ILLINOIS PUBLIC ADJUSTER EXAM
PRACTICE QUESTIONS AND CORRECT
ANSWERS FROM A VERIFIED SOURCE
LATEST 2025
1. What is the purpose of an insurer's declaratory action?
(A. To declare the maximum limits of liability in a civil proceeding
(B. To obtain the court's opinion of coverage under a policy in a loss
situation
(C. To declare the insured's and mortgagee's rights in an insurance
policy
(D. To declare an insured unfit to claim damages in a loss situation -
CORRECT ANSWER-(B. To obtain the court's opinion of coverage
under a policy in a loss situation
2. An insuring agreement:
(A. Specifies what is not covered
(B. Expresses the insurer's obligations of coverage
,(C. Shows policyholder information such as name and address
(D. States, among other rules and rights, the insured's duties ni the
event of loss or damage - CORRECT ANSWER-(B. Expresses the
insurer's obligations of coverage
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 - CORRECT ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT ANSWER-(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 -
CORRECT ANSWER-(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
(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 -
CORRECT ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT
ANSWER-(A. Advancing funds to an insured while waiting for the claim
to be resolved
PRACTICE QUESTIONS AND CORRECT
ANSWERS FROM A VERIFIED SOURCE
LATEST 2025
1. What is the purpose of an insurer's declaratory action?
(A. To declare the maximum limits of liability in a civil proceeding
(B. To obtain the court's opinion of coverage under a policy in a loss
situation
(C. To declare the insured's and mortgagee's rights in an insurance
policy
(D. To declare an insured unfit to claim damages in a loss situation -
CORRECT ANSWER-(B. To obtain the court's opinion of coverage
under a policy in a loss situation
2. An insuring agreement:
(A. Specifies what is not covered
(B. Expresses the insurer's obligations of coverage
,(C. Shows policyholder information such as name and address
(D. States, among other rules and rights, the insured's duties ni the
event of loss or damage - CORRECT ANSWER-(B. Expresses the
insurer's obligations of coverage
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 - CORRECT ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT ANSWER-(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 -
CORRECT ANSWER-(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
(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 -
CORRECT ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT
ANSWER-(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 - CORRECT
ANSWER-(A. Advancing funds to an insured while waiting for the claim
to be resolved
