Which statement correctly distinguishes “declaratory judgment” from related claim-handling concepts?
A. A file audit reviews claim handling quality, documentation, payment accuracy, reserves, and compliance
B. A declaratory judgment action asks a court to determine coverage rights or obligations
C. A waiver of subrogation can limit the insurer's recovery rights when validly agreed
D. A staged loss is an intentionally created or fabricated loss and may support fraud investigation
Source: National Association of Insurance Commissioners — Glossary of Insurance Terms; entry/locator 'Declaratory Judgment'; https://content.naic.org/glossary-insurance-terms
An adjuster encounters an issue involving “file audit.” Which explanation is accurate?
A. Subrogation recovery allows an insurer that paid a covered loss to pursue the responsible party
B. Salvage value is the value of damaged property that can be sold or retained after loss settlement
C. An inflated claim exaggerates damages or values beyond the actual covered loss
D. A file audit reviews claim handling quality, documentation, payment accuracy, reserves, and compliance
Source: National Association of Insurance Commissioners — Glossary of Insurance Terms; entry/locator 'File Audit'; https://content.naic.org/glossary-insurance-terms
Under Pennsylvania law, which category of claims adjuster is required to hold an individual license issued by the Pennsylvania Insurance Department (PID)?
A. Company (staff) adjusters employed directly by an insurer
B. Independent adjusters working under contract for multiple insurers
C. Public adjusters who represent insureds for compensation
D. Catastrophe adjusters deployed only after a declared disaster
Source: Public Adjuster Licensing Law, Act of Dec. 20, 1983, P.L. 260, No. 72, as amended (40 P.S. §§ 1601 et seq.)
A Texas-resident independent adjuster who wants to handle a hailstorm claim for an insurer's policyholder in Pennsylvania asks whether they need a Pennsylvania nonresident adjuster license first. What is the accurate answer?
A. No, Pennsylvania does not license independent or company adjusters at all, resident or nonresident
B. Yes, Pennsylvania issues nonresident independent adjuster licenses that must be obtained before adjusting any PA claim
C. Only if the claim exceeds $10,000 in estimated damage
D. Only if the adjuster is not already licensed as an adjuster in any state
Source: Public Adjuster Licensing Law, Act of Dec. 20, 1983, P.L. 260, No. 72, as amended (40 P.S. §§ 1601 et seq.)
Under the Pennsylvania Public Adjuster Licensing Law, a 'public adjuster' is statutorily defined based primarily on which activity?
A. Advertising, soliciting, or holding oneself out as adjusting insurance claims for compensation on behalf of an insured
B. Selling first-party property insurance policies directly to consumers
C. Performing underwriting reviews for an insurance carrier
D. Representing an insurance company in claim litigation before the Insurance Commissioner
Source: Public Adjuster Licensing Law, Act of Dec. 20, 1983, P.L. 260, No. 72, as amended, Section 1 (Definitions), 40 P.S. §§ 1601 et seq.
