Kentucky Public Adjuster Licensing
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. What is the primary role of a public adjuster in Kentucky?
A. To represent the insurance company during claim settlement
B. To inspect properties on behalf of the Department of Insurance
C. To represent the insured in preparing, presenting, and settling
an insurance claim
D. To determine insurance premiums for an insurer
Answer: C.
Under Kentucky law, a public adjuster is an insurance adjuster
who does not work for an insurance company and works for the
insured in preparing, presenting, and settling a claim. The insured
hires the public adjuster under a contract and generally pays a fee
or commission according to that agreement.
2. Which party does a Kentucky public adjuster represent?
A. The insurer
B. The insured
C. The Department of Insurance
D. The mortgage lender
,Answer: B.
A public adjuster represents the insured's interests in connection
with an insurance claim. This distinguishes a public adjuster from
a staff or independent adjuster, who represents the insurer's
interests.
3. Which statement correctly distinguishes a public adjuster
from a staff adjuster?
A. A public adjuster works for the insurer, while a staff adjuster
works for the insured
B. Both adjusters represent the insurer
C. A public adjuster represents the insured, while a staff adjuster
represents the insurance company
D. A staff adjuster may charge the insured a claim-handling fee
Answer: C.
A staff adjuster is an employee of an insurance company and
represents the insurer's interests. A public adjuster, by contrast,
does not work for an insurance company and represents the
insured. Kentucky law also states that a staff adjuster does not
charge a fee to the insured.
4. Which party generally hires a public adjuster?
A. The insurer
B. The insured
C. The Department of Insurance
D. The state legislature
Answer: B.
The insured voluntarily hires a public adjuster to assist with the
,preparation, presentation, and settlement of an insurance claim.
Kentucky law specifically recognizes the contractual relationship
between the insured and public adjuster.
5. Before a Kentucky public adjuster executes a contract with
an insured, what must generally occur with the contract form?
A. It must be approved by the insured's mortgage lender
B. It must be filed with and approved by the Commissioner
C. It must be approved by the insurer handling the claim
D. It must be notarized by a county clerk
Answer: B.
Kentucky's public-adjuster filing regulation requires the public
adjuster to file a contract form with the Commissioner for
approval before executing a contract or providing services to an
insured. The contract must satisfy the standards prescribed by
KRS 304.9-433.
6. How long does the Kentucky Commissioner generally have
to approve or disapprove a public adjuster's contract-form
filing?
A. 5 business days
B. 10 business days
C. 30 business days
D. 60 calendar days
Answer: C.
Under 806 KAR 9:400, the Commissioner has thirty business days
to approve or disapprove a public-adjuster contract-form filing. A
, public adjuster may not use the contract form before receiving
approval.
7. What must a public adjuster do if the Commissioner
disapproves a contract-form filing?
A. Immediately begin using the rejected form
B. File an amended filing within the prescribed period
C. Obtain approval from the insurer instead
D. Cancel the adjuster's license
Answer: B.
If the Commissioner disapproves the contract-form filing,
Kentucky's regulation provides the public adjuster fifteen
business days to amend the original filing for the Commissioner's
approval.
8. Which document must a Kentucky public adjuster provide
to an insured before providing services under the applicable
filing requirements?
A. A written disclosure and Department of Insurance consumer-
protection contact information
B. A copy of the insurer's entire underwriting file
C. A guarantee of the claim settlement amount
D. A copy of the adjuster's personal tax return
Answer: A.
Kentucky's public-adjuster filing regulation requires the public
adjuster to provide the insured with a written disclosure
prescribed by KRS 304.9-433 along with contact information for
the Department's Consumer Protection Division.
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. What is the primary role of a public adjuster in Kentucky?
A. To represent the insurance company during claim settlement
B. To inspect properties on behalf of the Department of Insurance
C. To represent the insured in preparing, presenting, and settling
an insurance claim
D. To determine insurance premiums for an insurer
Answer: C.
Under Kentucky law, a public adjuster is an insurance adjuster
who does not work for an insurance company and works for the
insured in preparing, presenting, and settling a claim. The insured
hires the public adjuster under a contract and generally pays a fee
or commission according to that agreement.
2. Which party does a Kentucky public adjuster represent?
A. The insurer
B. The insured
C. The Department of Insurance
D. The mortgage lender
,Answer: B.
A public adjuster represents the insured's interests in connection
with an insurance claim. This distinguishes a public adjuster from
a staff or independent adjuster, who represents the insurer's
interests.
3. Which statement correctly distinguishes a public adjuster
from a staff adjuster?
A. A public adjuster works for the insurer, while a staff adjuster
works for the insured
B. Both adjusters represent the insurer
C. A public adjuster represents the insured, while a staff adjuster
represents the insurance company
D. A staff adjuster may charge the insured a claim-handling fee
Answer: C.
A staff adjuster is an employee of an insurance company and
represents the insurer's interests. A public adjuster, by contrast,
does not work for an insurance company and represents the
insured. Kentucky law also states that a staff adjuster does not
charge a fee to the insured.
4. Which party generally hires a public adjuster?
A. The insurer
B. The insured
C. The Department of Insurance
D. The state legislature
Answer: B.
The insured voluntarily hires a public adjuster to assist with the
,preparation, presentation, and settlement of an insurance claim.
Kentucky law specifically recognizes the contractual relationship
between the insured and public adjuster.
5. Before a Kentucky public adjuster executes a contract with
an insured, what must generally occur with the contract form?
A. It must be approved by the insured's mortgage lender
B. It must be filed with and approved by the Commissioner
C. It must be approved by the insurer handling the claim
D. It must be notarized by a county clerk
Answer: B.
Kentucky's public-adjuster filing regulation requires the public
adjuster to file a contract form with the Commissioner for
approval before executing a contract or providing services to an
insured. The contract must satisfy the standards prescribed by
KRS 304.9-433.
6. How long does the Kentucky Commissioner generally have
to approve or disapprove a public adjuster's contract-form
filing?
A. 5 business days
B. 10 business days
C. 30 business days
D. 60 calendar days
Answer: C.
Under 806 KAR 9:400, the Commissioner has thirty business days
to approve or disapprove a public-adjuster contract-form filing. A
, public adjuster may not use the contract form before receiving
approval.
7. What must a public adjuster do if the Commissioner
disapproves a contract-form filing?
A. Immediately begin using the rejected form
B. File an amended filing within the prescribed period
C. Obtain approval from the insurer instead
D. Cancel the adjuster's license
Answer: B.
If the Commissioner disapproves the contract-form filing,
Kentucky's regulation provides the public adjuster fifteen
business days to amend the original filing for the Commissioner's
approval.
8. Which document must a Kentucky public adjuster provide
to an insured before providing services under the applicable
filing requirements?
A. A written disclosure and Department of Insurance consumer-
protection contact information
B. A copy of the insurer's entire underwriting file
C. A guarantee of the claim settlement amount
D. A copy of the adjuster's personal tax return
Answer: A.
Kentucky's public-adjuster filing regulation requires the public
adjuster to provide the insured with a written disclosure
prescribed by KRS 304.9-433 along with contact information for
the Department's Consumer Protection Division.
