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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. How does the construction of an exclusion differ from the construction of an exception to that exclusion?
Both the exclusion and the exception are construed narrowly and strictly against the insured who is seeking coverageBoth the exclusion and the exception are construed broadly in favor of the insurer as the party bearing the coverage riskAmbiguous exclusions are construed strictly against the insurer, while exceptions that restore coverage are construed broadly in favor of the insuredExclusions are construed broadly in favor of the insured, while exceptions that restore coverage are construed against the insured
2. HO-6 Coverage A default limits are typically:
Small (often a $5,000 minimum) and must be increased deliberatelyFixed permanently at fifty percent of the Coverage C limitZero by default, because an HO-6 form carries no Coverage A at allLarge by default, roughly equal to the full replacement value of the building
3. After the insurer proves an exclusion applies, who bears the burden of proving that an exception to that exclusion (such as an ensuing-loss provision) restores coverage?
The insurerBoth partiesThe courtThe insured
4. Under the Business Income coverage form (CP 00 30), the period of restoration begins:
After a stated waiting period, commonly 72 hours, following the direct lossOnly once any civil authority order restricting access to the premises is finally liftedImmediately at the moment the direct physical loss or damage to the property occursOnly after the insured files a complete and signed proof of loss with the carrier
5. A DP-1 with EC and V&MM insured reports a break-in: the door was kicked in and a TV and tools were stolen. What is the coverage outcome?
Both the kicked-in door and the stolen TV and tools are fully covered as a single burglary lossThe stolen TV and tools are covered as theft, but the kicked-in door damage is excluded entirelyNothing at all is covered because forcible burglary is not a listed peril anywhere on the DP programThe door damage may be covered as vandalism/malicious mischief, but the stolen property is not covered
6. A proof of loss is best described as:
A sworn statement by the insured setting out the claim and its amountA release the insured signs when the claim payment is deliveredAn estimate the insurer's field adjuster prepares for the claim fileA written acknowledgment that the insurer received the notice of loss
7. Pre loss listing photographs, receipts, and maintenance records are used principally to:
Satisfy the insured's duty to submit to an examination under oathShow the property existed in the condition claimed and to date the damageSubstitute for the physical proof of cause and origin at the loss siteEstablish that the insurer failed to investigate the claim promptly
8. A homeowners form provides no Coverage C protection for motor vehicles. This is an example of which type of exclusion?
Cause-based, a peril is carved outProperty-based, a category of property is carved outConduct-based, specified conduct is carved outCondition-based, a procedural duty was breached
9. The defining feature of a reciprocal exchange, and the classic exam hook, is that it is managed by:
A syndicate of individual underwriters who each accept a share of the risk at a central exchangeAn attorney-in-fact that handles underwriting, claims, and administration for the subscribersA board of directors elected by the company's shareholders to oversee managementA federal receiver appointed by regulators to supervise the group's solvency and reserves
10. Under the earth movement exclusion, earthquake and landslide are excluded regardless of cause; however:
The exclusion applies only to commercial propertyEarthquake is covered if it is suddenEnsuing water loss is always excluded tooEnsuing fire loss is covered
11. 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
12. A carrier agrees the contents loss is owed but disputes the structure, and withholds the entire settlement until the structure is resolved. Under model claim settlement rules this is:
Improper, because amounts that are not in dispute must be paid promptlyImproper, because the carrier must pay the full amount the insured demandsProper, since the carrier may settle a loss as one single transactionProper, so long as the carrier issues a reservation of rights letter
13. A client asks whether she should sign a nonwaiver agreement on a significant coverage question. The public adjuster should:
Advise her to refuse, since signing surrenders her rights under the policySign it for her under the authority in the public adjuster contractAdvise her to sign, since refusal ends the insurer's duty to investigateExplain what the document does and refer the decision itself to counsel
14. Among the three "other insurance" clause types, which one purports to provide NO coverage at all if other insurance exists, and is widely disfavored by courts?
ExcessPro rataContribution by equal sharesEscape
15. An insurer's duty to pay a covered loss depends on the insured first giving notice, filing a proof of loss, and cooperating. This dependence of the insurer's obligation on the insured's compliance illustrates which characteristic of the insurance contract?
ConditionalUnilateralAleatoryPersonal
16. On loss settlement, the BOP and the CPP default treatments differ how?
The BOP standard is replacement cost; the CPP defaults to ACV with RC as an elected optionBoth default to replacement cost, with neither offering an actual cash value option at allBoth the BOP and the commercial package policy default to actual cash value settlementThe BOP standard is actual cash value, while the commercial package policy defaults to replacement cost
17. An adjuster tells an insured not to bother filing a proof of loss, and the insured files none. The insurer's later reliance on that condition is most directly barred by:
A nonwaiver agreement implied from the adjuster's course of conductWaiver, because the insured performed the condition in some other formEstoppel, because the insured relied on the statement to its own detrimentThe anti concurrent causation clause found in the policy conditions
18. 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 writingPermitted as long as the repair bid is the lowest of three genuinely competitive bidsProhibited only when the repair contract price ends up exceeding the adjusting fee chargedProhibited, a public adjuster may not also act as the repair contractor on the same loss
19. Which endorsement provides replacement cost settlement on personal property (contents)?
Ordinance or Law increased amountHO 04 95 Water Back-Up and Sump DischargeHO 04 90 Personal Property Replacement CostHO 04 61 Scheduled Personal Property
20. Which BOP coverages are the sub-limited 'easy money' an unrepresented insured often fails to claim?
The Section II personal injury and advertising injury liability coverage grantThe Section II medical payments to others coverage grant on the policy formThe Building coverage limit and the business personal property limit togetherSpoilage, money and securities, valuable papers, and accounts receivable sublimits

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