Under Kansas insurance law, which type of claims adjuster must hold a Kansas license before acting in that capacity for compensation?
A. A public adjuster who negotiates a first-party property claim on behalf of a policyholder
B. A staff adjuster who is a salaried employee of a single insurance company
C. An independent adjuster retained under contract by multiple insurance carriers
D. A catastrophe adjuster deployed temporarily after a declared disaster
Show answer and reasoning
Correct answer: A. A public adjuster who negotiates a first-party property claim on behalf of a policyholder
Correct. K.S.A. 40-5503 requires an individual to be licensed as a public adjuster before acting as or representing themselves as a public adjuster in Kansas; this is the only category of claims adjuster the statute requires to hold a Kansas adjuster license.
- B: Incorrect. Kansas does not require a company/staff adjuster who is a salaried employee of a single insurer to hold a state adjuster license; the Public Adjusters Licensing Act licenses only public adjusters.
- C: Incorrect. Kansas has no independent-adjuster licensing category; an independent adjuster working under contract for insurers is not required to hold a Kansas adjuster license.
- D: Incorrect. A catastrophe adjuster is a subtype of independent or staff adjuster and is likewise not subject to Kansas adjuster licensure under K.S.A. 40-5503.
Source: K.S.A. 40-5503
Kansas is unusual among states in how it structures adjuster licensing. What does the Kansas Public Adjusters Licensing Act, K.S.A. 40-5501 et seq., actually require?
A. Independent adjusters must be licensed, but public adjusters are exempt because they work for policyholders
B. Only public adjusters are licensed under Kansas law; staff, independent, and catastrophe adjusters are not required to hold a Kansas adjuster license
C. Every adjuster type -- staff, independent, catastrophe, and public -- must hold a separate Kansas license classification
D. Only company (staff) adjusters must be licensed, since they handle the insurer's money
Show answer and reasoning
Correct answer: B. Only public adjusters are licensed under Kansas law; staff, independent, and catastrophe adjusters are not required to hold a Kansas adjuster license
Correct. Kansas's Public Adjusters Licensing Act, K.S.A. 40-5501 et seq., licenses only public adjusters; staff, independent, and catastrophe adjusters working for or on behalf of insurers are not required to hold a Kansas adjuster license.
- A: Incorrect. This also reverses the rule; public adjusters are the licensed category in Kansas, not independent adjusters.
- C: Incorrect. Kansas has no general adjuster-licensing act covering staff, independent, or catastrophe adjusters; only the public adjuster category is licensed.
- D: Incorrect. This reverses the actual rule -- Kansas exempts staff adjusters from licensure and instead licenses public adjusters.
Source: K.S.A. 40-5501 et seq. (Kansas Public Adjusters Licensing Act)
K.S.A. 40-5502 defines "public adjuster." Based on that definition, which claim may a Kansas-licensed public adjuster handle?
A. A life insurance death-benefit claim
B. Any third-party liability claim brought against the insured
C. A first-party property claim limited to commercial lines insurance contracts
D. A first-party claim under a personal homeowners insurance policy
Show answer and reasoning
Correct answer: C. A first-party property claim limited to commercial lines insurance contracts
Correct. K.S.A. 40-5502 defines a public adjuster's covered activity as aiding an insured with first-party claims for loss or damage to real or personal property, but expressly limited to claims covered by and limited to commercial lines insurance contracts.
- A: Incorrect. Life insurance claims are excluded; the definition and its related exemptions separately exclude persons negotiating life, health, or annuity claims from public adjuster activity.
- B: Incorrect. The definition covers first-party claims aiding the insured against their own insurer, not third-party liability claims brought against the insured.
- D: Incorrect. The statutory definition confines public adjuster activity to commercial lines property contracts, not personal residential homeowners policies.
Source: K.S.A. 40-5502
Which of the following persons is exempt from the Kansas public adjuster license requirement under K.S.A. 40-5503?
A. A person who advertises services as a public adjuster but has not yet applied for a license
B. A public adjusting firm actively soliciting new clients after a hailstorm
C. A person negotiating first-party commercial property claims for compensation without a license
D. An attorney admitted to practice in Kansas, acting in a professional capacity
Show answer and reasoning
Correct answer: D. An attorney admitted to practice in Kansas, acting in a professional capacity
Correct. K.S.A. 40-5503 exempts an attorney-at-law admitted to practice in Kansas when acting in a professional capacity from the public adjuster license requirement.
- A: Incorrect. Advertising as a public adjuster itself falls within the statute's definition of regulated conduct; it is not an exempt category.
- B: Incorrect. Soliciting clients as a public adjusting business is licensed activity, not an exempt category.
- C: Incorrect. Negotiating first-party commercial claims for compensation is exactly the activity K.S.A. 40-5503 requires to be licensed; doing so unlicensed is a violation, not an exemption.
Source: K.S.A. 40-5503
Under K.S.A. 40-5504, what must the Kansas insurance commissioner require of a public adjuster license applicant who is not exempt from the pre-licensing examination?
A. A criminal history record check performed in accordance with K.S.A. 22-4714
B. A four-year college transcript showing an insurance-related degree
C. A personal reference letter from a licensed Kansas insurance producer
D. Proof of five years of prior claims-handling experience
Show answer and reasoning
Correct answer: A. A criminal history record check performed in accordance with K.S.A. 22-4714
Correct. K.S.A. 40-5504 requires the commissioner to require a criminal history record check, conducted in accordance with K.S.A. 22-4714, for applicants who are not exempt from the pre-licensing examination.
- B: Incorrect. Kansas does not condition licensure on a specific college degree; the statute requires a criminal history check, not academic credentials.
- C: Incorrect. A producer's personal reference letter is not among the application requirements listed in K.S.A. 40-5504.
- D: Incorrect. Prior claims-handling experience is not the requirement named in this statute; the criminal history record check is.
Source: K.S.A. 40-5504
