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Pennsylvania Public Adjuster Practice Exam

20 exam-style questions drawn from the same bank as our full Pennsylvania Public Adjuster course (Pennsylvania 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 rule that ambiguous policy language is read against the insurer that wrote it is
Parol evidence ruleStare decisisPlain meaning ruleContra proferentem
2. A dec page shows a $250,000 Coverage A limit with a 5% wind/hail deductible. A windstorm causes $60,000 in covered damage. What deductible does the adjuster subtract?
$6,000$12,500$3,000$5,000
3. A loss reserve is:
The premium the insurer sets aside to fund catastrophe lossesThe insurer's internal estimate of the claim's ultimate costThe amount the insurer has offered the insured to settle the claimThe part of the limit held back until repairs have been completed
4. When a specific provision and a general provision in the same policy conflict, the structural priority rule provides that:
The general provision controls because it applies more broadlyThe two provisions cancel each other out, voiding bothThe provision printed earlier in the form controlsThe specific provision controls over the general provision
5. An investigation to find where and how a fire started is a
Loss runProof of lossCause and originScope of loss
6. A roof was struck by hail in the spring and by wind in the fall, and the carrier attributes all of the damage to the later event. What resolves the question?
The insured's recollection of when the interior staining first appearedThe contractor's opinion of which event a sound roof would surviveA demand for appraisal, so that the umpire may assign damage by eventDated weather records, imagery bracketing both events, and prior photographs
7. A reservation of rights letter reserves on one specific exclusion rather than on the policy as a whole. For the public adjuster this is:
A ground to stop cooperating until the reservation has been withdrawnUseful information showing exactly where the coverage fight will beA denial of the claim that starts the policy's suit limitation periodA signal that the insured's post loss duties are suspended for now
8. In a policy, defined terms (such as "flood," "collapse," or "insured") are typically signaled to the reader by:
Appearing exclusively in endorsementsBold, italics, or quotation marksA separate signature from the named insuredBeing printed only on the declarations page
9. The federal law leaving insurance regulation mainly to the states is the
Sherman ActGramm-Leach-Bliley ActDodd-Frank ActMcCarran-Ferguson Act
10. Which statement correctly distinguishes arbitration from appraisal?
Both are conducted by appraisers who inspect and value the damaged propertyAppraisal is always binding, while an arbitration award is only advisoryArbitration is confined to the amount of loss; appraisal can reach coverageArbitration can decide coverage and liability; appraisal only the amount
11. Destroying or failing to preserve evidence relevant to a claim is
EstoppelSpoliationConversionSubrogation
12. An adjuster who represents the policyholder for a fee is a
Staff adjusterDesk adjusterIndependent adjusterPublic adjuster
13. Why does additional living expense require tracking from day one in a wide area catastrophe?
Because displacement costs are excluded until the dwelling is condemnedBecause housing is scarce and costly, so the loss of use limit is consumed fastBecause the loss of use limit is automatically increased after a disasterBecause a carrier may not advance any living expense before settlement
14. Which statement correctly distinguishes an examination under oath from a recorded statement?
The examination is informal and taken by telephone; the statement is transcribedThe examination is a policy condition taken under oath; the statement is neitherThe examination requires consent to recording; the statement requires an oathThe examination is litigation discovery; the statement is a policy condition
15. Which activity falls on the ADJUSTING side of the line separating adjusting from the practice of law?
Advising the client whether the policy's suit limitation period has been tolledPreparing and presenting a documented estimate and negotiating the settlementDrafting a demand that states the legal consequences of the carrier's refusalInterpreting a court decision for the client and predicting its effect on her claim
16. A public adjuster owns a fifty percent interest in the restoration company he recommends to each of his clients, and he does not mention it. The core problem is:
A recordkeeping problem, since two entities must maintain one combined claim fileA licensing problem, since restoration contractors must hold adjuster licensesAn undisclosed conflict of interest, since he profits from pricing his own repair workA fee problem, since two fees on one loss exceeds the customary percentage
17. Crime coverage for unauthorized signing or changing of checks is
Computer fraudFunds transfer fraudEmployee theftForgery or alteration
18. 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:
Specialty insurer structures a candidate should recognize by nameFederal government insurance programs like the NFIP and cropResidual-market insurance pools serving as insurers of last resortLicensed surplus lines brokers who place non-admitted business
19. In coverage litigation, which sequence correctly states the burden-shifting framework?
Insured proves both the insuring agreement applies and the inapplicability of every single exclusion in the formInsured proves the insuring agreement applies; insurer proves an exclusion; insured proves any exception to the exclusionInsurer proves the insuring agreement does not apply; the insured then proves that some exclusion is ambiguousInsurer bears every burden at each step because it alone drafted the contract of adhesion against the insured
20. The homeowners form for renters is the
HO-4HO-8HO-2HO-6

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