10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The DE-ADJ exam has 55 questions and runs 1 hour 15 minutes.
These 10 free DE-ADJ questions are organized by exam domain, so you can see how each part of the Delaware Property Adjuster Examination blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: General Property Insurance Product Knowledge Pertinent to Property Adjusters
Question 1
During a living-room rearrangement, a homeowner drops a heavy lamp, cracking the dwelling's permanently installed tile floor and a freestanding ceramic vase. The HO-3 provides open-peril building coverage and named-peril contents coverage. Its falling-objects peril covers interior contents only if the object first damages a roof or outside wall. No building exclusion or special contents endorsement applies. Which damaged property is covered for this indoor accident?
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Correct answer: D - The tile floor only.
Question 2
A homeowner purchased both building and contents coverage under the NFIP Dwelling Form. A covered flood damages a finished basement whose floor is below ground on all sides. Which repair-estimate entry remains eligible despite the policy's basement limitations?
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Correct answer: C - Replacement of the furnace installed and connected for normal operation.
Question 3
The accountant for a fabrication shop substantiates these figures for a covered fire shutdown after the business-income waiting period: expected sales of $180,000; $105,000 of production expenses completely avoided during closure; and $45,000 of normal, covered operating expenses that continued. The shop earned no revenue during that period. A separate $12,000 extra-expense claim has already been accepted. With no applicable coinsurance, deductible, or limit restriction, what amount belongs to business income alone?
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Correct answer: B - $75,000
Domain 2: Property Policy Provisions and Contract Law
Question 4
A warehouse building has a replacement cost of $600,000; the land is worth another $200,000. The building is insured for $360,000 under an 80% replacement-cost coinsurance condition. Covered fire repairs have been completed for $120,000. The $2,000 deductible applies after any coinsurance reduction, and no endorsement waives coinsurance. What is the insurer's payment?
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Correct answer: B - $88,000
Question 5
Investigators establish that a rental-house owner deliberately set the fire that damaged the insured building. The insurer denies the owner's claim under the intentional-loss exclusion. The lender is protected by a standard mortgage clause, had no knowledge of or participation in the act, and has fulfilled all of its own policy duties. What is the consequence for the lender?
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Correct answer: D - The lender's covered interest can remain protected despite denial of the owner's claim.
Domain 3: Property Insurance Terms and Related Concepts
Question 6
Occupancy records for a shopping center show that, for 75 consecutive days, tenants have operated businesses in 24% of its floor area. Another 18% is leased but remains empty; the rest is unleased. No construction or renovation is underway. The owner's policy requires at least 31% of the building to be rented and used for customary operations to avoid vacancy. After more than 60 days of vacancy, it excludes theft and reduces other covered losses by 15%. How does that condition affect an otherwise covered theft of copper piping?
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Correct answer: A - Exclude the theft; occupied space used for business is below 31%.
Domain 4: Duties of the Property Adjuster
Question 7
A homeowner attributes all storm water damage to a roof leak. Inspection finds wet upstairs ceiling insulation beneath a fresh wind-created opening, but the ground floor has a silt line matching exterior watermarks and flooding at neighboring houses. The damage areas do not overlap. The homeowners policy covers rain entering through a wind-created opening but excludes surface water; a separate flood policy is in force. Which allocation best fits the evidence?
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Correct answer: C - Allocate the upstairs damage to homeowners coverage and the ground-floor damage to flood coverage.
Question 8
At a water-loss inspection, an adjuster sees standing water around a basement electrical panel. Power has not been disconnected, and reaching the main breaker requires walking through the water. The owner offers to enter first and shut it off. What must happen before the interior inspection proceeds?
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Correct answer: B - Keep everyone out until the utility or a qualified electrician makes the area safe.
Domain 5: Delaware Statutes, Regulations, and Bulletins Pertinent to Property Insurance and the Licensing of Property Adjusters
Question 9
An adjuster licensed in Delaware is criminally prosecuted in another state. The initial pretrial hearing has occurred, but there has been no conviction, and counsel expects the charge to be dismissed. Under Delaware's license-reporting rule, when must the adjuster notify the Insurance Commissioner?
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Correct answer: A - Within 30 days of the initial pretrial hearing, without waiting for a conviction.
Domain 6: Insurance Ethics
Question 10
A tenant's fire claim includes furniture whose purchase receipts were destroyed in the same fire. The tenant supplies pre-loss photographs, matching credit-card statements, and model and age information. Nothing contradicts the claimed ownership. The HO-4 requires support for ownership and value but does not require original receipts. How should the adjuster handle the missing receipts?
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Correct answer: D - Evaluate the available evidence and determine each covered item's supported value.
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