ILLINOIS PUBLIC ADJUSTER EXAM
PRACTICE QUESTIONS WITH VERIFIED
SOLUTIONS NEW MODIFIED TESTED AND
APPROVED GRADED A+ 2026 LATEST
1. 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
2. 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
3. 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
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,(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
4. If a public adiuster signs a contract with an insured within 5 business days of a fire loss,
how long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days --CORRECT ANSWER--(C. 10 days
5. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years --CORRECT ANSWER--(D. Seven years
6. If a Public Adjuster has possession of funds that are not to be paid to the Public Adjuster,
what place would be most appropriate for the Public Adiuster to deposit the funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office --CORRECT ANSWER--(B. A
separate escrow account
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,7. To whom may a public adjuster not give out any of the insured's information without
consent of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance --CORRECT ANSWER--(B. A contractor which is
developing an repair estimate
8. In order to renew a public adjuster license, a licenseemust complete how many hours of
continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years --CORRECT ANSWER--(B. 24 hours of
approved continuing education every two years
9. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation --CORRECT ANSWER--(C. Replacement
cost at the time of loss less depreciation
10. If the insured's full amount of appraised loss is upheld under the appraisal clause of a fire
and extended policy in Illinois, who pays the fees of the appraisers and the umpire?
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, (A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire --CORRECT ANSWER--(D.
The insurer pays the fees of the appraisers and the umpire
11. An insurer must notify the public adjuster if a homeowner's claim remains undecided for
how many d a s ?
(A. 10 days after the date of loss
(B. 10 days after receiving proof of loss
(C. 25 days after the date of loss
(D. 25 days after receiving proof of loss --CORRECT ANSWER--(D. 25 days after receiving
proof of loss
12. In Illinois, which of the following is not an allowable reason for cancellation by the
insurer of a fire and extended coverage policy?
(A. Nonpayment of premium
(B. Two or more claims filed with a total loss amount over $10,000
(C. The policy was obtained by fraud
(D. For any act which measurably increases the risk originally accepted --CORRECT
ANSWER--(B. Two or more claims filed with a total loss amount over $10,000
13. Which of the following does the Director not have the power or duty to do?
(A. Enact laws regarding insurance practices
(B. Enforce insurance laws that are in the Illinois legal code
(C. Adopt rules and regulations to enforce the insurance laws
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PRACTICE QUESTIONS WITH VERIFIED
SOLUTIONS NEW MODIFIED TESTED AND
APPROVED GRADED A+ 2026 LATEST
1. 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
2. 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
3. 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
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,(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
4. If a public adiuster signs a contract with an insured within 5 business days of a fire loss,
how long does the insured have to void the contract?
(A. 3 days
(B. 5 days
(C. 10 days
(D. 30 days --CORRECT ANSWER--(C. 10 days
5. How long must a public adjuster maintain records for the possible inspection and
examination by the Director?
(A. One year
(B. Two years
(C. Three years
(D. Seven years --CORRECT ANSWER--(D. Seven years
6. If a Public Adjuster has possession of funds that are not to be paid to the Public Adjuster,
what place would be most appropriate for the Public Adiuster to deposit the funds into?
(A. A savings account
(B. A separate escrow account
(C. A checking account
(D. In a locked cabinet in the Public Adjuster's office --CORRECT ANSWER--(B. A
separate escrow account
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,7. To whom may a public adjuster not give out any of the insured's information without
consent of the insured?
Rhea,
(A. The insurer which writes the policy
(B. A contractor which is developing an repair estimate
(C. The Internal Revenue Service
(D. The Department of Insurance --CORRECT ANSWER--(B. A contractor which is
developing an repair estimate
8. In order to renew a public adjuster license, a licenseemust complete how many hours of
continuing education?
(A. 24 hours of approved continuing education every year
(B. 24 hours of approved continuing education every two years
(C. 24 hours of college-level or insurance-related classes every two years
(D. 24 hours of ethics education every two years --CORRECT ANSWER--(B. 24 hours of
approved continuing education every two years
9. How is Actual Cash Value calculated according to Administrative Rule 919?
(A. Market value at the time of loss
(B. Replacement cost plus depreciation
(C. Replacement cost at the time of loss less depreciation
(D. Cost at the time of purchase less depreciation --CORRECT ANSWER--(C. Replacement
cost at the time of loss less depreciation
10. If the insured's full amount of appraised loss is upheld under the appraisal clause of a fire
and extended policy in Illinois, who pays the fees of the appraisers and the umpire?
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, (A. Each side pays for its own appraiser, and the fees of the umpire si divided equally
(B. Each side pays for its own appraiser, and the insurer pays the full cost of the umpire
(C. The insured pays the fees of the appraisers and the umpire
(D. The insurer pays the fees of the appraisers and the umpire --CORRECT ANSWER--(D.
The insurer pays the fees of the appraisers and the umpire
11. An insurer must notify the public adjuster if a homeowner's claim remains undecided for
how many d a s ?
(A. 10 days after the date of loss
(B. 10 days after receiving proof of loss
(C. 25 days after the date of loss
(D. 25 days after receiving proof of loss --CORRECT ANSWER--(D. 25 days after receiving
proof of loss
12. In Illinois, which of the following is not an allowable reason for cancellation by the
insurer of a fire and extended coverage policy?
(A. Nonpayment of premium
(B. Two or more claims filed with a total loss amount over $10,000
(C. The policy was obtained by fraud
(D. For any act which measurably increases the risk originally accepted --CORRECT
ANSWER--(B. Two or more claims filed with a total loss amount over $10,000
13. Which of the following does the Director not have the power or duty to do?
(A. Enact laws regarding insurance practices
(B. Enforce insurance laws that are in the Illinois legal code
(C. Adopt rules and regulations to enforce the insurance laws
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