Free Kentucky Adjuster License Practice Test Online

Correct answer: A. Independent, staff, and public adjusters

Correct. KRS 304.9-430 governs the license application for independent, staff, and public adjusters, the three license categories Kentucky recognizes under Subtitle 9.

• B: These are functional descriptions of adjusting work, not the license categories named in the Kentucky statute.
• C: Field, desk, and catastrophe describe how an adjuster's caseload is assigned, not a Kentucky licensing distinction.
• D: Kentucky does not license a hybrid 'producer-adjuster' or 'broker-adjuster' category; adjusting and producing insurance are separately regulated activities.

Correct answer: B. As a direct employee of a single insurance company, for that company's own policyholders

Correct. A staff adjuster is employed directly by an insurer and adjusts that insurer's own claims, distinguishing the role from independent and public adjusters.

• A: This describes an independent adjuster, who contracts with insurers rather than being their direct employee.
• C: This describes a public adjuster, who represents the insured against the insurer rather than representing the insurer.
• D: Kentucky's staff adjuster license is not geographically limited to out-of-state claims; it is defined by the employment relationship, not claim location.

Correct answer: C. Handles claims for multiple insurance companies under contract rather than as one company's employee

Correct. Independent adjusters contract with multiple insurers or adjusting firms to handle claims on the insurers' behalf, unlike a staff adjuster who works for one company as an employee.

• A: That single-insurer, employer-employee relationship describes a staff adjuster, not an independent adjuster.
• B: Representing the policyholder against the insurer is the public adjuster's role, which independent adjusters do not perform since they work for the insurer side.
• D: Independent adjusters are one of the three categories expressly licensed under KRS 304.9-430; they are not exempt.

Correct answer: D. A bond or irrevocable letter of credit of at least $50,000

Correct. KRS 304.9-430 requires a public adjuster applicant to secure a bond or irrevocable letter of credit in a minimum amount of $50,000 before licensure.

• A: $5,000 is not the statutory figure for a Kentucky public adjuster; the requirement is significantly higher because public adjusters negotiate settlements on behalf of consumers.
• B: Kentucky's statute specifies a bond or letter of credit, not a general liability insurance minimum, as the financial responsibility mechanism.
• C: Public adjusters routinely handle claim proceeds and negotiate settlement funds on a client's behalf, which is precisely why the bond requirement exists.

Correct answer: A. A notification filed with the Department of Insurance that an insurer has established an agency relationship with a licensee

Correct. KRS 304.9-020 defines an appointment as the notification an insurer files with the Department establishing that it has engaged a licensed agent to act on its behalf.

• B: An exam date is a scheduling detail, not the statutory 'appointment' concept, which concerns the insurer-agent relationship of record.
• C: A damage inspection meeting is an adjusting activity, unrelated to the defined term 'appointment.'
• D: A license renewal date is a separate administrative marker, not what the statute means by 'appointment.'