MARYLAND PUBLIC ADJUSTER LICENSING EXAM
QUESTIONS AN CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026|INSTANT DOWNLOAD PDF
1. What is the primary role of a public adjuster?
A. Representing insurance companies
B. Selling insurance policies
C. Assisting policyholders in filing and negotiating claims
D. Issuing insurance licenses
Rationale: A public adjuster works exclusively for the insured,
not the insurer, to help prepare and negotiate claims.
Correct Answer: C
2. Which party does a public adjuster legally represent?
A. The insurer
B. The state insurance department
C. The policyholder
D. The broker
Rationale: Public adjusters are contracted by and represent
policyholders only.
Correct Answer: C
,3. What type of license is required to operate as a public
adjuster in Maryland?
A. Federal contractor license
B. State-issued public adjuster license
C. Real estate license
D. Contractor license
Rationale: Maryland requires a specific public adjuster license
issued by the state.
Correct Answer: B
4. Which of the following is a fiduciary duty of a public
adjuster?
A. Maximizing insurer profits
B. Acting in the best interest of the insured
C. Selling insurance policies
D. Denying fraudulent claims
Rationale: Public adjusters must act in good faith and prioritize
the insured’s interests.
Correct Answer: B
5. When can a public adjuster begin working on a claim?
A. Before a loss occurs
B. After a policy is issued
,C. After a loss has occurred and a contract is signed
D. Only after court approval
Rationale: Work begins after a loss and execution of a contract
with the insured.
Correct Answer: C
6. What is typically included in a public adjuster contract?
A. Insurer approval clause
B. Commission schedule and scope of services
C. Loan agreement
D. Policy underwriting terms
Rationale: Contracts define services and compensation terms.
Correct Answer: B
7. Public adjusters are compensated primarily through:
A. Salary from insurers
B. Government funding
C. A percentage of claim settlement
D. Fixed hourly wages only
Rationale: Compensation is usually contingency-based.
Correct Answer: C
, 8. Which behavior would be considered unethical for a public
adjuster?
A. Documenting damages
B. Negotiating with insurers
C. Inflating claim values fraudulently
D. Reviewing policy coverage
Rationale: Misrepresentation or fraud violates ethical
standards.
Correct Answer: C
9. What must a public adjuster provide to a client before
signing a contract?
A. Insurance company approval
B. Written disclosure of terms
C. Court filing
D. Loan agreement
Rationale: Transparency and written disclosure are required.
Correct Answer: B
10. Which document defines the insurance coverage terms?
A. Adjuster contract
B. Insurance policy
C. Claim estimate
D. Settlement agreement
QUESTIONS AN CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026|INSTANT DOWNLOAD PDF
1. What is the primary role of a public adjuster?
A. Representing insurance companies
B. Selling insurance policies
C. Assisting policyholders in filing and negotiating claims
D. Issuing insurance licenses
Rationale: A public adjuster works exclusively for the insured,
not the insurer, to help prepare and negotiate claims.
Correct Answer: C
2. Which party does a public adjuster legally represent?
A. The insurer
B. The state insurance department
C. The policyholder
D. The broker
Rationale: Public adjusters are contracted by and represent
policyholders only.
Correct Answer: C
,3. What type of license is required to operate as a public
adjuster in Maryland?
A. Federal contractor license
B. State-issued public adjuster license
C. Real estate license
D. Contractor license
Rationale: Maryland requires a specific public adjuster license
issued by the state.
Correct Answer: B
4. Which of the following is a fiduciary duty of a public
adjuster?
A. Maximizing insurer profits
B. Acting in the best interest of the insured
C. Selling insurance policies
D. Denying fraudulent claims
Rationale: Public adjusters must act in good faith and prioritize
the insured’s interests.
Correct Answer: B
5. When can a public adjuster begin working on a claim?
A. Before a loss occurs
B. After a policy is issued
,C. After a loss has occurred and a contract is signed
D. Only after court approval
Rationale: Work begins after a loss and execution of a contract
with the insured.
Correct Answer: C
6. What is typically included in a public adjuster contract?
A. Insurer approval clause
B. Commission schedule and scope of services
C. Loan agreement
D. Policy underwriting terms
Rationale: Contracts define services and compensation terms.
Correct Answer: B
7. Public adjusters are compensated primarily through:
A. Salary from insurers
B. Government funding
C. A percentage of claim settlement
D. Fixed hourly wages only
Rationale: Compensation is usually contingency-based.
Correct Answer: C
, 8. Which behavior would be considered unethical for a public
adjuster?
A. Documenting damages
B. Negotiating with insurers
C. Inflating claim values fraudulently
D. Reviewing policy coverage
Rationale: Misrepresentation or fraud violates ethical
standards.
Correct Answer: C
9. What must a public adjuster provide to a client before
signing a contract?
A. Insurance company approval
B. Written disclosure of terms
C. Court filing
D. Loan agreement
Rationale: Transparency and written disclosure are required.
Correct Answer: B
10. Which document defines the insurance coverage terms?
A. Adjuster contract
B. Insurance policy
C. Claim estimate
D. Settlement agreement
