NJ Public Adjustment review questions and
answers 2025\2026 A+ Grade
Public Adjuster License
- correct answer A solicitors/adjusters license is valid for two years and must be renewed every two
years
Public Adjuster Bond
- correct answer $10,000 bond is required for solicitors/adjusters
Proof of Loss
- correct answer 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
Loss to a Pair or Set
- correct answer (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
Insurer
- correct answer company offering protection through the sale of an insurance policy to an insured
Insured
- correct answer party covered by an insurance policy
Policy Period
- correct answer the inception date and expiration date of the policy
Limit of Liability
- correct answer maximum amount of coverage available under a liability insurance policy
, Insurable Interest
- correct answer expectation of a monetary loss that can be covered by insurance. Owner of the
property.
Mortgage Clause
- correct answer 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.
Market Value
- correct answer value of property as established by the price a willing buyer would pay for property
purchased from a willing seller
Agreed Value
- correct answer 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.
Depreciation
- correct answer actual or accounting recognition of the decrease in the value of a hard asset (property)
over a period of time
Recoverable Depreciation(Holdback)
- correct answer 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.
Non-Recoverable Depreciation
- correct answer actual cash value policies state that an offer of settlement is based on the actual cash
value of the property at the time of the loss, therefore, any depreciation applied because of age,
deterioration, etc. is not recoverable.
Endorsement
- correct answer written agreement attached to a policy to add or subtract insurance coverage's. Once
attached the endorsement takes precedence over the original provisions of the policy
answers 2025\2026 A+ Grade
Public Adjuster License
- correct answer A solicitors/adjusters license is valid for two years and must be renewed every two
years
Public Adjuster Bond
- correct answer $10,000 bond is required for solicitors/adjusters
Proof of Loss
- correct answer 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
Loss to a Pair or Set
- correct answer (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
Insurer
- correct answer company offering protection through the sale of an insurance policy to an insured
Insured
- correct answer party covered by an insurance policy
Policy Period
- correct answer the inception date and expiration date of the policy
Limit of Liability
- correct answer maximum amount of coverage available under a liability insurance policy
, Insurable Interest
- correct answer expectation of a monetary loss that can be covered by insurance. Owner of the
property.
Mortgage Clause
- correct answer 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.
Market Value
- correct answer value of property as established by the price a willing buyer would pay for property
purchased from a willing seller
Agreed Value
- correct answer 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.
Depreciation
- correct answer actual or accounting recognition of the decrease in the value of a hard asset (property)
over a period of time
Recoverable Depreciation(Holdback)
- correct answer 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.
Non-Recoverable Depreciation
- correct answer actual cash value policies state that an offer of settlement is based on the actual cash
value of the property at the time of the loss, therefore, any depreciation applied because of age,
deterioration, etc. is not recoverable.
Endorsement
- correct answer written agreement attached to a policy to add or subtract insurance coverage's. Once
attached the endorsement takes precedence over the original provisions of the policy
