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ID · Pearson VUE · 50 questions
Idaho Independent Adjuster Practice Test
Idaho licenses adjusters under Title 41, Chapter 11 of the Idaho Code. Anyone who investigates and negotiates claims for an insurer as an independent contractor, as an employee of one, or for a fee or commission needs the license, while salaried insurer and managing general agent staff, attorneys, and producers who occasionally adjust for their own insurers are excluded (41-1102). Applicants must be at least 21, pass Pearson VUE exam InsID-IndAdj0007, complete fingerprinting and apply on NIPR within 180 days of passing. Public adjusters are licensed separately under Chapter 58, with their own exam and a $20,000 bond or letter of credit. Fees, renewal and nonresident rules are in our Idaho adjuster license guide.
The exam is short: 60 questions (50 scored plus 10 unscored pretest items) in 75 minutes, for a $65 fee. What sets it apart is how much of it is Idaho law. Four state sections add up to 21 of the 50 scored questions, and the 6-question workers' compensation section cites Idaho Code Title 72 as well. Expect licensing rules, the 14 unfair claim settlement practices in 41-1329, cancellation and nonrenewal rules, fire loss reporting, the 25/50/15 auto minimums, uninsured and underinsured motorist coverage, the assigned risk plan and workers' compensation notice deadlines. The Idaho questions below are written from the Idaho Code and IDAPA 18 rules, with the source cited in each explanation.
Exam vendor
Pearson VUE
Exam code
InsID-IndAdj0007
Questions
60 (50 scored + 10 pretest)
Time limit
75 minutes
Passing score
Not published in the Pearson VUE Idaho handbook or content outline
Exam fee
$65
You can book a retake 24 hours after a failed attempt, with no limit on the number of attempts; each attempt costs $65. Passing results are valid for 180 days, and Idaho Code 41-1006(4) denies applications not received within 180 days of passing.
Residents must be at least 21 (Idaho Code 41-1104) and complete fingerprinting and an FBI background check, electronic or hard card through Pearson VUE for $65 (fingerprints are valid for six months), then apply on NIPR with the $80 state license fee.
The exam is offered in English and in Spanish (SPID-IndAdj0009), at Pearson VUE test centers or online through OnVUE. You do not need approval from Idaho to schedule it; online bookings must be made at least 48 hours ahead.
Idaho Insurance Law for Adjusters: practice questions (part 1 of 2)
State law is the part of the exam that general study guides skip and the part most candidates miss. These 25 questions are written from the statutes and rules cited in each explanation.
0 of 25 answered
Who must be licensed · Application
Rosa is a salaried claims employee of an authorized Idaho auto insurer and settles losses only under that insurer's policies. Under Idaho Code 41-1102 and 41-1103, does she need an Idaho adjuster license?
Show answer and explanation
Correct answer: B. No, salaried insurer employees fall outside the definition
Idaho Code 41-1102(1) defines an adjuster as someone who investigates and negotiates claims for an insurer as an independent contractor, as an employee of one, or for a fee or commission. Section 41-1102(2)(b) excludes the salaried employee of an authorized insurer (or of a managing general agent) who adjusts that insurer's losses, so the 41-1103 license requirement does not reach Rosa. Idaho sets no claim-size limit on this exclusion.
Malik is a licensed Idaho property and casualty producer. From time to time, at the request of an authorized insurer he represents, he helps adjust small losses under that insurer's policies. Under Idaho Code 41-1102, what license does he need for this work?
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Correct answer: D. None beyond his producer license, under the agent exclusion
Section 41-1102(2)(c) excludes from the definition of adjuster a licensed agent of an authorized insurer who, at the insurer's request, from time to time adjusts or assists in adjusting losses under policies that insurer issued. A public adjuster license is for people who work for insureds, not insurers, and Idaho has no per-loss emergency registration for this situation.
Idaho Code 41-1102 lets unlicensed employees of a licensed adjuster collect claim information and enter data, including into an automated claims adjudication system for portable electronics claims. How many such employees may one licensed adjuster or licensed agent supervise?
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Correct answer: A. No more than 25
Section 41-1102(2)(d) excludes these data entry employees from the adjuster definition only if they work for a licensed adjuster or its affiliate and no more than 25 of them are supervised by one licensed adjuster or licensed agent. A licensed agent who supervises them does not also need an adjuster license. The automated system must follow the code's claims payment rules and be certified by a licensed adjuster.
After a hailstorm damages hundreds of homes in Twin Falls, an authorized insurer sends Kenji, an adjuster licensed in Texas, into Idaho to adjust the series of losses from that storm. Under Idaho Code 41-1107, what Idaho license does Kenji need?
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Correct answer: C. None, since the statute waives it for catastrophe losses
Section 41-1107 says no adjuster license or qualifications are required for an adjuster sent into Idaho by an authorized insurer or adjusting firm to adjust a series of losses from a catastrophe common to all of them. The same section also covers adjusting a particular loss and temporarily substituting for a licensed adjuster who is incapacitated. It creates no separate temporary license or 90-day time limit.
Under Idaho Code 41-1104, what is the minimum age for an individual to be licensed as an independent adjuster in Idaho?
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Correct answer: B. 21 years old
Section 41-1104(1)(a) requires an adjuster to be a natural person at least 21 years of age, and NIPR's Idaho resident licensing rules apply the same 21-year minimum to independent adjuster applicants. Idaho producer applicants need only be 18 under 41-1007(1)(a), which makes 18 the tempting wrong answer. An adjuster must also be trustworthy and show experience or training that satisfies the director.
Under Idaho Code 41-1103, what must a resident of Canada do before being licensed as a resident adjuster in Idaho or designating Idaho as his or her home state?
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Correct answer: A. Pass Idaho's adjuster licensing examination and meet Chapter 11
Section 41-1103 bars a Canadian resident from a resident Idaho adjuster license, or from designating Idaho as home state, unless he or she has passed the adjuster examination and complied with the rest of Chapter 11. Holding a resident or home state license in another state is the separate requirement for a Canadian who wants an Idaho nonresident adjuster license. The $20,000 bond applies to public adjusters.
An adjusting firm applies for an Idaho adjuster license and names four individuals in the firm license to exercise its powers in Idaho. Under Idaho Code 41-1104(2), how many additional full license fees must the firm pay for the named individuals?
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Correct answer: D. Three, for each one past the first
Section 41-1104(2) lets a firm or corporation be licensed as an adjuster if each individual who will exercise the license in Idaho is separately licensed, or is named in the firm license, and personally qualifies. An additional full license fee is due for each named individual in excess of one, so four named individuals means three additional fees. Each named person must still meet the 41-1104(1) qualifications.
Hannah passed the Idaho independent adjuster licensing examination on February 3 but did not submit her license application until September 15 of the same year. Under Idaho Code 41-1006(4), which applies to adjuster examinations through 41-1104(1)(d), what happens?
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Correct answer: C. The application is denied, so she must pass again
Section 41-1006(4) requires the department to deny any license application not received within 180 days of successfully completing the examination, and 41-1104(1)(d) makes adjuster examinations subject to the same provisions as agent examinations. February 3 to September 15 is well over 180 days, and the Pearson VUE Idaho handbook also says results are valid for 180 days. The double-fee penalty applies to late renewals, not new applications.
Under IDAPA 18.01.02, what total state fees will an Idaho resident independent adjuster pay for the original license plus the first biennial renewal, if the renewal is filed electronically? Ignore exam, fingerprint and NIPR transaction fees.
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Correct answer: A. $140
IDAPA 18.01.02.030.01.d sets the original application fee for independent or public adjusters at $80, and 030.04.d sets the biennial renewal fee at $80, or $60 if renewed electronically. So $80 plus $60 equals $140. The $160 answer assumes a paper renewal, and $80 counts only the original license. Exam fees are paid to the testing vendor under a separate contract.
Under IDAPA 18.06.04, how much continuing education must a resident Idaho independent adjuster complete to continue the license?
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Correct answer: D. 24 hours every two years, including 3 of ethics
IDAPA 18.06.04.012.01 requires each licensee covered by the rule, including adjusters and public adjusters, to complete 24 hours of continuing education credits, with at least 3 ethics credits, on or before the renewal date every two years. Courses must be completed within the two-year period before renewal and cannot be repeated in the same period. Credit is given only in full hours of at least 50 minutes.
Tomas holds both an Idaho resident producer license and an Idaho independent adjuster license. During his renewal period he completed 10 hours of courses approved for adjusters. Under IDAPA 18.06.04, how many of those hours can count toward continuing his producer license?
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Correct answer: B. No more than 4 hours
IDAPA 18.06.04.012.01.a limits the continuing education credit from courses approved for adjusters or public adjusters that can apply toward continuing a producer license to no more than four hours. The adjuster hours still count in full toward his adjuster license. The 3-hour figure is the ethics minimum within the 24-hour requirement, not a cross-credit limit.
Grace's Idaho adjuster license expired because she had not finished her required continuing education. She submits proof of all required education 45 days after the expiration date. Under Idaho Code 41-1013(7), which applies to adjusters through 41-1108, what administrative penalty applies?
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Correct answer: C. $200
Section 41-1013(7) lets a licensee reinstate by submitting proof of all required education within 90 days of expiration plus an administrative penalty of $100 for a delinquency of 1 to 30 days, $200 for 31 to 60 days and $300 for 61 to 90 days. Forty-five days falls in the 31 to 60 day band, so Grace owes $200. After 90 days she would have to retest and reapply.
Dev never completed his continuing education, and his Idaho adjuster license expired five months ago. He now has the hours and wants the license back. Under Idaho Code 41-1013(7), what must he do?
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Correct answer: A. Retest, file a new application and pay all new fees
The 90-day window for reinstating with a $100 to $300 penalty has passed. Section 41-1013(7) says that from the 90th day after nonrenewal up to one year, the licensee must complete all licensing requirements, including retesting, a new application and payment of all new fees, and must also prove the education owed for the period in which the license ended. Nothing requires him to wait out the year.
Aisha finished all of her continuing education on time but forgot to pay her Idaho adjuster renewal fee. Four months after the due date she asks to reinstate the same license. Under Idaho Code 41-1008(3), applied to adjusters by 41-1108, what is required?
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Correct answer: D. No retest, but double the unpaid renewal fee
Section 41-1008(3) lets a licensee whose license lapses reinstate the same license within 12 months of the renewal fee due date without a written examination, but a penalty of double the unpaid renewal fee applies. The retest and $100 to $300 penalty rules in 41-1013(7) are triggered by missing education requirements, which Aisha met. NIPR's Idaho rules likewise allow late renewal for up to one year.
An Idaho adjuster applicant has passed the licensing examination and met every other requirement, but the FBI report on her fingerprints has not yet arrived. Under Idaho Code 41-1011, which applies to adjusters through 41-1108, what may the director do?
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Correct answer: B. Issue a temporary license, at the director's discretion
Section 41-1011 directs the director to issue the license once the application, any required examination and, if required, the FBI fingerprint report show the applicant meets all requirements. Pending receipt of the FBI report, the director may, in his discretion, issue a temporary license if all other qualifications have been met. The statute does not call for refusal or new prints just because the report is late.
Under Idaho Code 41-1016, which also governs adjuster licenses, which sanctions may the director impose on an adjuster found to have misrepresented a fact material to an insurance transaction?
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Correct answer: C. Up to $1,000, suspension up to 12 months, or revocation
Section 41-1016(1) allows an administrative penalty of up to $1,000 and lets the director suspend a license for no more than 12 months, or revoke or refuse to issue or continue it, for listed causes that include misrepresenting any fact material to an insurance transaction. It names Chapter 11 (adjusters) expressly. The $5,000 figure is the general penalty for persons other than individuals under 41-117.
Felipe holds both an Idaho producer license and an Idaho independent adjuster license. The director suspends his producer license for 6 months over a premium-handling violation. Under Idaho Code 41-1026(2), what happens to his adjuster license?
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Correct answer: D. It is automatically suspended with the producer license
Section 41-1026(2) provides that suspension, revocation or refusal of any one license held under Title 41 automatically suspends, revokes or refuses continuation of all other Title 41 licenses the licensee holds. Felipe's adjuster license, issued under Chapter 11, is a Title 41 license, so it is suspended along with his producer license. Section 41-1108 also makes 41-1026 applicable to adjuster licenses.
Under Idaho Code 41-117A, what is the maximum administrative penalty the director may impose on a person who transacts insurance without proper licensing, or after the license has been suspended or revoked?
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Correct answer: A. $15,000
Section 41-117A allows an administrative penalty of up to $15,000 against any person who transacts insurance of any kind without proper licensing, or after the license has been suspended or revoked. The $1,000 and $5,000 figures come from the general penalty in 41-117, which applies only where no greater penalty is provided elsewhere in the code.
An adjuster for an Idaho insurer intentionally misrepresents a policy provision to one claimant to discourage a claim. It is the only time the insurer has done this. Under Idaho Code 41-1329, is this an unfair claim settlement practice?
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Correct answer: C. Yes, because the act was committed intentionally
Section 41-1329 treats the listed acts as unfair claim settlement practices when committed either intentionally or with such frequency as to indicate a general business practice. Misrepresenting pertinent facts or policy provisions relating to coverages at issue is item (1). Because this act was intentional, one occurrence is enough; frequency matters for acts that were not intentional. No court finding is required.
Under Idaho Code 41-1329, which practice in issuing claim payments is listed as an unfair claim settlement practice when done intentionally or as a general business practice?
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Correct answer: B. Paying with no statement of the coverage it falls under
Section 41-1329(10) lists making claim payments to insureds or beneficiaries that are not accompanied by a statement setting forth the coverage under which the payments are being made. The other choices describe ordinary claim handling: paying jointly with a mortgagee follows the mortgage clause, and paying before a formal proof of loss is not prohibited. Delaying payment with duplicate paperwork is the separate problem in item (12).
An Idaho insurer requires Mei to file a preliminary claim report, then delays her claim until she completes a formal proof of loss form that asks for substantially the same information. Under Idaho Code 41-1329, how is this practice treated?
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Correct answer: D. It is an unfair claim settlement practice under item (12)
Section 41-1329(12) lists delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either to submit a preliminary claim report and then a formal proof of loss form when both contain substantially the same information. Insurers may require a proof of loss, and 41-1831 requires them to furnish proof of loss forms on written request, but they may not use duplicate paperwork to delay.
Idaho homeowner Pavel receives a letter offering a compromise settlement of his water damage claim, but the letter gives no reason for the reduced amount. Which item of Idaho Code 41-1329 does this most directly implicate when done intentionally or as a general practice?
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Correct answer: A. Failing to explain the policy basis for a compromise offer
Section 41-1329(14) requires a prompt, reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for denying a claim or for offering a compromise settlement. A compromise offer with no reason fits that item. Investigation standards (item 3), altered applications (item 9) and threatened arbitration appeals (item 11) are separate practices that these facts do not show.
Lauren furnished proof of loss for her covered Idaho fire claim on March 1. The insurer paid nothing, she sued on May 15, and the court found $40,000 justly due. Under Idaho Code 41-1839, what else may the court award her?
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Correct answer: C. Reasonable attorney's fees, since 30 days passed unpaid
Section 41-1839(1) says an insurer that fails to pay the amount justly due within 30 days after proof of loss is furnished must pay reasonable attorney's fees, as set by the court, in a later suit or arbitration. Lauren waited from March 1 to May 15 with no payment. Fees are barred only if the insurer tendered the full amount before suit and deposited it with the court, or if nothing was due.
Under Idaho Code 41-1839, an insurer that does not pay an amount justly due under uninsured or underinsured motorist coverage within how many days after proof of loss is exposed to an award of attorney's fees?
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Correct answer: B. 60 days
Section 41-1839(1) gives insurers 30 days after proof of loss for most claims but 60 days when the proof of loss pertains to uninsured or underinsured motorist benefits. An insurer that misses the applicable deadline must pay reasonable attorney's fees if the person entitled later recovers in court or arbitration. Under 41-1839(3), the section does not apply to worker's compensation actions under Title 72.
Under Idaho Code 41-290, when an insurer has facts supporting a belief that a fraudulent claim is being or has been made, how long does it have to send the required information to the director on the prescribed form?
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Correct answer: A. Within 60 days of receiving the notice
Section 41-290 requires the insurer to send the director the requested information, on a form the director prescribes, within 60 days of receipt of the notice. The director reviews the reports, selects claims for independent examination and refers violations to licensing and prosecuting authorities. An insurer that intentionally fails to report a suspected fraudulent claim can be fined under 41-327 for each unreported claim.
The vendor's published outline lists these content areas. See the official candidate handbook for the full topic list.
Content area
Share of exam
I. Insurance terms and related concepts
8 questions (16%)
II. Policy provisions and contract law
9 questions (18%)
III. Types of policies
6 questions (12%)
IV. Idaho statutes, rules, and regulations common to all insurance lines
9 questions (18%)
V. Idaho statutes, rules, and regulations common to property and casualty insurance only
3 questions (6%)
VI. Idaho statutes, rules, and regulations pertinent to property insurance only
5 questions (10%)
VII. Idaho statutes, rules, and regulations pertinent to casualty insurance only
4 questions (8%)
VIII. Worker's compensation insurance
6 questions (12%)
Outline titled "Idaho Independent Adjuster Content Outline" in the Pearson VUE Idaho Insurance Content Outlines (publication 121301, 08/2025), effective July 31, 2025; counts are of the 50 scored questions. Some IDAPA citations in it (18.01.20, 18.01.34, 18.01.44) are not in the current IDAPA 18 rule list; adjuster license fees now appear in IDAPA 18.01.02.
Study by topic
Each topic test is a separate page with its own score breakdown, so you can drill the areas where you are weakest.
Idaho law is 42% of the scored questions. Sections IV to VII total 21 of 50 questions, and the 6-question workers' compensation section cites Idaho Code Title 72 (exclusive remedy, extraterritorial coverage, notice and claim deadlines), so study the statutes the outline names, not just policy forms.
Know Chapter 11 and the licensing numbers. Age 21, the staff, attorney and agent exclusions in 41-1102, emergency and catastrophe adjusters under 41-1107, 180 days to apply after passing, an $80 license fee ($60 for an electronic renewal), 24 hours of continuing education including 3 of ethics every two years, 30 days to report an address change, and late education penalties of $100, $200 and $300.
Memorize the claim rules. The 14 practices in 41-1329 count when done intentionally or as a general business practice. Section 41-1839 adds attorney's fees when an insurer does not pay within 30 days after proof of loss (60 days for UM and UIM), insurers report suspected fraud to the director within 60 days (41-290), and fire losses of $1,000 or more go to the state fire marshal within 7 days of settlement (41-258).
Learn the Idaho auto rules. Liability minimums of 25/50/15, UM and UIM coverage that must be included unless the named insured rejects it in writing, personal auto cancellation notice of 20 days (10 for nonpayment) after the first 60 days, 30 days' notice to nonrenew, and a $75 first-offense fine for driving uninsured.
Watch the 2027 notice changes. House Bill 562 (2026 Idaho Session Laws, chapter 201) changes cancellation and nonrenewal notices starting January 1, 2027. Fire policies will need 60 days' written notice of cancellation (up from 30) and a new 60-day notice of nonrenewal, and commercial policies will need 60 days' notice of nonrenewal (up from 45) and of cancellation after the first 60 days of coverage (up from 30). The 10-day notice for nonpayment of premium does not change. Study the rule in force on your test date.
Pace yourself. 60 questions in 75 minutes is 75 seconds per question, and 10 of them are unscored pretest items, so treat every question as if it counts. Policy provisions and contract law (9 questions) and insurance terms (8) are the biggest general sections; a failed attempt means a 24-hour wait and a new $65 fee.
Getting licensed in Idaho
Idaho requires an adjuster license for anyone who adjusts claims for an insurer as an independent contractor, or as an employee of one, for compensation (Idaho Code 41-1102, 41-1103). Salaried employees of insurers or MGAs, licensed attorneys and licensed agents adjusting for their own insurers are excluded. Public adjusters are licensed separately under the Public Adjuster Licensing Act (Title 41, Ch. 58).
License fee: $80
License term: 2 years. CE must be completed every two years on or before the license renewal date (IDAPA 18.06.04). Secondary sources say licenses expire on the last day of the birth month; this was not verified on an official page.
Continuing education: 24 hours including 3 hours of ethics every 2 years
How many questions are on the Idaho adjuster exam?
The Pearson VUE ID Independent Adjuster exam (InsID-IndAdj0007) has 60 questions: 50 scored and 10 pretest questions, with a 75-minute time limit. The largest sections are policy provisions and contract law (9 scored questions), Idaho law common to all lines (9) and insurance terms (8); Idaho law sections total 21 of the 50 scored questions.
What score do you need to pass the Idaho adjuster exam?
The Pearson VUE Idaho handbook does not publish a passing score. You receive a score report marked pass or fail as soon as you finish; a failing report includes a numeric score and diagnostic information. Our timed practice exam uses 70% as its passing target, which is our own benchmark rather than an official cut score, so aim for 80% or better before you book.
How old do you have to be for an Idaho adjuster license?
21. Idaho Code 41-1104(1)(a) requires an adjuster to be at least 21, and NIPR's Idaho resident licensing rules apply the same minimum to independent adjuster applicants. NIPR's Idaho nonresident adjuster page lists a general 18-year minimum, but the statute sets 21 for adjuster licenses.
How much does an Idaho adjuster license cost?
Plan on $65 for the exam, $65 for fingerprinting through Pearson VUE, and the $80 state license fee on NIPR plus NIPR's transaction fee. The license renews every two years for $80, or $60 if you renew electronically (IDAPA 18.01.02).
Do Idaho adjusters need continuing education?
Yes. IDAPA 18.06.04 requires resident licensees, including adjusters, to complete 24 hours every two years, with at least 3 hours of ethics, by the renewal date. If you miss it, you can reinstate within 90 days by paying a $100 to $300 penalty; after that, Idaho Code 41-1013(7) requires retesting and a new application.
Do I need an Idaho license to work a catastrophe in Idaho?
Not always. Idaho Code 41-1107 waives the license for an adjuster sent into Idaho by an authorized insurer or adjusting firm to handle a particular loss, to fill in for an incapacitated licensed adjuster, or to adjust a series of losses from a common catastrophe. For other Idaho work, nonresidents apply on NIPR, using a resident or designated home state adjuster license.