Free NJPA Practice Questions

Question 1

After a severe wind loss, a public adjuster finds a split bottom chord in an engineered roof truss, a visibly sagging ceiling, and wet, exposed electrical conductors. The insured wants measurements taken immediately so repairs can be priced. What should the adjuster do first?

Accepted Answer

Restrict access and arrange qualified electrical and structural safety measures before detailed scoping

Answer

Authorize a carpenter to sister the truss before the insurer arrives, then measure the room

Answer

Photograph the conditions and complete the interior scope while avoiding the sagging area

Answer

Measure unaffected finishes and submit the truss issue directly to appraisal

Question 2

A homeowner's loss occurs Monday at 11:00 p.m. At 9:30 a.m. Tuesday-10.5 hours later-a licensed New Jersey public adjuster contacts the homeowner and proposes a compliant written contract. Under the first-24-hour solicitation rule, which conclusion is correct?

Accepted Answer

The contact is not barred because 9:30 a.m. is outside the 6 p.m.-8 a.m. blackout window

Answer

The contact is barred because New Jersey prohibits every solicitation and contract during the first 24 hours after loss

Answer

The contact may occur, but the contract cannot be signed until the insured's cancellation period expires

Answer

Only an oral agreement may be made during the first 24 hours, with the written contract completed later

Question 3

Under an unendorsed DP-3 Special Form, a falling tree branch punctures the dwelling roof, and the insured's television is accidentally dropped while being moved during cleanup. No exclusion applies to the roof damage, and accidental dropping is not a listed personal-property peril. Which coverage conclusion is correct?

Accepted Answer

Roof covered under open-peril Coverage A; television not covered under named-peril Coverage C

Answer

Both losses are covered because DP-3 is open peril for building and contents

Answer

The television is covered, but the roof is excluded unless wind caused the branch to fall

Answer

Neither loss is covered because DP-3 lists only fire, lightning, and internal explosion

Question 4

A New Jersey building is partially destroyed. The roof is 18 years old but well maintained, while local market data, remaining useful life, functional obsolescence, and repairability point to different values. The policy does not define actual cash value by a single formula. Which valuation approach is proper?

Accepted Answer

Consider all relevant evidence, using replacement cost less depreciation as one important factor

Answer

Apply straight-line age depreciation because chronological age is the only objective and reproducible measure of value

Answer

Use fair market value alone because New Jersey excludes repair-cost evidence

Answer

Pay replacement cost without depreciation even though the policy's repair conditions are unmet

Question 5

An unlicensed restoration contractor offers to 'handle the insurance claim' for 8% of the recovery, interpret coverage, negotiate the settlement, and add an undamaged room to the estimate as bargaining leverage. Which assessment is most accurate?

Accepted Answer

Negotiating the claim for value is public-adjuster activity, and adding undamaged rooms is a fraud red flag

Answer

The arrangement is ordinary contracting because the contractor will also prepare the repair estimate

Answer

The arrangement becomes permissible once the insured discloses the percentage fee to the insurer

Answer

Written consent from the insured allows the contractor to negotiate coverage and settlement without a public-adjuster license, provided the fee is disclosed

Question 6

A Standard Flood Insurance Policy is in force. Which event satisfies the policy's threshold definition of flood?

Accepted Answer

Rapid surface runoff inundates two neighboring properties, including the insured building

Answer

A supply line bursts and floods only the insured building's first floor

Answer

A sewer backs into the insured basement with no flooding in the surrounding area

Answer

Wind-driven rain enters one building through a storm-created roof opening

Question 7

A covered homeowners loss makes a residence unfit for one month. The household pays $3,600 for a hotel, food rises from its normal $900 to $1,300, and the $2,100 mortgage continues. Assuming the expenses are reasonable, how much qualifies as Additional Living Expense?

Accepted Answer

$4,000: the hotel plus the $400 increase in food

Answer

$3,600: the hotel only

Answer

$4,900: the hotel plus the full temporary food cost, without subtracting the household's normal food expense

Answer

$7,000: the hotel, full food cost, and continuing mortgage

Question 8

An old copper pipe fails at a corroded section. The policy excludes wear, deterioration, and corrosion but contains an ensuing-loss provision for otherwise covered water damage. The pipe itself costs $900 to replace, and the sudden discharge damages hardwood flooring. How should the claim be analyzed?

Accepted Answer

Analyze the corroded pipe and the resulting floor damage separately under the ensuing-loss wording

Answer

Cover the pipe and flooring together because the final event in the sequence was a sudden water discharge

Answer

Deny the entire claim because an excluded corrosion condition appears anywhere in the chain of events

Answer

Treat the entire event as maintenance unless the insurer proves fraud

Question 9

A New Jersey public adjuster receives settlement proceeds payable jointly to the insured and the adjuster. Which handling method complies with the escrow requirements?

Accepted Answer

Use a New Jersey federally insured interest-bearing escrow account; principal and interest belong to the insured

Answer

Use the firm's operating account if every receipt and disbursement is recorded

Answer

Use any interest-bearing client account in the United States if separate claim ledgers and monthly reconciliations are maintained

Answer

Use a non-interest-bearing New Jersey trust account until the adjuster's fee is calculated

Question 10

The insurer accepts that a kitchen fire is covered. The parties agree on the damaged components, but the insurer's estimate is $86,000 and the insured's estimate is $142,000 because they disagree over quantities and unit prices. Which mechanism is designed for this dispute?

Accepted Answer

Appraisal to determine the amount of loss

Answer

A declaratory-judgment action to determine policy interpretation

Answer

Subrogation against the restoration contractor

Answer

A replacement proof of loss to establish that coverage exists

Free NJPA Practice Questions

Domain 1: Property Loss Adjusting 21.43% of exam

Question 1

Question 2

Question 3

Domain 2: Insurance Terms and Related Concepts 21.43% of exam

Question 4

Question 5

Domain 3: Basic Policy Forms 28.57% of exam

Question 6

Question 7

Domain 4: Public Adjustment Licensing Act 28.57% of exam

Question 8

Question 9

Question 10

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