Free New Jersey Claims Adjuster Practice Exam Online

Correct answer: A. A public adjuster who is retained by a policyholder to negotiate and settle a claim against the policyholder's own insurer

Correct. N.J.S.A. 17:22B-3 requires a public adjuster license for anyone who acts on behalf of an insured in negotiating or effecting settlement of a claim, which is the defining role of a public adjuster.

• B: Incorrect. An internal file reviewer with no claimant-facing adjusting role does not meet the statutory definition of an adjuster requiring licensure.
• C: Incorrect. New Jersey does not require staff adjusters employed directly by an insurer to hold an adjuster license under N.J.S.A. 17:22B, because they act on the insurer's own behalf rather than an insured's.
• D: Incorrect. Independent adjusters working on behalf of an insurer, like staff adjusters, fall outside the Public Adjusters' Licensing Act's licensure requirement, which is limited to those acting for an insured.

Correct answer: B. Licenses only public adjusters, who represent policyholders, while staff and independent adjusters working on behalf of insurers are not required to hold an adjuster license

Correct. The Public Adjusters' Licensing Act, N.J.S.A. 17:22B-1 et seq., creates a distinct license category solely for public adjusters representing insureds, while company and independent adjusters working for insurers are not required to hold an adjuster license in New Jersey.

• A: Incorrect. New Jersey does not require insurer-side staff or independent adjusters to be individually licensed; only public adjusters fall under the Act's licensing mandate.
• C: Incorrect. Public adjusters are licensed under a dedicated public adjuster license created by N.J.S.A. 17:22B, not under the general producer license.
• D: Incorrect. This reverses New Jersey's actual structure; it is the public adjuster category, not insurer-side adjusters, that is licensed.

Correct answer: C. Public adjuster, who must hold a New Jersey public adjuster license

Correct. Representing the insured against the insured's own insurer for compensation is the defining role of a public adjuster, which requires licensure under N.J.S.A. 17:22B-3.

• A: Incorrect. A staff adjuster is employed by and represents the insurer, not the policyholder, which is the opposite of the role described.
• B: Incorrect. An independent adjuster is retained by an insurer to handle claims on the insurer's behalf, not retained by the insured against the insurer.
• D: Incorrect. Appraisers under a policy's appraisal clause perform a narrower, specific valuation function and are not a substitute for the public adjuster role described here.

Correct answer: D. Is not required to hold a New Jersey adjuster license because they are working on the insurer's behalf, not the insured's

Correct. Because New Jersey does not require licensure for adjusters working on an insurer's behalf, a catastrophe adjuster dispatched by the insurer itself is not subject to the Public Adjusters' Licensing Act.

• A: Incorrect. There is no such 24-hour grace period in New Jersey's adjuster licensing framework; the licensing requirement simply does not extend to insurer-side adjusters in the first place.
• B: Incorrect. No such sponsorship requirement exists for insurer-side catastrophe adjusters under New Jersey law.
• C: Incorrect. Public adjuster licensure applies to those representing insureds against insurers, not to insurer-retained catastrophe adjusters handling the insurer's own claims.

Correct answer: A. Public adjusters represent policyholders in disputes against insurers for compensation, a fundamentally different consumer-protection role than selling or servicing policies, warranting distinct licensing standards, a contract-form mandate, and a bond requirement

Correct. The Public Adjusters' Licensing Act reflects that public adjusters occupy a fee-for-service, claimant-advocacy role carrying distinct consumer-protection risks (fee arrangements, contract terms, solicitation timing), which is why N.J.S.A. 17:22B imposes its own licensing, bonding, and contract requirements separate from producer licensure.

• B: Incorrect. New Jersey does have a general producer licensing statute (N.J.S.A. 17:22A); the public adjuster act exists alongside it, not because producer licensing is absent.
• C: Incorrect. Adjuster licensing is a matter of state insurance law, not a federal mandate.
• D: Incorrect. Public adjusters do not sell insurance policies; they represent insureds in claim negotiations, which is a distinct function from producer sales activity.