Free IN-IADJ Practice Questions

Question 1

Wind removes part of a home's roof, allowing rain to damage an upstairs ceiling. Separately, surface runoff enters through a basement window and damages the basement; no sewer, drain, or sump overflow occurs. The HO-3 policy excludes surface-water flooding and includes a water-backup endorsement limited to sewer, drain, or sump overflow. The two sources damaged different areas. How should the adjuster distinguish the losses?

Accepted Answer

Cover the rain damage upstairs; exclude the basement runoff damage from both stated grants.

Answer

Cover both areas as windstorm damage because a single storm produced both water sources.

Answer

Exclude both areas because the flood exclusion applies to every loss from the same storm.

Answer

Cover the upstairs damage under the dwelling coverage and the basement damage under the water-backup endorsement.

Question 2

An Indiana insurer has completed its investigation and agreed that a $34,000 dwelling payment is due. The insured disputes only the separate contents valuation. A supervisor writes, 'Hold the dwelling check until the insured accepts our contents offer.' All requirements for the dwelling payment have been satisfied. Which instruction should replace the supervisor's direction?

Accepted Answer

Release the dwelling payment promptly and continue adjusting the disputed contents claim.

Answer

Hold both payments until an appraisal determines the contents value and a complete settlement is possible.

Answer

Offer the dwelling payment in exchange for a release covering both the dwelling and contents losses.

Answer

Reduce the dwelling payment by the disputed contents amount, then revisit that amount after negotiations.

Question 3

A covered fire destroys the south wing of a warehouse. A building official orders demolition of the undamaged north wing under an enforceable building code. The commercial property policy includes Ordinance or Law Coverage B. When the adjuster separates the contractor's estimate by coverage, which expense belongs under Coverage B?

Accepted Answer

Demolishing and removing the undamaged north wing as ordered.

Answer

Replacing the fire-damaged roof framing in the south wing.

Answer

Compensating the owner for the value of the undamaged north wing.

Answer

Installing a newly required sprinkler system during reconstruction.

Question 4

An insured driver is legally responsible for one accident. Two other people have covered bodily-injury damages of $80,000 and $30,000, and a third party has $40,000 in covered vehicle damage. The insured's own car also sustains $10,000 in damage. The personal auto policy has Part A liability limits of 50/100/25, with no liability deductible. What is the maximum total indemnity payable under Part A for this accident?

Accepted Answer

$105,000

Answer

$80,000

Answer

$120,000

Answer

$125,000

Question 5

A claims-made-and-reported CGL policy runs from January 1 through December 31, 2026, with a January 1, 2024 retroactive date. Bodily injury must occur on or after the retroactive date, and the claim must first be made against the insured and reported to the insurer during the policy term. No extended reporting period or reporting grace period applies. All other coverage conditions are met. Which timeline satisfies these requirements?

Accepted Answer

Injury: July 2025; first claim: February 2026; report to insurer: March 2026.

Answer

Injury: November 2023; first claim: February 2026; report to insurer: March 2026.

Answer

Injury: July 2025; first claim: November 2025; report to insurer: February 2026.

Answer

Injury: July 2025; first claim: November 2026; report to insurer: February 2027.

Question 6

A restoration contractor requests removal of an entire drywall wall after a repaired supply-line leak. An infrared image shows a cool patch, but calibrated moisture-meter readings at that patch match readings on unaffected drywall of the same construction. There is no visible deterioration or evidence of contamination. The wall cavity has not been examined. What does this evidence justify?

Accepted Answer

Targeted verification of the temperature anomaly before approving the proposed wall removal.

Answer

Removal of the entire wall to eliminate the possibility of concealed moisture or future mold.

Answer

Closing the water-damage claim because the surface readings establish that the wall cavity is dry.

Answer

Removal limited to the cool patch because the infrared image establishes the boundaries of wet material.

Question 7

For an August 2026 first-party collision claim on a 2024-model car, an Indiana insurer proposes a new non-OEM replacement fender. The insurer is ready to direct the body shop to begin repairs, but the insured has not approved the type of part in writing. Which step satisfies Indiana's parts-choice requirement before repairs are directed?

Accepted Answer

The insurer must give written notice offering new OEM, new non-OEM, and used parts and obtain written approval.

Answer

The insurer must specify a new OEM fender because the car is within the protected model-year period.

Answer

The insurer may approve the non-OEM fender without further consent once the shop verifies its fit and function.

Answer

The insured must agree verbally, with the selected part type then documented on the completed repair invoice.

Question 8

A covered fire makes a bakery's kitchen unusable for 48 hours. The bakery rents a temporary kitchen at a necessary, reasonable additional cost to continue filling orders, then resumes normal operations at its repaired premises. Its commercial policy provides business income with a 72-hour waiting period and separately purchased extra expense coverage with no waiting period. Limits are sufficient, and the rental meets the extra expense terms. Which conclusion follows?

Accepted Answer

The kitchen rental can be paid as extra expense; the 48-hour income loss is not payable.

Answer

Neither coverage responds because operations resumed before the business-income waiting period expired.

Answer

Both income loss and the kitchen rental are payable from the time of the fire.

Answer

The rental is payable only as a reduction of a business-income payment, not as a separate expense.

Question 9

An Indiana resident applying for an independent adjuster license holds an active Uniform Claims Certification (UCC) from the Claims and Litigation Management Alliance. All age and suitability requirements are met. How does the active UCC affect Indiana's prelicensing course and examination requirements?

Accepted Answer

Submit the UCC certificate with the license application to waive both requirements.

Answer

Complete the 40-hour course, but use the UCC to waive the examination.

Answer

Take the Indiana examination, but use the UCC to waive the 40-hour course.

Answer

Begin adjusting under the UCC and obtain an Indiana license when the UCC next renews.

Question 10

A landlord's DP-3-insured rental house is untenantable after a covered fire. The landlord, who lives elsewhere, loses rent; the tenant also requests reimbursement of hotel bills. What is payable under Coverage D during the covered repair period?

Accepted Answer

Lost fair rental value, reduced by expenses that do not continue.

Answer

The tenant's hotel bills, because the fire displaced the household occupying the insured dwelling.

Answer

The full scheduled rent, including amounts for services the landlord no longer has to provide.

Answer

Both lost rent and the tenant's hotel bills, because each results from the covered fire.

Free IN-IADJ Practice Questions

Domain 1: Indiana Laws and Department Rules Common to All Lines of Insurance

Question 1

Question 2

Domain 3: Personal Lines Regulations

Question 3

Domain 4: Dwelling Policies

Question 4

Domain 5: Homeowners Policies

Question 5

Domain 6: Automobile: Personal Auto

Question 6

Domain 7: Commercial General Liability

Question 7

Domain 9: Commercial Package Policies

Question 8

Question 9

Domain 13: Building Construction

Question 10

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