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Oregon Public Adjuster Practice Exam

20 exam-style questions drawn from the same bank as our full Oregon Public Adjuster course (Oregon 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 restaurant insured on the Broad causes-of-loss form suffers a burglary: kitchen equipment is stolen and the back door is destroyed. The correct coverage analysis is:
Nothing at all is covered, because any burglary loss requires a separate commercial crime policy in every caseThe stolen equipment is covered, but the damage to the back door is excluded as ordinary wear and tear over timeBoth the stolen kitchen equipment and the destroyed back door are fully covered together as ordinary burglary lossesThe stolen equipment is not covered because theft is not a Broad-form peril; the door damage may be covered as vandalism
2. Before any federal loss sharing occurs under the Terrorism Risk Insurance Act, an event must be:
Designated a catastrophe by the affected state's insurance commissionerDeclared a major disaster by the President under the Stafford ActCertified as an act of terrorism by the Secretary of the TreasuryAdjudicated as terrorism by a federal district court
3. A carrier facing a catastrophe retains an adjusting firm whose adjusters inspect losses and submit estimates and recommendations to the carrier. Those adjusters are:
Staff adjusters, because they are performing the carrier's claim functionEmergency adjusters, a category defined by who pays the adjusting feePublic adjusters, because they are not on the carrier's payrollIndependent adjusters, because they are contractors retained by the insurer
4. The 'Suit Against Us' condition establishes:
The contractual limitation period for filing suit against the carrierA complete waiver of the policy's appraisal clause and processThe mortgage holder's independent contractual rights to any loss paymentThe carrier's right to file suit directly against its own insured
5. An adjusting firm knowingly assigns claims to an adjuster it knows was convicted of felony embezzlement and has no regulatory consent to work in insurance. Under 18 USC 1033 the firm:
Is protected if the adjuster discloses the conviction to each insuredIs exposed only to state license discipline, not federal consequencesFaces no exposure, because the prohibition applies only to the convicted individualHas itself committed a federal offense by willfully permitting his participation
6. A modular home — factory-built but assembled on site to the local building code on a conventional foundation — is insured under:
A proprietary mobile-home program onlyAn inland marine floaterAn HO form with a mobilehome endorsementStandard HO forms, like any site-built home
7. On the same undetermined cause facts, the outcome changes under a named peril form because:
The insured must prove a listed peril caused the loss and cannot do soThe insurer must prove the cause was not one of the perils listedNamed peril forms shift every burden of proof onto the insurer insteadNamed peril forms contain no exclusions for the insurer to prove up
8. A carrier applies one flat depreciation factor across an entire building estimate that includes a two year old condenser and a twenty year old roof. The most effective response is to:
Demand appraisal, because depreciation is a coverage questionNegotiate the flat factor downward to a figure both sides can acceptRebuild depreciation line by line from documented ages and useful livesAccept the estimate and claim the difference later as a supplement
9. A storm produces wind damage above and flood damage below, and the carrier denies in full citing anti concurrent causation language. The adjuster's best response is to:
Demand appraisal, which will decide whether the exclusion applies herePresent one combined figure so the carrier cannot allocate the lossSeparate the damage by cause on the physical evidence and document eachAdvise the client that the denial resolves the claim as it is written
10. Undamaged flooring adjoining the damaged area cannot be matched to the replacement material. On the estimate the adjuster should:
Move the item to additional living expense, which carries its own limitDocument the mismatch now, since how far matching goes variesLeave the issue out, since matching is settled after repairs are finishedPrice the entire floor as damaged, since matching is covered everywhere
11. A staff adjuster owes the insured:
The same fiduciary duty a public adjuster owes to a clientNo duty of any kind, because the insured is not the adjuster's principalThe duties of an agent, including loyalty to the insured's financial interestThe good faith the insurer itself owes, without representing the insured
12. Coverage C (Personal Property) on a typical HO-2, HO-3, or HO-5 is typically what percentage of Coverage A?
50%25%10%80%
13. A carrier estimate prices every line correctly but covers only three of the five rooms the water reached. This is:
A scope dispute, resolved by a documented inspection of the full affected areaA coverage dispute, resolved by a written statement of the provisions relied onA valuation dispute, resolved by an appraisal panel appointed under the policyA pricing dispute, resolved by comparing entries in the regional price list
14. Under the DP forms, a detached structure on the premises that is rented to another party or used for business is:
Fully covered under Coverage BCovered under Coverage CCovered under Coverage AExcluded under Coverage B
15. When a policy provision is genuinely ambiguous, the doctrine of contra proferentem requires that it be construed:
According to the interpretation used in the insurer's underwriting fileAgainst the insured, who accepted the contractAgainst the insurer, as the drafter of the contractIn favor of whichever party demanded appraisal first
16. A lender is named on the dec page under the standard mortgage clause. Which best describes the lender's position?
It must first be added as a named insured on the declarations before it can receive any share of the claim proceedsIt is merely a certificate holder listed for reference, with no independently enforceable rights under the policyIt may collect the entire loss payment for the property regardless of how small the unpaid loan balance has becomeIt holds rights independent of the insured — notice of cancellation, the right to pay premium, and a place on the loss-payment check
17. An endorsement converts roof wind/hail losses to ACV loss settlement. The depreciation applied to a roof claim under this endorsement is:
Non-recoverable — the holdback never releases, even if the insured replaces the roofWaived entirely by the carrier whenever the roof loss exceeds the policy deductibleSplit evenly between the insured and the carrier as a compromise on the holdbackRecoverable once the insured submits the paid invoice for the replacement roof
18. Non recoverable depreciation is depreciation that:
The policy never pays back, typically where the item settles on valueApplies only to components whose useful life has not yet expiredIs released to the insured once the repair work is proven completeThe insurer must waive whenever repairs are completed on schedule
19. In the two-policy condominium structure, the association's master policy insures:
Each unit owner's personal property and liabilityThe unit owners' improvements and bettermentsThe buildings and common elements for the associationOnly the exterior landscaping and parking areas
20. A carrier defended and paid on a claim for months with full knowledge of a policy defense, then asserted the defense. Under the widely followed general rule, waiver and estoppel in this situation can:
Never affect the carrier's position once a reservation of rights letter exists in the fileApply only if the insured proves the carrier acted with intent to deceiveForfeit the carrier's defense, but generally cannot create coverage the policy never providedBoth forfeit defenses and create entirely new coverage under the policy

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