Arizona Public Adjuster Licensing
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1.Under Arizona law, which activity generally falls within the
definition of “adjusting” a claim?
A. Selling a new insurance policy
B. Collecting an insurance premium
C. Investigating or negotiating the settlement of a property and
casualty insurance claim
D. Marketing financial products
Rationale: Arizona Revised Statutes § 20-321 defines “adjust” as
investigating or negotiating the settlement of a claim arising under
a property and casualty insurance contract. Public adjusters
generally perform these functions on behalf of insureds.
2. A public adjuster primarily represents which party in an
insurance claim?
A. The insurance company
B. The state insurance department
C. The insurance producer
D. The insured
Rationale: A public adjuster is commonly used to describe an
adjuster who investigates, adjusts, or negotiates a claim on behalf
,of the insured. This differs from an independent adjuster, who
typically works on behalf of an insurer.
3. What is the minimum age generally required to obtain an
Arizona adjuster license?
A. 16
B. 17
C. 18
D. 21
Rationale: Arizona Revised Statutes § 20-321.01 requires an
applicant for an adjuster license to be at least 18 years old.
4. A person who acts as an adjuster in Arizona generally must:
A. Be employed by an insurer
B. Be a licensed attorney
C. Be licensed as an adjuster unless an applicable statutory
exemption applies
D. Hold only a property insurance producer license
Rationale: Arizona law states that a person may not act as or
claim to be an adjuster unless licensed under the adjuster article,
subject to specified exemptions.
5. Which government agency is responsible for insurance
professional licensing in Arizona?
A. Arizona Corporation Commission
B. Arizona Department of Revenue
C. Arizona Secretary of State
D. Arizona Department of Insurance and Financial Institutions
(DIFI)
,Rationale: DIFI administers licensing for insurance professionals
in Arizona, including adjusters, producers, and other insurance
professionals.
6. Which organization is identified by Arizona DIFI as the
official vendor for administering Arizona insurance licensing
examinations?
A. Prometric
B. Pearson VUE
C. PSI Services LLC
D. FINRA
Rationale: Arizona DIFI identifies PSI Services LLC as the official
vendor for administering pre-licensing insurance examinations
and continuing education services.
7. An Arizona resident applying for an adjuster license
generally must satisfy which examination requirement?
A. Pass a federal insurance examination
B. Pass only a property producer examination
C. Take and pass an adjuster examination, unless an
applicable exemption or waiver applies
D. Pass a securities examination
Rationale: Arizona law generally requires an applicant to take and
pass an examination testing knowledge of insurance and the legal
responsibilities of an adjuster. Certain statutory exemptions and
the newer salaried-employee pathway can alter this requirement.
8. Which of the following individuals is specifically excluded
from the Arizona definition of an adjuster?
A. A public adjuster working for an insured
B. An independent adjuster working for an insurer
, C. A licensed attorney qualified to practice law in Arizona
D. A person who holds himself or herself out as an adjuster for
compensation
Rationale: Arizona Revised Statutes § 20-321 expressly excludes a
licensed attorney-at-law who is qualified to practice in Arizona
from the definition of “adjuster.”
9. A salaried employee of an insurer may be exempt from
Arizona adjuster licensing when the employee’s
compensation:
A. Is based entirely on claim settlements
B. Includes a commission on claim payments
C. Is not contingent on the outcome of claim determinations
D. Is paid by an insured
Rationale: Arizona law excludes a salaried employee of an insurer
or managing general agent when the employee’s compensation is
not contingent on the outcome of a claim determination.
10. Which person may be exempt from the adjuster
definition when performing only the permitted activity
described by Arizona law?
A. A contractor who negotiates claim settlements
B. A salesperson who solicits claimants
C. An independent contractor retained by a licensed adjuster
solely to provide technical assistance
D. An unlicensed person who negotiates directly with an insurer
Rationale: Arizona law provides an exclusion for an independent
contractor retained by a licensed adjuster or certain other
qualifying persons solely for technical assistance, including work
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1.Under Arizona law, which activity generally falls within the
definition of “adjusting” a claim?
A. Selling a new insurance policy
B. Collecting an insurance premium
C. Investigating or negotiating the settlement of a property and
casualty insurance claim
D. Marketing financial products
Rationale: Arizona Revised Statutes § 20-321 defines “adjust” as
investigating or negotiating the settlement of a claim arising under
a property and casualty insurance contract. Public adjusters
generally perform these functions on behalf of insureds.
2. A public adjuster primarily represents which party in an
insurance claim?
A. The insurance company
B. The state insurance department
C. The insurance producer
D. The insured
Rationale: A public adjuster is commonly used to describe an
adjuster who investigates, adjusts, or negotiates a claim on behalf
,of the insured. This differs from an independent adjuster, who
typically works on behalf of an insurer.
3. What is the minimum age generally required to obtain an
Arizona adjuster license?
A. 16
B. 17
C. 18
D. 21
Rationale: Arizona Revised Statutes § 20-321.01 requires an
applicant for an adjuster license to be at least 18 years old.
4. A person who acts as an adjuster in Arizona generally must:
A. Be employed by an insurer
B. Be a licensed attorney
C. Be licensed as an adjuster unless an applicable statutory
exemption applies
D. Hold only a property insurance producer license
Rationale: Arizona law states that a person may not act as or
claim to be an adjuster unless licensed under the adjuster article,
subject to specified exemptions.
5. Which government agency is responsible for insurance
professional licensing in Arizona?
A. Arizona Corporation Commission
B. Arizona Department of Revenue
C. Arizona Secretary of State
D. Arizona Department of Insurance and Financial Institutions
(DIFI)
,Rationale: DIFI administers licensing for insurance professionals
in Arizona, including adjusters, producers, and other insurance
professionals.
6. Which organization is identified by Arizona DIFI as the
official vendor for administering Arizona insurance licensing
examinations?
A. Prometric
B. Pearson VUE
C. PSI Services LLC
D. FINRA
Rationale: Arizona DIFI identifies PSI Services LLC as the official
vendor for administering pre-licensing insurance examinations
and continuing education services.
7. An Arizona resident applying for an adjuster license
generally must satisfy which examination requirement?
A. Pass a federal insurance examination
B. Pass only a property producer examination
C. Take and pass an adjuster examination, unless an
applicable exemption or waiver applies
D. Pass a securities examination
Rationale: Arizona law generally requires an applicant to take and
pass an examination testing knowledge of insurance and the legal
responsibilities of an adjuster. Certain statutory exemptions and
the newer salaried-employee pathway can alter this requirement.
8. Which of the following individuals is specifically excluded
from the Arizona definition of an adjuster?
A. A public adjuster working for an insured
B. An independent adjuster working for an insurer
, C. A licensed attorney qualified to practice law in Arizona
D. A person who holds himself or herself out as an adjuster for
compensation
Rationale: Arizona Revised Statutes § 20-321 expressly excludes a
licensed attorney-at-law who is qualified to practice in Arizona
from the definition of “adjuster.”
9. A salaried employee of an insurer may be exempt from
Arizona adjuster licensing when the employee’s
compensation:
A. Is based entirely on claim settlements
B. Includes a commission on claim payments
C. Is not contingent on the outcome of claim determinations
D. Is paid by an insured
Rationale: Arizona law excludes a salaried employee of an insurer
or managing general agent when the employee’s compensation is
not contingent on the outcome of a claim determination.
10. Which person may be exempt from the adjuster
definition when performing only the permitted activity
described by Arizona law?
A. A contractor who negotiates claim settlements
B. A salesperson who solicits claimants
C. An independent contractor retained by a licensed adjuster
solely to provide technical assistance
D. An unlicensed person who negotiates directly with an insurer
Rationale: Arizona law provides an exclusion for an independent
contractor retained by a licensed adjuster or certain other
qualifying persons solely for technical assistance, including work
