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Free Practice Questions for Property Damage Loss Adjuster (재물손해사정사)

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Key Facts: Property Damage Loss Adjuster (재물손해사정사) Exam

120 MCQs / 150 Min

Official Stage 1 Format (3 Subjects × 40 Questions)

Korea Insurance Development Institute Regulations

40% / 60%

Passing Requirement: 40-pt Subject Floor & 60-pt Overall Average

Insurance Business Act Enforcement Decree

KRW 30,000

Stage 1 Examination Registration Fee

Korea Insurance Development Institute Official Portal

TOEIC 700+

English Language Proficiency Substitution Requirement

Financial Services Commission Examination By-laws

Commercial Code & IBA

Primary Statutory Frameworks (상법 보험편 & 보험업법)

Ministry of Justice & Financial Services Commission

1-Year Exemption

Stage 1 Passing Exemption for Following Year Stage 2

Korea Insurance Development Institute Guidelines

The Korea Property Damage Loss Adjuster (재물손해사정사) certifies statutory authority and professional expertise in adjusting commercial property, fire, marine, cargo, liability, and engineering insurance losses in South Korea. This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation.

Sample Property Damage Loss Adjuster (재물손해사정사) Practice Questions

Try these sample questions to review concepts for the Property Damage Loss Adjuster (재물손해사정사) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Insurance Business Act (보험업법) of South Korea, what is the primary statutory duty and scope of practice of a licensed Property Damage Loss Adjuster (재물손해사정사)?
A.Representing policyholders as legal counsel in court litigation against insurance companies for bad faith claims.
B.Investigating property loss events, appraising physical damage, calculating legitimate indemnities, and issuing formal loss adjustment reports (손해사정서).
C.Underwriting marine hull policies and setting statutory risk capital reserve ratios for domestic reinsurance carriers.
D.Auditing corporate financial statements of listed policyholders under the Financial Investment Services and Capital Markets Act.
Explanation: Article 188 of the Insurance Business Act (보험업법 제188조 손해사정사 등의 업무) fixes the statutory scope of practice: confirming that a loss has occurred, judging whether the policy wording and the relevant statutes have been applied correctly, assessing the amount of loss and the insurance money, acting for the client in preparing and filing the related documents, and stating an opinion to the insurer on those matters. Article 189, Paragraphs 1 and 2 then require the adjuster to issue the loss adjustment report (손해사정서) without delay and to explain its material content to the insurer, the policyholder, the insured and the claimant.
2Under the Commercial Code Insurance Part (상법 보험편 제668조), which of the following is an indispensable legal requirement for an insurable interest (피보험이익) in property insurance?
A.It must be based purely on sentimental or subjective emotional attachment.
B.It must be an economic interest capable of being evaluated in monetary terms (금전으로 산정할 수 있는 경제적 이익).
C.It must be established after the insured peril has already produced total destruction.
D.It must exceed the full replacement cost of the property by at least thirty percent.
Explanation: Under Article 668 of the Commercial Code Insurance Part (상법 보험편), an insurable interest (피보험이익) in property insurance must be an economic interest that can be calculated in monetary terms. Without a valid, lawful, and determinable economic relationship to the subject matter, the contract is treated as unenforceable gambling.
3Under Article 651 of the Commercial Code Insurance Part (상법 보험편 제651조), within what statutory timeframe must an insurer exercise its right to rescind (계약해지권) an insurance contract upon discovering a breach of the duty of disclosure (고지의무)?
A.Within 1 month from the date of knowing the fact, and within 3 years from the date the contract was formed
B.Within 10 days from the date of knowing the fact, and within 1 year from the date the contract was formed
C.Within 3 months from the date of knowing the fact, with no long-term outer time limit
D.Within 6 months from the date of knowing the fact, and within 5 years from the date the contract was formed
Explanation: Under Commercial Code Article 651 (상법 보험편 제651조), if the policyholder or insured intentionally or through gross negligence failed to disclose or made a false disclosure of a material fact (중요한 사항), the insurer may rescind the contract within 1 month from the date it acquired knowledge of the violation, and within 3 years from the date of contract formation.
4Under Commercial Code Insurance Part Article 681 (상법 보험편 제681조 잔존물대위), when does an insurer acquire ownership rights to the salvage of insured property by operation of law?
A.Immediately upon the occurrence of any partial physical damage exceeding 10% of sum insured
B.Upon paying the full insurance amount for a total loss of the insured subject matter (보험의 목적의 전부가 멸실하여 보험금액의 전부를 지급한 때)
C.Only after obtaining a separate judicial vesting order from a district civil court
D.Whenever the policyholder refuses to pay the subsequent renewal premium
Explanation: Under Article 681 of the Commercial Code Insurance Part (상법 제681조), when the subject matter of insurance is totally destroyed and the insurer pays the full insurance amount (보험금액의 전부), the insurer automatically acquires all rights possessed by the insured regarding the insured subject matter (잔존물대위) by operation of law without requiring separate assignment.
5What is the statutory limitation on the insurer's subrogation rights against third parties (청구권대위) under Article 682 of the Commercial Code Insurance Part (상법 보험편 제682조)?
A.The insurer may recover treble damages against third parties regardless of the indemnity paid.
B.The insurer acquires third-party claims only up to the limit of the insurance indemnity amount paid (지급한 보험금액의 한도 내).
C.The insurer may only recover 50% of the indemnity paid unless the third party was criminally convicted.
D.The insurer can exercise subrogation against family members living in the same household even without gross negligence.
Explanation: Under Article 682 of the Commercial Code Insurance Part (상법 제682조 제1항), when a loss is caused by the act of a third party, the insurer who has paid the insurance amount acquires the claims of the insured against such third party up to the limit of the insurance amount paid (지급한 보험금액의 한도). Furthermore, rights against cohabiting family members cannot be subrogated unless caused willfully.
6Under Article 672 of the Commercial Code Insurance Part (상법 보험편 제672조), how is liability apportioned when multiple insurance contracts are concluded simultaneously or consecutively and their total sum insured exceeds insurable value (중복보험)?
A.Only the first policy entered into is valid, and all subsequent policies are void ab initio.
B.Each insurer is liable for the full loss independently, allowing the insured to collect multiple full indemnities.
C.Each insurer is liable jointly and severally up to the limit of its respective sum insured, but the insured cannot recover more than the actual loss (각 보험자는 각자의 보험금액의 한도에서 연대책임을 지며, 비례분담함).
D.The loss is absorbed entirely by the government disaster relief fund.
Explanation: Under Article 672 Paragraph 1 of the Commercial Code (상법 제672조 제1항), where multiple insurance contracts are concluded simultaneously or successively, and the total insurance amount exceeds the insurable value (중복보험), each insurer is jointly and severally liable within the limit of its own insurance amount, but total compensation cannot exceed total loss, with liability apportioned pro rata based on insured amounts.
7What is the legal consequence under Commercial Code Article 657 (상법 보험편 제657조) if a policyholder delays notifying the insurer of an insured loss without justifiable cause?
A.The insurance contract is automatically revoked from inception.
B.The insurer may deduct any increased loss caused by the delay from the insurance indemnity payable (지체로 인하여 증가된 손해액 공제).
C.The policyholder is subjected to mandatory criminal prosecution under financial penal statutes.
D.The entire claim is forfeited regardless of whether the delay caused any increase in loss.
Explanation: Under Article 657 Paragraph 2 of the Commercial Code Insurance Part (상법 제657조 제2항), if the policyholder or insured fails to notify the insurer of the occurrence of an insured event without delay, the insurer is entitled to deduct any portion of the loss that increased due to such delay from the indemnity payment.
8Under Article 680 of the Commercial Code Insurance Part (상법 보험편 제680조), who bears the expenses necessary or beneficial for mitigating and preventing loss (손해방지비용)?
A.The policyholder bears them entirely as an ordinary cost of property ownership.
B.The insurer bears them, even if the sum of expenses and loss indemnity exceeds the total insurance amount (보험금액을 초과하더라도 보험자가 부담).
C.The municipal fire department assumes responsibility through municipal tax levies.
D.The expenses are shared equally between the insurer and the loss adjuster.
Explanation: Under Article 680 Paragraph 1 of the Commercial Code (상법 제680조 제1항), the policyholder and insured have a duty to mitigate loss, and the insurer must reimburse any necessary or beneficial expenses incurred for loss prevention, even if the total amount of indemnity and prevention expenses exceeds the insurance amount (보험금액).
9A factory is insured for KRW 1,000,000,000, but its actual insurable value is determined to be only KRW 600,000,000 due to market declines. If the contract was concluded without bad faith or fraud, what rights do the parties have under Commercial Code Article 669 (상법 보험편 제669조 초과보험)?
A.The entire policy is null and void, and the insurer retains all paid premiums as a statutory penalty.
B.Either party may demand a pro-rata reduction of the insurance amount and future premiums (보험금액 및 보험료의 감액 청구권).
C.The insurer must pay KRW 1,000,000,000 upon total loss under the principle of promissory estoppel.
D.The policyholder must immediately pay an additional surcharge of 50% to adjust the reserve fund.
Explanation: Under Article 669 Paragraph 1 of the Commercial Code (상법 제669조 제1항), when the insurance amount substantially exceeds the insurable value (초과보험) without fraud or bad faith, the insurer or the policyholder may request a reduction of the insurance amount and future premiums corresponding to the excess.
10When the owner of an insured commercial building transfers ownership of the building to a buyer, what is the statutory presumption under Article 679 of the Commercial Code Insurance Part (상법 보험편 제679조)?
A.The insurance policy is automatically terminated and cannot be assigned under any condition.
B.The rights and obligations under the insurance contract are presumed to have been transferred to the transferee (양수인에게 권리와 의무가 승계된 것으로 추정).
C.The transferor remains exclusively entitled to claim all future insurance indemnities.
D.The insurer is required to refund all unearned premiums to the municipal government.
Explanation: Under Article 679 Paragraph 1 of the Commercial Code (상법 제679조 제1항), when the insured transfers the subject matter of insurance, it is legally presumed that the rights and obligations under the insurance contract have also been assigned to the transferee (양수인에게 승계된 것으로 추정).

About the Property Damage Loss Adjuster (재물손해사정사) Exam

The Korea Property Damage Loss Adjuster (재물손해사정사) is a national professional qualification established under South Korea's Insurance Business Act (보험업법), supervised by the Financial Services Commission (금융위원회) and Financial Supervisory Service (금융감독원), and administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr). Property Damage Loss Adjusters are legally licensed to investigate property losses, establish liability, evaluate damage, quantify claims, and calculate insurance indemnities for fire, marine, cargo, liability, engineering, and business interruption risks. The official examination curriculum encompasses Commercial Code Insurance Part (상법 보험편), Insurance Business Act (보험업법), Loss Adjusting Theory (손해사정이론), Accounting Principles for Property Valuation (회계원리), Marine & Cargo Insurance (해상보험), and Fire, Liability & Engineering Insurance (화재·책임·기술보험). This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. Independent practice by OpenExamPrep.

Exam sponsor: Financial Services Commission / Financial Supervisory Service / Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Official format: 1st stage 120 four-option multiple-choice items across 3 subjects (40 items each, total 120 minutes) + English score substitution; 2nd stage 3 subjective essay subjects. Stage 1 subjects: Insurance Business Act (보험업법), Insurance Contract Law (보험계약법 - 상법 보험편), and Loss Adjusting Theory (손해사정이론); the English subject is satisfied by an accredited external score. Stage 2 subjects (90 minutes each): Accounting Principles (회계원리), Marine Insurance Theory and Practice including the Commercial Act Maritime Part (해상보험의 이론과 실무 [상법 해상편 포함]), and Liability, Fire and Engineering Insurance Theory and Practice (책임·화재·기술보험 등의 이론과 실무).

Time Limit

120 minutes (Stage 1)

Passing Score

1st stage at least 40 points in each subject and an overall average of at least 60 points out of 100 (과락 40점 미만 방지 및 전과목 평균 60점 이상)

Exam / Certification Fees

KRW 30,000 for 1st stage

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Insurance Law & Loss Adjusting Theory (보험계약법, 보험업법, 손해사정이론)

Covers South Korean statutory frameworks under the Commercial Code Insurance Part (상법 보험편) and Insurance Business Act (보험업법), alongside core loss adjusting doctrines including insurable interest (피보험이익), duty of disclosure (고지의무), notice and proof of loss, proximate cause (인과관계), principle of indemnity (이득금지의 원칙), insurer subrogation (보험자대위), contribution, abandonment (위부), and professional ethical obligations.

25%

Accounting Principles for Property Valuation (회계원리 - 감가상각, 재고자산 실사 및 평가, 기업휴지손실 계산)

Examines financial accounting principles and quantitative valuation models essential for loss adjusting: property, plant, and equipment (PPE) cost determination, fixed asset depreciation models (정액법, 정률법, 연수합계법, 생산량비례법), physical inventory count and valuation (FIFO, weighted average, lower of cost or net realizable value LCM), and Business Interruption / Loss of Profits calculations (기업휴지손실 계산, standard turnover, rate of gross profit, standing charges).

25%

Marine & Cargo Insurance (해상보험 이론과 실무 - ICC A/B/C, ITC-Hulls, 공동해손 General Average, 요크앤트워프 규칙)

Covers maritime insurance law and adjustment practices under the UK Marine Insurance Act (MIA 1906), Institute Cargo Clauses (ICC A, B, C 1982/2009), Institute Time Clauses - Hulls (ITC-Hulls 1/10/83), collision liability (3/4th Running Down Clause RDC), Sistership Clause, General Average (공동해손) adjustments under York-Antwerp Rules (YAR 1994/2004/2016), Salvage and Sue & Labour expenses, and total loss (actual vs constructive total loss 위부).

20%

Fire, Liability & Engineering Insurance (화재·책임·기술보험 실무 - 재산종합보험, 조립·건설공사보험, 기계보험)

Examines non-marine commercial property insurance underwriting and claims adjustment: Standard Fire Policy (화재보험) structure, average clauses and co-insurance condition calculations (비례보상조항), Comprehensive Property Floaters (재산종합보험 PAR), Erection All Risks (조립보험 EAR), Contractor's All Risks (건설공사보험 CAR), Machinery Breakdown (기계보험 MB), and Commercial General Liability (배상책임보험).

Preparing for the Property Damage Loss Adjuster (재물손해사정사) Exam

What You Need to Know

  • Passing score: 1st stage at least 40 points in each subject and an overall average of at least 60 points out of 100 (과락 40점 미만 방지 및 전과목 평균 60점 이상)
  • Assessment: Official format: 1st stage 120 four-option multiple-choice items across 3 subjects (40 items each, total 120 minutes) + English score substitution; 2nd stage 3 subjective essay subjects. Stage 1 subjects: Insurance Business Act (보험업법), Insurance Contract Law (보험계약법 - 상법 보험편), and Loss Adjusting Theory (손해사정이론); the English subject is satisfied by an accredited external score. Stage 2 subjects (90 minutes each): Accounting Principles (회계원리), Marine Insurance Theory and Practice including the Commercial Act Maritime Part (해상보험의 이론과 실무 [상법 해상편 포함]), and Liability, Fire and Engineering Insurance Theory and Practice (책임·화재·기술보험 등의 이론과 실무).
  • Time limit: 120 minutes (Stage 1)
  • Exam / certification fees: KRW 30,000 for 1st stage Official sources

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Property Damage Loss Adjuster (재물손해사정사): Suggested Study Strategy

1Master Statutory Duty of Disclosure (상법 제651조 고지의무): Know the strict elements — material facts (중요한 사항), policyholder intentional malice or gross negligence, insurer rescission timeframes (within 1 month of knowledge, within 3 years of contract date), and causation burden of proof.
2Practice Pro-Rata Average Condition Calculations (비례보상 계산): Be completely fluent with Claim = Loss × (Sum Insured / Insurable Value), and memorize the 80% Coinsurance Clause formula where Indemnity = Loss × [Sum Insured / (80% × Insurable Value)] subject to policy limits.
3Master Business Interruption (기업휴지손실) Formulations: Understand Rate of Gross Profit = (Net Profit + Standing Charges) / Standard Turnover, reduction in turnover loss adjustment, and savings in standing charges.
4Learn General Average (공동해손) and York-Antwerp Rules: Memorize the essential criteria for General Average under Rule A (extraordinary sacrifice or expenditure, voluntarily and reasonably incurred, for common safety, imperiled maritime venture), and how contributing values and contributory shares are apportioned across ship, cargo, and freight.
5Understand Depreciation Models in Accounting Principles (회계원리 감가상각): Be proficient in calculating straight-line (정액법), declining balance (정률법), and sum-of-the-years-digits (연수합계법) depreciation for both book value and insurance actual cash value (ACV / 시가) adjustments.
6Differentiate All Risks Engineering Policies (조립·건설공사보험): Grasp the nuances between CAR (Contractor's All Risks), EAR (Erection All Risks), Machinery Breakdown (기계보험), Testing/Commissioning periods, Maintenance periods, and standard Munich Re / London market exclusions.

Frequently Asked Questions

What is the Korea Property Damage Loss Adjuster (재물손해사정사) qualification and who administers it?

The Korea Property Damage Loss Adjuster (재물손해사정사) is a national professional qualification established under the Insurance Business Act (보험업법) of South Korea. It is supervised by the Financial Services Commission (금융위원회) and Financial Supervisory Service (금융감독원), and officially administered by the Korea Insurance Development Institute (보험개발원 / certi.kidi.or.kr). Property Damage Loss Adjusters hold statutory authority to investigate property loss events, appraise damages, determine insurable values, calculate indemnities, and issue formal loss adjustment reports for fire, marine, cargo, engineering, and liability claims.

What is the official examination format, time limit, and passing requirement?

The official format consists of: 1st stage 120 four-option multiple-choice items across 3 subjects (40 items each, total 120 minutes) + English score substitution; 2nd stage 3 subjective essay subjects. Stage 1 subjects are Insurance Business Act (보험업법), Insurance Contract Law (보험계약법 - 상법 보험편), and Loss Adjusting Theory (손해사정이론); Accounting Principles (회계원리) is a Stage 2 subject, not a Stage 1 subject. To pass Stage 1, a candidate must obtain at least 40 points in each subject (과락 40점 미만 방지) and achieve an overall arithmetic average of at least 60 points out of 100.

What are the prerequisite requirements for taking the examination?

There are no academic, age, or citizenship prerequisites to take the 1st stage examination. However, candidates must fulfill an official English language proficiency score substitution requirement before registering for Stage 1. Recognized exams and minimum required scores include: TOEIC 700+, TOEFL IBT 71+, New TEPS 340+, or G-TELP Level 2 65+.

What is the retake and stage-exemption policy for candidates?

Candidates who pass the 1st stage multiple-choice examination are granted a statutory exemption from having to retake the 1st stage in the immediately following consecutive examination year. This provides a two-year opportunity window to pass the demanding 2nd stage subjective essay examination.

What core subjects and calculation topics are emphasized on the Property Damage adjuster exam?

Key quantitative and analytical topics include: property damage quantification, under-insurance pro-rata average condition calculations (비례보상), fixed asset depreciation methods (회계원리 감가상각), inventory valuation (재고자산 평가), Business Interruption / Loss of Profits calculations (기업휴지손실 계산), Institute Cargo Clauses (ICC A/B/C), General Average (공동해손) apportionment under York-Antwerp Rules, and Comprehensive Property / Engineering coverage structures (재산종합보험, 조립·건설공사보험).

Is this OpenExamPrep practice bank an official test or translation?

No. This module is an independent English-language MCQ study adaptation by OpenExamPrep, not an official translation or format simulation. The official examination is administered exclusively in Korean by the Korea Insurance Development Institute (보험개발원). OpenExamPrep provides this independent practice bank to assist bilingual candidates, reinsurance professionals, and claims adjusters in mastering Korean insurance statutes, loss adjustment doctrines, accounting mathematics, and policy structures.