that you incurred a cost of equal or greater than the offer of settlement
in order for you to receive all of the holdback moneys.
15). Non-recoverable depreciation
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