Illinois Public Adjusters Examination And License Information Illinois Department of Financial and Professional Regulation Division of Insurance

Please refer to the Insurance Licensing Candidate Handbook for instructions for scheduling a Public Adjuster License Examination.

When the candidate successfully completes the public adjuster license examination, he/she must submit a Public Adjuster License Application - PA-1 to the Illinois Division of Insurance. A Public Adjuster Firm Registration - PA-2 may also be needed by the licensee. Please refer to Article XXXI-3/4 of the Illinois Insurance Code.

Important

Prior to issuance of a Public Adjuster License, you are required to comply with the provisions of 50 Ill. Adm. Code 3118. This provision requires that you file, in duplicate, with the Illinois Division of Insurance, your contract, schedule of rates charged, and a letter of submission.

Study Material

The Division of Insurance does not issue study material for use in the preparation for the Public Adjuster License Examination.

Examination Content Outline

The Public Adjuster License Examination is designed to measure the candidate's knowledge and awareness in those areas which are important when acting on behalf of an insured when negotiating and settling a loss with an insurance company.

The Public Adjuster License Examination contains 100 multiple choice questions. The following content outline shows the areas from which examination questions will be asked and the number of questions from each area.

Public Adjuster License Examination                     Number of
          Content Outline                               Questions

  I.  Basic Principles of Law and Insurance                10

      A.  Indemnity
      B.  Friendly and hostile fires
      C.  Direct and consequential losses
      D.  Proximate cause
      E.  Law of Contracts
      F.  Representations and warranties
      G.  Material misrepresentation
      H.  Fraud and concealment
      I.  Hazards and perils
      J.  Insurable interest
      K.  Waiver and estoppel
      L.  Binders
      M.  Cancellation of policies
      N.  Subrogation and uninsured loss

 II.  Loss Procedure                                       10

      A.  Rights and obligations of insured after a loss
      B.  Negotiations with company or companies
      C.  Establishment of coverage under the contract

III.  Determination of Value and Loss                      30

      A.  Building Losses
          1.  Fundamentals of building and construction
          2.  Estimates of repairs and rebuilding
          3.  Depreciation
          4.  Obsolescence-betterment
          5.  Replacement cost
          6.  Increased cost of construction required by
              municipal ordinances

      B.  Personal property and Commodity Losses
          1.  Examination and checking of insured's records and
              merchandising methods
          2.  Preparation of inventories of stock or other
              property in sight
          3.  Determination of value of stock or other property
              burned out of sight or missing
          4.  Salvage

      C.  Time Element

 IV.  Standard Fire Policy                                 10

  V.  Policies, Forms and Endorsements                     30

      A.  Standard dwelling forms
      B.  Homeowners policies
      C.  Farm forms
      D.  Special multi-peril policies
      E.  Mortgage clauses, loss payable clauses and lenders loss
          payable clauses
      F.  Extended coverages
      G.  Windstorm
      H.  Explosion
      I.  Sprinkler leakage
      J.  Water damage
      K.  Vandalism and malicious mischief
      L.  Consequential loss and damage assumption clauses
      M.  Profits and commissions and selling price clauses
      N.  Business interruption
      O.  Extra expense
      P.  Rental and rental value
      Q.  Builders' risk
      R.  Mine subsidence
      S.  Flood insurance
      T.  Boiler and machinery
      U.  Burglary
      V.  Valuable papers and records
      W.  Reporting forms
      X.  Account receivable forms
      Y.  Co-insurance clauses
      Z.  Pro rata distribution clause
     AA.  Blanket and specific insurance
     BB.  Primary and excess insurance
     CC.  Marine insurance
          1.  All bailment policies
          2.  Motor truck cargo
          3.  Yacht

 VI.  Guiding Principles                                   5

VII.  Illinois Insurance Law                               5