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Free ID Independent Adjuster Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the ID Independent Adjuster practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A lender holds a recorded security interest in a warehouse and would lose money if the warehouse were destroyed. Which fact supports the lender's insurable interest in the building?

    1. A. Its financial exposure through the security interest in the building.
    2. B. Its ability to inspect the building for loan compliance.
    3. C. Its authority to request repair estimates for the building.
    4. D. Its ability to recommend an insurer for the building.

    Answer: A

    Explanation: The NAIC defines insurable interest as a relationship under which the insured "can suffer a financial loss from damage, loss or destruction to it." The lender's secured financial exposure satisfies that criterion; inspection, estimating, and referral roles alone do not establish it.

    Reference: NAIC Glossary of Insurance Terms — Insurable Interest

  2. 2At what minimum age may an Idaho minor contract for insurance on the minor's own property despite minority?

    1. A. 14
    2. B. 16
    3. C. 18
    4. D. 15

    Answer: D

    Explanation: Section 41-1807 states, "Any minor not less than fifteen (15) years of age, notwithstanding his minority, may contract" for insurance on specified interests, including the minor's property.

    Reference: Section 41-1807 – Idaho State Legislature — Idaho Code section 41-1807(2)

  3. 3A covered kitchen fire makes a homeowner's house uninhabitable while repairs are made. The family incurs hotel expenses beyond its normal living costs. Which homeowners coverage addresses those additional costs, subject to the policy limit?

    1. A. Dwelling coverage.
    2. B. Other structures coverage.
    3. C. Additional living expense coverage.
    4. D. Personal property coverage.

    Answer: C

    Explanation: The NAIC homeowners guide says additional living expense coverage pays "the necessary living expenses up to the stated limit" when the house cannot be occupied due to a covered loss. Hotel costs incurred to maintain living arrangements fit that coverage rather than physical-property sections.

    Reference: NAIC Homeowners Insurance Consumer Guide — Types of Coverage in a Homeowners Policy, Additional Living Expense

  4. 4Who appoints Idaho's Director of the Department of Insurance?

    1. A. The Idaho Legislature
    2. B. The Governor
    3. C. The Attorney General
    4. D. The State Treasurer

    Answer: B

    Explanation: Idaho Code states, "The director shall be appointed by the governor." Therefore the Governor makes the appointment.

    Reference: Independent Adjuster Examination Content Outline — Idaho Code section 41-202(2), page 4

  5. 5With which Idaho authority must a basic insurance policy form generally be filed before delivery?

    1. A. The Director of the Department of Insurance
    2. B. The Secretary of State
    3. C. The Industrial Commission
    4. D. The county recorder

    Answer: A

    Explanation: Section 41-1812 provides that no basic policy form "shall be delivered, or issued for delivery in this state, unless the form has been filed with the director." The required filing is with the insurance Director.

    Reference: Section 41-1812 – Idaho State Legislature — Idaho Code section 41-1812(1)

  6. 6Within how many days after a qualifying Idaho fire loss settlement must the fire insurer report to the fire marshal?

    1. A. 5 days
    2. B. 7 days
    3. C. 10 days
    4. D. 20 days

    Answer: B

    Explanation: The official Idaho exam source states, "Every fire insurance company must report to the fire marshal, within 7 days of a settlement of $1,000 or more or death or personal injury." The period is seven days.

    Reference: Independent Adjuster Examination Content Outline — Idaho Code section 41-258, page 7

  7. 7An Idaho insurer elects to repair a collision-damaged covered vehicle and receives an itemized bill for satisfactorily completed authorized repairs. By when must payment be made?

    1. A. Within 12 days
    2. B. Within 18 days
    3. C. Within 20 days
    4. D. Within 25 days

    Answer: C

    Explanation: Section 41-1328 requires payment "no later than twenty (20) days subsequent to receipt of an itemized bill or invoice" for the completed authorized repairs.

    Reference: Independent Adjuster Examination Content Outline — Idaho Code section 41-1328, page 12

  8. 8What is Idaho's ordinary workers' compensation waiting period before an injured employee receives income benefits?

    1. A. Three days
    2. B. Five days
    3. C. Seven days
    4. D. Fourteen days

    Answer: B

    Explanation: Section 72-402 provides, "An injured employee shall not be allowed income benefits for the first five (5) days of disability for work." The ordinary waiting period is five days.

    Reference: Independent Adjuster Examination Content Outline — Idaho Code section 72-402(1), page 25

  9. 9An adjuster is separating a fire's cause from conditions that made the fire more likely. Which item is a hazard rather than the peril or a resulting loss?

    1. A. Flames that consume the insured building's roof.
    2. B. Combustible debris stored beside the insured building.
    3. C. Smoke damage to the insured building's contents.
    4. D. The cost to replace the insured building's wiring.

    Answer: B

    Explanation: The NAIC describes a hazard as a "circumstance which tends to increase the probability or severity of a loss." Combustible debris increases fire risk. The fire is the peril, and damaged property or repair cost is loss rather than the risk-increasing condition.

    Reference: NAIC Glossary of Insurance Terms — Hazard; Peril

  10. 10An auto adjuster needs to verify the listed vehicle, policy term, named insured and applicable coverage limit before evaluating a claim. Which policy part ordinarily supplies those case-specific facts?

    1. A. The exclusion section.
    2. B. The conditions section.
    3. C. The declarations page.
    4. D. The general insuring agreement.

    Answer: C

    Explanation: NAIC says the declarations page provides "the policy term, coverage limits, and information about the insured" and describes the vehicles. The other policy parts govern coverage rules, conditions, or exclusions rather than these listed policy facts.

    Reference: NAIC Auto Insurance Consumer Guide — Understanding Your Auto Insurance Policy, Declarations Page

Topics in this practice bank

These topics describe the available practice for ID Independent Adjuster. Review the examination outline and its sources for scope and allocation details.

  • I. INSURANCE TERMS AND RELATED CONCEPTS
    • A. Insurable interest
    • B. Hazard
    • C. Peril
    • D. Loss (Direct vs indirect)
    • E. Proximate cause
    • F. Deductible
    • G. Indemnity
    • H. Actual cash value
    • I. Replacement cost
    • J. Limits of liability (Combined vs split)
    • K. Coinsurance/insurance to value
    • L. Pair and set clause
    • M. Extensions of coverage
    • N. Additional coverages
    • O. Accident
    • P. Occurrence
    • Q. Cancellation
    • R. Nonrenewal
    • S. Vacancy and unoccupancy
    • T. Abandonment
    • U. Liability
    • V. Negligence
    • W. Burglary
    • X. Robbery
    • Y. Theft
    • Z. Mysterious disappearance
    • AA. Bodily injury liability
    • BB. Property damage liability
    • CC. Personal injury liability
    • DD. Insured contract
    • EE. Certificate of insurance
    • FF. First vs third party
    • GG. Excess vs reinsurance
    • HH. Primary vs secondary coverage
    • II. Coordination of Benefits (Medicare/Medicaid/Workers’ Compensation/Personal Health)
    • JJ. Methods of Resolution (Appraisal, Arbitration, Mediation, Litigation, Subrogation)
    • KK. Statute of Limitations
  • II. POLICY PROVISIONS AND CONTRACT LAW
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Obligations of the insurer
    • H. Mortgagee rights
    • I. Proof of loss
    • J. Notice of claim
    • K. Appraisal
    • L. Other insurance provision
    • M. Subrogation
    • N. Arbitration
    • O. Elements of a contract
    • P. Warranties, representations, and concealment
    • Q. Additional (supplementary) payments
    • R. Claims made policy form
    • S. Salvage
    • T. Loss settlement provisions including consent to settle loss
    • U. Limitations
    • V. Notice of Injury
    • W. Coinsurance
  • III. TYPES OF POLICIES
    • A. Personal lines
    • A. Personal lines / 1. Dwellings and contents (DP forms)
    • A. Personal lines / 2. Personal liability
    • A. Personal lines / 3. Homeowners (HO forms)
    • A. Personal lines / 4. Mobile homes
    • A. Personal lines / 5. Renters
    • A. Personal lines / 6. Farmowners/Ranchers
    • B. Boiler and machinery coverage forms
    • C. Automotive: personal auto and business (commercial) auto
    • C. Automotive: personal auto and business (commercial) auto / 1. Liability
    • C. Automotive: personal auto and business (commercial) auto / 2. Medical payments
    • C. Automotive: personal auto and business (commercial) auto / 3. Physical damage (collision and other than collision/comprehensive)
    • C. Automotive: personal auto and business (commercial) auto / 4. Uninsured motorists
    • C. Automotive: personal auto and business (commercial) auto / 5. Underinsured motorists
    • C. Automotive: personal auto and business (commercial) auto / 6. Definitions
    • C. Automotive: personal auto and business (commercial) auto / 7. Types of auto
    • C. Automotive: personal auto and business (commercial) auto / 7. Types of auto / a. Owned
    • C. Automotive: personal auto and business (commercial) auto / 7. Types of auto / b. Non-owned
    • C. Automotive: personal auto and business (commercial) auto / 7. Types of auto / c. Hired
    • C. Automotive: personal auto and business (commercial) auto / 7. Types of auto / d. Temporary substitute
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form / a. Standard coverages
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form / a. Standard coverages / (1). Liability
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form / a. Standard coverages / (2). Garagekeepers
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form / a. Standard coverages / (3). Physical damage
    • C. Automotive: personal auto and business (commercial) auto / 8. Garage coverage form / b. Garagekeepers options
    • C. Automotive: personal auto and business (commercial) auto / 9. Truckers coverage form
    • C. Automotive: personal auto and business (commercial) auto / 10. Inland Marine/Cargo
    • C. Automotive: personal auto and business (commercial) auto / 11. Commercial General Liability
    • C. Automotive: personal auto and business (commercial) auto / 12. Commercial Property
  • IV. IDAHO STATUTES, RULES, AND REGULATIONS COMMON TO ALL INSURANCE LINES
    • A. Responsibilities of the Director of the Department of Insurance
    • A. Responsibilities of the Director of the Department of Insurance / 1. Appointment
    • A. Responsibilities of the Director of the Department of Insurance / 2. General duties and powers
    • A. Responsibilities of the Director of the Department of Insurance / 3. Hearings/notice of hearings/orders
    • A. Responsibilities of the Director of the Department of Insurance / 4. Penalties
    • B. Definitions
    • B. Definitions / 1. Authorized and unauthorized companies/admitted and nonadmitted companies
    • B. Definitions / 2. Certificate of authority
    • C. Licensing
    • C. Licensing / 1. Persons required to be licensed
    • C. Licensing / 1. Persons required to be licensed / a. Resident/nonresident
    • C. Licensing / 1. Persons required to be licensed / b. Adjuster
    • C. Licensing / 2. Obtaining a license
    • C. Licensing / 2. Obtaining a license / a. Qualifications
    • C. Licensing / 2. Obtaining a license / b. License application
    • C. Licensing / 2. Obtaining a license / c. Written examinations
    • C. Licensing / 2. Obtaining a license / d. Exemptions/exceptions
    • C. Licensing / 2. Obtaining a license / e. License denial/refusal
    • C. Licensing / 3. Maintaining a license
    • C. Licensing / 3. Maintaining a license / a. Change of address/place of business
    • C. Licensing / 3. Maintaining a license / b. Fees/renewal
    • C. Licensing / 3. Maintaining a license / c. Record keeping
    • C. Licensing / 3. Maintaining a license / d. License expiration
    • C. Licensing / 3. Maintaining a license / e. Suspension or revocation of licenses/felony convictions
  • V. IDAHO STATUTES, RULES, AND REGULATIONS COMMON TO PROPERTY AND CASUALTY INSURANCE ONLY
    • A. Insurance contracts
    • A. Insurance contracts / 1. Renewal, nonrenewal, cancellation
    • A. Insurance contracts / 2. Commercial, homeowners, personal auto, and casualty policies
    • A. Insurance contracts / 3. Unfair Claims Settlement
    • B. Rate filings
    • C. Businessowners policy (BOP)
    • D. Business auto policy
  • VI. IDAHO STATUTES, RULES, AND REGULATIONS PERTINENT TO PROPERTY INSURANCE ONLY
    • A. Claims methods and practices
    • B. Standard fire policy
    • C. Marine/inland marine
  • VII. IDAHO STATUTES, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY
    • A. Financial responsibility
    • A. Financial responsibility / 1. Proof of financial responsibility defined
    • A. Financial responsibility / 2. Persons required to show proof
    • A. Financial responsibility / 3. Penalty for noncompliance
    • A. Financial responsibility / 4. Methods of satisfying financial responsibility
    • B. Uninsured/underinsured motorists coverage
    • C. Assigned risk plan
    • D. Payment of claims
    • E. Payment of claims (collision)
  • VIII. Worker’s Compensation Insurance
    • A. Standard policy concepts
    • B. Self-insured vs insured
    • C. Work-related vs. non-work-related (AOE/COE)
    • D. Other states’ insurance
    • E. Jurisdiction
    • F. Exclusive remedy
    • G. Accident/injury vs occupational disease
    • H. Reporting/Making claim
    • I. Statute of limitations for medical vs indemnity benefits

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