Free Missouri Claims Adjuster Practice Exam Online

Correct answer: C. A public adjuster who represents a policyholder in negotiating a claim against the policyholder's own insurer for a fee

Correct. Under RSMo § 325.015, a person acting as a public adjuster — representing an insured, for compensation, in negotiating or settling a first-party property/casualty claim against the insured's own insurer — must be licensed by DCI.

• A: Missouri does not require a separate individual adjuster license for staff (company) adjusters; they adjust claims as employees of a licensed insurer, so no personal license is mandated under Chapter 325.
• B: Independent adjusters working for and paid by an insurer are likewise not subject to Missouri's individual adjuster licensing requirement — Missouri's licensing scheme targets public adjusters.
• D: A back-office claims examiner who never negotiates directly with a claimant or insured for compensation on the insured's behalf falls outside the public adjuster licensing trigger.

Correct answer: B. Missouri does not license company or independent adjusters working for insurers, but it does license public adjusters, who represent policyholders for a fee

Correct. Missouri's licensing gap applies only to adjusters working on behalf of insurers. Public adjusters, who are hired by and represent the policyholder against the insurer, must be licensed under Chapter 325.

• A: This overstates Missouri's scheme — insurer-side (staff and independent) adjusters are not individually licensed in Missouri.
• C: Missouri's public adjuster license is not limited to a single line of business such as auto; it covers first-party property and casualty claims generally.
• D: There is no dollar-value threshold in Missouri's public adjuster licensing statute that exempts smaller claims.

Correct answer: B. A public adjuster, who must hold a Missouri public adjuster license

Correct. Representing an insured for compensation against the insured's own insurer is the defining act of a public adjuster, which requires licensure under RSMo § 325.015.

• A: A staff adjuster is a direct employee of an insurance company adjusting that company's claims, not a third party hired by the policyholder for a fee.
• C: A contingent-fee arrangement does not exempt the activity from licensing — it is, if anything, the classic public adjuster fee structure Chapter 325 was written to regulate.
• D: Selling or servicing an insurance policy under a producer license is a different regulated activity than adjusting and negotiating a claim for a policyholder; a producer license does not authorize public adjusting.

Correct answer: B. Practicing law or engaging in the unauthorized practice of law while performing adjusting services

Correct. RSMo § 325.015 specifically states a public adjuster license does not authorize the licensee to practice law.

• A: Percentage-based (contingent) fees are the standard, permitted compensation model for public adjusters in Missouri; the statute does not prohibit them outright.
• C: Nothing in Chapter 325 limits a public adjuster to representing a single policyholder at a time.
• D: Independently inspecting damage on behalf of the policyholder is a core, expected function of a public adjuster and is not restricted to times when the insurer is present.

Correct answer: C. Workers' compensation claims

Correct. Public adjusting in Missouri is oriented toward first-party property and casualty claims; workers' compensation claims are handled through a separate statutory and administrative process, not through public adjuster licensure.

• A: Property loss claims are a core area public adjusters handle on behalf of policyholders.
• B: First-party casualty claims fall within the public adjuster's typical scope of representing the insured against their own insurer.
• D: Fire losses are a classic example of the property claims public adjusters are engaged to handle.