New Jersey Public Adjuster Exam Questions
And Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. What is the primary role of a public adjuster?
A. Represent the insurance company in claims
B. Represent the policyholder in insurance claims
C. Sell insurance policies
D. Investigate criminal insurance fraud
Rationale: Public adjusters act on behalf of the policyholder,
helping them file and negotiate claims, not representing the
insurance company.
2. Which type of insurance claim is a public adjuster most likely to
handle?
A. Life insurance
B. Property insurance
C. Health insurance
D. Auto insurance
Rationale: Public adjusters typically focus on property damage
claims, such as homes or businesses.
3. A public adjuster must have which of the following licenses in New
Jersey?
A. Broker license
B. Public adjuster license
C. Producer license
, D. Claims adjuster license
Rationale: To legally act as a public adjuster in NJ, a person must
hold a public adjuster license issued by the state.
4. How long does a New Jersey public adjuster license remain valid
before renewal is required?
A. 1 year
B. 2 years
C. 2 years
D. 5 years
Rationale: NJ public adjuster licenses are typically valid for 2 years
and require continuing education for renewal.
5. Which of the following best describes “indemnity” in insurance?
A. Payment for medical bills
B. Restoring the policyholder to the financial position before the
loss
C. Payment of fines to a government agency
D. Premium refunds
Rationale: Indemnity ensures that the insured is financially
restored after a loss, not made to profit.
6. A conflict of interest for a public adjuster occurs when:
A. They charge a fee
B. They have a financial interest in the insurer or repair company
C. They negotiate a claim
D. They attend continuing education
Rationale: Public adjusters must avoid conflicts that compromise
their duty to the policyholder.
, 7. Which document outlines the terms and coverage of an insurance
policy?
A. Claim form
B. Insurance policy
C. Renewal notice
D. Premium invoice
Rationale: The insurance policy itself is the contract that details
coverage, conditions, and exclusions.
8. What is the maximum fee a New Jersey public adjuster can charge
a residential policyholder under state law?
A. 5% of claim
B. 10% of claim
C. 15% of claim
D. 20% of claim
Rationale: NJ law sets a maximum fee of 15% for residential
claims, unless otherwise specified by the contract.
9. Which of the following is considered an unfair claims practice for a
public adjuster?
A. Submitting a claim promptly
B. Misrepresenting facts about the policy or claim
C. Communicating with the insurer on behalf of the client
D. Documenting damages thoroughly
Rationale: Misrepresentation is illegal and considered unethical
conduct in insurance adjusting.
10. A public adjuster’s authority is established through which
document?
A. Power of attorney
And Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. What is the primary role of a public adjuster?
A. Represent the insurance company in claims
B. Represent the policyholder in insurance claims
C. Sell insurance policies
D. Investigate criminal insurance fraud
Rationale: Public adjusters act on behalf of the policyholder,
helping them file and negotiate claims, not representing the
insurance company.
2. Which type of insurance claim is a public adjuster most likely to
handle?
A. Life insurance
B. Property insurance
C. Health insurance
D. Auto insurance
Rationale: Public adjusters typically focus on property damage
claims, such as homes or businesses.
3. A public adjuster must have which of the following licenses in New
Jersey?
A. Broker license
B. Public adjuster license
C. Producer license
, D. Claims adjuster license
Rationale: To legally act as a public adjuster in NJ, a person must
hold a public adjuster license issued by the state.
4. How long does a New Jersey public adjuster license remain valid
before renewal is required?
A. 1 year
B. 2 years
C. 2 years
D. 5 years
Rationale: NJ public adjuster licenses are typically valid for 2 years
and require continuing education for renewal.
5. Which of the following best describes “indemnity” in insurance?
A. Payment for medical bills
B. Restoring the policyholder to the financial position before the
loss
C. Payment of fines to a government agency
D. Premium refunds
Rationale: Indemnity ensures that the insured is financially
restored after a loss, not made to profit.
6. A conflict of interest for a public adjuster occurs when:
A. They charge a fee
B. They have a financial interest in the insurer or repair company
C. They negotiate a claim
D. They attend continuing education
Rationale: Public adjusters must avoid conflicts that compromise
their duty to the policyholder.
, 7. Which document outlines the terms and coverage of an insurance
policy?
A. Claim form
B. Insurance policy
C. Renewal notice
D. Premium invoice
Rationale: The insurance policy itself is the contract that details
coverage, conditions, and exclusions.
8. What is the maximum fee a New Jersey public adjuster can charge
a residential policyholder under state law?
A. 5% of claim
B. 10% of claim
C. 15% of claim
D. 20% of claim
Rationale: NJ law sets a maximum fee of 15% for residential
claims, unless otherwise specified by the contract.
9. Which of the following is considered an unfair claims practice for a
public adjuster?
A. Submitting a claim promptly
B. Misrepresenting facts about the policy or claim
C. Communicating with the insurer on behalf of the client
D. Documenting damages thoroughly
Rationale: Misrepresentation is illegal and considered unethical
conduct in insurance adjusting.
10. A public adjuster’s authority is established through which
document?
A. Power of attorney
