Free Virginia Claims Adjuster Practice Exam Online

Correct answer: B. $5,000

Correct: § 38.2-218 authorizes a penalty of not more than $5,000 per violation for a person who knowingly or willfully violates a provision of Title 38.2 or a regulation issued under it.

• A: Incorrect: $500 understates the maximum penalty Virginia law authorizes for a knowing or willful violation of Title 38.2.
• C: Incorrect: $1,000 is the maximum penalty for a violation committed without knowledge or intent, a lower tier than the knowing or willful violation described here.
• D: Incorrect: $25,000 overstates the per-violation cap; § 38.2-218 sets the maximum for a knowing or willful violation at $5,000.

Correct answer: C. $1,000

Correct: § 38.2-218 authorizes a penalty of not more than $1,000 per violation for conduct that violates Title 38.2 or its regulations without knowledge or intent.

• A: Incorrect: $250 understates the statutory maximum for an unknowing violation under § 38.2-218.
• B: Incorrect: $2,500 does not match either tier set out in the statute for knowing versus unknowing violations.
• D: Incorrect: $5,000 is the maximum for a knowing or willful violation, a higher tier than the unknowing violation described in this question.

Correct answer: A. Public adjusters who represent policyholders for compensation

Correct: Article 4.1 of Chapter 18 of Title 38.2 requires public adjusters, who are compensated by policyholders to investigate, negotiate, and advise on first-party claims, to hold a Commission-issued public adjuster license.

• B: Incorrect: staff or company adjusters who are employed by an insurer are expressly exempted from adjuster licensure under § 38.2-1845.3 and are not required to hold any Commission license to adjust claims.
• C: Incorrect: independent contractor adjusters who work on behalf of insurers are likewise exempted under § 38.2-1845.3, distinguishing Virginia's approach from states that license every adjuster type.
• D: Incorrect: Virginia's insurance code does not create a separate catastrophe or emergency adjuster license, so an adjuster deployed after a disaster to work for an insurer falls under the same insurer-side exemption as other company or independent adjusters.

Correct answer: B. The examiner is exempt from adjuster licensure as an employee of the insurer

Correct: § 38.2-1845.3 exempts an adjuster who is an employee of an insurer from adjuster licensure, since the exemption applies to adjusters acting as agents or employees of the insurer.

• A: Incorrect: Virginia has no independent adjuster license category for insurer employees to hold, so this option describes a license that does not exist for this role.
• C: Incorrect: the public adjuster license is reserved for those who represent policyholders for compensation, not for an examiner who works for and represents the insurer's interests.
• D: Incorrect: because the examiner is exempt from licensure entirely as an insurer employee, no pre-licensing education or examination requirement applies to this role under Virginia law.

Correct answer: C. Exempt from public-adjuster licensure as an independent contractor adjusting on behalf of an insurer

Correct: § 38.2-1845.3 exempts an adjuster who acts as an independent contractor for one or more insurers from the public adjuster licensing requirement.

• A: Incorrect: employment status is not the determining factor; the statute exempts adjusters who act as independent contractors for insurers regardless of whether they are direct employees.
• B: Incorrect: Virginia does not maintain a separate nonresident adjuster licensing track for insurer-side independent contractor adjusters because they are exempt from adjuster licensure altogether.
• D: Incorrect: the $50,000 bond requirement applies only to licensed public adjusters, and an exempt insurer-side independent contractor adjuster has no bonding obligation under this article.