Free Indiana Independent Adjuster Examination Practice Questions
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Sample Practice Questions
Try these 10 sample questions from the Indiana Independent Adjuster Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.
1Who has statutory authority to appoint the Indiana Insurance Commissioner?
- A. The Governor
- B. The Attorney General
- C. The General Assembly
- D. The state Supreme Court
2An applicant and insurer have agreed on definite insurance terms, but neither side has exchanged or promised anything of value. Which contract-formation element remains missing?
- A. Consideration
- B. Acceptance
- C. Offer
- D. Meeting of the minds
Answer: A
Explanation: Indiana's court lists "offer, acceptance, consideration, and a meeting of the minds" as contract requirements. Agreement on terms establishes the latter elements in the question, but the exchange of value needed for consideration is absent.
Reference: Florance v. Indiana University, Indiana Court of Appeals — p. 6, paragraph 11
3An owner seeks a form for a vacation dwelling and does not need the personal-liability or medical-payments protection of a homeowners package. Which form identified by the NAIC best matches that use?
- A. Dwelling Fire Form
- B. HO-2 Broad Form
- C. HO-3 Special Form
- D. HO-5 Comprehensive Form
Answer: A
Explanation: The NAIC says the Dwelling Fire Form "covers only your dwelling" and "It’s also used for vacation homes". The HO forms are homeowners package alternatives, while the stated need is for dwelling-focused protection.
Reference: NAIC A Consumer's Guide to Home Insurance — Dwelling Fire Form, p. 5
4A renter wants to insure personal property in an apartment without insuring the landlord's building. Which homeowners form should the agent identify?
- A. HO-3 special form
- B. HO-4 renter's form
- C. HO-5 comprehensive form
- D. HO-6 condominium unit-owner form
Answer: B
Explanation: The NAIC identifies "HO-4 (Renter’s Form)" as covering unscheduled personal property. HO-3 and HO-5 are homeowners forms, while HO-6 is for condominium unit owners.
Reference: NAIC Definitions for State Regulator Homeowners Market Data Call — Homeowners forms, HO-4 (Renter’s Form)
5An insured driver negligently hits another car, injuring its passenger. Which personal-auto coverage should the adjuster examine for the passenger's injury claim against the insured driver?
- A. Bodily-injury liability coverage
- B. Property-damage liability coverage
- C. Collision physical-damage coverage
- D. Other-than-collision physical-damage coverage
Answer: A
Explanation: The Indiana Department of Insurance says bodily-injury liability "Pays, up to the limits of the policy, for injuries to other people you cause with your car." The passenger is another injured person; the other options concern property damage or the insured auto.
Reference: Indiana Department of Insurance Auto Insurance — Automobile insurance coverages, bodily injury liability
6Which category is an Indiana worker's compensation benefit for a compensable injury?
- A. Property replacement for the employer
- B. Medical treatment reasonably necessary for the injured employee
- C. Punitive damages against the employer
- D. Premium refunds to coworkers
7A large commercial venture is outside the intended small-business market for a BOP and wants to select property and liability coverage parts under one policy. Which package program fits that structure?
- A. Commercial Package Policy
- B. Businessowners Policy
- C. Farmowners Package Policy
- D. Personal Package Policy
Answer: A
Explanation: The NAIC says the Commercial Package Policy provides "a broad package of property and liability coverages for commercial ventures other than those provided insurance through a businessowners policy." The stated large commercial venture needs selectable commercial parts rather than the other named package markets.
Reference: NAIC Property and Casualty Product Coding Matrix — Commercial Package Policy (CPP)
8An eligible small retailer wants a standard single-policy package with business property, general liability and business interruption coverage built in. Which program is tailored to that small-business need?
- A. Businessowners Policy
- B. Commercial Package Policy with selected coverage parts
- C. Farmowners Package Policy
- D. Commercial Property Policy with a business-income form
Answer: A
Explanation: The NAIC states that a BOP is commonly purchased by small businesses and "includes general liability, commercial property/business property coverage, and business interruption insurance." A CPP is a selectable commercial package, a farm policy serves farming, and property plus income does not itself include liability.
Reference: NAIC Business Interruption and Business Owner Policy — Businessowners policy (BOP)
9An Indiana independent adjuster acquires title to claim salvage without prior written authority from the principal. Which statutory duty was breached?
- A. The duty to avoid undisclosed financial conflicts
- B. The duty to remit collected funds promptly
- C. The prohibition on acquiring salvage interests without written principal authority
- D. The duty to disclose referral compensation
10During a covered home rebuild, the building authority requires code-compliant electrical work beyond the preloss wiring. Which estimating approach properly records that required work before the adjuster decides whether added code costs are insured?
- A. Itemize the required electrical upgrade in the repair scope and price its materials and labor.
- B. Record the electrical upgrade only in the final payment worksheet after the repair is complete.
- C. Price only the preloss wiring in the repair scope and leave the required upgrade outside it.
- D. Carry the electrical upgrade only as an unmeasured contingency without a scoped work item.
Answer: A
Explanation: The NAIC describes the detailed repair list as including materials, labor, overhead, and "building code compliance". The required upgrade belongs as a scoped, priced repair item; policy coverage for its additional cost is decided separately.
Reference: NAIC Post-Disaster Claims Guide — Repair estimates, building code compliance
Topics in this practice bank
These topics describe the available practice for Indiana Independent Adjuster Examination. Review the examination outline and its sources for scope and allocation details.
INDIANA LAWS AND DEPARTMENT RULES COMMON TO ALL LINES OF INSURANCE
- Department of Insurance
- Department of Insurance / Insurance Commissioner
- Department of Insurance / Insurance Commissioner / Appointment by Governor
- Department of Insurance / Insurance Commissioner / Member of National Association of Insurance Commissioners (NAIC)
- Department of Insurance / Insurance Commissioner / Powers
- Department of Insurance / Insurance Commissioner / Duties
- Department of Insurance / Admission of Insurance Companies
- Department of Insurance / Admission of Insurance Companies / Certificate of Authority
- Department of Insurance / Admission of Insurance Companies / Admitted versus non-admitted companies
- Department of Insurance / Insurance Guaranty Associations
- Department of Insurance / Insurance Guaranty Associations / Purpose
- Department of Insurance / Surplus Lines Companies
- Licensing Regulations
- Licensing Regulations / Qualifications
- Licensing Regulations / Resident and Non-Resident
- Licensing Regulations / Reciprocity
- Licensing Regulations / Process
- Licensing Regulations / Examination
- Licensing Regulations / Fees
- License Renewal
- License Renewal / Change of Contact Information
- License Renewal / Renewal Application and Fee
- License Renewal / Electronic Process
- License Renewal / Reinstatement Fee
- License Renewal / Continuing Education
- Disciplinary Actions
- Disciplinary Actions / Cease and Desist Order
- Disciplinary Actions / Violations
- Disciplinary Actions / Suspension and Revocation
- Disciplinary Actions / Penalties
- Disciplinary Actions / Administrative Hearings
- Unfair Claim Settlement Practices
- Unfair Trade Practices
- Unfair Trade Practices / Misrepresentation
- Unfair Trade Practices / False information and advertising
- Unfair Trade Practices / Rebates and kickbacks
- Unfair Trade Practices / Defamation
- Unfair Trade Practices / Boycott
- Unfair Trade Practices / Coercion
- Unfair Trade Practices / Intimidation
- Federal Regulation
- Federal Regulation / Fraud and False Statements (including 1033 Waiver)
INSURANCE BASICS
- Contract Law
- Contract Law / Elements of Contract
- Contract Law / Legal Interpretations
- Contract Law / Legal Interpretations / Ambiguities in a Contract of Adhesion
- Contract Law / Legal Interpretations / Reasonable Expectations
- Contract Law / Legal Interpretations / Utmost Good Faith
- Insurance Contract Basics
- Insurance Contract Basics / Indemnity
- Insurance Contract Basics / Representations, Misrepresentations and Concealment
- Insurance Contract Basics / Warranties
- Insurance Contract Basics / Fraud
- Insurance Contract Basics / Waiver (Express and implied)
- Insurance Contract Basics / Estoppel
- Insurance Concepts
- Insurance Concepts / Insurable Interest
- Insurance Concepts / Risk (pure vs. speculative)
- Insurance Concepts / Loss
- Insurance Concepts / Loss / Direct
- Insurance Concepts / Loss / Indirect (consequential)
- Insurance Concepts / Negligence
- Insurance Concepts / Negligence / Duty
- Insurance Concepts / Negligence / Breach of duty
- Insurance Concepts / Negligence / Proximate cause
- Insurance Concepts / Negligence / Damages
- Insurance Concepts / Negligence / Damages / Compensatory
- Insurance Concepts / Negligence / Damages / Punitive
- Insurance Concepts / Property
- Insurance Concepts / Casualty
- Insurance Concepts / Casualty / Strict Liability
- Insurance Concepts / Casualty / Vicarious Liability
- Insurance Concepts / Two and Three Party Contracts
- Insurance Concepts / Limit of Liability/Company pays lower of loss or limit
- Insurance Concepts / Named Insured
- Insurance Concepts / Causes of Loss (Perils)
- Insurance Concepts / Causes of Loss (Perils) / Basic
- Insurance Concepts / Causes of Loss (Perils) / Broad
- Insurance Concepts / Causes of Loss (Perils) / Special
- Insurance Concepts / Named Peril versus Special (Open) Perils
- Insurance Concepts / Blanket versus Special Coverage
- Insurance Concepts / Loss Valuation
- Insurance Concepts / Loss Valuation / Actual Cash Value
- Insurance Concepts / Loss Valuation / Replacement Cost
- Insurance Concepts / Loss Valuation / Functional Replacement Cost
- Insurance Concepts / Loss Valuation / Fair Market Value
- Insurance Concepts / Loss Valuation / Agreed Value
- Insurance Concepts / Loss Valuation / Stated Value
- Insurance Concepts / Loss Valuation / Salvage Value
- Insurance Concepts / Bailment/Care, Custody, Control
- Insurance Concepts / Occurrence
- Insurance Concepts / Mortgagee rights
- Insurance Concepts / Reinsurance
- Insurance Concepts / Underwriting
- Policy Structure
- Policy Structure / Declarations
- Policy Structure / Definitions
- Policy Structure / Insuring Agreement
- Policy Structure / Additional Coverage
- Policy Structure / Extensions of Coverage
- Policy Structure / Endorsements
- Policy Structure / Conditions
- Policy Structure / Exclusions
- Common Policy Provisions
- Common Policy Provisions / Insured (Named, First Named, Additional Insured(s))
- Common Policy Provisions / Policy Period
- Common Policy Provisions / Policy Territory
- Common Policy Provisions / Cancellation and Renewal
- Common Policy Provisions / Coinsurance
- Common Policy Provisions / Deductibles
- Common Policy Provisions / Deductibles / Flat
- Common Policy Provisions / Deductibles / Percentage
- Common Policy Provisions / Deductibles / Overlapping
- Common Policy Provisions / Other Insurance
- Common Policy Provisions / Other Insurance / Nonconcurrency
- Common Policy Provisions / Other Insurance / Primary and Excess
- Common Policy Provisions / Other Insurance / Pro Rata
- Common Policy Provisions / Policy Limits
- Common Policy Provisions / Restoration/Nonreduction of Limits
- Common Policy Provisions / Vacancy or Unoccupancy
- Common Policy Provisions / Liberalization
- Common Policy Provisions / Third Party Provisions
- Common Policy Provisions / Third Party Provisions / Mortgage Clause
- Common Policy Provisions / Third Party Provisions / Loss Payable Clause
- Common Policy Provisions / Third Party Provisions / No Benefit to Bailee
PERSONAL LINES REGULATIONS
- Claims
- Claims / Auto claims
- Automobile Insurance
- Automobile Insurance Assigned Risk Program (AIP)
- Mine Subsidence
DWELLING POLICIES
- Characteristics and Purpose
- Coverage Forms
- Coverage Forms / DP-1 Basic
- Coverage Forms / DP-2 Broad
- Coverage Forms / DP-3 Special
- Property Coverages
- Property Coverages / Coverage A – Dwelling
- Property Coverages / Coverage B – Other Structures
- Property Coverages / Coverage C – Personal Property
- Property Coverages / Coverage D – Fair Rental Value
- Property Coverages / Coverage E – Additional Living Expenses
- Conditions
- Exclusions
HOMEOWNERS POLICIES
- Coverage Forms
- Coverage Forms / HO-2 Broad Form
- Coverage Forms / HO-3 Special Form
- Coverage Forms / HO-4 Tenant (Contents) Form
- Coverage Forms / HO-5 Comprehensive Form
- Coverage Forms / HO-6 Condominium Unit Owners Form
- Coverage Forms / HO-8 Modified Coverage Form
- Definitions
- Definitions / Resident Premises
- Definitions / Named Insured
- Definitions / Family Member/Relative
- Section I – Property Coverages
- Section I – Property Coverages / Coverage A – Dwelling
- Section I – Property Coverages / Coverage B – Other Structures
- Section I – Property Coverages / Coverage C – Personal Property
- Section I – Property Coverages / Coverage D – Loss of Use
- Perils Insured Against (Basic, Broad, Special)
- Section II – Liability
- Section II – Liability / Coverage E – Personal Liability
- Section II – Liability / Coverage F – Medical payments
- Conditions
- Exclusions
- Exclusions / Flood (National Flood Insurance Program (NFIP))
- Exclusions / Flood (National Flood Insurance Program (NFIP)) / Eligibility
- Exclusions / Wear/Tear
- Exclusions / Mechanical Breakdown
- Exclusions / Animals, Birds and Pets
- Exclusions / Motor Vehicles
- Exclusions / Earth Movement
- Exclusions / Freezing of Pipes
- Selected Endorsements
- Selected Endorsements / Earthquake
- Selected Endorsements / Water Back-Up and Sump Pump Failure
- Selected Endorsements / Building Ordinance and Law
- Selected Endorsements / Incidental business in home
- Selected Endorsements / Equipment Breakdown
- Boatowners
Automobile: Personal Auto
- Liability
- Liability / Bodily Injury
- Liability / Property Damage
- Liability / Split Limits
- Liability / Combined Single Limit
- Medical Payments
- Physical Damage (collision; other than collision; specified perils)
- Uninsured motorists
- Underinsured motorists
- Who is an insured
- Who is an insured / Named Insured
- Who is an insured / Family Member
- Who is an insured / Those using with permission
- Types of Auto
- Types of Auto / Owned
- Types of Auto / Non-owned
- Types of Auto / Hired
- Types of Auto / Temporary Substitute
- Types of Auto / Newly Acquired Autos
- Types of Auto / Transportation Expense and Rental Reimbursement Expense
- Exclusions
- Individual Insured and Drive Other Car (DOC)
COMMERCIAL GENERAL LIABILITY
- Exposures
- Exposures / Premises and Operations
- Exposures / Products and Completed Operations
- Coverage
- Coverage / Coverage A: Bodily Injury and Property Damage Liability
- Coverage / Coverage A: Bodily Injury and Property Damage Liability / Occurrence
- Coverage / Coverage A: Bodily Injury and Property Damage Liability / Claims made
- Coverage / Coverage A: Bodily Injury and Property Damage Liability / Claims made / Retroactive date
- Coverage / Coverage B: Personal Injury and Advertising Injury
- Coverage / Coverage C: Medical Payments
- Coverage / Supplemental Payments
- Coverage / Who is an insured
- Coverage / Limits
- Coverage / Limits / Per occurrence
- Coverage / Limits / Annual Aggregate
- Coverage / Damage to Property of Others
- Coverage / Damage to Property of Others / Fire Legal Liability
- Professional Liability
- Professional Liability / Errors and Omissions
- Professional Liability / Medical Malpractice
- Professional Liability / Directors and Officers (D&O)
- Professional Liability / Employment Practices Liability (EPLI)
- Professional Liability / Cyber liability and data breach
WORKERS COMPENSATION INSURANCE, EMPLOYERS LIABILITY INSURANCE, AND RELATED ISSUES
- Standard policy concepts
- Standard policy concepts / Who is an employee/employer
- Standard policy concepts / Compensation
- Work-related vs. non-work-related
- Other states’ insurance
- Employers Liability
- Exclusive remedy
- Premium Determination
- Indiana Worker’s Compensation Regulations
- Indiana Worker’s Compensation Regulations / Benefits
- Indiana Worker’s Compensation Regulations / Who Must Be Insured/Is Not Required to Be Insured
- Indiana Worker’s Compensation Regulations / Minors
- Indiana Worker’s Compensation Regulations / Second Injury Fund
- Indiana Worker’s Compensation Regulations / Assigned Risk Plan
COMMERCIAL PACKAGE POLICIES
- Components
- Components / Common Policy Declarations
- Components / Common Policy Conditions
- Components / One or More Coverage Parts
- Components / Liability and Medical Payments
- Commercial Property
- Commercial Property / Property Conditions Form
- Commercial Property / Coverage Forms
- Commercial Property / Coverage Forms / Building, Personal Property, Personal Property of Others
- Commercial Property / Coverage Forms / Business Income
- Commercial Property / Coverage Forms / Extra Expense
- Commercial Property / Cause of Loss Forms
- Commercial Property / Cause of Loss Forms / Basic
- Commercial Property / Cause of Loss Forms / Broad
- Commercial Property / Cause of Loss Forms / Special
- Commercial Liability
- Professional and Products Liability
- Umbrella or Excess Liability
- Commercial Inland Marine
- Commercial Inland Marine / Definition and Purpose
- Ocean Marine
- Farm Coverage
- Farm Coverage / Farm Property Coverage Forms
- Farm Coverage / Farm Property Coverage Forms / Coverage A – Dwelling
- Farm Coverage / Farm Property Coverage Forms / Coverage B – Other Structures
- Farm Coverage / Farm Property Coverage Forms / Coverage C – Personal Property
- Farm Coverage / Farm Property Coverage Forms / Coverage D – Loss of Use
- Farm Coverage / Farm Property Coverage Forms / Coverage E – Scheduled Farm Personal Property
- Farm Coverage / Farm Property Coverage Forms / Coverage F – Unscheduled Farm Personal Property
- Farm Coverage / Farm Property Coverage Forms / Coverage G – Other Farm Structures
- Farm Coverage / Farm Property Coverage Forms / Coverage H - Bodily Injury & property damage
- Farm Coverage / Farm Property Coverage Forms / Coverage I - Personal & Advertising Injury
- Farm Coverage / Farm Property Coverage Forms / Coverage J - Medical Payments
- Farm Coverage / Causes of Loss (Basic, Broad, Special)
- Farm Coverage / Crop-Hail Insurance versus Multi-Peril Crop Insurance
- Farm Coverage / Conditions
- Farm Coverage / Exclusions
BUSINESSOWNERS POLICY (BOP)
- Definition and use
COMMERCIAL AUTO
- Who is insured
- Types of vehicles
- Garage Coverage Form, including Garagekeepers Insurance
ADJUSTING LOSSES
- Role of the Adjuster
- Role of the Adjuster / Duties and Responsibilities
- Role of the Adjuster / Public Adjuster
- Role of the Adjuster / Independent Adjuster
- Role of the Adjuster / Staff Adjuster
- Role of the Adjuster / Relationship to the Legal Profession
- Property and Casualty
- Property and Casualty / Insured’s Duties Following a Loss
- Property and Casualty / Insured’s Duties Following a Loss / Notice
- Property and Casualty / Insured’s Duties Following a Loss / Minimizing Loss
- Property and Casualty / Insured’s Duties Following a Loss / Proof of Loss
- Property and Casualty / Insured’s Duties Following a Loss / Books and Records
- Property and Casualty / Insured’s Duties Following a Loss / Abandonment
- Property and Casualty / Claims Investigation Process and Procedures
- Property and Casualty / Claims Investigation Process and Procedures / Critical Evidence
- Property and Casualty / Claims Investigation Process and Procedures / Other Evidence
- Property and Casualty / Claims Investigation Process and Procedures / Official Reports
- Property and Casualty / Claims Investigation Process and Procedures / Written and Audio Statements
- Property and Casualty / Determining Value and Loss
- Property and Casualty / Determining Value and Loss / Burden of Proof of Loss and of Value
- Property and Casualty / Determining Value and Loss / Estimates
- Property and Casualty / Determining Value and Loss / Depreciation
- Property and Casualty / Determining Value and Loss / Salvage
- Property and Casualty / Claim Settlement Options/Releases
- Property and Casualty / Payment and Discharge
- Property and Casualty / Claims Adjustment Procedures
- Property and Casualty / Claims Adjustment Procedures / Dispute Resolution
- Property and Casualty / Claims Adjustment Procedures / Dispute Resolution / Appraisal
- Property and Casualty / Claims Adjustment Procedures / Dispute Resolution / Arbitration
- Property and Casualty / Claims Adjustment Procedures / Dispute Resolution / Litigation
- Property and Casualty / Liability
- Types of Adjuster Reports
- Types of Adjuster Reports / Initial/Field Report
- Types of Adjuster Reports / Interim Report
- Types of Adjuster Reports / Full Report
BUILDING CONSTRUCTION
- Construction Styles, Materials, Measurements and Components
- Construction Styles, Materials, Measurements and Components / Roofing/Siding
- Construction Styles, Materials, Measurements and Components / Framing
- Construction Styles, Materials, Measurements and Components / Foundations
- Construction Styles, Materials, Measurements and Components / Flooring
- Construction Styles, Materials, Measurements and Components / Mechanical (e.g., Plumbing, Heating, Electrical)
- Construction Styles, Materials, Measurements and Components / Water, Smoke and Fire Remediation
- Construction Styles, Materials, Measurements and Components / Debris Removal
- Construction Types
- Construction Types / Stick-Built
- Construction Types / Pre-Fabrication
- Construction Types / Manufactured
- Endorsements
- Endorsements / Actual Cash Value Endorsement
- Endorsements / Actual Cash Value Endorsement / Recoverable versus Non-Recoverable Depreciation
- Endorsements / Matching Endorsement
- Endorsements / Common Construction Endorsement
- Endorsements / Amendatory Debris Removal
- Building Codes and Code Enforcement
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