Reviewed by the CoveragePrep editorial team · Sources: state insurance departments, statutes, exam candidate handbooks · How we research
IN · Pearson VUE · 100 questions
Indiana Independent Adjuster Practice Test
Indiana licenses independent adjusters under IC 27-1-28 in two lines of authority: property and casualty, and worker's compensation. The license is aimed at contractors. The statute defines an independent adjuster as someone paid by insurers or self-insurers and treated as an independent contractor for tax purposes, and it excludes insurer employees, so staff adjusters need no license, while public adjusters hold a separate certificate of authority under IC 27-1-27. Residents complete a 40-hour adjuster prelicensing course, pass the Pearson VUE Independent Adjuster exam within six months of finishing it, and apply through Sircon or NIPR with a $40 fee. Indiana also offers a designated home state license, at the $90 nonresident fee, for adjusters whose own state does not license them. Fees, reciprocity and renewal details are in our Indiana adjuster license guide.
Pearson VUE's content outline lists 100 scored questions plus 5 unscored pretest questions, with a 105-minute limit and a passing scaled score of 70. Indiana law is about a fifth of the exam: 16 questions on laws and rules common to all lines, from the commissioner and the guaranty association to adjuster licensing, discipline, and the unfair claim settlement and trade practice statutes, plus 3 on personal lines rules such as auto repair parts, the assigned risk plan and mine subsidence. The rest leans commercial, with 18 questions on commercial package policies and 12 on the CGL, alongside 14 on homeowners, 10 on insurance basics, 8 on personal auto and 7 on adjusting losses. Each Indiana question below cites the Indiana Code section, or the federal statute, behind its answer.
Exam vendor
Pearson VUE
Questions
105 (100 scored + 5 pretest) per the content outline; the handbook's exam table lists 100
Time limit
105 minutes
Passing score
Scaled score of 70
Exam fee
$69
You must wait 48 hours before retaking the exam, and each attempt costs $69. Fees are refunded or transferred only if you change or cancel at least 48 hours before the appointment.
Bring your 40-hour adjuster prelicensing course completion certificate: you must test within six months of the course completion date. After passing, apply for the license through Sircon or NIPR.
Indiana insurance exams are given at Pearson VUE test centers, including some on military bases, and the Independent Adjuster exam is also offered in Spanish for the same $69. You may not bring your own calculator into the testing room.
Indiana 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 employee of an authorized property insurer and settles homeowners claims only for that insurer, which treats her as an employee for tax purposes. Under IC 27-1-28-6, does Rosa need an Indiana independent adjuster license?
Show answer and explanation
Correct answer: B. No, because employees of an authorized insurer are excluded
IC 27-1-28-6(a) defines an independent adjuster as a person who contracts for compensation with insurers or self-insurers and is treated as an independent contractor for tax purposes. Subsection (b)(7) also excludes officers, directors, managers and employees of an authorized insurer. Rosa is a staff adjuster, so the independent adjuster license does not apply to her. The statute has no claim-count threshold and requires no producer license.
Under IC 27-1-28-6, which of the following persons falls within Indiana's definition of an independent adjuster?
Show answer and explanation
Correct answer: D. A contractor paid by several insurers to settle auto physical damage claims
IC 27-1-28-6(a) covers a person who contracts for compensation with insurers or self-insurers to investigate, negotiate or settle property, casualty or worker's compensation claims and is treated as an independent contractor. Subsection (b) then excludes, among others, people who only investigate suspected fraud without adjusting losses (b)(4), people who settle only reinsurance or subrogation claims (b)(6), and people who handle crop insurance claims (b)(13).
Under IC 27-1-28-14, in which lines of authority may an Indiana independent adjuster license be issued?
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Correct answer: A. Property and casualty; worker's compensation
IC 27-1-28-14(a) lists two lines of authority for an independent adjuster license: property and casualty insurance, and worker's compensation insurance. Crop claims and life, accident and health claims fall outside the independent adjuster definition altogether under IC 27-1-28-6(b), so no line exists for them. Indiana does not divide the license into personal and commercial lines.
After a catastrophe is declared, an insurer contracts with an unlicensed but qualified individual to adjust claims. Under IC 27-1-28-11, who applies for the temporary emergency license, and by when?
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Correct answer: C. The insurer, within 5 days after the individual starts adjusting
IC 27-1-28-11(b) puts the duty on the insurer: not more than five days after the individual begins adjusting claims from the declared catastrophe, the insurer must submit the temporary emergency licensure application to the commissioner. The application lists the individual, the insurer, the contract effective date, and the catastrophe name and loss number. The individual does not file it, and there is no 30-day window.
An insurer obtained a temporary emergency independent adjuster license for Kwame that took effect June 1 for a declared tornado catastrophe. On July 20, a hailstorm is declared a second catastrophe. Under IC 27-1-28-11, what is needed for Kwame to adjust hail claims for that insurer?
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Correct answer: D. Nothing more, since the hailstorm falls within his 90-day license period
Under IC 27-1-28-11(e), a temporary emergency license is effective for not more than 90 days unless the commissioner extends it. When multiple catastrophes occur, the holder may adjust claims from any other catastrophe that occurs within that 90-day period without the insurer applying for another license. The July 20 hailstorm falls inside the period that began June 1, so no new application or full license is needed.
Under IC 27-1-28-12, which combination of requirements applies to an individual applying for an Indiana resident independent adjuster license?
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Correct answer: A. Age 18, a prelicensing course, a passing licensing exam score, and a $40 fee
IC 27-1-28-12 requires a Uniform Application for Individual Adjusters, a $40 fee, and findings that the applicant is at least 18, eligible to designate Indiana as home state, trustworthy, has completed a prelicensing course for the line, and has passed the written examination under section 15. The $10,000 bond and $50 annual fee apply to public adjusters under IC 27-1-27-4, and $90 is the nonresident fee.
Hannah holds a Georgia independent adjuster license she earned by passing Georgia's licensing exam. She moves to Indianapolis on March 1 and applies for an Indiana resident license on April 15. Under IC 27-1-28-16, what must she complete before licensure?
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Correct answer: B. Neither the prelicensing course nor the Indiana licensing exam
IC 27-1-28-16(c) excuses both the prelicensing course and the written examination for a person who is licensed as an independent adjuster in another state that requires a prelicensing exam, establishes Indiana residency, and applies less than 90 days later. Hannah applied about 45 days after moving, well inside the window. There is no 30-day deadline, and the exemption is not split between the course and the licensing exam.
Diego's Georgia independent adjuster license expired five months ago. Now living in Indiana, he applies for a resident license with letters from contracting insurers showing he adjusted property and casualty claims during the last three years. Under IC 27-1-28-16, what is required?
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Correct answer: C. No prelicensing course or licensing exam, based on the insurers' proof
IC 27-1-28-16(a) gives three routes around the prelicensing course and written exam: a current license for the same line in a state requiring an exam, such a license that expired less than 90 days before applying, or proof from contracting insurers of claims adjudication in the same line during the five years before applying. Diego misses the 90-day route but qualifies under the five-year claims adjudication route.
Under IC 27-1-28-14, how long is an Indiana resident independent adjuster license effective, and what is the renewal fee?
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Correct answer: D. Two years after issuance; $40 to renew
IC 27-1-28-14(c) makes an independent adjuster license effective for two years after the date of issuance unless it is probated, suspended, revoked or refused, and it may be renewed by meeting all renewal requirements, including a $40 renewal fee, on or before the renewal date. The $80 figure is the reissuance fee after expiration, and $90 is the nonresident renewal fee under IC 27-1-28-17(e).
Tomas forgot to renew his Indiana resident independent adjuster license, and it expired seven months ago. Under IC 27-1-28-14, how can he get it back without applying as a new licensee?
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Correct answer: A. Request reissuance and pay $80, since under 12 months have passed
IC 27-1-28-14(d) lets a person whose license has expired be reissued a license within 12 months after the expiration date by submitting a request for reissuance and an $80 reissuance fee to the commissioner. Seven months is inside that window, so no new exam is needed. The statute sets no separate late penalty on top of the $40 renewal fee.
Under IC 27-1-28-19, how much continuing education must an Indiana independent adjuster complete, and which licensee is exempt?
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Correct answer: B. 24 hours every two years; a nonresident who met home state CE is exempt
IC 27-1-28-19(a) requires at least 24 hours of continuing education every two years, reported to the commissioner. Subsection (b) exempts an individual licensed less than 12 months before the end of the biennium, a licensed nonresident who has met the continuing education requirements of the designated home state, and a holder of an approved claims certification that meets the statute's conditions.
Under IC 27-1-28-17, what must a nonresident independent adjuster do to receive an Indiana nonresident license?
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Correct answer: C. Be licensed in good standing in a reciprocal home state and pay $90
IC 27-1-28-17(a) requires the commissioner to issue a nonresident license to a person who is currently licensed in good standing as an independent adjuster in the home state, submits the application and the $90 nonresident fee, and whose home state licenses Indiana residents on the same basis. No Indiana exam is required of a licensed nonresident. The bond and $50 fee apply to public adjusters.
Aaliyah lives in Illinois, which does not license independent adjusters, and wants a license so she can deploy on storm claims nationwide. Under IC 27-1-28-5 and IC 27-1-28-17(b), how can she obtain an Indiana independent adjuster license?
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Correct answer: D. Designate Indiana as home state and meet the course and exam rules
Under IC 27-1-28-5, when the place of residence does not license independent adjusters for the line sought, the adjuster may designate another state as home state. IC 27-1-28-17(b) says a nonresident who is not licensed elsewhere must meet the resident application, prelicensing course and written exam requirements and pay the $90 nonresident fee. Illinois issues no such license, so reciprocity is impossible, and only insurers apply for emergency licenses.
Wei is a Florida resident who holds an Indiana nonresident independent adjuster license. Florida revokes his resident adjuster license after a disciplinary hearing. Under IC 27-1-28-17, what happens to his Indiana license?
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Correct answer: A. It terminates immediately, and he must surrender it
IC 27-1-28-17(f) says that if a nonresident's home state license terminates for any reason other than issuance of a new resident license in a new home state, the Indiana nonresident license also terminates immediately and must be surrendered to the commissioner. The 30-day notice in subsection (g) applies only when the home state license ends because the adjuster moved and was licensed in a new home state.
The commissioner refuses to renew Brandon's independent adjuster license and notifies him in writing. Under IC 27-1-28-18(c), how long does he have to demand a hearing, and when must it be held?
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Correct answer: B. 30 days to demand it; held within 20 days after the demand is received
Under IC 27-1-28-18(c), the commissioner must give written notice of the reason for refusing an application or renewal. The applicant or licensee may make a written demand for a hearing not more than 30 days after receiving that notice, and the hearing, conducted under IC 4-21.5, must be held not more than 20 days after the commissioner receives the demand. The hearing decides whether the refusal was reasonable.
Under IC 27-1-28-18(e), what civil penalty range may the commissioner impose, after a hearing, on a person who violates the independent adjuster licensing law?
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Correct answer: A. At least $50 and not more than $10,000
IC 27-1-28-18(e) allows the commissioner, after a hearing under IC 4-21.5, to impose a civil penalty of at least $50 and not more than $10,000, in addition to or instead of probation, suspension, revocation or refusal. It applies whether or not the person holds a license in effect and can be enforced like a civil judgment. The $25,000 and $50,000 caps belong to IC 27-4-1-6.
An Indiana-licensed independent adjuster agrees to a consent order fining her in Louisiana. Under IC 27-1-28-22, when must she report it to the Indiana commissioner?
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Correct answer: C. Within 30 days after final disposition, with a copy of the order
IC 27-1-28-22(a) requires an independent adjuster to report an administrative action taken in another jurisdiction, or by another Indiana agency, not more than 30 days after the final disposition, with a copy of the order or consent order and other relevant documents. Subsection (b) sets the same 30-day rule for criminal actions, which also require the initial complaint and the court's final order.
Independent adjuster Sam learns that the claimant on a liability claim he is handling has hired an attorney. Under IC 27-1-28-21, how may Sam proceed?
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Correct answer: D. Contact the claimant directly only if the attorney consents
IC 27-1-28-21(3) requires an independent adjuster to refrain from giving legal advice and from dealing directly with a policyholder or claimant who is represented by legal counsel unless the counsel consents to the direct contact. Sam should work through the attorney. Commenting on the attorney's fee would stray into legal advice, and nothing in the statute sends represented claims to staff adjusters.
While adjusting a total loss on a boat for an insurer, independent adjuster Priscilla wants to buy the salvage for her brother. Under IC 27-1-28-21, what is required first?
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Correct answer: B. Written authority from the principal she is adjusting for
IC 27-1-28-21(6) bars an independent adjuster from having a financial interest in an adjustment and from acquiring, for herself or any person, an interest or title in salvage without first receiving written authority from the principal, here the insurer. Buying in a relative's name does not avoid the rule, because it covers acquisitions for any person. The insured is not the principal.
Under IC 27-1-27-4, which requirements apply to an Indiana public adjuster certificate of authority?
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Correct answer: C. $10,000 surety bond, $50 annual fee, expires December 31
IC 27-1-27-4 sets an annual fee of $50 (which the commissioner may change by rule), requires a $10,000 surety bond payable to the state and renewed annually, and makes every certificate expire on December 31 of the year issued. A renewal application filed before January 1 keeps the certificate in force until the commissioner acts. The two-year term and $40 fee belong to independent adjusters.
Nadia, a Certified Public Adjuster, meets a homeowner after a fire. Other than emergency services, when may she begin working the claim under IC 27-1-27-13?
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Correct answer: A. After a written contract is signed and an exact copy goes to the insurer
IC 27-1-27-13(a) bars a public adjuster from providing services, other than emergency services, until a written contract with the insured is executed and an exact copy is provided to the insurer or its authorized representative, which may be done by email. The contract must be on a form filed with and approved by the commissioner. The insurer neither signs the contract nor approves the fee.
Oliver signs a 10% public adjuster contract after a total fire loss. Three business days after the loss is reported, the insurer commits in writing to pay the full policy limit. Under IC 27-1-27-18, what may the public adjuster collect?
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Correct answer: D. Reasonable pay for time and expenses, but no percentage fee
IC 27-1-27-18 applies notwithstanding the contract. If the insurer pays, or commits in writing to pay, the policy limit within five business days after the loss is reported, the public adjuster may not take a percentage-based commission, must tell the insured the recovery might not increase, and is entitled only to reasonable compensation based on time spent and expenses incurred before payment or the commitment.
Under IC 27-1-27-19, how long does an insured have to void a contract with a public adjuster, and how quickly must anything of value be returned?
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Correct answer: B. 3 business days after the insurer gets a copy; returned in 15 business days
IC 27-1-27-19(a) makes the contract voidable at the insured's option for up to three business days after the day the insurer is provided a copy under section 13. The insured gives written notice by registered or certified mail, personal service or email, and under subsection (c) the public adjuster must return anything of value within 15 business days after receiving that notice.
Under IC 27-7-6-8, when an insurer nonrenews an auto liability policy, or cancels one for a reason other than nonpayment, what must accompany or be included in the notice?
Show answer and explanation
Correct answer: C. Notice of possible eligibility through other insurers or the assigned risk plan
IC 27-7-6-8 requires the insurer, when it cancels an automobile liability policy for a reason other than nonpayment of premium or fails to renew one, to notify the named insured of possible eligibility for coverage through other insurers or through the automobile liability assigned risk plan. The notice must accompany or be included in the cancellation or nonrenewal notice.
An insurer denies Faith's water damage claim with a one-line letter saying only that the loss is "not covered," and it ignores her request to identify the policy language. Under IC 27-4-1-4.5, which unfair claim settlement practice does this describe?
Show answer and explanation
Correct answer: A. Failing to promptly give a reasonable explanation of the basis for denial
Item (14) of IC 27-4-1-4.5 lists failing to promptly provide a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for denying a claim or offering a compromise settlement. A bare "not covered" letter gives no such explanation. The other options are separate practices in the same section, covering payment statements, fault in liability claims and duplicate claim reporting.
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. Indiana Laws and Department Rules Common to All Lines of Insurance
16 questions
II. Insurance Basics
10 questions
III. Personal Lines Regulations
3 questions
IV. Dwelling Policies
2 questions
V. Homeowners Policies
14 questions
VI. Automobile: Personal Auto
8 questions
VII. Commercial General Liability
12 questions
VIII. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
5 questions
IX. Commercial Package Policies
18 questions
X. Businessowners Policy (BOP)
1 question
XI. Commercial Auto
2 questions
XII. Adjusting Losses
7 questions
XIII. Building Construction
2 questions
Outline titled "Independent Adjuster Content Outline" in the Pearson VUE Indiana Insurance Content Outlines (publication 121501, 11/2025), effective November 26, 2025, and reprinted in the August 2026 candidate handbook (#121500); counts are of the 100 scored questions.
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.
Treat Indiana law as 19 points. Sections I and III give Indiana law 19 of the 100 scored questions. Know the IC 27-1-28 numbers: 5 days for an insurer to apply for an emergency license, 90 days of emergency authority, a 2-year license, $40 to apply or renew, $80 to reissue within 12 months, $90 for nonresident and designated home state licenses, 24 CE hours, 30 days to report actions and changes, and civil penalties of $50 to $10,000.
Commercial lines carry a third of the exam. Commercial package policies (18), the CGL (12), commercial auto (2) and the BOP (1) add up to 33 questions, covering business income, extra expense, umbrella, inland and ocean marine, and professional lines such as errors and omissions, directors and officers, employment practices and cyber liability.
Study farm coverage and building construction separately. The outline tests the farm property and liability coverages, crop-hail versus multi-peril crop insurance, and 2 questions on building construction, remediation, debris removal and endorsements such as matching and ACV with recoverable depreciation. Our practice banks do not cover these areas directly, so use your prelicensing course materials for them.
Learn the personal lines rules. Know Indiana's 25/50/25 auto minimums, the IC 27-4-1.5 notice that lets an insured choose manufacturer, aftermarket or used body parts during the 5 years after the model year, the assigned risk plan notice, and mine subsidence coverage: a 2% deductible held between $250 and $500, and up to $15,000 for living expenses.
Do not overlook Indiana workers compensation. Section VIII's 5 questions include Indiana rules on benefits, who must be insured, minors, the second injury fund and the assigned risk plan. Remember the 7-day waiting period, which is paid back when disability lasts more than 21 days, and the 66 2/3% benefit rate.
Plan for one minute per question. You get 105 minutes for up to 105 questions, and you cannot bring your own calculator, so practice coinsurance, depreciation and limit math by hand. Bring your ID and course completion certificate; if you fail, you can retest after 48 hours.
Getting licensed in Indiana
Indiana requires a license to act as an independent adjuster (IC 27-1-28-10). An independent adjuster is someone who contracts with insurers or self-insurers, and is treated as an independent contractor, to investigate, negotiate or settle property, casualty or workers' compensation claims. Insurer-employed staff adjusters are not covered by this definition. Public adjusters need a separate certificate of authority under IC 27-1-27.
License fee: $40
License term: 2 years from the date of issuance (IC 27-1-28-14).
How many questions are on the Indiana independent adjuster exam?
Pearson VUE's content outline lists 100 scored questions plus 5 unscored pretest questions, which are mixed in and not identified. The August 2026 handbook's exam table shows 100 questions and a 105-minute seat time, so pace yourself as if every question counts. Indiana law accounts for 19 of the scored questions.
What score do you need to pass the Indiana adjuster exam?
You need a scaled score of 70. The Indiana Department of Insurance sets the passing score in consultation with Pearson VUE and industry experts, and you leave the test center with an official score report. If you fail, you can retest after 48 hours by paying the $69 fee again.
Is a prelicensing course required for the Indiana adjuster license?
Yes. Resident applicants complete a 40-hour adjuster prelicensing course and must test within six months of finishing it. IC 27-1-28-16 waives the course and the exam for adjusters licensed in another state that requires an exam, licenses that expired less than 90 days earlier, proof of claims work in the same line within five years, and new residents who apply within 90 days of moving. IC 27-1-28-15(e) also exempts holders of a department-approved claims certification, which IDOI identifies as CLM's Uniform Claims Certification.
How much does an Indiana adjuster license cost?
Budget $69 for the Pearson VUE exam, the $40 resident application fee and the cost of the 40-hour course. The license lasts two years and renews for $40, while nonresident and designated home state licenses cost $90 to issue or renew. Exam fees are refunded or transferred only if you change or cancel at least 48 hours ahead.
Can I use Indiana as my designated home state?
Yes, if the state where you live does not license independent adjusters for the line you want. Under IC 27-1-28-5 and IC 27-1-28-17(b), you must meet the same application, prelicensing course and exam requirements as an Indiana resident but pay the $90 nonresident fee rather than $40, and you then renew every two years for $90 with 24 hours of continuing education.
Do company staff adjusters need an Indiana license?
No. IC 27-1-28-6 covers people treated as independent contractors and excludes officers, managers and employees of authorized insurers. Licensed producers given claim authority by an insurer, attorneys acting as attorneys, and people who handle only crop, life or health claims also fall outside the definition.