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Indiana Public Adjuster Practice Exam

20 exam-style questions drawn from the same bank as our full Indiana Public Adjuster course (Indiana Public Adjuster — Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A claim representative tells a claimant the policy contains no coverage for code required work, knowing an ordinance or law provision applies, in order to close the file. Under the NAIC model this is:
Acceptable if the amount finally paid still equals the documented lossPermissible negotiation, since the claimant may read the policy independentlyA rating and underwriting violation rather than a claim settlement issueMisrepresenting policy provisions to induce settlement, a prohibited practice
2. The principle of indemnity in property insurance means the insured should be:
Compensated for sentimental as well as financial valuePaid the policy limit on every covered total lossRestored to the pre-loss financial position — no better, no worseGuaranteed a profit sufficient to offset the deductible
3. The term independent adjuster means the adjuster is independent of:
Both parties, serving as a neutral evaluator of the lossThe insurer's payroll, while still representing the insurer's interestAny state licensing requirement, being a contractor rather than an employeeThe insured's interest only, while owing neutral duties to the insurer
4. The abbreviation o.c. in a framing note such as studs at 16 in. o.c. means:
Original construction, marking members present in the first buildOn center, the spacing measured from the center of one member to the nextOverall clearance, the free space between the faces of adjacent membersOutside corner, the point at which two exterior wall planes intersect
5. A homeowner asks a licensed public adjuster to pursue her claim against a neighbor's homeowners liability policy for damage the neighbor's tree caused. The adjuster should:
Decline, because that is a third party liability claim and not first party public adjustingAccept the engagement, since it is a property damage claim within his competenceAccept it and present the claim under the homeowner's own policy insteadAccept it but charge an hourly fee rather than a contingent percentage
6. A policy provision has only one reasonable reading, and that reading favors the insurer. How should a court apply contra proferentem?
Apply it only when the insured can show they never actually read the policyRefer the entire dispute to appraisal instead of interpreting the language at allApply it anyway, because the contra proferentem rule always favors the insuredDo not apply it — a single reasonable reading governs, even if it hurts the insured
7. A group of members forms an entity in which each member is protected under the group's captive arrangement, and other specialty structures include fraternal benefit societies and risk retention groups. These are best characterized as:
Licensed surplus lines brokers who place non-admitted businessResidual-market insurance pools serving as insurers of last resortSpecialty insurer structures a candidate should recognize by nameFederal government insurance programs like the NFIP and crop
8. A client replaces a storm damaged roof and hauls off the debris before reporting the claim. The best statement of his position is:
He is fully protected, because emergency mitigation expense is reimbursableHe breached mitigation, so the insurer may deny the entire claim on that groundHe abandoned the property to the insurer, which the policy conditions expressly barHe satisfied mitigation but destroyed the proof of cause and extent, which is his burden
9. HO-6 Coverage A default limits are typically:
Large by default, roughly equal to the full replacement value of the buildingFixed permanently at fifty percent of the Coverage C limitSmall (often a $5,000 minimum) and must be increased deliberatelyZero by default, because an HO-6 form carries no Coverage A at all
10. Pre loss listing photographs, receipts, and maintenance records are used principally to:
Establish that the insurer failed to investigate the claim promptlyShow the property existed in the condition claimed and to date the damageSubstitute for the physical proof of cause and origin at the loss siteSatisfy the insured's duty to submit to an examination under oath
11. Which pairing correctly matches the adjuster type to BOTH its principal and its typical compensation source?
Public adjuster: principal is the insurer; paid from the claim proceedsPublic adjuster: principal is the insured; paid by the insuredStaff adjuster: principal is the insurer; paid a percentage of amounts savedIndependent adjuster: principal is the insured; paid by the adjusting firm
12. A claim was closed on incomplete information. Which fact most strongly determines whether it can be reopened by supplement?
Whether the insured signed a full release when the claim was settledWhether the insured has already received the withheld depreciationWhether the estimate was written by a staff or an independent adjusterWhether the carrier's file has been transferred to a different adjuster
13. Insurance construction classes are numbered one through six, and model building codes classify construction by type using Roman numerals. The professional practice is to:
Use the code type numbering only, since it is adopted as lawReport both numbers together, since they describe the same six categoriesConvert the code type to the matching insurance class number before reportingDescribe construction by NAME, because the two numbering systems do not correspond
14. Mediation of a claim dispute is best described as:
A regulator's review of the insurer's handling of the claim fileA hearing before a neutral who issues a decision binding both sidesA facilitated negotiation before a neutral with no power to decideA valuation conducted by two appraisers and a neutral umpire
15. A carrier estimate replaces 22 squares of architectural shingle and lists nothing else. The strongest objection is that it omits:
Tear off and disposal, underlayment, drip edge, starter, ridge cap, flashings, and wasteThe contents stored in the attic space below the damaged deckingThe interior ceiling finish directly beneath each damaged roof slopeThe exterior wall cladding on the elevations facing the storm direction
16. A carrier concedes that hail struck the property but disputes that more than one roof slope was damaged. The dispute is about:
Coverage, since the carrier has conceded neither the peril nor the damageCause, since the peril that produced the damage is still being contestedExtent, a finding separate from cause and supported by its own evidenceValuation, since the disagreement concerns the price of the repair work
17. The appraisal condition in a standard property policy is available to resolve a dispute about:
The amount of loss, where the parties disagree on scope or priceWhether the insurer handled the claim in accordance with model rulesWhether an exclusion applies to the reported cause of the lossWhether the insured breached a policy condition after the loss
18. In commercial property, which endorsement blunts the coinsurance problem by automatically increasing the policy limits over time?
The ordinance-or-law endorsementThe inflation guard endorsementThe scheduled-property endorsementThe mold sublimit endorsement
19. A policy provision is legally "ambiguous" when it is:
Undefined in the policy's definitions sectionReasonably susceptible to more than one meaningDisputed by the insured and the insurerLonger than one paragraph or written in legal terminology
20. Damage from continuous or repeated seepage of water over a period of time is generally:
Covered, but only under the HO-8 older-home dwelling form and never under the othersExcluded as non-fortuitous, though sudden components and ensuing damage may be coveredFully covered as if it were a sudden and accidental discharge of water from a pipeCovered at full replacement cost with no deduction taken for the age or wear of the item

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