Michigan Public Adjuster Licensing Exam
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
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1. Which of the following is the primary role of a public adjuster?
A. Represent insurance companies in claims
B. Represent policyholders in claims
C. Sell insurance policies
D. Investigate fraud for the state
B. Represent policyholders in claims
Public adjusters act on behalf of policyholders to help settle claims
fairly.
2. A public adjuster must have which of the following before
performing services for a client?
A. A written contract
B. Verbal agreement
C. Membership in a trade association
D. Approval from the insurer
A. A written contract
Michigan law requires a signed written contract before a public
adjuster can act.
3. How often must a Michigan public adjuster renew their license?
A. Every year
B. Every two years
C. Every three years
, D. Every five years
B. Every two years
Licenses are typically valid for two years before renewal is
required.
4. Which of the following is considered an unfair trade practice for a
public adjuster?
A. Advertising services honestly
B. Misrepresenting the terms of a policy
C. Charging a reasonable fee
D. Submitting claims on behalf of a client
B. Misrepresenting the terms of a policy
Misrepresentation violates state insurance laws and ethical
standards.
5. Before soliciting business, a public adjuster must provide a client
with:
A. A list of other clients
B. A copy of the public adjuster’s license
C. A free appraisal
D. The insurer’s contact information
B. A copy of the public adjuster’s license
Clients must know the adjuster is properly licensed.
6. What is the maximum fee a public adjuster may charge in
Michigan for services?
A. 5% of the claim
B. 10% of the claim
C. There is no fixed maximum; it must be reasonable and disclosed
D. 25% of the claim
, C. There is no fixed maximum; it must be reasonable and
disclosed
Fees must be disclosed in the contract and be fair.
7. A public adjuster discovers that a claim has been undervalued by
the insurance company. What should they do?
A. Notify the policyholder and attempt to negotiate a fair
settlement
B. File a complaint with the insurance commissioner
C. Adjust the claim themselves without notifying the insurer
D. Ignore it to avoid conflict
A. Notify the policyholder and attempt to negotiate a fair
settlement
The adjuster’s duty is to the policyholder to achieve a fair
settlement.
8. Which of the following individuals does NOT need a public
adjuster license in Michigan?
A. A claims consultant who works for policyholders
B. An insurance company’s in-house claims adjuster
C. A third-party claims adjuster representing policyholders
D. A licensed public adjuster in another state working temporarily
in Michigan
B. An insurance company’s in-house claims adjuster
Employees of insurers adjusting claims for their company are
exempt.
9. What must a public adjuster do if they receive fees or
commissions from an insurer without disclosure to the client?
A. Keep the money; it is a standard practice
, B. Disclose immediately and remit to the client or follow
regulations
C. Report it only if asked by the insurer
D. None of the above
B. Disclose immediately and remit to the client or follow
regulations
Undisclosed fees are illegal and violate fiduciary duties.
10. Which of the following is a required component of a public
adjuster contract in Michigan?
A. The adjuster’s home address
B. The estimated fee or method of calculation
C. References from previous clients
D. A list of insurers the adjuster works with
B. The estimated fee or method of calculation
Contracts must clearly state how the adjuster will be
compensated.
11. A public adjuster can advertise their services:
A. Truthfully, without misleading claims
B. With exaggerated results to attract clients
C. Claiming exclusive ability to secure higher settlements
D. Without including license information
A. Truthfully, without misleading claims
Advertising must be honest and non-deceptive.
12. When handling a claim, the public adjuster’s duty is primarily
to:
A. The insurance company
B. The policyholder
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following is the primary role of a public adjuster?
A. Represent insurance companies in claims
B. Represent policyholders in claims
C. Sell insurance policies
D. Investigate fraud for the state
B. Represent policyholders in claims
Public adjusters act on behalf of policyholders to help settle claims
fairly.
2. A public adjuster must have which of the following before
performing services for a client?
A. A written contract
B. Verbal agreement
C. Membership in a trade association
D. Approval from the insurer
A. A written contract
Michigan law requires a signed written contract before a public
adjuster can act.
3. How often must a Michigan public adjuster renew their license?
A. Every year
B. Every two years
C. Every three years
, D. Every five years
B. Every two years
Licenses are typically valid for two years before renewal is
required.
4. Which of the following is considered an unfair trade practice for a
public adjuster?
A. Advertising services honestly
B. Misrepresenting the terms of a policy
C. Charging a reasonable fee
D. Submitting claims on behalf of a client
B. Misrepresenting the terms of a policy
Misrepresentation violates state insurance laws and ethical
standards.
5. Before soliciting business, a public adjuster must provide a client
with:
A. A list of other clients
B. A copy of the public adjuster’s license
C. A free appraisal
D. The insurer’s contact information
B. A copy of the public adjuster’s license
Clients must know the adjuster is properly licensed.
6. What is the maximum fee a public adjuster may charge in
Michigan for services?
A. 5% of the claim
B. 10% of the claim
C. There is no fixed maximum; it must be reasonable and disclosed
D. 25% of the claim
, C. There is no fixed maximum; it must be reasonable and
disclosed
Fees must be disclosed in the contract and be fair.
7. A public adjuster discovers that a claim has been undervalued by
the insurance company. What should they do?
A. Notify the policyholder and attempt to negotiate a fair
settlement
B. File a complaint with the insurance commissioner
C. Adjust the claim themselves without notifying the insurer
D. Ignore it to avoid conflict
A. Notify the policyholder and attempt to negotiate a fair
settlement
The adjuster’s duty is to the policyholder to achieve a fair
settlement.
8. Which of the following individuals does NOT need a public
adjuster license in Michigan?
A. A claims consultant who works for policyholders
B. An insurance company’s in-house claims adjuster
C. A third-party claims adjuster representing policyholders
D. A licensed public adjuster in another state working temporarily
in Michigan
B. An insurance company’s in-house claims adjuster
Employees of insurers adjusting claims for their company are
exempt.
9. What must a public adjuster do if they receive fees or
commissions from an insurer without disclosure to the client?
A. Keep the money; it is a standard practice
, B. Disclose immediately and remit to the client or follow
regulations
C. Report it only if asked by the insurer
D. None of the above
B. Disclose immediately and remit to the client or follow
regulations
Undisclosed fees are illegal and violate fiduciary duties.
10. Which of the following is a required component of a public
adjuster contract in Michigan?
A. The adjuster’s home address
B. The estimated fee or method of calculation
C. References from previous clients
D. A list of insurers the adjuster works with
B. The estimated fee or method of calculation
Contracts must clearly state how the adjuster will be
compensated.
11. A public adjuster can advertise their services:
A. Truthfully, without misleading claims
B. With exaggerated results to attract clients
C. Claiming exclusive ability to secure higher settlements
D. Without including license information
A. Truthfully, without misleading claims
Advertising must be honest and non-deceptive.
12. When handling a claim, the public adjuster’s duty is primarily
to:
A. The insurance company
B. The policyholder
