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1. A public adjuster in Colorado primarily represents:
A. The insurer
B. The claimant/policyholder
C. The court
D. The Department of Insurance
ANSWER : B
Explanation: A public adjuster represents the insured (policyholder), not the
insurance company.
2. To act as a public adjuster in Colorado, a person must:
A. Be at least 18 years old
B. Hold a Colorado public adjuster license
C. Be employed by an insurer
D. Be a licensed attorney
ANSWER : B
Explanation: Colorado law requires proper licensure to operate as a public
adjuster.
3. Which entity regulates public adjusters in Colorado?
A. NAIC
B. Colorado Supreme Court
C. Colorado Division of Insurance
D. U.S. Treasury
, ANSWER : C
Explanation: The Colorado Division of Insurance oversees licensing and
regulation.
4. A public adjuster is compensated based on:
A. Hourly wages set by the state
B. A percentage of claim settlement
C. Insurer commissions
D. Court fees
ANSWER : B
Explanation: Public adjusters typically earn a percentage of the claim recovery.
5. A public adjuster contract must be:
A. Verbal
B. Signed and in writing
C. Not disclosed to insurer
D. Approved by court
ANSWER : B
Explanation: Colorado requires written contracts signed by the insured.
6. A public adjuster may NOT:
A. Negotiate claims
B. Interpret policy language
C. Pay referral fees to unlicensed persons
D. Prepare claim documentation
ANSWER : C
Explanation: Paying commissions to unlicensed individuals is prohibited.
7. The standard cancellation period for a public adjuster contract in
Colorado is:
A. 24 hours
B. 48 hours
,C. 3 business days
D. 10 days
ANSWER : C
Explanation: Insureds generally have 3 business days to cancel.
8. Public adjusters must maintain records for at least:
A. 1 year
B. 3 years
C. 5 years
D. 10 years
ANSWER : C
Explanation: Colorado typically requires 5-year record retention.
9. Acting without a license is considered:
A. Minor violation
B. Administrative oversight
C. Illegal and subject to penalties
D. Acceptable during emergencies
ANSWER : C
Explanation: Unlicensed activity is unlawful and punishable.
10. A public adjuster may represent:
A. Insurer only
B. Both insurer and insured on same claim
C. Only insured
D. Courts only
ANSWER : C
Explanation: Public adjusters represent policyholders only.
11. Fiduciary duty requires the adjuster to:
, A. Favor insurer
B. Act in insured’s best interest
C. Maximize fees
D. Share claim info publicly
ANSWER : B
Explanation: A fiduciary must prioritize client interests.
12. Public adjusters must disclose:
A. Their commission structure
B. Personal tax returns
C. Insurer’s secrets
D. Other clients
ANSWER : A
Explanation: Fee transparency is mandatory.
13. A public adjuster may not:
A. Give legal advice unless licensed attorney
B. Estimate damages
C. Negotiate
D. Inspect property
ANSWER : A
Explanation: Legal advice requires attorney licensure.
14. Commingling funds refers to:
A. Mixing personal and client funds
B. Separate trust accounts
C. Claim documentation
D. Fee agreements
ANSWER : A
Explanation: Client funds must not be mixed with personal funds.
1. A public adjuster in Colorado primarily represents:
A. The insurer
B. The claimant/policyholder
C. The court
D. The Department of Insurance
ANSWER : B
Explanation: A public adjuster represents the insured (policyholder), not the
insurance company.
2. To act as a public adjuster in Colorado, a person must:
A. Be at least 18 years old
B. Hold a Colorado public adjuster license
C. Be employed by an insurer
D. Be a licensed attorney
ANSWER : B
Explanation: Colorado law requires proper licensure to operate as a public
adjuster.
3. Which entity regulates public adjusters in Colorado?
A. NAIC
B. Colorado Supreme Court
C. Colorado Division of Insurance
D. U.S. Treasury
, ANSWER : C
Explanation: The Colorado Division of Insurance oversees licensing and
regulation.
4. A public adjuster is compensated based on:
A. Hourly wages set by the state
B. A percentage of claim settlement
C. Insurer commissions
D. Court fees
ANSWER : B
Explanation: Public adjusters typically earn a percentage of the claim recovery.
5. A public adjuster contract must be:
A. Verbal
B. Signed and in writing
C. Not disclosed to insurer
D. Approved by court
ANSWER : B
Explanation: Colorado requires written contracts signed by the insured.
6. A public adjuster may NOT:
A. Negotiate claims
B. Interpret policy language
C. Pay referral fees to unlicensed persons
D. Prepare claim documentation
ANSWER : C
Explanation: Paying commissions to unlicensed individuals is prohibited.
7. The standard cancellation period for a public adjuster contract in
Colorado is:
A. 24 hours
B. 48 hours
,C. 3 business days
D. 10 days
ANSWER : C
Explanation: Insureds generally have 3 business days to cancel.
8. Public adjusters must maintain records for at least:
A. 1 year
B. 3 years
C. 5 years
D. 10 years
ANSWER : C
Explanation: Colorado typically requires 5-year record retention.
9. Acting without a license is considered:
A. Minor violation
B. Administrative oversight
C. Illegal and subject to penalties
D. Acceptable during emergencies
ANSWER : C
Explanation: Unlicensed activity is unlawful and punishable.
10. A public adjuster may represent:
A. Insurer only
B. Both insurer and insured on same claim
C. Only insured
D. Courts only
ANSWER : C
Explanation: Public adjusters represent policyholders only.
11. Fiduciary duty requires the adjuster to:
, A. Favor insurer
B. Act in insured’s best interest
C. Maximize fees
D. Share claim info publicly
ANSWER : B
Explanation: A fiduciary must prioritize client interests.
12. Public adjusters must disclose:
A. Their commission structure
B. Personal tax returns
C. Insurer’s secrets
D. Other clients
ANSWER : A
Explanation: Fee transparency is mandatory.
13. A public adjuster may not:
A. Give legal advice unless licensed attorney
B. Estimate damages
C. Negotiate
D. Inspect property
ANSWER : A
Explanation: Legal advice requires attorney licensure.
14. Commingling funds refers to:
A. Mixing personal and client funds
B. Separate trust accounts
C. Claim documentation
D. Fee agreements
ANSWER : A
Explanation: Client funds must not be mixed with personal funds.
