I85PREP
⌘ K
DE Public Adjuster study materials
DE Public Adjuster study resources

DE Public Adjuster practice questions

One question at a time. Build your DE Public Adjuster understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Licensing and Qualification Requirements

Under Delaware's public adjuster licensing framework, which state body issues the public adjuster license and enforces the insurance laws governing that license?

  1. The Delaware Real Estate Commission
  2. The Delaware Department of Insurance Correct answer.
  3. The Delaware Bank Commissioner
  4. The Delaware Public Utilities Commission

Explanation

Delaware insurance licensing, including public adjuster licensure, is administered by the Delaware Department of Insurance, whose Insurance Commissioner enforces the state's insurance code. The other bodies regulate real estate, banking, and utilities rather than insurance producers or adjusters.

Question 2Licensing and Qualification Requirements

Which activity requires a Delaware public adjuster license?

  1. An attorney representing a policyholder in litigation over a denied claim
  2. A contractor who prepares a repair estimate and submits it to the insurer at the policyholder's request
  3. An independent contractor who, for compensation, solicits and negotiates first-party property claims on behalf of policyholders Correct answer.
  4. A salaried staff employee of an insurer negotiating claim settlements for that insurer

Explanation

A public adjuster is licensed to represent the insured, for compensation, in preparing, presenting, and negotiating first-party claims. Insurer staff adjusters act for the insurer, attorneys practice law rather than adjusting, and contractors who merely supply estimates are not negotiating the claim on the insured's behalf.

Question 3Licensing and Qualification Requirements

Before being issued a Delaware public adjuster license, an applicant must generally satisfy which requirement?

  1. Complete a prelicensing course and pass the public adjuster examination Correct answer.
  2. Have at least ten years of experience as an insurance claims examiner
  3. Hold a Delaware real estate salesperson license
  4. Post a surety bond only after the first claim is settled

Explanation

Public adjuster applicants must complete the required prelicensing education and pass the licensing examination, in addition to meeting age, character, and application requirements. Experience as an examiner, a real estate license, or deferred bonding are not substitutes for these prerequisites.

Question 4Licensing and Qualification Requirements

A public adjuster license applicant in Delaware must meet which minimum age requirement?

  1. 16 years of age
  2. 18 years of age Correct answer.
  3. 25 years of age
  4. 21 years of age

Explanation

Insurance producer and adjuster applicants must be at least 18 years old, which is the age of majority for contracting purposes. Ages of 16, 21, and 25 do not reflect the licensing standard.

Question 5Licensing and Qualification Requirements

A public adjuster's license in Delaware must be renewed on what cycle?

  1. Every three years
  2. Every two years Correct answer.
  3. Every five years
  4. Annually

Explanation

Delaware insurance licenses, including public adjuster licenses, are renewed on a biennial basis, with continuing education tied to that two-year cycle. Annual, triennial, and five-year cycles do not match the state's renewal schedule.

Question 6Licensing and Qualification Requirements

Which is a standard continuing education requirement for maintaining a Delaware public adjuster license?

  1. Retaking the full licensing examination at each renewal
  2. Completion of approved continuing education credit hours during each renewal period Correct answer.
  3. Filing a fresh surety bond with every renewal application
  4. Submitting a new fingerprint card every year

Explanation

Licensees maintain their credentials by completing approved continuing education credits each renewal cycle, which keeps them current on law and practice. Re-examination, annual fingerprinting, and repeated bonding are not continuing education requirements.

Question 7Licensing and Qualification Requirements

A licensed Delaware public adjuster moves to a new office. What must the adjuster do to keep the license record accurate?

  1. Wait until the next scheduled renewal to report the change
  2. Nothing, because the license attaches to the individual rather than the address
  3. Surrender the license and apply as a new applicant
  4. Notify the Department of Insurance of the address change within the required timeframe Correct answer.

Explanation

Licensees must keep their record current, including business address changes, by notifying the Department within the required period. Failing to update the record can interfere with official correspondence and compliance notices.

Question 8Licensing and Qualification Requirements

Which statement best describes the fiduciary duty a Delaware public adjuster owes to a client?

  1. The adjuster must handle client funds and claim proceeds honestly and account for them Correct answer.
  2. The adjuster may assign a client's claim proceeds to a third party without the client's knowledge
  3. The adjuster may commingle client claim funds with the adjuster's business operating account
  4. The adjuster may retain any settlement funds received until the client requests them

Explanation

A public adjuster acts in a fiduciary capacity, meaning client funds and claim proceeds must be handled honestly, kept separate, and fully accounted for. Commingling funds or secretly assigning proceeds breaches that duty.

Question 9Licensing and Qualification Requirements

A Delaware public adjuster wants to sign a contract with a homeowner immediately after a fire loss. Which contract term is required?

  1. A clause waiving the insured's right to cancel the agreement
  2. A statement of the adjuster's fee or compensation and the insured's right to rescind within a specified period Correct answer.
  3. A provision making the adjuster the insured's attorney-in-fact for all financial matters
  4. An automatic renewal clause extending the contract for five years

Explanation

Public adjuster contracts must clearly disclose the compensation arrangement and give the insured a defined right to cancel, protecting consumers who sign under post-loss stress. Clauses that waive cancellation rights or grant sweeping power of attorney are not permissible.

Question 10Licensing and Qualification Requirements

A public adjuster signs a client, then learns the client already retained another public adjuster for the same claim. What is the appropriate course of action?

  1. Proceed and let the insurers decide which adjuster gets paid
  2. Proceed and split the fee with the first adjuster without informing the client
  3. Disclose the conflict to the client and resolve the representation issue before continuing Correct answer.
  4. Continue working and bill the client separately for the same services

Explanation

When a conflict or prior representation exists, the adjuster must disclose it to the client and resolve which adjuster will represent the insured before doing further work. Secret fee-splitting or duplicate billing would be deceptive and improper.

Question 11Licensing and Qualification Requirements

Which individual is generally exempt from Delaware public adjuster licensing requirements?

  1. A licensed attorney adjusting a claim as part of legal representation of a client Correct answer.
  2. A person who advertises public adjusting services to the general public
  3. A person who solicits policyholders door-to-door after a storm to handle their claims
  4. A person who negotiates first-party claims for a fee on behalf of numerous unrelated policyholders

Explanation

Attorneys acting within the scope of their legal practice are not required to hold a public adjuster license, because their conduct is regulated as the practice of law. Advertising, soliciting, and fee-based claim negotiation for the public all trigger licensure.

Question 12Licensing and Qualification Requirements

An unlicensed person in Delaware adjusts a homeowner's claim for a percentage of the settlement. What is the likely consequence?

  1. The person is automatically granted a license retroactive to the date of the claim
  2. The arrangement is valid if the settlement is paid by the insurer
  3. The person faces penalties for unlicensed activity, and the fee arrangement may be unenforceable Correct answer.
  4. No consequence, because the homeowner consented to the arrangement

Explanation

Acting as a public adjuster without a license exposes the person to administrative penalties and possible criminal sanctions, and courts may decline to enforce compensation agreements made in violation of licensing law. Client consent does not cure the lack of a license.

Question 13Licensing and Qualification Requirements

A Delaware public adjuster's license lapses because continuing education was not completed. What is the adjuster's status while the license is lapsed?

  1. The adjuster may continue all activity for a one-year grace period automatically
  2. The adjuster may not engage in public adjusting activity until the license is reinstated Correct answer.
  3. The adjuster may continue negotiating existing claims but may not solicit new clients
  4. The adjuster may operate under the insurer's producer license instead

Explanation

Once a license lapses, the individual loses authority to act as a public adjuster and must be reinstated before resuming adjusting activity. Continuing to operate on a lapsed license is unlicensed activity.

Question 14Licensing and Qualification Requirements

Which conduct would most likely subject a Delaware public adjuster to disciplinary action by the Department of Insurance?

  1. Providing a client with a written estimate of the adjuster's fee before signing
  2. Misrepresenting the adjuster's credentials and the scope of services to induce a client to sign Correct answer.
  3. Reporting a change of business address to the Department within the required timeframe
  4. Advising a client in writing of the right to cancel the contract

Explanation

Misrepresentation to induce a consumer to enter a contract is a deceptive practice that supports discipline, including fines, suspension, or revocation. Fee disclosure, cancellation notices, and timely record updates are compliant behaviors.

Question 15Licensing and Qualification Requirements

A Delaware public adjuster wants to solicit business at the scene of a residential fire loss. Which practice aligns with the licensing rules?

  1. Telling the homeowner that the adjuster works for the insurer to gain trust
  2. Entering the damaged home without invitation to solicit the homeowner
  3. Approaching the insured in a manner that avoids coercion and clearly identifying that the adjuster represents the insured, not the insurer Correct answer.
  4. Offering the homeowner cash to sign a contract immediately

Explanation

Solicitation must be honest and non-coercive, and the adjuster must clearly disclose that he or she represents the policyholder rather than the insurer. Entering property uninvited, misrepresenting the carrier relationship, or paying for signatures are improper.

Question 16Licensing and Qualification Requirements

A public adjuster applicant in Delaware must generally submit which item as part of the background review?

  1. A copy of the applicant's homeowner's insurance policy
  2. Fingerprints for a criminal history background check Correct answer.
  3. A letter of recommendation from a local contractor
  4. Proof of membership in a national adjusting association

Explanation

Applicants submit fingerprints so the state can conduct a criminal history background check as part of the fitness review. A homeowner's policy, contractor references, or association membership are not licensing prerequisites.

Question 17Licensing and Qualification Requirements

A nonresident seeks to adjust claims for Delaware policyholders. Which approach is consistent with Delaware licensing rules?

  1. Relying on the insurer's certificate of authority to cover the adjuster's activity
  2. Waiting until the first Delaware claim is filed before applying
  3. Applying for a Delaware nonresident public adjuster license, typically relying on the home state license where reciprocity applies Correct answer.
  4. Adjusting Delaware claims without any Delaware authority because the adjuster is licensed at home

Explanation

Nonresidents must obtain Delaware authority, usually through a nonresident license application that may rely on the home state license under reciprocity. A home state license alone does not authorize activity in Delaware.

Question 18Licensing and Qualification Requirements

Which statement about a public adjuster's compensation under Delaware rules is accurate?

  1. The adjuster may collect a fee from both the insured and the insurer on the same claim
  2. The adjuster may charge any fee the client agrees to, with no disclosure obligation
  3. The adjuster may set the fee after the settlement amount is known without prior agreement
  4. The adjuster's fee must be disclosed and must not exceed any statutory cap on compensation Correct answer.

Explanation

Compensation must be disclosed to the client in advance and is subject to any statutory limits on fees charged by public adjusters. Collecting from both sides or setting fees retroactively without agreement is improper.

Question 19Licensing and Qualification Requirements

A Delaware public adjuster is convicted of a felony involving dishonesty. What is the most likely licensing consequence?

  1. Automatic permanent licensure without any review
  2. The adjuster may continue working if the client consents
  3. No effect, because the conviction occurred outside the adjusting business
  4. The conviction may be grounds for denial, suspension, or revocation of the license Correct answer.

Explanation

A conviction involving dishonesty bears directly on fitness and trustworthiness, and the Department may deny, suspend, or revoke a license on that basis. Client consent does not neutralize a character-based licensing concern.

Question 20Licensing and Qualification Requirements

A public adjuster's license application contains a material false statement about prior disciplinary history. What is the likely result?

  1. The application is denied or the license is revoked for fraud or misrepresentation Correct answer.
  2. The license is issued because the statement was corrected later
  3. The false statement is treated as a clerical error with no consequence
  4. The Department issues a warning and takes no further action

Explanation

Material misstatements on a licensing application constitute fraud or misrepresentation and support denial or revocation. Correcting the record later does not erase the false statement made under oath or certification.

Question 21Licensing and Qualification Requirements

An individual holds a Delaware public adjuster license but is employed by an insurer as a staff claims representative. What is the licensing issue?

  1. The individual must surrender the license before doing any office work
  2. The individual may adjust both sides of the same claim as long as fees are disclosed
  3. A public adjuster may not represent insureds while simultaneously acting for an insurer on claims, creating an impermissible conflict Correct answer.
  4. No issue exists because the license covers all claims work

Explanation

A public adjuster owes loyalty to the insured; simultaneously serving an insurer in a claims capacity creates an impermissible conflict of interest. Disclosure does not cure representing both sides of the same claim.

Question 22Licensing and Qualification Requirements

A Delaware public adjuster is asked to handle a claim in a neighboring state where the adjuster is not licensed. What is the correct approach?

  1. Proceed because the Delaware license is valid nationwide
  2. Ask the insurer to issue a temporary authorization for the adjuster
  3. Proceed if the insured signs a waiver of the other state's licensing law
  4. Decline or obtain the required license in that state before adjusting the claim Correct answer.

Explanation

Licensing is state-specific, so an adjuster must hold authority in each state where the claim is adjusted. A Delaware license, a client waiver, or a carrier authorization does not substitute for the other state's license.

Question 23Licensing and Qualification Requirements

A public adjuster learns that a client's claim involves suspected arson and possible insurance fraud by the insured. What is the adjuster's most appropriate response?

  1. Demand a higher fee to compensate for the added risk
  2. Threaten the client with exposure unless the client pays a settlement share
  3. Withdraw from any misrepresentation and comply with reporting and candor obligations to the insurer and authorities Correct answer.
  4. Conceal the suspicion and continue presenting the claim as legitimate

Explanation

A public adjuster cannot knowingly present a false or fraudulent claim; the adjuster must avoid misrepresentation and satisfy applicable reporting duties. Concealing fraud, extorting the client, or inflating fees for risk are all serious violations.

Question 24Licensing and Qualification Requirements

A public adjuster's license is suspended. Which activity is permitted during the suspension?

  1. Negotiating a settlement for a claim signed before the suspension took effect
  2. Advertising public adjusting services to attract new clients
  3. None of the public adjusting activities authorized by the license Correct answer.
  4. Reviewing claim documents only for a client who is an existing customer

Explanation

A suspension removes all authority conferred by the license, so the adjuster may not negotiate, review, or advertise adjusting services during that period. Performing any of those acts would be unlicensed activity.

Question 25Licensing and Qualification Requirements

A public adjuster is offered a referral fee by a restoration contractor for each client the adjuster steers to that contractor. How should the adjuster evaluate this?

  1. Decline it, because undisclosed referral compensation creates a conflict and may violate the adjuster's duty of loyalty Correct answer.
  2. Accept it if the contractor's work is high quality
  3. Accept it if the client is told after the work is completed
  4. Accept it only if the fee is paid in cash to avoid records

Explanation

Undisclosed compensation from vendors to whom the adjuster steers clients creates a conflict of interest and breaches the duty of loyalty. Contractor quality, delayed disclosure, or cash payment do not legitimize the arrangement.

Question 26Licensing and Qualification Requirements

Under Delaware law, which body issues and administers public adjuster licenses?

  1. The Delaware Division of Professional Regulation
  2. The Delaware Department of Insurance Correct answer.
  3. The Delaware Real Estate Commission
  4. The Delaware Attorney General's Office

Explanation

Public adjusters are licensed and regulated by the Delaware Department of Insurance, which oversees insurance producers and adjusters under the state's insurance code. The Department has authority to issue, renew, suspend, and revoke those licenses.

Question 27Licensing and Qualification Requirements

Which individual most clearly needs a Delaware public adjuster license before negotiating a fire loss on behalf of a homeowner for compensation?

  1. An insurance company staff adjuster handling the company's own claim
  2. An independent advocate who negotiates the settlement for a fee Correct answer.
  3. A contractor who prepares a repair estimate for the insurer
  4. A public insurance adjuster licensed in Maryland who only reviews documents

Explanation

A public adjuster is a person who, for compensation, acts on behalf of the insured to negotiate or settle a first-party claim. Charging a fee to negotiate a homeowner's fire loss is the core licensed activity in Delaware.

Question 28Licensing and Qualification Requirements

What is the minimum age at which a person may generally qualify for a Delaware public adjuster license?

  1. 21 years
  2. 25 years
  3. 18 years Correct answer.
  4. 16 years

Explanation

Delaware, like most states, requires adjuster license applicants to be at least 18 years old. Age is one of the basic eligibility qualifications reviewed with the application.

Question 29Licensing and Qualification Requirements

Before a Delaware public adjuster license is issued, the applicant generally must demonstrate knowledge of insurance by which method?

  1. Passing the required licensing examination Correct answer.
  2. Completing a four-year college degree in insurance
  3. Working five years for an insurer
  4. Submitting two letters of recommendation from clients

Explanation

Applicants for a public adjuster license must pass the state licensing examination covering insurance principles and adjuster practices. Pre-licensing education and fingerprinting may also apply, but the exam is the core knowledge requirement.

Question 30Licensing and Qualification Requirements

A Delaware public adjuster license is up for renewal. Which item is typically required to renew it?

  1. Completion of approved continuing education hours Correct answer.
  2. Re-taking the full licensing examination
  3. A fresh credit report from a consumer bureau
  4. A new surety bond posted every year

Explanation

Renewal of a Delaware public adjuster license generally requires completing approved continuing education during each renewal cycle. The CE requirement keeps licensees current on law and practice.

Question 31Licensing and Qualification Requirements

An applicant for a Delaware public adjuster license has a prior criminal conviction. How is that conviction generally treated in the licensing review?

  1. It is excused if the applicant pays a higher license fee
  2. It automatically bars licensure for life regardless of the offense
  3. It is ignored because licensing reviews only look at exam scores
  4. It is reviewed for relevance to the applicant's fitness to act as an adjuster Correct answer.

Explanation

The Department reviews criminal history for its bearing on the applicant's honesty and fitness to handle client funds and claims. Not every conviction disqualifies an applicant, but relevant ones can affect eligibility.

Question 32Licensing and Qualification Requirements

Which document must a Delaware public adjuster applicant generally provide to verify identity and support the criminal background check?

  1. A copy of a homeowner's insurance policy
  2. A notarized copy of a lease agreement
  3. A letter from a former employer
  4. Fingerprints submitted for a state and federal check Correct answer.

Explanation

Delaware requires applicants to submit fingerprints so a criminal history record check can be run through state and federal databases. This is part of the standard background review for licensure.

Question 33Licensing and Qualification Requirements

A Delaware public adjuster wants to use a trade name such as "Coastal Claims Advocates" instead of the licensed individual name. What is the proper approach?

  1. Use the trade name only on social media
  2. Register the name only with the county clerk
  3. Use the trade name freely without notifying the Department
  4. Notify the Department and comply with any name-approval requirements Correct answer.

Explanation

Licensees who conduct business under an assumed or trade name generally must disclose that name to the Department and obtain any required approval. The Department needs an accurate record of how the licensee operates.

Question 34Licensing and Qualification Requirements

A Delaware public adjuster's license expires while the adjuster is mid-claim. Which statement best describes the adjuster's authority to continue negotiating that claim?

  1. The adjuster may continue if the insurer does not object
  2. The adjuster may continue but only by phone
  3. The adjuster may not continue public adjusting until the license is reinstated Correct answer.
  4. The adjuster may continue indefinitely because the client signed a contract

Explanation

Public adjusting authority flows from a valid license, so an expired license removes the legal basis to negotiate claims for compensation. The adjuster must reinstate before resuming licensed activity.

Question 35Licensing and Qualification Requirements

Which qualification relates to an applicant's character and is commonly verified during Delaware public adjuster licensing?

  1. Proof of homeownership in the state
  2. Membership in a trade association
  3. Ownership of a personal vehicle
  4. Good moral character and trustworthiness Correct answer.

Explanation

Adjuster applicants must demonstrate good moral character and trustworthiness because they handle client claims and funds. This is assessed through the application, background check, and disclosures.

Question 36Licensing and Qualification Requirements

An applicant is unsure whether a particular prior offense must be disclosed on the Delaware public adjuster application. What is the safest compliant course?

  1. Disclose it only if the offense was a felony
  2. Omit it and wait to see if the Department discovers it
  3. Disclose it and provide the requested documentation Correct answer.
  4. Ask the insurer to disclose it instead

Explanation

Applications require truthful, complete disclosure of criminal history, and omitting a required item can itself be treated as a material misstatement. Disclosing with documentation lets the Department evaluate the issue properly.

Question 37Licensing and Qualification Requirements

A Delaware public adjuster moves to a new residence but keeps the same office. What must the adjuster do regarding the license record?

  1. Notify only the adjuster's clients
  2. Wait until the next renewal to report it
  3. Nothing, because only office changes matter
  4. Report the address change to the Department as required Correct answer.

Explanation

Licensees must keep the Department informed of changes to required contact and address information, including residence changes where the record reflects them. Prompt reporting keeps the licensing record accurate.

Question 38Licensing and Qualification Requirements

Which statement about the Delaware public adjuster licensing examination is accurate?

  1. It is optional for applicants with ten years of claims experience
  2. It must be passed as a condition of initial licensure Correct answer.
  3. It is administered by the insurer that employs the adjuster
  4. It only covers Delaware traffic law

Explanation

Passing the licensing exam is a condition of initial licensure for public adjusters in Delaware. The exam tests insurance fundamentals and adjuster-specific knowledge.

Question 39Licensing and Qualification Requirements

A person licensed as a Delaware public adjuster wishes to also sell life insurance products. What is the correct approach?

  1. Obtain the separate producer license and authority required for that line Correct answer.
  2. Sell the products only to existing claim clients
  3. Rely on the public adjuster license to sell any insurance product
  4. Have a friend who is licensed sign the applications

Explanation

A public adjuster license authorizes adjusting first-party claims for insureds; it does not authorize selling insurance products. Selling insurance requires the appropriate producer license and line of authority.

Question 40Licensing and Qualification Requirements

Which factor would most likely cause the Department to deny a Delaware public adjuster license application?

  1. A change of residence within the state
  2. A recent conviction for theft from an employer Correct answer.
  3. A gap in the applicant's employment history
  4. Membership in a professional claims association

Explanation

A recent theft conviction bears directly on honesty and fitness to handle client claims and funds, which are central to the adjuster role. Such a conviction can justify denial.

Question 41Licensing and Qualification Requirements

A nonresident applies for a Delaware public adjuster license. Which item is most likely relevant to that application?

  1. The home-state adjuster license and good standing Correct answer.
  2. A Delaware driver's license
  3. A Delaware voter registration card
  4. A local business storefront lease

Explanation

Nonresident applicants generally rely on their home-state license and must show that it is active and in good standing. Delaware residency or a local storefront is not required to obtain the license.

Question 42Licensing and Qualification Requirements

Which continuing education subject area is most directly tied to the regulatory purpose of Delaware public adjuster CE?

  1. Interior design trends for restored homes
  2. Insurance law and ethics applicable to adjusting Correct answer.
  3. Automotive repair estimating
  4. Real estate marketing

Explanation

Continuing education for adjusters focuses on insurance law, ethics, and adjusting practice so licensees remain current on their legal and professional obligations. Topics unrelated to insurance practice do not satisfy the requirement.

Question 43Licensing and Qualification Requirements

A Delaware public adjuster is asked to adjust a claim in a state where the adjuster holds no license. What is the proper response?

  1. Proceed if the client signs a waiver
  2. Decline or obtain licensure in that state as required Correct answer.
  3. Proceed because the Delaware license travels with the adjuster
  4. Proceed but bill through a local contractor

Explanation

Licensing is state-specific, so a Delaware license does not authorize public adjusting in another jurisdiction. The adjuster must comply with that state's licensure rules or decline the work.

Question 44Licensing and Qualification Requirements

Which situation most clearly suggests a person is acting as an unlicensed public adjuster in Delaware?

  1. A contractor submitting a repair bid to the insurer
  2. An insured negotiating her own claim with the insurer
  3. A paid consultant who negotiates a settlement for the insured Correct answer.
  4. A friend offering unpaid advice to a neighbor

Explanation

Negotiating a settlement on the insured's behalf for compensation is the defining activity of a public adjuster and requires a license. Unpaid advice or a contractor's bid does not cross that line.

Question 45Licensing and Qualification Requirements

A Delaware public adjuster license application asks whether the applicant has ever used another name. Why does the Department require this information?

  1. To set the applicant's commission rate
  2. To verify identity and screen the full background history Correct answer.
  3. To determine the applicant's tax bracket
  4. To assign the applicant a claims territory

Explanation

Name-history information helps the Department confirm identity and run a complete background check under all names used. It prevents relevant history from being missed during review.

Question 46Licensing and Qualification Requirements

A Delaware public adjuster's license is revoked. What is the adjuster's most likely path back to lawful practice?

  1. Have clients pay the colleague directly
  2. Resume work after one year automatically
  3. Apply for reinstatement or a new license as the Department permits Correct answer.
  4. Continue working under a colleague's license

Explanation

A revoked license does not revive automatically; the adjuster must follow the Department's reinstatement or reapplication process and satisfy any conditions imposed. Working under another person's license is unlicensed activity.

Question 47Licensing and Qualification Requirements

An applicant for a Delaware public adjuster license has an out-of-state disciplinary action against a prior insurance license. How should this be handled?

  1. It should be disclosed and explained in the application Correct answer.
  2. It should be reported only after licensure
  3. It may be omitted because it occurred in another state
  4. It only matters if the other state revoked the license

Explanation

Applicants must disclose disciplinary history from other jurisdictions because regulators share and review that information. Concealment is treated more seriously than the underlying event.

Question 48Licensing and Qualification Requirements

Which fee practice is consistent with Delaware public adjuster licensing rules?

  1. Charging compensation only while properly licensed Correct answer.
  2. Charging a fee set by the insurer
  3. Charging a fee only after a claim is denied
  4. Charging a fee before the license is issued

Explanation

Compensation for public adjusting may only be earned while the person holds a valid license. Fees charged before licensure would amount to unlicensed adjusting.

Question 49Licensing and Qualification Requirements

Which record does the Department rely on to confirm that a Delaware public adjuster has met continuing education for renewal?

  1. CE completion records submitted by approved providers Correct answer.
  2. The insurer's claim file
  3. The adjuster's personal calendar
  4. The adjuster's client list

Explanation

Approved CE providers report course completions, and the Department uses those records to verify renewal eligibility. Licensees should keep their own documentation as backup.

Question 50Licensing and Qualification Requirements

A Delaware public adjuster's license is placed on probation with conditions. What does this generally mean for the adjuster's practice?

  1. The adjuster must immediately stop all adjusting permanently
  2. The adjuster may practice without restriction
  3. The adjuster may transfer the license to another person
  4. The adjuster may practice only while complying with the imposed conditions Correct answer.

Explanation

Probation allows continued practice subject to conditions such as monitoring, reporting, or additional education. Violating those conditions can lead to further discipline.