Colorado Public Adjuster Practice Exam (InsCO-PubAdj14) Questions with Answers &
Explanations LATEST
**1. Who regulates public adjusters in Colorado?**
A) Colorado Department of Regulatory Agencies
B) Colorado Division of Insurance
C) Colorado Attorney General's Office
D) Colorado Department of Insurance
**Answer: B**
**Explanation:** The Colorado Division of Insurance, part of the Department of Regulatory
Agencies (DORA), regulates public adjusters under C.R.S. Title 10.
**2. A public adjuster's primary fiduciary duty is to:**
A) The insurance company
B) The insured they represent
C) The Colorado Division of Insurance
D) Themselves as business owners
**Answer: B**
**Explanation:** Public adjusters owe a fiduciary duty to the insured client, not the
insurance company.
**3. To be licensed as a public adjuster in Colorado, an applicant must:**
A) Be at least 18 years old
B) Pass the required examination
C) Complete pre-licensing education
D) All of the above
**Answer: D**
,**Explanation:** C.R.S. §10-2-604 requires all of these qualifications.
**4. How long is a Colorado public adjuster license valid?**
A) 1 year
B) 2 years
C) 3 years
D) 4 years
**Answer: C**
**Explanation:** Colorado public adjuster licenses expire every three years on the last day
of the licensee's birth month.
**5. Continuing education requirements for Colorado public adjusters are:**
A) 12 hours annually
B) 24 hours biennially
C) 36 hours triennially
D) 48 hours every four years
**Answer: B**
**Explanation:** Public adjusters must complete 24 hours of CE every two years, including
3 hours of ethics.
**6. A public adjuster may NOT represent an insured in:**
A) First-party property claims
B) Liability claims against the insured
C) Business interruption claims
D) Theft or vandalism claims
**Answer: B**
,**Explanation:** Public adjusters handle first-party claims (insured's own policy), not third-
party liability claims.
**7. The maximum contingent fee a public adjuster may charge in Colorado for residential
claims is:**
A) 10% of the claim payment
B) 15% of the claim payment
C) 20% of the claim payment
D) No statutory limit
**Answer: A**
**Explanation:** Colorado limits contingent fees to 10% of claim payment for residential
property claims per C.R.S. §10-2-606(4).
**8. When must a public adjuster provide a written contract to an insured?**
A) Within 3 days of first contact
B) Before any work is performed
C) Within 10 days of signing
D) Only if requested by the insured
**Answer: B**
**Explanation:** The contract must be in writing and provided before any adjusting
services are performed.
**9. Which information MUST be included in a public adjuster contract?**
A) Adjuster's license number
B) Full description of services
C) Fee arrangement
D) All of the above
, **Answer: D**
**Explanation:** C.R.S. §10-2-606 requires all these elements in the contract.
**10. The insured's right to rescind a public adjuster contract expires:**
A) 24 hours after signing
B) 3 business days after signing
C) 5 calendar days after signing
D) 10 business days after signing
**Answer: B**
**Explanation:** Colorado law provides a 3-business day right of rescission from the
contract date.
**11. A public adjuster may NOT have a financial interest in:**
A) The claim outcome
B) Restoration contractors they recommend
C) Both A and B
D) Neither A nor B
**Answer: C**
**Explanation:** Public adjusters must avoid conflicts of interest, including financial
interests in contractors they recommend.
**12. "Rebating" in insurance adjusting means:**
A) Returning unearned premiums
B) Returning part of the fee to the insured
C) Adjusting a claim downward
D) Recommending contractors
**Answer: B**
Explanations LATEST
**1. Who regulates public adjusters in Colorado?**
A) Colorado Department of Regulatory Agencies
B) Colorado Division of Insurance
C) Colorado Attorney General's Office
D) Colorado Department of Insurance
**Answer: B**
**Explanation:** The Colorado Division of Insurance, part of the Department of Regulatory
Agencies (DORA), regulates public adjusters under C.R.S. Title 10.
**2. A public adjuster's primary fiduciary duty is to:**
A) The insurance company
B) The insured they represent
C) The Colorado Division of Insurance
D) Themselves as business owners
**Answer: B**
**Explanation:** Public adjusters owe a fiduciary duty to the insured client, not the
insurance company.
**3. To be licensed as a public adjuster in Colorado, an applicant must:**
A) Be at least 18 years old
B) Pass the required examination
C) Complete pre-licensing education
D) All of the above
**Answer: D**
,**Explanation:** C.R.S. §10-2-604 requires all of these qualifications.
**4. How long is a Colorado public adjuster license valid?**
A) 1 year
B) 2 years
C) 3 years
D) 4 years
**Answer: C**
**Explanation:** Colorado public adjuster licenses expire every three years on the last day
of the licensee's birth month.
**5. Continuing education requirements for Colorado public adjusters are:**
A) 12 hours annually
B) 24 hours biennially
C) 36 hours triennially
D) 48 hours every four years
**Answer: B**
**Explanation:** Public adjusters must complete 24 hours of CE every two years, including
3 hours of ethics.
**6. A public adjuster may NOT represent an insured in:**
A) First-party property claims
B) Liability claims against the insured
C) Business interruption claims
D) Theft or vandalism claims
**Answer: B**
,**Explanation:** Public adjusters handle first-party claims (insured's own policy), not third-
party liability claims.
**7. The maximum contingent fee a public adjuster may charge in Colorado for residential
claims is:**
A) 10% of the claim payment
B) 15% of the claim payment
C) 20% of the claim payment
D) No statutory limit
**Answer: A**
**Explanation:** Colorado limits contingent fees to 10% of claim payment for residential
property claims per C.R.S. §10-2-606(4).
**8. When must a public adjuster provide a written contract to an insured?**
A) Within 3 days of first contact
B) Before any work is performed
C) Within 10 days of signing
D) Only if requested by the insured
**Answer: B**
**Explanation:** The contract must be in writing and provided before any adjusting
services are performed.
**9. Which information MUST be included in a public adjuster contract?**
A) Adjuster's license number
B) Full description of services
C) Fee arrangement
D) All of the above
, **Answer: D**
**Explanation:** C.R.S. §10-2-606 requires all these elements in the contract.
**10. The insured's right to rescind a public adjuster contract expires:**
A) 24 hours after signing
B) 3 business days after signing
C) 5 calendar days after signing
D) 10 business days after signing
**Answer: B**
**Explanation:** Colorado law provides a 3-business day right of rescission from the
contract date.
**11. A public adjuster may NOT have a financial interest in:**
A) The claim outcome
B) Restoration contractors they recommend
C) Both A and B
D) Neither A nor B
**Answer: C**
**Explanation:** Public adjusters must avoid conflicts of interest, including financial
interests in contractors they recommend.
**12. "Rebating" in insurance adjusting means:**
A) Returning unearned premiums
B) Returning part of the fee to the insured
C) Adjusting a claim downward
D) Recommending contractors
**Answer: B**
