Free Colorado Claims Adjuster Practice Exam Online

Correct answer: A. Colorado does not require a license for company or independent staff adjusters, but public adjusters must be licensed under C.R.S. § 10-2-417

Correct. Colorado is one of the states that does not require a company or independent adjuster license; those adjusters may operate on behalf of an insurer without a Colorado adjuster license. However, public adjusters, who represent policyholders (not insurers) in first-party claims, must be licensed under C.R.S. § 10-2-417.

• B: Incorrect. Colorado does not impose a licensing requirement on company or independent adjusters working for insurers; only public adjusters are licensed.
• C: Incorrect. The public adjuster licensing requirement is not limited to workers' compensation; it applies to public adjusters handling any first-party property/casualty claim on behalf of an insured.
• D: Incorrect. Public adjuster licensing is a distinct category under C.R.S. § 10-2-417 with its own exam and requirements, separate from producer licensing lines of authority.

Correct answer: C. $20,000

Correct. C.R.S. § 10-2-417 requires a public adjuster to secure a surety bond of at least $20,000, in favor of the state, before licensure and for the duration of the license.

• A: Incorrect. $5,000 is below the statutory minimum for Colorado public adjusters.
• B: Incorrect. $10,000 is below the statutory minimum; this figure is sometimes confused with bond amounts in other states.
• D: Incorrect. $50,000 overstates the statutory minimum bond requirement in Colorado.

Correct answer: C. 30 days' prior written notice to both the commissioner and the licensee

Correct. Under C.R.S. § 10-2-417, a public adjuster's bond cannot terminate without 30 days' prior written notice to both the insurance commissioner and the licensee.

• A: Incorrect. Colorado law requires affirmative advance notice before a public adjuster bond can terminate; it cannot simply lapse silently.
• B: Incorrect. Notice must go to the commissioner as well as the licensee, not the licensee alone, and the required period is longer than 10 days.
• D: Incorrect. Colorado does not require public notice by newspaper publication for bond termination; the requirement is direct written notice to the commissioner and licensee.

Correct answer: B. 72 hours

Correct. C.R.S. § 10-2-417 requires the public adjuster contract to disclose the insured's right to rescind the agreement within 72 hours by mailed written notice to both the insurer and the public adjuster.

• A: Incorrect. 24 hours is shorter than Colorado's statutory rescission window.
• C: Incorrect. Colorado's rescission period is stated in hours (72), not business days, and does not track a 5-business-day standard used in some other consumer-contract contexts.
• D: Incorrect. 10 calendar days overstates Colorado's public adjuster contract rescission period.

Correct answer: B. 10%

Correct. C.R.S. § 10-2-417 caps a public adjuster's compensation at 10% of the claim payout during a declared catastrophic disaster, to prevent price-gouging of disaster victims.

• A: Incorrect. 5% understates the statutory cap.
• C: Incorrect. 15% exceeds the statutory catastrophe-period cap.
• D: Incorrect. Colorado does impose a specific cap during catastrophe periods; compensation is not unlimited.