ILLINOIS PUBLIC ADJUSTER EXAM QUESTIONS

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ILLINOIS PUBLIC ADJUSTER EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -49 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Earthquake Insurance

Answer:

A special coverage transferring risk of earthquake damages

Question 2: Broker

Answer:

A licensed person or organization you can pay to shop for insurance on your behalf.

Question 3: Illinois Insurance Guaranty Fund

Answer:

A fund that pays an insurer's claims when the company is insolvent. All Illinois-licensed insurance companies belong to the Illinois Guaranty Fund.

Question 4: Liability Coverage

Answer:

Insurance protection that pays for claims or judgments brought against the insured.

Question 5: Full Replacement Policy

Answer:

A homeowners policy that pays the full replacement cost (up to the policy maximum) to repair or restore damaged property.

Question 6: Appraisal

Answer:

If you and we fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of the appraiser's identity within 20 days of receipt of the written demand.The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a district court of a judicial district where the loss occurred. The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item.Question 7: Covered Expenses:

Answer:

The losses or conditions the policy will pay for.

Question 8: Deductible

Answer:

The dollar amount you must pay out-of-pocket for each claim before the insurance company begins paying.

Question 9: Premium

Answer:

The price charged for insurance

Question 10: Home Inventory

Answer:

A detailed list of personal possessions and any information (including pictures or videos) that could help identify lost or destroyed items

Question 11: Private Mortgage Insurance (PMI)

Answer:

Insurance that provides financial protection to your lender if you default on your mortgage payment. By purchasing PMI, a homebuyer may be able to obtain a mortgage with little or no down payment.

Question 12: Market Value

Answer:

A real estate term for the current value of your home if you were to sell it. Market value includes the price of land, and is not generally used when settling insurance claims.

Question 13: Guaranteed Replacement Cost Coverage

Answer:

Endorsement that lets you replace your home without subtracting for depreciation, even if it costs more than the policy limit. Most companies limit the guaranteed replacement cost to 125%.

Question 14: Peril

Answer:

Event causing damage to your property (for example: fire, tornado, theft, or vandalism).

Question 15: Replacement Cost

Answer:

A determination of the cost to replace contents, rebuild your home, or repair damages with materials of like kind and quality, without subtracting for depreciation

Question 16: Insurer

Answer:

The insurance company.

Question 17: Exclusions

Answer:

Specific situations or circumstances listed in your policy describing when benefits will not be paid.Typical homeowners insurance exclusions are earthquake, sewer backup/sump pump failure, ordinance or law, and intentional loss Simple definition - is what the insurance company will not pay for. Example damaged caused by a domestic animal (pet)

Question 18: Builders Risk

Answer:

Coverage for a home under construction. Claim payments are based on the percentage completed at time of loss. This coverage must be changed to a homeowners policy upon completion of the building.

Question 19: Inflation Guard Endorsement

Answer:

A special endorsement that increases the face amount of a homeowners policy on a regular basis to compensate for the increasing costs of home construction

Question 20: Inspection Report

Answer:

A report filed by an individual employed by the insurance company or credit agency, giving general information on the physical condition of the property.

Question 21: Lapsed Policy

Answer:

A policy that has terminated for non-payment of premiums

Question 22: claims adjusters or representatives

Answer:

A person an insurance company hires to settle claims. The adjuster could either be a company employee or under contract with the company - one who settles insurance claims. This typically involves investigation of the loss and a determination of the extent of coverage. In the context of first-party (e.g., property) insurance, the adjuster negotiates a settlement with the insured. In liability insurance, the adjuster coordinates the insured's defense and participates in settlement negotiations. Adjusters may be employees of the insurer (staff adjusters) or of independent adjusting bureaus (independent adjusters) that represent insurers and self-insureds on a contract basis. Public adjusters are consultants who specialize in assisting insureds in presenting claims to insurance companies in a manner that will maximize their recovery

Question 23: Depreciation

Answer:

Decrease in home or property value due to age or wear and tear.

Question 24: Additional Living Expenses (ALE)

Answer:

Pays expenses over and above your normal living costs (motel rooms, restaurant meals, and laundry service) while your home is being repaired or rebuilt after damage from an insured loss.