Missouri Public Adjuster Licensing Examination
Practice Exam Questions With Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A |
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1. What is the primary role of a public adjuster?
A. To represent the insurance company
B. To represent the insured in settling claims
C. To underwrite insurance policies
D. To investigate fraud on behalf of the state
Answer: B
Rationale: A public adjuster is licensed to represent
policyholders—not insurers—in negotiating and settling
insurance claims.
2. A public adjuster must be licensed in Missouri by which authority?
A. Missouri Department of Commerce
B. Missouri Department of Insurance
C. National Association of Insurance Commissioners
D. Federal Trade Commission
, Answer: B
Rationale: The Missouri Department of Insurance regulates and
licenses public adjusters in the state.
3. Which of the following is required to obtain a Missouri public
adjuster license?
A. College degree
B. Passing a licensing examination
C. Employment with an insurance company
D. Five years of legal experience
Answer: B
Rationale: Applicants must pass a state licensing exam to
demonstrate competency.
4. A public adjuster’s contract must be:
A. Oral
B. Signed after claim settlement
C. In writing
D. Approved by a court
Answer: C
Rationale: Missouri law requires a written contract outlining
terms of representation.
,5. When must a public adjuster provide a copy of the contract to the
insured?
A. Within 30 days
B. Immediately after signing
C. After claim settlement
D. Only upon request
Answer: B
Rationale: The insured must receive a copy immediately upon
execution.
6. A public adjuster’s fee is typically based on:
A. Hourly rate only
B. A percentage of the claim settlement
C. Flat annual fee
D. Commission from insurers
Answer: B
Rationale: Most public adjusters charge a percentage of the
claim recovery.
7. Which action is prohibited for public adjusters?
A. Negotiating claims
B. Representing insured clients
C. Misrepresenting policy provisions
, D. Reviewing policy documents
Answer: C
Rationale: Misrepresentation is unethical and illegal.
8. A public adjuster must maintain records for how long?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: D
Rationale: Missouri requires record retention for at least five
years.
9. Which of the following best describes “indemnity”?
A. Profit from loss
B. Compensation for loss
C. Risk transfer
D. Legal liability
Answer: B
Rationale: Indemnity restores the insured to their pre-loss
condition.
10. Which policy covers damage to a dwelling?
A. Auto policy
Practice Exam Questions With Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A |
Instant Download Pdf
1. What is the primary role of a public adjuster?
A. To represent the insurance company
B. To represent the insured in settling claims
C. To underwrite insurance policies
D. To investigate fraud on behalf of the state
Answer: B
Rationale: A public adjuster is licensed to represent
policyholders—not insurers—in negotiating and settling
insurance claims.
2. A public adjuster must be licensed in Missouri by which authority?
A. Missouri Department of Commerce
B. Missouri Department of Insurance
C. National Association of Insurance Commissioners
D. Federal Trade Commission
, Answer: B
Rationale: The Missouri Department of Insurance regulates and
licenses public adjusters in the state.
3. Which of the following is required to obtain a Missouri public
adjuster license?
A. College degree
B. Passing a licensing examination
C. Employment with an insurance company
D. Five years of legal experience
Answer: B
Rationale: Applicants must pass a state licensing exam to
demonstrate competency.
4. A public adjuster’s contract must be:
A. Oral
B. Signed after claim settlement
C. In writing
D. Approved by a court
Answer: C
Rationale: Missouri law requires a written contract outlining
terms of representation.
,5. When must a public adjuster provide a copy of the contract to the
insured?
A. Within 30 days
B. Immediately after signing
C. After claim settlement
D. Only upon request
Answer: B
Rationale: The insured must receive a copy immediately upon
execution.
6. A public adjuster’s fee is typically based on:
A. Hourly rate only
B. A percentage of the claim settlement
C. Flat annual fee
D. Commission from insurers
Answer: B
Rationale: Most public adjusters charge a percentage of the
claim recovery.
7. Which action is prohibited for public adjusters?
A. Negotiating claims
B. Representing insured clients
C. Misrepresenting policy provisions
, D. Reviewing policy documents
Answer: C
Rationale: Misrepresentation is unethical and illegal.
8. A public adjuster must maintain records for how long?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: D
Rationale: Missouri requires record retention for at least five
years.
9. Which of the following best describes “indemnity”?
A. Profit from loss
B. Compensation for loss
C. Risk transfer
D. Legal liability
Answer: B
Rationale: Indemnity restores the insured to their pre-loss
condition.
10. Which policy covers damage to a dwelling?
A. Auto policy
