Free ILPA Practice Questions

Question 1

An unendorsed ISO-style HO-3 covers the dwelling on an open-peril basis, subject to exclusions, and personal property for the listed broad named perils. Its windstorm provision covers interior rain damage only when wind first damages the building and creates an opening. A storm tears away part of the roof, and rain through that opening damages rafters and a sofa. Which coverage analysis is most accurate?

Accepted Answer

The rafters begin under Coverage A's open-peril grant; the sofa can qualify under Coverage C because wind created the opening

Answer

Both the rafters and sofa are analyzed on an open-peril basis

Answer

Only the sofa can be covered because rain is a personal-property peril

Answer

Neither loss can be considered until a roofing expert proves that no pre-existing wear existed anywhere in the roof assembly

Question 2

An Illinois restoration company assists a homeowner after a fire. One employee photographs damage and prepares a repair estimate for a licensed public adjuster. Another employee, for a contingent share of the recovery, negotiates depreciation with the insurer and applies policy provisions to the loss. Which activity requires an Illinois public-adjuster license?

Accepted Answer

Negotiating depreciation and policy application for compensation on the insured's behalf

Answer

Photographing the damaged rooms

Answer

Preparing a technical repair-cost estimate

Answer

Performing emergency board-up under a construction agreement without negotiating values, depreciation, or policy terms

Question 3

A roof had age-related granule loss before a storm. Wind then tore away a section of shingles and decking, and rain entered through the new opening. The policy excludes wear itself but covers wind and ensuing rain through a storm-created opening; it contains no anti-concurrent-causation clause for these facts. What is the strongest causation conclusion?

Accepted Answer

Treat wind as the predominant cause; exclude preloss wear itself but evaluate the separable wind and rain damage

Answer

Suspend adjustment and refer the entire claim because any pre-existing wear prevents a reliable coverage conclusion

Answer

Exclude every component because deterioration appeared anywhere in the causal chain

Answer

Treat rain as the proximate cause solely because it occurred last

Question 4

Following a basement water loss, a branch-circuit breaker has tripped twice and the panel shows visible moisture. The homeowner asks the public adjuster to install a higher-amperage breaker and energize the circuit 'just long enough to test it.' The proper next step is to:

Accepted Answer

Leave the circuit de-energized, document the condition, and obtain evaluation by a qualified electrician

Answer

Reset the existing breaker once while watching for smoke or heat

Answer

Install a higher-amperage breaker and continue testing because repeated trips prove the original breaker is undersized for the connected load

Answer

Connect the equipment through a portable GFCI and proceed with the test

Question 5

A commercial building has been used for customary operations in only 20% of its total square footage for 75 consecutive days. A standard ISO-style vacancy condition applies. Wind causes an otherwise covered $80,000 loss after the deductible. How much is payable under the vacancy condition?

Accepted Answer

$68,000

Answer

$0

Answer

$80,000

Answer

$92,000

Question 6

An Illinois insured signs a public-adjuster contract. The insurer receives the exact contract copy five calendar days later. Two business days after the insurer receives it, the insured emails a cancellation to the contract email address. How should the public adjuster respond?

Accepted Answer

Honor it as timely and return anything of value within 15 business days after receiving the cancellation

Answer

Reject it as late because the five-business-day rescission period began when the insured signed, regardless of when the insurer received the contract

Answer

Reject it because cancellation is valid only by registered or certified mail

Answer

Honor it only if no adjusting services have yet been performed

Question 7

A covered fire damages one wing of a building. Code enforcement then requires the undamaged wing to be demolished and the entire electrical system to be upgraded. The estimate separately lists (1) loss in value of the undamaged wing, (2) demolition and debris removal for that wing, and (3) the incremental cost of code-compliant wiring. How should the three amounts be classified under ordinance-or-law coverage?

Accepted Answer

Coverage A, Coverage B, Coverage C

Answer

Coverage B, Coverage C, Coverage A

Answer

Coverage C, Coverage A, Coverage B

Answer

Coverage A, Coverage C, Coverage B

Question 8

A masked person threatens a cashier with a knife and takes the store's receipts from the register in the cashier's presence. There are no signs of forced entry. The event is best classified as:

Accepted Answer

Robbery, because the taking was accomplished by threatened force

Answer

Burglary, because business property was taken from inside the premises

Answer

Theft only, because the offender never made physical contact with the cashier

Answer

Mysterious disappearance, because the premises show no visible entry marks

Question 9

After a covered fire closes a bakery, projected revenue for the restoration period is $240,000. Variable expenses of $90,000 will not be incurred, while $110,000 of normal operating expenses will continue. The bakery also spends $15,000 to rent a temporary kitchen, covered separately as Extra Expense. Before any waiting period, coinsurance, or limit, what amount represents Business Income?

Accepted Answer

$150,000

Answer

$40,000

Answer

$110,000

Answer

$165,000

Question 10

An insured intentionally causes a building fire, voiding the insured's own coverage. The policy contains a standard mortgage clause. The mortgagee had no knowledge of the act, pays an overdue premium after demand, and submits the required proof of loss on time. What result follows from the standard mortgage clause?

Accepted Answer

The mortgagee retains separate protection, limited by its debt, the covered loss, and the policy limit

Answer

The mortgagee loses all protection because every coverage defense against the insured automatically defeats recovery under a mortgage clause

Answer

The mortgagee receives the full policy limit regardless of its debt

Answer

The mortgagee can recover only if an appraisal panel first finds coverage

Free ILPA Practice Questions

Domain 1: General Property Insurance Product Knowledge Pertinent to Adjusters 35% of exam

Question 1

Question 2

Question 3

Question 4

Domain 2: Property and Casualty Insurance Terms and Related Concepts 25% of exam

Question 5

Question 6

Domain 3: Property and Casualty Policy Provisions and Contract Law 5% of exam

Question 7

Domain 4: Electrical and Building Techniques and Estimating 10% of exam

Question 8

Domain 5: Illinois Laws and Regulations Pertinent to Public Adjusters 25% of exam

Question 9

Question 10

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