Maryland Public Adjuster Licensing
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
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1. The Maryland Public Adjuster Licensing Examination primarily assesses
a candidate’s knowledge of insurance principles, claims handling
procedures, and Maryland-specific insurance laws governing the
duties and responsibilities of public adjusters. Which of the following
best describes the core purpose of a public adjuster under Maryland
law?
A. To represent insurance companies in evaluating and settling claims on
behalf of insurers
B. To investigate, appraise, and negotiate insurance claims solely on behalf
,of the insured for compensation
C. To regulate insurance companies and enforce compliance with state
insurance statutes
D. To underwrite insurance policies and determine premium rates for
policyholders
The correct answer is B because a public adjuster acts as an advocate for
the insured, handling investigation, valuation, and negotiation of property
insurance claims in exchange for compensation.
2. In preparation for the Maryland Public Adjuster Licensing Examination,
candidates must understand regulatory requirements. Which of the
following is a mandatory requirement before an individual can be
issued a Maryland public adjuster license?
A. Completion of a 60-hour real estate course
B. Passing a written licensing examination administered by the state and
payment of the required fee
C. Obtaining certification from a federal insurance agency
D. Completion of a minimum of two years working for an insurance
company
The correct answer is B because Maryland requires applicants to pass a
state-administered exam and pay the licensing fee as part of the statutory
qualification process.
, 3. A key component of the Maryland Public Adjuster Licensing
Examination involves ethical and fiduciary duties. Which ethical
responsibility best aligns with the duties of a public adjuster?
A. Prioritizing insurer profitability over claim settlements
B. Acting in the best interest of the insured while maintaining honest
representation in claim negotiations
C. Concealing policy exclusions to maximize claim payouts
D. Avoiding documentation of damages to expedite settlements
The correct answer is B because public adjusters are required to act in good
faith and protect the interests of the policyholder while maintaining
honesty and transparency in all claim-related activities.
4. The Maryland Public Adjuster Licensing Examination may test
knowledge of claim evaluation procedures. What is the primary
purpose of evaluating an insurance policy before filing a claim?
A. To determine the insurer’s internal profit margins
B. To identify applicable coverages and exclusions relevant to the insured’s
loss
C. To calculate state tax obligations on insurance payouts
D. To determine criminal liability for the policyholder
, The correct answer is B because policy evaluation ensures the adjuster
identifies what coverage applies and what limitations or exclusions may
affect the claim outcome.
5. In Maryland, continuing education requirements are relevant to
maintaining licensure. Which of the following best describes the
continuing education requirement for resident public adjusters?
A. 10 hours every 5 years with no ethics requirement
B. 24 hours every renewal period including ethics coursework
C. No continuing education is required after initial licensing
D. Only online courses are accepted for license renewal
The correct answer is B because Maryland requires 24 hours of continuing
education per renewal cycle, including mandatory ethics training.
6. A question on the Maryland Public Adjuster Licensing Examination
may address claim negotiation practices. What is the primary goal of
negotiation by a public adjuster?
A. To reduce the insurer’s liability as much as possible
B. To ensure the insured receives a fair settlement based on policy coverage
and documented loss
C. To delay claim resolution indefinitely
D. To transfer all liability to third-party contractors
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. The Maryland Public Adjuster Licensing Examination primarily assesses
a candidate’s knowledge of insurance principles, claims handling
procedures, and Maryland-specific insurance laws governing the
duties and responsibilities of public adjusters. Which of the following
best describes the core purpose of a public adjuster under Maryland
law?
A. To represent insurance companies in evaluating and settling claims on
behalf of insurers
B. To investigate, appraise, and negotiate insurance claims solely on behalf
,of the insured for compensation
C. To regulate insurance companies and enforce compliance with state
insurance statutes
D. To underwrite insurance policies and determine premium rates for
policyholders
The correct answer is B because a public adjuster acts as an advocate for
the insured, handling investigation, valuation, and negotiation of property
insurance claims in exchange for compensation.
2. In preparation for the Maryland Public Adjuster Licensing Examination,
candidates must understand regulatory requirements. Which of the
following is a mandatory requirement before an individual can be
issued a Maryland public adjuster license?
A. Completion of a 60-hour real estate course
B. Passing a written licensing examination administered by the state and
payment of the required fee
C. Obtaining certification from a federal insurance agency
D. Completion of a minimum of two years working for an insurance
company
The correct answer is B because Maryland requires applicants to pass a
state-administered exam and pay the licensing fee as part of the statutory
qualification process.
, 3. A key component of the Maryland Public Adjuster Licensing
Examination involves ethical and fiduciary duties. Which ethical
responsibility best aligns with the duties of a public adjuster?
A. Prioritizing insurer profitability over claim settlements
B. Acting in the best interest of the insured while maintaining honest
representation in claim negotiations
C. Concealing policy exclusions to maximize claim payouts
D. Avoiding documentation of damages to expedite settlements
The correct answer is B because public adjusters are required to act in good
faith and protect the interests of the policyholder while maintaining
honesty and transparency in all claim-related activities.
4. The Maryland Public Adjuster Licensing Examination may test
knowledge of claim evaluation procedures. What is the primary
purpose of evaluating an insurance policy before filing a claim?
A. To determine the insurer’s internal profit margins
B. To identify applicable coverages and exclusions relevant to the insured’s
loss
C. To calculate state tax obligations on insurance payouts
D. To determine criminal liability for the policyholder
, The correct answer is B because policy evaluation ensures the adjuster
identifies what coverage applies and what limitations or exclusions may
affect the claim outcome.
5. In Maryland, continuing education requirements are relevant to
maintaining licensure. Which of the following best describes the
continuing education requirement for resident public adjusters?
A. 10 hours every 5 years with no ethics requirement
B. 24 hours every renewal period including ethics coursework
C. No continuing education is required after initial licensing
D. Only online courses are accepted for license renewal
The correct answer is B because Maryland requires 24 hours of continuing
education per renewal cycle, including mandatory ethics training.
6. A question on the Maryland Public Adjuster Licensing Examination
may address claim negotiation practices. What is the primary goal of
negotiation by a public adjuster?
A. To reduce the insurer’s liability as much as possible
B. To ensure the insured receives a fair settlement based on policy coverage
and documented loss
C. To delay claim resolution indefinitely
D. To transfer all liability to third-party contractors
