Under Utah Code, which adjuster type is required to hold a state adjuster license before handling claims for compensation?
A. An independent adjuster who contracts to handle claims on behalf of one or more insurers
B. A staff adjuster who is a regular salaried employee of a single insurer and not an independent contractor
C. A claims examiner who only reviews closed files for quality assurance
D. An insurance producer who sells but never adjusts policies
Show answer and reasoning
Correct answer: A. An independent adjuster who contracts to handle claims on behalf of one or more insurers
Correct. Utah Code § 31A-26-203 requires a license for independent adjusters and public adjusters, who adjust claims as contractors rather than as a salaried employee of one insurer.
- B: Incorrect. Utah exempts a regular salaried employee of a single insurer, sometimes called a staff or company adjuster, from the adjuster licensing requirement, so long as the person is not acting as an independent contractor.
- C: Incorrect. Purely internal file review with no direct claim adjusting activity does not trigger the licensing requirement described in this statute.
- D: Incorrect. Selling insurance is producer activity governed by a separate licensing chapter, not the adjuster licensing provisions.
Source: Utah Code § 31A-26-203
How does Utah Code define a "public adjuster" for licensing purposes?
A. A person who investigates claims exclusively for a state guaranty association
B. A person who represents insureds or claimants, rather than insurers, in adjusting claims under an insurance policy
C. A person who represents an insurer in evaluating and settling claims
D. A government employee who audits insurer claim files for regulatory compliance
Show answer and reasoning
Correct answer: B. A person who represents insureds or claimants, rather than insurers, in adjusting claims under an insurance policy
Correct. Utah Code § 31A-26-201 defines a public adjuster as one who engages in insurance adjusting as a representative of insureds or claimants rather than insurers.
- A: Incorrect. Guaranty association investigators are not the category this definition addresses.
- C: Incorrect. That description matches an independent or staff adjuster, who works on behalf of the insurer, not a public adjuster.
- D: Incorrect. State regulatory examiners auditing insurer practices are not public adjusters under this definition; a public adjuster is retained by a policyholder or claimant.
Source: Utah Code § 31A-26-201
An out-of-state independent adjuster wants to handle a catastrophe claim in Utah after a windstorm. What must this person generally do before adjusting Utah claims?
A. Nothing, since adjusters are automatically authorized to work in any state
B. Register only with the county sheriff's office in the county where the loss occurred
C. Obtain a Utah nonresident adjuster license, or otherwise qualify under Utah's licensing and registration provisions, before adjusting claims located in Utah
D. Wait 12 months of Utah residency before doing any claims work
Show answer and reasoning
Correct answer: C. Obtain a Utah nonresident adjuster license, or otherwise qualify under Utah's licensing and registration provisions, before adjusting claims located in Utah
Correct. Under Utah's adjuster licensing and registration provisions, a person adjusting claims located in Utah generally must hold a Utah adjuster license, whether resident or nonresident, before engaging in that activity.
- A: Incorrect. Adjusting is licensed activity; there is no automatic multi-state authorization outside Utah's licensing and registration framework.
- B: Incorrect. Adjuster licensing is administered by the Utah Insurance Department, not local sheriff's offices.
- D: Incorrect. Nonresident adjusters can be licensed without first establishing Utah residency; a residency waiting period is not the mechanism used.
Source: Utah Code § 31A-26-203
Which of the following individuals is exempt from Utah's adjuster license requirement under Utah Code § 31A-26-201?
A. An independent adjuster hired under contract by several different insurers
B. A public adjuster representing a homeowner in a fire claim
C. A public adjusting firm soliciting business after a hailstorm
D. A regular salaried claims employee of a single insurance company who is not an independent contractor
Show answer and reasoning
Correct answer: D. A regular salaried claims employee of a single insurance company who is not an independent contractor
Correct. Utah exempts an individual who adjusts claims as a regular salaried employee of a single insurer, and who is not an independent contractor, from the adjuster license requirement.
- A: Incorrect. Independent adjusters working under contract for insurers are exactly the group Utah requires to be licensed.
- B: Incorrect. Public adjusters representing policyholders must be licensed under Utah Code § 31A-26-201.
- C: Incorrect. A public adjusting business entity soliciting clients is engaged in licensed activity, not exempt activity.
Source: Utah Code § 31A-26-201
Utah issues adjuster license classifications, including property and casualty, accident and health, crop, and workers' compensation. Why would an adjuster need more than one classification?
A. Because each classification authorizes the adjuster to handle claims only within that specific line of insurance, so an adjuster working across multiple lines needs a classification for each
B. Because a single classification automatically authorizes handling of every claim type
C. Because classifications determine the adjuster's home state of residence
D. Because classifications are only relevant to public adjusters, never to independent adjusters
Show answer and reasoning
Correct answer: A. Because each classification authorizes the adjuster to handle claims only within that specific line of insurance, so an adjuster working across multiple lines needs a classification for each
Correct. Each Utah adjuster license classification corresponds to a specific line of insurance, such as property and casualty or workers' compensation, and an adjuster must hold the classification matching the type of claim being handled.
- B: Incorrect. Classifications are line-specific; holding one does not authorize adjusting claims in every insurance line.
- C: Incorrect. License classification relates to lines of insurance authority, not residency status.
- D: Incorrect. Both independent adjusters and public adjusters hold license classifications tied to the lines of insurance they are authorized to adjust.
Source: General national claims-adjusting practice
