Maryland Public Adjuster Exam With Actual
Questions & Verified Answers,Explained
Rationales/Expert Verified For Guaranteed Pass
2026/Latest Update/Instant Download Pdf
1. What is the primary role of a public adjuster?
A. To represent the insurance company
B. To represent the insured in negotiating claims
C. To issue insurance policies
D. To regulate insurance laws
Answer: B
Rationale: A public adjuster works on behalf of the policyholder,
not the insurer, to evaluate and negotiate insurance claims.
2. Who hires a public adjuster?
A. The insurance commissioner
B. The insurer
C. The policyholder
D. The state government
Answer: C
Rationale: Public adjusters are hired by insured individuals or
businesses to assist with claims.
3. Which type of license is required to work as a public adjuster in
Maryland?
A. Real estate license
B. Insurance producer license
C. Public adjuster license
D. Contractor license
Answer: C
, Rationale: Maryland law requires a specific public adjuster
license to practice legally.
4. A public adjuster primarily handles which stage of an insurance
claim?
A. Policy issuance
B. Claims investigation and settlement
C. Premium collection
D. Policy underwriting
Answer: B
Rationale: Public adjusters focus on evaluating losses and
negotiating claim settlements.
5. What is a fiduciary duty?
A. Duty to the insurer
B. Duty to the court
C. Duty to act in the insured’s best interest
D. Duty to the state
Answer: C
Rationale: Public adjusters must act in the best interest of their
client, the insured.
6. What is required before a public adjuster can begin work on a
claim?
A. Court approval
B. Written contract with the insured
C. Insurance company approval
D. Police report
Answer: B
Rationale: A written contract is required to define the adjuster’s
role and compensation.
, 7. How are public adjusters typically compensated?
A. Salary from the state
B. Commission based on claim settlement
C. Hourly wages from insurers
D. Flat government fee
Answer: B
Rationale: Public adjusters are usually paid a percentage of the
claim settlement.
8. Which document defines the terms of a public adjuster’s
engagement?
A. Insurance policy
B. Adjuster license
C. Public adjuster contract
D. Police report
Answer: C
Rationale: The contract outlines responsibilities, fees, and scope
of work.
9. A public adjuster cannot:
A. Negotiate claims
B. Represent insureds
C. Work for insurance companies
D. Assess damages
Answer: C
Rationale: Public adjusters are prohibited from representing
insurers.
10. What must a public adjuster disclose to a client?
A. Personal income
B. License number and fees
C. Insurance company profits
Questions & Verified Answers,Explained
Rationales/Expert Verified For Guaranteed Pass
2026/Latest Update/Instant Download Pdf
1. What is the primary role of a public adjuster?
A. To represent the insurance company
B. To represent the insured in negotiating claims
C. To issue insurance policies
D. To regulate insurance laws
Answer: B
Rationale: A public adjuster works on behalf of the policyholder,
not the insurer, to evaluate and negotiate insurance claims.
2. Who hires a public adjuster?
A. The insurance commissioner
B. The insurer
C. The policyholder
D. The state government
Answer: C
Rationale: Public adjusters are hired by insured individuals or
businesses to assist with claims.
3. Which type of license is required to work as a public adjuster in
Maryland?
A. Real estate license
B. Insurance producer license
C. Public adjuster license
D. Contractor license
Answer: C
, Rationale: Maryland law requires a specific public adjuster
license to practice legally.
4. A public adjuster primarily handles which stage of an insurance
claim?
A. Policy issuance
B. Claims investigation and settlement
C. Premium collection
D. Policy underwriting
Answer: B
Rationale: Public adjusters focus on evaluating losses and
negotiating claim settlements.
5. What is a fiduciary duty?
A. Duty to the insurer
B. Duty to the court
C. Duty to act in the insured’s best interest
D. Duty to the state
Answer: C
Rationale: Public adjusters must act in the best interest of their
client, the insured.
6. What is required before a public adjuster can begin work on a
claim?
A. Court approval
B. Written contract with the insured
C. Insurance company approval
D. Police report
Answer: B
Rationale: A written contract is required to define the adjuster’s
role and compensation.
, 7. How are public adjusters typically compensated?
A. Salary from the state
B. Commission based on claim settlement
C. Hourly wages from insurers
D. Flat government fee
Answer: B
Rationale: Public adjusters are usually paid a percentage of the
claim settlement.
8. Which document defines the terms of a public adjuster’s
engagement?
A. Insurance policy
B. Adjuster license
C. Public adjuster contract
D. Police report
Answer: C
Rationale: The contract outlines responsibilities, fees, and scope
of work.
9. A public adjuster cannot:
A. Negotiate claims
B. Represent insureds
C. Work for insurance companies
D. Assess damages
Answer: C
Rationale: Public adjusters are prohibited from representing
insurers.
10. What must a public adjuster disclose to a client?
A. Personal income
B. License number and fees
C. Insurance company profits
