Minnesota Public Adjuster
Licensing Exam Questions and
Correct Answers with Detailed
Rationales | 2026/2027 Edition |
Exam Prep Study Guide PDF
1. Under Minnesota law, which best describes a public
adjuster?
A. A person who adjusts claims exclusively for an insurance
company
B. A person who investigates workers’ compensation claims for
an insurer
C. A person who, for compensation, acts on behalf of an insured
in negotiating or settling certain first-party property claims
D. A person who sells insurance policies to property owners
Answer: C.
Rationale: Minnesota defines a public adjuster as a person who,
for compensation or another thing of value, acts on behalf of an
insured in relation to first-party claims involving real or personal
property. The public adjuster represents the insured rather than
the insurer and assists with negotiating or effecting settlement of
covered losses.
2. A Minnesota public adjuster primarily represents which
party in an insurance claim?
A. The insurance company
B. The Minnesota Department of Commerce
,C. The insured
D. The insurance company's reinsurer
Answer: C.
Rationale: A public adjuster's role is to act on behalf of the insured
in connection with qualifying first-party property claims. This
distinguishes a public adjuster from an insurer's staff adjuster or
an independent adjuster working for an insurer or self-insurer.
3. Which type of claim is most directly within the statutory
definition of a Minnesota public adjuster's work?
A. A first-party claim involving insured real or personal property
B. A life insurance beneficiary claim
C. A health insurance claim
D. A claim involving only an insurer's internal accounting
Answer: A.
Rationale: Minnesota's statutory definition specifically refers to
first-party claims arising under insurance contracts that insure the
real or personal property of the insured. Public adjusting therefore
centers on qualifying property-related first-party claims.
4. Unless an exemption applies, which statement is correct
regarding acting as a public adjuster in Minnesota?
A. Anyone may act as a public adjuster if the insured gives written
permission
B. A person must be licensed as a public adjuster
C. Only attorneys may act as public adjusters
D. A person may act without a license for the first 30 days
Answer: B.
Rationale: Minnesota law provides that a person may not act or
hold out as an independent adjuster or public adjuster unless
,properly licensed or exempt from licensure under the applicable
law.
5. Which Minnesota agency administers insurance adjuster
licensing?
A. Minnesota Department of Labor and Industry
B. Minnesota Department of Revenue
C. Minnesota Department of Commerce
D. Minnesota Department of Public Safety
Answer: C.
Rationale: The Minnesota Department of Commerce oversees
insurance licensing, including public and independent adjuster
licensing. Its licensing materials identify the application,
examination, fingerprint, and surety-bond requirements
applicable to public adjusters.
6. What type of surety bond does Minnesota require for a
public adjuster under the Department of Commerce
licensing requirements?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Answer: C.
Rationale: Minnesota's Department of Commerce states that
resident and nonresident public adjusters must provide an
original public adjuster surety bond in the amount of $10,000
using the approved form.
, 7. A Minnesota public adjuster enters into an employment
contract with an insured. How long does the insured
generally have to cancel the contract?
A. 24 hours
B. 48 hours
C. 72 hours
D. 10 business days
Answer: C.
Rationale: Minnesota Statutes §72B.135 gives an insured who
enters into a public adjuster contract the right to cancel within 72
hours after the contract has been signed. The cancellation must
be communicated in writing as specified by the statute.
8. If an insured mails a written cancellation notice to a
Minnesota public adjuster, when is the cancellation
effective?
A. When the adjuster receives the letter
B. When the insured deposits the properly addressed and
postage-paid notice in the mailbox
C. Five business days after mailing
D. When the insurer approves the cancellation
Answer: B.
Rationale: Minnesota law provides that mailed cancellation
notice is effective upon deposit in a mailbox when it is properly
addressed to the public adjuster and postage prepaid. The
insured does not have to wait until the adjuster actually receives
the notice.
Licensing Exam Questions and
Correct Answers with Detailed
Rationales | 2026/2027 Edition |
Exam Prep Study Guide PDF
1. Under Minnesota law, which best describes a public
adjuster?
A. A person who adjusts claims exclusively for an insurance
company
B. A person who investigates workers’ compensation claims for
an insurer
C. A person who, for compensation, acts on behalf of an insured
in negotiating or settling certain first-party property claims
D. A person who sells insurance policies to property owners
Answer: C.
Rationale: Minnesota defines a public adjuster as a person who,
for compensation or another thing of value, acts on behalf of an
insured in relation to first-party claims involving real or personal
property. The public adjuster represents the insured rather than
the insurer and assists with negotiating or effecting settlement of
covered losses.
2. A Minnesota public adjuster primarily represents which
party in an insurance claim?
A. The insurance company
B. The Minnesota Department of Commerce
,C. The insured
D. The insurance company's reinsurer
Answer: C.
Rationale: A public adjuster's role is to act on behalf of the insured
in connection with qualifying first-party property claims. This
distinguishes a public adjuster from an insurer's staff adjuster or
an independent adjuster working for an insurer or self-insurer.
3. Which type of claim is most directly within the statutory
definition of a Minnesota public adjuster's work?
A. A first-party claim involving insured real or personal property
B. A life insurance beneficiary claim
C. A health insurance claim
D. A claim involving only an insurer's internal accounting
Answer: A.
Rationale: Minnesota's statutory definition specifically refers to
first-party claims arising under insurance contracts that insure the
real or personal property of the insured. Public adjusting therefore
centers on qualifying property-related first-party claims.
4. Unless an exemption applies, which statement is correct
regarding acting as a public adjuster in Minnesota?
A. Anyone may act as a public adjuster if the insured gives written
permission
B. A person must be licensed as a public adjuster
C. Only attorneys may act as public adjusters
D. A person may act without a license for the first 30 days
Answer: B.
Rationale: Minnesota law provides that a person may not act or
hold out as an independent adjuster or public adjuster unless
,properly licensed or exempt from licensure under the applicable
law.
5. Which Minnesota agency administers insurance adjuster
licensing?
A. Minnesota Department of Labor and Industry
B. Minnesota Department of Revenue
C. Minnesota Department of Commerce
D. Minnesota Department of Public Safety
Answer: C.
Rationale: The Minnesota Department of Commerce oversees
insurance licensing, including public and independent adjuster
licensing. Its licensing materials identify the application,
examination, fingerprint, and surety-bond requirements
applicable to public adjusters.
6. What type of surety bond does Minnesota require for a
public adjuster under the Department of Commerce
licensing requirements?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Answer: C.
Rationale: Minnesota's Department of Commerce states that
resident and nonresident public adjusters must provide an
original public adjuster surety bond in the amount of $10,000
using the approved form.
, 7. A Minnesota public adjuster enters into an employment
contract with an insured. How long does the insured
generally have to cancel the contract?
A. 24 hours
B. 48 hours
C. 72 hours
D. 10 business days
Answer: C.
Rationale: Minnesota Statutes §72B.135 gives an insured who
enters into a public adjuster contract the right to cancel within 72
hours after the contract has been signed. The cancellation must
be communicated in writing as specified by the statute.
8. If an insured mails a written cancellation notice to a
Minnesota public adjuster, when is the cancellation
effective?
A. When the adjuster receives the letter
B. When the insured deposits the properly addressed and
postage-paid notice in the mailbox
C. Five business days after mailing
D. When the insurer approves the cancellation
Answer: B.
Rationale: Minnesota law provides that mailed cancellation
notice is effective upon deposit in a mailbox when it is properly
addressed to the public adjuster and postage prepaid. The
insured does not have to wait until the adjuster actually receives
the notice.
