• Wrong document? Swap it for free
  • Written by students who passed
  • Immediately available after payment
  • Read online or as PDF
Sell
Where do you study
Your language
Document preview thumbnail
Preview 4 out of 46 pages
Exam (elaborations)

Michigan Public Adjuster Licensing Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

Document preview thumbnail
Preview 4 out of 46 pages

Michigan Public Adjuster Licensing Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

Content preview

Michigan Public Adjuster Licensing Exam
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is the primary role of a public adjuster?
A. Represent insurance companies in claims
B. Represent policyholders in claims
C. Sell insurance policies
D. Investigate fraud for the state
B. Represent policyholders in claims
Public adjusters act on behalf of policyholders to help settle claims
fairly.
2. A public adjuster must have which of the following before
performing services for a client?
A. A written contract
B. Verbal agreement
C. Membership in a trade association
D. Approval from the insurer
A. A written contract
Michigan law requires a signed written contract before a public
adjuster can act.
3. How often must a Michigan public adjuster renew their license?
A. Every year
B. Every two years
C. Every three years

, D. Every five years
B. Every two years
Licenses are typically valid for two years before renewal is
required.
4. Which of the following is considered an unfair trade practice for a
public adjuster?
A. Advertising services honestly
B. Misrepresenting the terms of a policy
C. Charging a reasonable fee
D. Submitting claims on behalf of a client
B. Misrepresenting the terms of a policy
Misrepresentation violates state insurance laws and ethical
standards.
5. Before soliciting business, a public adjuster must provide a client
with:
A. A list of other clients
B. A copy of the public adjuster’s license
C. A free appraisal
D. The insurer’s contact information
B. A copy of the public adjuster’s license
Clients must know the adjuster is properly licensed.
6. What is the maximum fee a public adjuster may charge in
Michigan for services?
A. 5% of the claim
B. 10% of the claim
C. There is no fixed maximum; it must be reasonable and disclosed
D. 25% of the claim

, C. There is no fixed maximum; it must be reasonable and
disclosed
Fees must be disclosed in the contract and be fair.
7. A public adjuster discovers that a claim has been undervalued by
the insurance company. What should they do?
A. Notify the policyholder and attempt to negotiate a fair
settlement
B. File a complaint with the insurance commissioner
C. Adjust the claim themselves without notifying the insurer
D. Ignore it to avoid conflict
A. Notify the policyholder and attempt to negotiate a fair
settlement
The adjuster’s duty is to the policyholder to achieve a fair
settlement.
8. Which of the following individuals does NOT need a public
adjuster license in Michigan?
A. A claims consultant who works for policyholders
B. An insurance company’s in-house claims adjuster
C. A third-party claims adjuster representing policyholders
D. A licensed public adjuster in another state working temporarily
in Michigan
B. An insurance company’s in-house claims adjuster
Employees of insurers adjusting claims for their company are
exempt.
9. What must a public adjuster do if they receive fees or
commissions from an insurer without disclosure to the client?
A. Keep the money; it is a standard practice

, B. Disclose immediately and remit to the client or follow
regulations
C. Report it only if asked by the insurer
D. None of the above
B. Disclose immediately and remit to the client or follow
regulations
Undisclosed fees are illegal and violate fiduciary duties.
10. Which of the following is a required component of a public
adjuster contract in Michigan?
A. The adjuster’s home address
B. The estimated fee or method of calculation
C. References from previous clients
D. A list of insurers the adjuster works with
B. The estimated fee or method of calculation
Contracts must clearly state how the adjuster will be
compensated.
11. A public adjuster can advertise their services:
A. Truthfully, without misleading claims
B. With exaggerated results to attract clients
C. Claiming exclusive ability to secure higher settlements
D. Without including license information
A. Truthfully, without misleading claims
Advertising must be honest and non-deceptive.
12. When handling a claim, the public adjuster’s duty is primarily
to:
A. The insurance company
B. The policyholder

Document information

Uploaded on
December 17, 2025
Number of pages
46
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers
$22.99

Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF

Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
Drprep
4.0
(164)
Sold
873
Followers
14
Items
22215
Last sold
1 hour ago



Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their tests and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can instantly pick a different document that better fits what you're looking for.

Pay as you like, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

Student with book image

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Working on your references?

Frequently asked questions