Georgia Public Adjuster Licensing
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. What is the primary role of a public adjuster in Georgia?
A. Represent the insurance company in negotiating claims
B. Determine whether an insurer must pay a claim
C. Represent the policyholder in preparing and negotiating an
insurance claim
D. Inspect properties on behalf of the state
Rationale: A public adjuster works for the insured rather than the
insurance company. The adjuster's role generally includes
documenting the loss, reviewing coverage, preparing claim
information, and assisting the policyholder in negotiating with the
insurer. The adjuster does not make the insurer's coverage
decision.
2. Which party does a public adjuster represent?
A. The insurance company
B. The Georgia Department of Insurance
C. The mortgage lender
D. The insured or policyholder
Rationale: A public adjuster is retained by the policyholder to
assist with an insurance claim. This differs from an insurer's
,adjuster, who represents the insurance company's interests in
investigating and evaluating the claim.
3. Which type of insurance claim would most commonly
involve the services of a public adjuster?
A. A routine premium payment
B. A request for an insurance identification card
C. A complex property loss requiring documentation and
negotiation
D. A request to change an insurance beneficiary
Rationale: Public adjusters primarily assist policyholders with
property claims that may involve substantial damage,
complicated documentation, or disputes concerning the amount
of loss. They are not primarily involved in routine policy-
administration matters.
4. What is one of the most important responsibilities of a
public adjuster when handling a property claim?
A. Guaranteeing payment of the claim
B. Accurately documenting and presenting the insured's
covered loss
C. Issuing the insurance policy
D. Setting the insurer's premium rates
Rationale: Proper documentation is fundamental to effective
claim adjustment. A public adjuster may help gather estimates,
inventories, photographs, receipts, measurements, and other
evidence supporting the policyholder's claim. The adjuster cannot
guarantee that the insurer will pay a particular amount.
5. Which statement best describes the relationship between
an insurance policy and a public adjuster's authority?
,A. The public adjuster can rewrite the policy
B. The public adjuster can expand coverage whenever a loss
occurs
C. The public adjuster must work within the coverage and
terms of the policy
D. The public adjuster can waive policy conditions for the insurer
Rationale: A public adjuster cannot create coverage that the
policy does not provide. The adjuster's job is to interpret and apply
the policy provisions relevant to the loss and present the insured's
position to the insurer.
6. Why is it important for a public adjuster to review the
insured's policy before preparing a claim?
A. To determine the insurer's advertising budget
B. To establish the insurer's licensing fee
C. To identify applicable coverage, limits, exclusions,
deductibles, and conditions
D. To determine the insured's credit score
Rationale: Policy review allows the adjuster to understand the
contractual provisions governing the loss. Coverage limits,
deductibles, exclusions, endorsements, conditions, and valuation
provisions can all affect how a claim should be documented and
presented.
7. An insured suffers property damage and hires a public
adjuster. What should the adjuster generally do first?
A. Immediately file a lawsuit against the insurer
B. Promise the insured a specific settlement
C. Gather relevant information about the loss and review the
, applicable policy
D. Destroy damaged property to prevent further inspection
Rationale: A proper adjustment begins with fact gathering and
policy analysis. The adjuster should understand what happened,
when it happened, what property was affected, what evidence
exists, and what policy provisions may apply before making
substantive claim demands.
8. What is the purpose of a deductible in a property insurance
policy?
A. It is the insurer's maximum liability
B. It is the public adjuster's commission
C. It is the portion of a covered loss the insured is responsible
for before insurance payment applies
D. It is a state licensing fee
Rationale: A deductible is an amount specified in the policy that
generally remains the insured's responsibility on a covered loss.
For example, with a $2,000 deductible, a covered $20,000 loss
would generally be subject to that deductible before determining
the insurer's payable amount, subject to the policy's terms.
9. Which document establishes the contractual relationship
between an insurer and an insured?
A. Adjuster's business card
B. Claim diary
C. Insurance policy
D. Repair contractor's estimate
Rationale: The insurance policy is the contract that establishes
the rights and obligations of the insurer and insured. Claim
Exam Questions and Correct
Answers with Detailed Rationales |
2026/2027 Edition | Exam Prep
Study Guide PDF
1. What is the primary role of a public adjuster in Georgia?
A. Represent the insurance company in negotiating claims
B. Determine whether an insurer must pay a claim
C. Represent the policyholder in preparing and negotiating an
insurance claim
D. Inspect properties on behalf of the state
Rationale: A public adjuster works for the insured rather than the
insurance company. The adjuster's role generally includes
documenting the loss, reviewing coverage, preparing claim
information, and assisting the policyholder in negotiating with the
insurer. The adjuster does not make the insurer's coverage
decision.
2. Which party does a public adjuster represent?
A. The insurance company
B. The Georgia Department of Insurance
C. The mortgage lender
D. The insured or policyholder
Rationale: A public adjuster is retained by the policyholder to
assist with an insurance claim. This differs from an insurer's
,adjuster, who represents the insurance company's interests in
investigating and evaluating the claim.
3. Which type of insurance claim would most commonly
involve the services of a public adjuster?
A. A routine premium payment
B. A request for an insurance identification card
C. A complex property loss requiring documentation and
negotiation
D. A request to change an insurance beneficiary
Rationale: Public adjusters primarily assist policyholders with
property claims that may involve substantial damage,
complicated documentation, or disputes concerning the amount
of loss. They are not primarily involved in routine policy-
administration matters.
4. What is one of the most important responsibilities of a
public adjuster when handling a property claim?
A. Guaranteeing payment of the claim
B. Accurately documenting and presenting the insured's
covered loss
C. Issuing the insurance policy
D. Setting the insurer's premium rates
Rationale: Proper documentation is fundamental to effective
claim adjustment. A public adjuster may help gather estimates,
inventories, photographs, receipts, measurements, and other
evidence supporting the policyholder's claim. The adjuster cannot
guarantee that the insurer will pay a particular amount.
5. Which statement best describes the relationship between
an insurance policy and a public adjuster's authority?
,A. The public adjuster can rewrite the policy
B. The public adjuster can expand coverage whenever a loss
occurs
C. The public adjuster must work within the coverage and
terms of the policy
D. The public adjuster can waive policy conditions for the insurer
Rationale: A public adjuster cannot create coverage that the
policy does not provide. The adjuster's job is to interpret and apply
the policy provisions relevant to the loss and present the insured's
position to the insurer.
6. Why is it important for a public adjuster to review the
insured's policy before preparing a claim?
A. To determine the insurer's advertising budget
B. To establish the insurer's licensing fee
C. To identify applicable coverage, limits, exclusions,
deductibles, and conditions
D. To determine the insured's credit score
Rationale: Policy review allows the adjuster to understand the
contractual provisions governing the loss. Coverage limits,
deductibles, exclusions, endorsements, conditions, and valuation
provisions can all affect how a claim should be documented and
presented.
7. An insured suffers property damage and hires a public
adjuster. What should the adjuster generally do first?
A. Immediately file a lawsuit against the insurer
B. Promise the insured a specific settlement
C. Gather relevant information about the loss and review the
, applicable policy
D. Destroy damaged property to prevent further inspection
Rationale: A proper adjustment begins with fact gathering and
policy analysis. The adjuster should understand what happened,
when it happened, what property was affected, what evidence
exists, and what policy provisions may apply before making
substantive claim demands.
8. What is the purpose of a deductible in a property insurance
policy?
A. It is the insurer's maximum liability
B. It is the public adjuster's commission
C. It is the portion of a covered loss the insured is responsible
for before insurance payment applies
D. It is a state licensing fee
Rationale: A deductible is an amount specified in the policy that
generally remains the insured's responsibility on a covered loss.
For example, with a $2,000 deductible, a covered $20,000 loss
would generally be subject to that deductible before determining
the insurer's payable amount, subject to the policy's terms.
9. Which document establishes the contractual relationship
between an insurer and an insured?
A. Adjuster's business card
B. Claim diary
C. Insurance policy
D. Repair contractor's estimate
Rationale: The insurance policy is the contract that establishes
the rights and obligations of the insurer and insured. Claim
