Free Virginia Public Adjuster Practice Exam

1. A 5-year-old covered appliance originally cost $1,200; its replacement cost at the time of loss is $1,400, and depreciation is 40%. What is the ACV?
$720$840$1,200$480
2. The first report of a loss to the insurer is the
Proof of lossClaim summaryFirst notice of lossStatus report
3. Crime coverage for theft by the insured's own workers is
ForgeryEmployee theftComputer fraudExtortion
4. In insurance-contract terms, a statement the applicant believes to be true when made — and which voids coverage only if it is material — is best classified as a:
Condition subsequent to coverageWarranty guaranteed to be true as part of the contractConcealment of a known material factRepresentation
5. Where a public adjuster handles claim funds, the general expectation is that the funds are:
Held separately from the adjuster's own, with receipt and disbursement recordsForwarded to the repair contractor before any accounting is preparedRetained by the carrier until the insured signs a final release formDeposited into the adjuster's operating account until the fee is earned
6. Which pairing correctly matches the adjuster type to BOTH its principal and its typical compensation source?
Independent adjuster: principal is the insured; paid by the adjusting firmPublic adjuster: principal is the insured; paid by the insuredPublic adjuster: principal is the insurer; paid from the claim proceedsStaff adjuster: principal is the insurer; paid a percentage of amounts saved
7. An adjuster who handles claims by phone and email without inspecting is a
Desk adjusterField adjusterPublic adjusterCatastrophe adjuster
8. General contractor overhead and profit is part of the reasonable cost of repair where:
The insured has already signed a contract with a general contractorThe insurer's own estimate has included it inside the trade line itemsThe repair reasonably requires a general contractor to coordinate tradesThe loss exceeds the amount the handling adjuster is authorized to pay
9. A company (staff) adjuster owes agency duties of loyalty, obedience, and accounting to which principal?
The insurer that employs the adjusterThe policyholder who filed the claimThe state insurance departmentThe mortgagee named on the dec page
10. The insured's duty to protect property from further damage is
SubrogationMitigationIndemnityAbandonment
11. The homeowners exclusion for earthquake, landslide and sinkhole collapse is
Earth movementWear and tearNeglectOrdinance or law
12. An other-insurance method where each policy pays in proportion to its limit is
Split limitsPrimary and excessEqual sharesPro rata liability
13. A public adjuster who worked the claim under a contingent fee is asked to serve as the insured's appraiser. The concern the profession raises is that:
The impartiality requirement may be challenged, which can undo the awardAn appraiser must hold a separate license in the property's jurisdictionThe umpire would then be appointed by a court rather than the appraisersThe insurer would gain a right to withdraw its demand for appraisal
14. Which activity falls OUTSIDE a public adjuster's authorized role, as reflected in the NAIC Model Act pattern?
Holding claim proceeds in trust for the insuredPresenting the claim and negotiating with the carrierGiving the insured legal advice and representing them in courtPreparing and documenting the insured's first-party property claim
15. A full release, once signed and the consideration paid:
Leaves the insured free to submit supplements for hidden damageEnds the claim entirely, including damage not yet discoveredOperates as an advance payment credited against a later settlementDischarges only the portion of the claim identified in the document
16. A stock insurer is owned by:
Its policyholdersIts shareholdersIts subscribers through an attorney-in-factIndividual underwriters who each accept a share of risk
17. The homeowners form for renters is the
HO-4HO-8HO-2HO-6
18. A 9-year-old roof has a replacement cost of $5,587 and an expected useful life of 25 years. Using straight-line depreciation, the depreciation amount is approximately:
$2,011$1,341$558$3,576
19. The appraisal condition in a standard property policy is available to resolve a dispute about:
The amount of loss, where the parties disagree on scope or priceWhether the insurer handled the claim in accordance with model rulesWhether the insured breached a policy condition after the lossWhether an exclusion applies to the reported cause of the loss
20. Under the homeowners replacement-cost loss settlement condition, the carrier pays full replacement cost on partial dwelling losses only if:
The carrier professionally appraised the dwelling within the past twelve monthsThe dollar amount of the loss exceeds 80% of the Coverage A dwelling limitThe insured has continuously held the policy for at least one full annual termCoverage A is at least 80% of the dwelling's full replacement cost at the time of loss