Free practice exam · no signup needed

Louisiana Public Adjuster Practice Exam

20 exam-style questions drawn from the same bank as our full Louisiana Public Adjuster course (Louisiana 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. The insured named on a homeowners policy dies, and the insured dwelling is later damaged by a covered peril. Who is generally the proper claimant?
The estate or heirs, because the insurable interest passes with the property and most policies extend coverage to a legal representativeThe original selling agent who placed the policy, acting as the insured's representative for the property after deathThe mortgagee alone, which may collect the entire loss payment regardless of the remaining unpaid loan balanceNo one at all, because a property policy terminates immediately and automatically on the death of the named insured
2. A proof of loss is best described as:
A sworn statement by the insured setting out the claim and its amountA written acknowledgment that the insurer received the notice of lossAn estimate the insurer's field adjuster prepares for the claim fileA release the insured signs when the claim payment is delivered
3. An insured gives notice well after the loss. In many states the insurer may not deny on that ground unless it first:
Sends the insured a written demand for a sworn proof of lossShows the insured acted with an intent to mislead the insurerShows that it was prejudiced by the delay in receiving noticeProves the insured also failed to protect the property from further damage
4. A policy provision has only one reasonable reading, and that reading favors the insurer. How should a court apply contra proferentem?
Apply it anyway, because the contra proferentem rule always favors the insuredDo not apply it — a single reasonable reading governs, even if it hurts the insuredApply it only when the insured can show they never actually read the policyRefer the entire dispute to appraisal instead of interpreting the language at all
5. Which peril does the DP-2 Broad Form add that a DP-1 with Extended Coverage does not provide?
FireTheft of contentsWindstormWeight of ice, snow, or sleet
6. A public adjuster signs a contract to adjust a client's fire claim and then offers to perform the reconstruction work through his own contracting company. Under the NAIC Public Adjuster Licensing Model Act pattern, this arrangement is:
Permitted as long as the adjuster fully discloses the dual role to the insured in writingProhibited only when the repair contract price ends up exceeding the adjusting fee chargedPermitted as long as the repair bid is the lowest of three genuinely competitive bidsProhibited — a public adjuster may not also act as the repair contractor on the same loss
7. Which loss is covered under the SFIP?
Land subsidence following a flood eventA landslide triggered by floodwaters undermining a slopeMudflow — a river of liquid mudWind-driven rain entering through a wind-damaged roof
8. The scope of loss is:
The itemized description of what was damaged and what restoring it requiresThe single dollar figure the insured demands from the insurer to settleThe list of policy provisions that apply to the loss that was reportedThe portion of the structure the insurer has agreed to inspect in person
9. The BOP's built-in money and securities coverage is best characterized as:
A substitute for all commercial crime insurance needsA small, sub-limited crime component of the packageAn unlimited crime coverage equal to the BPP limitCoverage that applies only to counterfeit currency
10. A client replaces a storm damaged roof and hauls off the debris before reporting the claim. The best statement of his position is:
He breached mitigation, so the insurer may deny the entire claim on that groundHe is fully protected, because emergency mitigation expense is reimbursableHe 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
11. A carrier settles a loss to plaster walls by paying to replace them with drywall — a less costly but functionally equivalent material. Which valuation method is this?
Market valueActual cash valueAgreed valueFunctional replacement cost
12. An independent adjuster's loyalty runs to:
The policyholder, because they are independent of the carrierThe adjusting firm's shareholders onlyBoth parties equally, as a neutral evaluatorThe insurer whose claims they handle
13. A FAIR plan (Fair Access to Insurance Requirements) is best described as:
A premium-discount program rewarding insureds who have a favorable prior loss historyA residual-market property pool for high-risk properties the voluntary market will not writeA federal flood insurance program administered by FEMA for flood-prone propertiesA reinsurance facility available only to mutual insurers spreading catastrophe risk
14. On an open-peril dwelling form, the carrier denies a claim stating only "cause unknown, therefore not covered." Why is this denial improper?
The denial is proper — even on open-peril coverage the insured always bears the burden of proving the exact cause of the lossCarriers may never deny any claim at all without first demanding and completing a full examination under oath of the insured about the cause of the lossOpen-peril forms by definition contain no exclusions at all, so every direct physical loss to the property must be paid in fullOnce the insured shows direct physical loss, the burden shifts to the carrier to prove an applicable exclusion — "cause unknown" does not carry that burden
15. Which coverage is available on a BOP only as an optional endorsement, not built in?
Civil authority business incomeBusiness income and extra expenseEquipment breakdownDebris removal
16. A structural difference between the BOP and the CPP is that the BOP property section is:
Written entirely without any Section II liability coverage section included at allOpen peril (special) by default, where the CPP requires choosing Basic, Broad, or SpecialAlways settled on an actual cash value basis rather than on a replacement cost basisAlways written strictly on a named-peril basis rather than on an open-peril special one
17. An insured carries $500,000 on commercial stock subject to a 100% coinsurance clause; the stock is worth $750,000 at the time of loss. A $90,000 loss occurs with a $2,500 deductible. What does the carrier pay?
$57,500$50,000$70,000$60,000
18. Which item belongs in a properly built claim file from the first day?
The insurer's engineering vendor contract and its published fee scheduleThe handling adjuster's written settlement authority memorandumThe insurer's internal reserve worksheet prepared when the claim openedThe declarations page in force on the loss date, with all endorsements
19. A public adjuster's claim file contains a client's bank statements and income records. Under the Gramm-Leach-Bliley framework, that information is:
Outside the Act, because the Act reaches banks and not insurance participantsNonpublic personal information the adjuster must safeguard and share only within the rulesFreely shareable with any contractor working on the same lossPublic record information once it has been submitted with a proof of loss
20. The default peril basis of the BOP's property section in the current ISO program is:
The Broad named-perils list, matching the CP causes-of-loss broad formThe Basic named-perils list, matching the CP causes-of-loss basic formFire and lightning only, with all other perils added by endorsementOpen peril (special form), with a named-peril option by endorsement

Want a different set? Refresh the page for 20 new questions — the full course has 500+, each with a complete explanation, plus full-length timed exam simulations and an AI tutor.