Free practice exam · no signup needed

Ohio Public Adjuster Practice Exam

20 exam-style questions drawn from the same bank as our full Ohio Public Adjuster course (Ohio 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 "legal purpose" element of a valid insurance contract, together with the insurable-interest requirement, mainly serves to:
Guarantee the insured a modest profit on every covered total loss they sufferAllow the insurer to cancel coverage for virtually any reason after a loss occursRequire every issued policy to be countersigned by a licensed resident agentKeep insurance from operating as a wagering contract on an unlawful or non-existent stake
2. Under BACF Section III, comprehensive coverage pays for:
Mechanical breakdown of covered componentsOnly a named list of perils such as fire, theft, and hailCollision and overturn onlyAny cause of loss except collision or overturn
3. A state insurance department consumer complaint is most useful for:
Obtaining a binding, enforceable determination of the disputed policy coverage questionReplacing the appraisal process entirely as the mechanism for setting the amount of lossRecovering the full disputed amount of the loss from the carrier as money damagesCarrier conduct issues — it requires a carrier response but is not a forum for awarding damages
4. A stock insurer is owned by:
Its policyholdersIts subscribers through an attorney-in-factIndividual underwriters who each accept a share of riskIts shareholders
5. Under a bare-walls master policy, why must the HO-6 Coverage A be sized largest?
Because Coverage C personal property is simply not available at all on the base unendorsed HO-6 formBecause the condominium association's own bylaws affirmatively require that specific coverage limitBecause the owner insures flooring, cabinets, fixtures, and interior finishes inward of the shellBecause the association's master policy is the coverage that already handles all owner upgrades
6. On a BOP with no coinsurance clause, underinsurance can still reduce recovery because:
The BOP always settles every one of its property losses on an actual cash value basis insteadThe built-in business income coverage is separately capped at a low stated dollar amountThe insurance-to-value provision requires limits of at least 80% of value for full replacement costA standard coinsurance penalty ends up being quietly applied against the loss payment anyway
7. Which of the following is a duty the NAIC Unfair Claims Settlement Practices Act (model) imposes on carriers?
Set the internal claim reserve at exactly the amount of the public adjuster's own estimatePay every submitted claim in full regardless of what the coverage investigation actually revealsWaive all of the policy's conditions automatically whenever a declared catastrophe occursAttempt in good faith to effectuate a prompt, fair, and equitable settlement once liability is reasonably clear
8. An association assesses unit owners after uninsured flood damage to common elements. A unit owner's HO-6 loss assessment coverage will:
Pay, but only up to one-half of the total special assessment that the association charges to each unit ownerNot pay, because the assessment must arise from a peril covered under the unit owner's own form — and flood is notPay in full, because the special assessment arises directly from physical damage to the building's common elementsNot pay, because loss assessment coverage never applies to damage involving the common elements at all
9. A contractor's BACF shows liability under symbol 1 and physical damage under symbol 7. Mid-term he buys a new hauler and never notifies the carrier. Sixty days later it is destroyed by fire. What is the coverage result?
Liability coverage continues under symbol 1, but the physical damage claim fails because the unscheduled vehicle was not reported within 30 daysPhysical damage applies but liability fails, because symbol 1 covers only scheduled autos while physical damage extends to any newly bought autoNeither coverage applies, because an after-acquired vehicle absent from the declarations is uninsured for both liability and physical damageBoth liability and physical damage apply in full, because the policy was in force on the loss date and fire is a covered comprehensive peril
10. Replacement-cost settlement on the HO dwelling (Coverage A/B) applies only if the insured carries at least what share of full replacement cost at the time of loss?
70%100%80%50%
11. A financed vehicle is totaled. Its ACV is $9,000 and the loan payoff is $12,000. Absent gap coverage, the carrier owes:
$10,500 — the midpoint of ACV and loan payoff, splitting the negative equity between the two partiesNothing at all until the borrower refinances the loan down below the vehicle's actual cash value first$12,000 — the full loan payoff, because the loss payable clause makes the lender's interest control$9,000 — the ACV; the $3,000 negative equity is the borrower's problem unless gap coverage applies
12. Which of the following is a policy CONDITION rather than an exclusion or a declaration?
The insured's duty to submit a sworn proof of lossThe policy's carve-out for any loss caused by floodThe named insured's exact full legal name and addressThe dollar limit shown on the dec for Coverage A
13. A suit-limitation clause in a property policy should be handled by the public adjuster in what way?
Used to extend the appraisal timeline automaticallyIgnored, because it applies only to the carrierTreated as the deadline to accept the carrier's first offerCalendared on every disputed claim as the deadline for filing suit
14. Which dwelling form settles the dwelling at actual cash value with no replacement cost on the base form?
DP-3DP-2All three DP formsDP-1
15. A totaled vehicle is financed. Under the loss payable clause, the carrier's settlement payment is:
Issued jointly to the owner and the lienholder, and the lienholder's interest can survive some insured defensesIssued to the owner alone, who then repays the lender directly out of the settlement proceeds afterwardIssued to the lienholder alone up to the full ACV, regardless of how small the remaining loan balance isSplit into two separate checks divided strictly by each party's percentage of equity in the vehicle
16. The mortgage clause gives the lender:
The unrestricted right to cancel the insured's policy at willCoverage for the mortgage lender's own separate office buildingA proportional share of the insured's own Coverage C personal contentsAn independent right to payment that can survive certain insured defaults
17. Depreciation comes in three flavors. Which does nearly all the work in typical property claims?
Physical depreciation from age and wearFunctional depreciation from obsolete designEconomic (external) depreciation from outside factorsRecoverable depreciation from the holdback
18. In the appraisal process, if the two appraisers cannot agree on an umpire, the umpire is:
Appointed by a courtWaived, and the higher appraiser's number controlsSelected by the insured aloneChosen by the state insurance department
19. After a carrier pays its insured for a loss caused by a negligent third party, subrogation allows the carrier to:
Demand the insured sue the wrongdoer on the carrier's behalfStep into the insured's shoes and pursue the wrongdoer to the extent of its paymentRecover its payment from the insured if the claim later proves excessiveCancel the policy retroactively to the date of loss
20. The trees, shrubs, and plants additional coverage notably does NOT cover the plants themselves against which peril?
VandalismFireWindstormTheft

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.