Illinois Public Adjuster License Exam Explained: Format & More

We've all heard about the Illinois public adjuster exam. It's a necessary exam that every every prospective adjuster must take to get their adjuster license. Unfortunately, most people don't even know the basics of the exam.

About 80% of first-time public adjuster examinees underestimate and fail the exam. About 65% take 3 or more attempts to pass the exam. We'll help you understand the exam, including curriculum, dates, processes, and formats.

Quick Overview of Public Adjuster Exam

Here's you 10-second overview of the public adjuster exam:

The PA exam is by no means easy, especially when you don't know the exam format, topics, or pitfalls. We'll explain everything including the background and context.

Who Manages the Illinois Public Adjuster Exam?

Pearson VUE manages the public adjuster exam in Illinois. IDoI would have to expend numerous resources to manage exams, which would be unproductive. In May of 2019, the IDoI partnered with Pearson VUE to manage all their exams.

You cannot become a license public adjuster in Illinois without passing the exam. In the same breath, you can't get your license without the IDoI. You have to:

•  Pass the exam with Pearson VUE
• Apply for the license with Illinois Department of Insurance (IDoI)

Illinois Public Adjuster Exam Dates

The PA exam doesn't have a predetermined date, unlike other professional license exams. The IDoI and Pearson VUE arrange an exam on a per-need basis. You choose your own timeslot for the exam.

This gives you two distinct advantages:

• You can get a license whenever you want
• You'll never miss an exam registration date

Applying for the exam is easy, passing the exam is the hard bit. Why? Because of the PA exam format.

Where Does the PA Exam Take Place?

You can take exam at a Pearson VUE centre or online under the watchful eye of a proctor. Pearson VUE introduced the online proctored exam because managing on-demand exams for hundreds of applicants is costly and ineffective.

Also, most candidates prefer an online exam because:

• They don't have to travel to an exam location
• They can attend an exam from any location
• The online exam offers quicker results

People who aren't tech-savvy prefer the old-fashioned in-person exam. The in-person exams take place in:

You can choose an exam type according to your preference.

Public Adjuster Exam Format

The public adjuster exam includes 100 multiple-choice questions. You get 165 minutes to attempt the whole exam. Essentially, you get 99 seconds per MCQ, which isn't a lot. To put things into perspective:

• About 80% of first time candidates fail the exam.
• Over 60% of candidates have to attempt the exam two or more times.

You must score at least 70% to pass the exam. Most first time candidates are underprepared or fail to understand the time crunch. The few that pass are left rattled by the proceeding forms and paperwork.

PA Exam Topics

The public adjuster exam is designed to test your knowledge on Illinois insurance law, statutes, general insurance terminology, and coverage clauses. The 100-MCQs are divided based on the following layout:

The percentages don't add up to 100% because the actual percentage coverage for each topic can change. Let's look at the core topics for each section.

General Property Insurance Product Knowledge (35 Questions)

This is the largest section of the exam and tests your knowledge of specific insurance products and policies.

• Personal Lines: ISO Homeowners policies, Dwelling and Contents, Standard Fire Policy, and Mine Subsidence.

• Commercial Lines: Commercial Package Policy (CPP), Businessowners Policy (BOP), Builder’s Risk, and Commercial/Special Multi-peril.

• Marine Insurance: Inland and Ocean Marine, including personal and commercial floaters.

• Additional Coverages/Exclusions: Business Interruption, Law and Ordinance, Earthquake, Vandalism, and Broad Form.

• Other: Bonds and National Flood Insurance Policies.

Property and Casualty Terms and Concepts (25 Questions)

This section evaluates your understanding of core insurance terminology and valuation methods.

• Core Concepts: Insurable interest, Indemnity, Peril, Loss (Direct/Indirect), Proximate cause, and Coinsurance.

• Valuation & Settlement: Actual cash value (ACV), Replacement cost, Depreciation, Deductibles, Abandonment, and Salvage.

• Liability & Hazards: Types of liability, Binders, Waiver and Estoppel, and Moral Hazards.

Policy Provisions and Contract Law (5 Questions)

A smaller section dedicated to the legal and contractual obligations within an insurance policy.

• Key Topics: Proof of loss, Notice of claim, Material misrepresentations, Assignment, Subrogation, and Mortgagee rights.

Electrical and Building Techniques and Estimating (10 Questions)

This practical section tests your knowledge of construction and how to estimate property damage.

• Key Topics: Building techniques, electrical systems, and damage estimation practices.

Illinois Laws and Regulations (25 Questions)

This section focuses entirely on state-specific compliance and the legal framework governing Public Adjusters in Illinois.

• Licensing & Regulation: Rules for obtaining and maintaining a Public Adjuster license.

• Duties & Practices: The ethical and legal responsibilities of a Public Adjuster.

• Claims Handling: Unfair Claims Settlement and Trade Practices.

• General P&C Regulation: Broad regulations governing Property and Casualty insurance in the state.

There are no official study resources, which makes everything that much harder.

Your best bet is either buying various resources online or enrolling in a public adjuster course. Need some hints about resources? We have a complete resource guide for the PA exam. Alternatively, you can enroll in our public adjuster prep course.

Joining the prep course means:

• 95% chance of passing the PA exam
• Tailored practice tests that prepare you for the stress
• Not buying any extra resources because everything's provided in class
• Additional help with applications and post exam processes

Join our PA exam course today and start prepping.

 What Happens After You Pass The PA Exam?

You must apply for your license after passng the PA exam. Unfortunately, it isn't that easy because you have to meet licensing requirements. These requirements include:

• Passing a background check (fingerprints)
• Arranging a surety bond of $50000
• Paying application fee of $215

You will have to apply for the license with the NIPR. Please arrange all of the prerequisits before you apply because you must attach the proof with your application.

FAQs on Public Adjuster Exam

Can you take the Illinois insurance exam online?

Yes, you can take the the Illinois public adjuster exam online through Pearson VUE. Due to popular demand and logistical efficiencies, Pearson VUE offers an online proctored exam for the PA license. You can sign up for the exam on the Pearson VUE website.

What are common mistakes on the Illinois insurance test?

Common mistakes on the Illinois insurance test include confusing premium and deductible, mixing up term life and whole life policies. Furthermore, candidates also fail questions by rushing through wording. Answer each question thoughtfully and prepare thoroughly.

What is the public adjuster fee in Illinois?

The public adjuster fee in Illinois is capped at 10% of the insurance claim settlement for most property claims. Illinois law limits the compensation a licensed public adjuster can charge to protect consumers from excessive fees. Adjusters typically collect payment only after the insurer pays the claim settlement.

Is an independent adjuster career better than public adjuster?

Both independent and public adjuster careers offer unique benefits. Public adjusters have better commission and flexibility, while independent adjusters have more stability. You are free to choose one or the other depending on your ideal lifestyle.

Bottom Line on Public Adjuster Exam Explained

The public adjuster exam is managed by the IDoI and Pearson VUE. You can take the exam online or in-person at a Pearson VUE centre. The exam follows an MCQ format, with 100 questions divided into 5 sections.

Passing the Illinois public adjuster exam is difficult without guidance. We are here to help you with tailored courses that prepare you for the exam and everything else that comes along with it. Join our PA exam prep course today!