Alaska Public Adjuster Licensing
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. Which statement best describes Alaska's current treatment
of public adjusters?
A. Alaska requires every public adjuster to hold a separate public
adjuster license.
B. Alaska requires public adjusters to hold an independent
adjuster license.
C. Alaska does not issue a separate insurance license for
public adjusters.
D. Alaska prohibits all public adjusting activities.
Rationale: The Alaska Division of Insurance states that Alaska
does not currently issue a public adjuster insurance license.
Public adjusting may nevertheless be subject to other Alaska laws
depending on the nature and scope of the activities performed.
2. A public adjuster generally represents the interests of:
A. The insurance company
B. The state's Division of Insurance
C. A reinsurer
D. The insured or policyholder
,Rationale: A public adjuster works on behalf of the insured rather
than the insurance company. This differs from an independent
adjuster, who represents the insurer.
3. Which type of adjuster generally represents an insurer but is
not employed directly by that insurer?
A. Public adjuster
B. Company adjuster
C. Independent adjuster
D. Policyholder advocate
Rationale: An independent adjuster represents the interests of the
insurer while operating independently of the insurer as an
employee. Alaska requires an independent adjuster license when
a person adjusts claims for an insurer that is not the person's
employer.
4. A company adjuster employed by an admitted insurer in
Alaska generally:
A. Must obtain a public adjuster license
B. Must obtain an independent adjuster license
C. Must become a surplus lines broker
D. Does not need an independent adjuster license
Rationale: Alaska specifically states that a staff adjuster who
adjusts claims for an employer that is an admitted insurer does
not need an independent adjuster license.
5. Which Alaska entity administers insurance licensing and
regulation?
A. Alaska Department of Labor
B. Alaska Workers' Compensation Board
,C. Alaska Division of Insurance
D. Alaska Department of Transportation
Rationale: The Division of Insurance within the Alaska Department
of Commerce, Community, and Economic Development
administers insurance regulation and licensing functions in
Alaska.
6. An adjuster is primarily responsible for determining:
A. Whether an insured should purchase another policy
B. The insurer's investment strategy
C. The amount and nature of a covered loss
D. The insurer's tax liability
Rationale: Adjusting involves investigating a loss, determining
applicable coverage, evaluating damages, and helping establish
the amount payable under the policy.
7. Which document is most important when determining
whether a particular property loss is covered?
A. The claimant's driver's license
B. The adjuster's résumé
C. The insurer's annual report
D. The insurance policy
Rationale: The insurance policy establishes the contractual rights
and obligations of the insurer and insured. An adjuster must
examine the policy's insuring agreements, exclusions, conditions,
limits, endorsements, and applicable deductibles.
8. What is a deductible?
A. The insurer's maximum liability
B. The amount paid by the insurer before the insured pays
, anything
C. The amount the insured is responsible for before covered
insurance benefits are generally paid
D. A commission paid to an adjuster
Rationale: A deductible is the portion of a covered loss that the
insured must generally absorb before the insurer pays the
remaining covered amount, subject to the policy terms.
9. An exclusion in an insurance policy generally:
A. Expands coverage
B. Guarantees payment
C. Eliminates the deductible
D. Removes certain risks or circumstances from coverage
Rationale: Exclusions identify losses, causes, property, or
circumstances for which the policy does not provide coverage. An
adjuster must review exclusions carefully before determining
whether a claim is payable.
10. Which principle requires an adjuster to distinguish
between covered damage and damage caused by an
excluded peril?
A. Subrogation
B. Indemnity
C. Coverage analysis
D. Coinsurance
Rationale: Coverage analysis involves applying the policy
language to the facts of the loss. The adjuster must identify the
cause of loss and determine whether that cause falls within
coverage or an applicable exclusion.
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. Which statement best describes Alaska's current treatment
of public adjusters?
A. Alaska requires every public adjuster to hold a separate public
adjuster license.
B. Alaska requires public adjusters to hold an independent
adjuster license.
C. Alaska does not issue a separate insurance license for
public adjusters.
D. Alaska prohibits all public adjusting activities.
Rationale: The Alaska Division of Insurance states that Alaska
does not currently issue a public adjuster insurance license.
Public adjusting may nevertheless be subject to other Alaska laws
depending on the nature and scope of the activities performed.
2. A public adjuster generally represents the interests of:
A. The insurance company
B. The state's Division of Insurance
C. A reinsurer
D. The insured or policyholder
,Rationale: A public adjuster works on behalf of the insured rather
than the insurance company. This differs from an independent
adjuster, who represents the insurer.
3. Which type of adjuster generally represents an insurer but is
not employed directly by that insurer?
A. Public adjuster
B. Company adjuster
C. Independent adjuster
D. Policyholder advocate
Rationale: An independent adjuster represents the interests of the
insurer while operating independently of the insurer as an
employee. Alaska requires an independent adjuster license when
a person adjusts claims for an insurer that is not the person's
employer.
4. A company adjuster employed by an admitted insurer in
Alaska generally:
A. Must obtain a public adjuster license
B. Must obtain an independent adjuster license
C. Must become a surplus lines broker
D. Does not need an independent adjuster license
Rationale: Alaska specifically states that a staff adjuster who
adjusts claims for an employer that is an admitted insurer does
not need an independent adjuster license.
5. Which Alaska entity administers insurance licensing and
regulation?
A. Alaska Department of Labor
B. Alaska Workers' Compensation Board
,C. Alaska Division of Insurance
D. Alaska Department of Transportation
Rationale: The Division of Insurance within the Alaska Department
of Commerce, Community, and Economic Development
administers insurance regulation and licensing functions in
Alaska.
6. An adjuster is primarily responsible for determining:
A. Whether an insured should purchase another policy
B. The insurer's investment strategy
C. The amount and nature of a covered loss
D. The insurer's tax liability
Rationale: Adjusting involves investigating a loss, determining
applicable coverage, evaluating damages, and helping establish
the amount payable under the policy.
7. Which document is most important when determining
whether a particular property loss is covered?
A. The claimant's driver's license
B. The adjuster's résumé
C. The insurer's annual report
D. The insurance policy
Rationale: The insurance policy establishes the contractual rights
and obligations of the insurer and insured. An adjuster must
examine the policy's insuring agreements, exclusions, conditions,
limits, endorsements, and applicable deductibles.
8. What is a deductible?
A. The insurer's maximum liability
B. The amount paid by the insurer before the insured pays
, anything
C. The amount the insured is responsible for before covered
insurance benefits are generally paid
D. A commission paid to an adjuster
Rationale: A deductible is the portion of a covered loss that the
insured must generally absorb before the insurer pays the
remaining covered amount, subject to the policy terms.
9. An exclusion in an insurance policy generally:
A. Expands coverage
B. Guarantees payment
C. Eliminates the deductible
D. Removes certain risks or circumstances from coverage
Rationale: Exclusions identify losses, causes, property, or
circumstances for which the policy does not provide coverage. An
adjuster must review exclusions carefully before determining
whether a claim is payable.
10. Which principle requires an adjuster to distinguish
between covered damage and damage caused by an
excluded peril?
A. Subrogation
B. Indemnity
C. Coverage analysis
D. Coinsurance
Rationale: Coverage analysis involves applying the policy
language to the facts of the loss. The adjuster must identify the
cause of loss and determine whether that cause falls within
coverage or an applicable exclusion.
