Maryland 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 Maryland?
A. To represent the insurance company in settling claims
B. To underwrite property insurance policies
C. To represent the insured in preparing and negotiating an
insurance claim
D. To inspect insurance companies for regulatory compliance
Answer: C. To represent the insured in preparing and
negotiating an insurance claim
Rationale: A Maryland public adjuster works on behalf of the
insured, not the insurer. The public adjuster may evaluate
coverage, document damage, substantiate losses, prepare the
claim, and negotiate with the insurance company concerning
settlement. The insured hires and pays the public adjuster for
these services.
2. Which Maryland agency is responsible for licensing public
adjusters?
A. Maryland Department of Labor
B. Maryland Insurance Administration
C. Maryland Department of Commerce
D. Maryland Attorney General's Office
,Answer: B. Maryland Insurance Administration
Rationale: Public adjusters who perform their work in Maryland
must be licensed by the Maryland Insurance Administration (MIA).
Maryland also requires out-of-state public adjusters working in
the state to obtain the appropriate nonresident license unless
another applicable licensing arrangement applies.
3. Whom does a public adjuster primarily represent?
A. The insurance company
B. The mortgage lender
C. The insured or policyholder
D. The state insurance commissioner
Answer: C. The insured or policyholder
Rationale: A public adjuster is hired by the policyholder to assist
with the preparation, presentation, and settlement of an
insurance claim. Unlike a staff or independent adjuster working
for an insurer, the public adjuster's client is the insured.
4. Which activity would generally fall within the responsibilities
of a Maryland public adjuster?
A. Setting insurance premiums for an insurer
B. Preparing and documenting a policyholder's claim
C. Approving an insurer's underwriting guidelines
D. Issuing insurance policies on behalf of the Commissioner
Answer: B. Preparing and documenting a policyholder's claim
Rationale: Public adjusters may research, detail, and substantiate
damage to buildings and contents, document additional
expenses, evaluate applicable coverage, and prepare claims on
,behalf of the policyholder. They may also negotiate settlements
with insurers.
5. Which statement correctly distinguishes a public adjuster
from an independent adjuster?
A. A public adjuster works for the insurer, while an independent
adjuster works for the insured
B. A public adjuster works for the insured, while an independent
adjuster generally works on behalf of an insurer
C. Both always work for the state insurance department
D. Both are paid directly by the Maryland Insurance
Administration
Answer: B. A public adjuster works for the insured, while an
independent adjuster generally works on behalf of an insurer
Rationale: Maryland distinguishes public adjusters from adjusters
who work for insurance companies. A public adjuster represents
the insured and receives compensation from the insured,
whereas an independent adjuster may be engaged by an insurer
to investigate or adjust the insurer's claim.
6. Which requirement applies to an individual seeking a
Maryland public adjuster license?
A. The applicant must pass the required written examination,
subject to applicable exceptions
B. The applicant must first work for an insurer for ten years
C. The applicant must own an insurance company
D. The applicant must obtain approval from every insurer
operating in Maryland
Answer: A. The applicant must pass the required written
examination, subject to applicable exceptions
, Rationale: Maryland law generally requires an individual applicant
to pass a written examination administered under the public
adjuster licensing provisions and to pay the applicable license
fee. The statute contains a historical exception for certain
individuals who were already licensed as public adjusters in
Maryland on June 30, 1985.
7. If a Maryland public adjuster applicant fails the licensing
examination, when may the applicant generally take another
examination?
A. The next business day
B. After 7 days
C. At least 14 days after the failed examination
D. Only after one year
Answer: C. At least 14 days after the failed examination
Rationale: Maryland Insurance Article §10-404 provides that an
individual who fails the public adjuster examination may not take
another examination until at least 14 days after the date of the
failed examination.
8. Which statement about a Maryland public adjuster contract
is correct?
A. It may be entirely oral
B. It must be in writing and titled “Public Adjuster Contract”
C. It only needs to be signed by the insurer
D. It may be prepared after the claim is settled
Answer: B. It must be in writing and titled “Public Adjuster
Contract”
Rationale: Maryland law specifically requires a public adjuster
services contract to be in writing and titled “Public Adjuster
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 Maryland?
A. To represent the insurance company in settling claims
B. To underwrite property insurance policies
C. To represent the insured in preparing and negotiating an
insurance claim
D. To inspect insurance companies for regulatory compliance
Answer: C. To represent the insured in preparing and
negotiating an insurance claim
Rationale: A Maryland public adjuster works on behalf of the
insured, not the insurer. The public adjuster may evaluate
coverage, document damage, substantiate losses, prepare the
claim, and negotiate with the insurance company concerning
settlement. The insured hires and pays the public adjuster for
these services.
2. Which Maryland agency is responsible for licensing public
adjusters?
A. Maryland Department of Labor
B. Maryland Insurance Administration
C. Maryland Department of Commerce
D. Maryland Attorney General's Office
,Answer: B. Maryland Insurance Administration
Rationale: Public adjusters who perform their work in Maryland
must be licensed by the Maryland Insurance Administration (MIA).
Maryland also requires out-of-state public adjusters working in
the state to obtain the appropriate nonresident license unless
another applicable licensing arrangement applies.
3. Whom does a public adjuster primarily represent?
A. The insurance company
B. The mortgage lender
C. The insured or policyholder
D. The state insurance commissioner
Answer: C. The insured or policyholder
Rationale: A public adjuster is hired by the policyholder to assist
with the preparation, presentation, and settlement of an
insurance claim. Unlike a staff or independent adjuster working
for an insurer, the public adjuster's client is the insured.
4. Which activity would generally fall within the responsibilities
of a Maryland public adjuster?
A. Setting insurance premiums for an insurer
B. Preparing and documenting a policyholder's claim
C. Approving an insurer's underwriting guidelines
D. Issuing insurance policies on behalf of the Commissioner
Answer: B. Preparing and documenting a policyholder's claim
Rationale: Public adjusters may research, detail, and substantiate
damage to buildings and contents, document additional
expenses, evaluate applicable coverage, and prepare claims on
,behalf of the policyholder. They may also negotiate settlements
with insurers.
5. Which statement correctly distinguishes a public adjuster
from an independent adjuster?
A. A public adjuster works for the insurer, while an independent
adjuster works for the insured
B. A public adjuster works for the insured, while an independent
adjuster generally works on behalf of an insurer
C. Both always work for the state insurance department
D. Both are paid directly by the Maryland Insurance
Administration
Answer: B. A public adjuster works for the insured, while an
independent adjuster generally works on behalf of an insurer
Rationale: Maryland distinguishes public adjusters from adjusters
who work for insurance companies. A public adjuster represents
the insured and receives compensation from the insured,
whereas an independent adjuster may be engaged by an insurer
to investigate or adjust the insurer's claim.
6. Which requirement applies to an individual seeking a
Maryland public adjuster license?
A. The applicant must pass the required written examination,
subject to applicable exceptions
B. The applicant must first work for an insurer for ten years
C. The applicant must own an insurance company
D. The applicant must obtain approval from every insurer
operating in Maryland
Answer: A. The applicant must pass the required written
examination, subject to applicable exceptions
, Rationale: Maryland law generally requires an individual applicant
to pass a written examination administered under the public
adjuster licensing provisions and to pay the applicable license
fee. The statute contains a historical exception for certain
individuals who were already licensed as public adjusters in
Maryland on June 30, 1985.
7. If a Maryland public adjuster applicant fails the licensing
examination, when may the applicant generally take another
examination?
A. The next business day
B. After 7 days
C. At least 14 days after the failed examination
D. Only after one year
Answer: C. At least 14 days after the failed examination
Rationale: Maryland Insurance Article §10-404 provides that an
individual who fails the public adjuster examination may not take
another examination until at least 14 days after the date of the
failed examination.
8. Which statement about a Maryland public adjuster contract
is correct?
A. It may be entirely oral
B. It must be in writing and titled “Public Adjuster Contract”
C. It only needs to be signed by the insurer
D. It may be prepared after the claim is settled
Answer: B. It must be in writing and titled “Public Adjuster
Contract”
Rationale: Maryland law specifically requires a public adjuster
services contract to be in writing and titled “Public Adjuster
