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NV Public Adjuster practice questions

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Question 1Nevada insurance law and regulations

Under Nevada law, which state office is responsible for licensing public adjusters and enforcing the statutes that govern their conduct?

  1. The Nevada Division of Insurance Correct answer.
  2. The Attorney General's Consumer Protection Bureau
  3. The Secretary of State's Business Licensing Section
  4. The Nevada Real Estate Division

Explanation

Nevada public adjusters are licensed and regulated by the Nevada Division of Insurance, which administers the state's insurance code and disciplinary process. Other state agencies handle real estate licensing, business entity registration, and consumer fraud claims, but not adjuster licensure.

Question 2Nevada insurance law and regulations

A person who negotiates or settles claims on behalf of an insured for compensation must generally be licensed in Nevada as which of the following?

  1. A public adjuster Correct answer.
  2. A surplus lines broker
  3. A captive manager
  4. A third-party administrator

Explanation

A public adjuster is the license category for someone who, for compensation, acts on behalf of the insured in negotiating or settling a first-party claim. Surplus lines brokers place coverage with unauthorized insurers, captive managers run captive insurers, and third-party administrators handle claims for insurers or plans.

Question 3Nevada insurance law and regulations

Which activity most clearly falls outside the scope of a Nevada public adjuster license?

  1. Preparing and submitting a proof of loss on a fire claim for the policyholder
  2. Selling a new homeowners policy to the claimant Correct answer.
  3. Negotiating the settlement amount of a water damage claim with the insurer
  4. Inventorying damaged personal property for the insured

Explanation

A public adjuster license authorizes representing the insured in preparing, presenting, and negotiating claims, not selling insurance products. Selling policies requires an insurance producer license. Documenting damage and negotiating settlements are core public adjusting functions.

Question 4Nevada insurance law and regulations

Before entering into a written contract to represent an insured, a Nevada public adjuster must ensure the agreement does which of the following?

  1. Is filed with the insurer before any claim work begins
  2. Is limited to claims exceeding a fixed statutory dollar threshold
  3. Is approved in advance by the Division of Insurance
  4. Contains the fee or compensation terms and is signed by the insured Correct answer.

Explanation

Nevada requires a written contract between the public adjuster and the insured that clearly states the compensation and terms, signed by the insured. The contract is not filed with the insurer or pre-approved by the regulator, and no fixed claim-value floor applies.

Question 5Nevada insurance law and regulations

A Nevada public adjuster's compensation is generally structured in which manner?

  1. As an hourly rate set by the Division of Insurance
  2. As a flat fee mandated by statute for every claim type
  3. As a contingency paid only after the insurer approves the adjuster's invoice
  4. As a percentage of the amount recovered, disclosed in the written contract Correct answer.

Explanation

Public adjusters typically charge a contingency fee based on the recovery, and Nevada requires that the compensation arrangement be set out in the written contract. The Division does not set hourly rates, and there is no single statutory flat fee for all claims.

Question 6Nevada insurance law and regulations

Which license is required for a person who investigates and settles claims solely on behalf of an insurer in Nevada?

  1. An adjuster license issued by the Division of Insurance Correct answer.
  2. An insurance producer license
  3. A public adjuster license
  4. No license, because insurer staff are exempt from all regulation

Explanation

Nevada licenses adjusters who act for insurers separately from public adjusters who act for insureds. Insurer-side adjusters must hold the appropriate adjuster license; they are not unregulated, and a producer license is for selling insurance.

Question 7Nevada insurance law and regulations

Nevada's insurance code is administered primarily to protect which group?

  1. Insurance producer associations
  2. The insurance-buying public Correct answer.
  3. Reinsurance intermediaries
  4. Insurance company shareholders

Explanation

Nevada insurance regulation exists chiefly to protect policyholders and the public in their dealings with insurers and licensees. Shareholder interests, trade associations, and reinsurance intermediaries are not the statutory beneficiaries of consumer protection provisions.

Question 8Nevada insurance law and regulations

A public adjuster licensed in another state wants to handle a Nevada claim for a Nevada policyholder. What must the adjuster generally obtain first?

  1. A letter of authorization from the insurer
  2. A federal adjuster certification
  3. A Nevada public adjuster license Correct answer.
  4. A Nevada business license only

Explanation

Nevada requires a person acting as a public adjuster in the state to hold a Nevada license; an out-of-state license alone does not authorize the activity. A general business license, insurer letter, or federal credential does not substitute for the state adjuster license.

Question 9Nevada insurance law and regulations

A public adjuster signs a representation contract with an insured on Monday. Under Nevada's contract rules, when should the adjuster provide the insured a copy of the signed agreement?

  1. After the insurer acknowledges the adjuster's involvement
  2. Only if the insured requests it in writing
  3. At the time the contract is executed Correct answer.
  4. Within 30 days after the claim is settled

Explanation

The insured is entitled to a copy of the signed representation contract at the time it is executed, so the parties have a contemporaneous record of the terms. Delaying delivery until settlement, request, or insurer acknowledgment defeats the disclosure purpose.

Question 10Nevada insurance law and regulations

An insured asks a Nevada public adjuster to also serve as the attorney negotiating a lawsuit against the insurer. How should the adjuster respond?

  1. Decline, because practicing law requires a separate law license Correct answer.
  2. Accept, provided the fee is disclosed in the contract
  3. Accept, because a public adjuster license includes litigation authority
  4. Accept, but only for claims under the small claims limit

Explanation

A public adjuster license does not authorize the practice of law, so representing an insured in litigation requires a separate law license. Fee disclosure and claim size do not convert an adjuster into an attorney.

Question 11Nevada insurance law and regulations

A Nevada public adjuster is helping an insured with a claim and learns the insured has not yet reported the loss to the insurer. What is the most appropriate action?

  1. Advise the insured to promptly notify the insurer as the policy requires Correct answer.
  2. Wait for the insurer to discover the loss independently
  3. Withhold notice until the adjuster completes a full damage inventory
  4. Report the loss to the insurer without the insured's knowledge

Explanation

Policies impose a duty on the insured to give prompt notice of loss, and the adjuster should help the insured comply rather than delay the claim. Withholding notice risks a coverage defense, and reporting without authorization oversteps the adjuster's role.

Question 12Nevada insurance law and regulations

Which statement best describes a public adjuster's fiduciary duty to the insured client in Nevada?

  1. The adjuster's only duty is to maximize the adjuster's own fee
  2. The adjuster owes no duty once the contract is signed
  3. The adjuster may favor the insurer's position when it speeds settlement
  4. The adjuster must act in the insured's interest and account for funds received on the insured's behalf Correct answer.

Explanation

A public adjuster acts as the insured's representative and must place the client's interests first, including properly handling any claim funds received for the insured. Favoring the insurer or maximizing fees at the client's expense breaches that duty.

Question 13Nevada insurance law and regulations

A Nevada public adjuster wants to advertise that they will 'guarantee a settlement of at least double your offer.' Which concern is most significant under Nevada insurance advertising standards?

  1. The advertisement is prohibited only if it names the insurer
  2. The advertisement is acceptable if the adjuster pays a filing fee
  3. The advertisement may be misleading because outcomes cannot be guaranteed Correct answer.
  4. The advertisement is acceptable if printed in English and Spanish

Explanation

Insurance advertising must not be false or misleading, and promising a specific settlement result is inherently deceptive because claim outcomes depend on facts and policy terms. Language, filing fees, and naming the insurer do not cure a misleading guarantee.

Question 14Nevada insurance law and regulations

A public adjuster solicits a claim at the scene of a residential fire while firefighters are still working. Which Nevada regulatory concern does this raise?

  1. Antitrust violations involving fire departments
  2. Unfair or deceptive solicitation practices targeting vulnerable claimants Correct answer.
  3. Violation of building code inspection rules
  4. Improper use of a surplus lines broker license

Explanation

Soliciting distressed claimants at an active loss scene raises unfair-practice concerns because it can exploit consumers at a vulnerable moment. Building codes, antitrust, and surplus lines rules do not govern adjuster solicitation conduct.

Question 15Nevada insurance law and regulations

An insured signs a representation contract with a Nevada public adjuster and later wants to cancel. Which approach is most consistent with Nevada consumer protection principles?

  1. Cancellation is permitted only with the insurer's written consent
  2. The insured may cancel according to the contract's stated cancellation terms, and the adjuster must honor them Correct answer.
  3. The insured is locked in until the insurer issues final payment
  4. Cancellation is never allowed once a proof of loss is filed

Explanation

The representation contract must disclose its terms, including cancellation, and the adjuster must honor those terms rather than trapping the insured in the relationship. Insurer consent and filing of a proof of loss do not eliminate the insured's contractual cancellation rights.

Question 16Nevada insurance law and regulations

A Nevada public adjuster receives a settlement check from the insurer that includes funds payable to the insured. What is the adjuster's proper handling of those funds?

  1. Promptly account for and remit the insured's funds as the contract and law require Correct answer.
  2. Deposit them in the adjuster's general operating account for convenience
  3. Apply them to the adjuster's fee first and remit any remainder without itemization
  4. Hold them indefinitely until the insured signs a release

Explanation

Funds belonging to the insured must be accounted for and delivered promptly, and the adjuster may not commingle or convert them. Applying fees without itemization or holding funds indefinitely breaches the fiduciary duty owed to the client.

Question 17Nevada insurance law and regulations

Which of the following best describes the continuing education expectation for a licensed Nevada public adjuster?

  1. Completion of continuing education as required by the Division of Insurance to maintain the license Correct answer.
  2. Education required solely by the insurer the adjuster works with
  3. No ongoing education once the initial license is issued
  4. Education only when the adjuster changes employers

Explanation

Nevada licensees must satisfy continuing education requirements set by the Division of Insurance to keep a license active. Education obligations are regulatory, not employer-driven, and they do not end when the initial license is issued.

Question 18Nevada insurance law and regulations

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

  1. No consequence because the conviction is unrelated to insurance
  2. Automatic loss of the license with no hearing
  3. Possible disciplinary action, including suspension or revocation, after Division review Correct answer.
  4. A fine paid to the insurer rather than the state

Explanation

Certain convictions bear on fitness for licensure, and the Division of Insurance may impose discipline such as suspension or revocation following its review. Discipline follows regulatory process rather than automatic action without review, and fines are paid to the state, not the insurer.

Question 19Nevada insurance law and regulations

A public adjuster's license lapses for failure to renew. What is the adjuster's status regarding new claim representations in Nevada?

  1. The adjuster may continue all work until the Division sends a notice
  2. The adjuster may continue representing existing clients but not new ones
  3. The adjuster may continue if the insurer approves
  4. The adjuster must stop acting as a public adjuster until the license is reinstated Correct answer.

Explanation

Acting as a public adjuster without a valid license is unlawful, so a lapsed licensee must stop adjuster activity until reinstated. Neither insurer approval nor the absence of a notice from the Division cures the lapse.

Question 20Nevada insurance law and regulations

An insured's policy contains a provision that the insured may not assign claim rights without the insurer's consent. A public adjuster is asked whether the insured can still hire the adjuster. How should the adjuster analyze this?

  1. Hiring a public adjuster is a representation arrangement, not an assignment of the claim, so the anti-assignment clause does not by itself bar it Correct answer.
  2. The anti-assignment clause voids the adjuster's license
  3. Hiring a public adjuster transfers the claim and requires insurer consent
  4. The clause means only attorneys may represent insureds

Explanation

An anti-assignment clause restricts transferring the insured's rights under the policy; retaining a public adjuster to assist with the claim is representation, not assignment. The clause neither voids the adjuster's license nor limits representation to attorneys.

Question 21Nevada insurance law and regulations

A Nevada public adjuster discovers the insured materially overstated the value of damaged contents in a proof of loss the adjuster prepared from the insured's figures. What is the adjuster's best course of action?

  1. Submit the proof of loss as prepared and let the insurer investigate
  2. Withdraw from the claim and keep the fee already collected
  3. Correct the inflated figures and document the accurate values before submission Correct answer.
  4. Advise the insured to submit the document directly to avoid adjuster involvement

Explanation

A public adjuster may not knowingly present false claim information, so the inflated figures must be corrected and supported by documentation. Submitting known misstatements or routing them around the adjuster to avoid scrutiny facilitates misrepresentation.

Question 22Nevada insurance law and regulations

A public adjuster in Nevada refers a claim to a contractor and receives an undisclosed payment from the contractor for the referral. How does this affect the adjuster's obligations?

  1. It must be disclosed to the insured because it creates a conflict of interest Correct answer.
  2. It is permissible if the contractor does the work well
  3. It is required to be reported only to the insurer
  4. It is permissible if the payment is under a set dollar amount

Explanation

Undisclosed compensation from a vendor creates a conflict of interest that undermines the adjuster's duty of loyalty, so it must be disclosed to the insured. Quality of work, payment size, and notice to the insurer do not eliminate the conflict.

Question 23Nevada insurance law and regulations

An insurer offers a public adjuster a bonus for each claim the adjuster steers to a particular restoration vendor. Which analysis is correct under Nevada standards governing adjuster conduct?

  1. Accepting is proper if the insurer also approves the vendor's pricing
  2. Accepting is proper if the bonus is disclosed only to the vendor
  3. Accepting is proper because vendor referrals benefit the insured
  4. Accepting is improper because it subordinates the insured's interests to the adjuster's financial incentive Correct answer.

Explanation

A bonus tied to steering claims to a chosen vendor places the adjuster's financial gain ahead of the insured's interests and is an improper conflict. Disclosure limited to the vendor or insurer approval of pricing does not cure the incentive structure.

Question 24Nevada insurance law and regulations

A public adjuster licensed in Nevada assists an insured with a claim while simultaneously acting as the insured's real estate agent for the damaged property sale. Which is the most accurate regulatory characterization?

  1. This raises a conflict-of-interest concern requiring careful disclosure and may require a separate real estate license for the sales activity Correct answer.
  2. This is permissible because both roles serve the insured
  3. This is permissible because real estate activity is unregulated
  4. This is prohibited only if the property is commercial

Explanation

Combining claim representation with a property sale creates competing financial incentives and requires disclosure, and the sales activity itself demands a real estate license. Serving the insured in both roles does not eliminate the conflict, and real estate activity is regulated regardless of property type.

Question 25Nevada insurance law and regulations

An insured's policy has a two-year suit-limitation clause. The insurer delays payment while the public adjuster negotiates. What is the adjuster's most prudent duty regarding this deadline?

  1. Ignore the clause because negotiation tolls it automatically
  2. Assume the insurer will waive the clause
  3. Wait until the insurer denies the claim to mention the deadline
  4. Monitor the limitation period and advise the insured to seek legal advice before it expires Correct answer.

Explanation

A suit-limitation clause can bar the insured's remedy if it expires, and negotiation does not automatically toll it. The adjuster should track the deadline and direct the insured to counsel rather than assume waiver or wait for a denial.

Question 26Nevada insurance law and regulations

Under Nevada law, a public adjuster's license is issued by which authority?

  1. The Nevada Secretary of State
  2. The Nevada Real Estate Division
  3. The Nevada Division of Insurance Correct answer.
  4. The State Bar of Nevada

Explanation

Public adjusters are licensed and regulated by the Nevada Division of Insurance, which administers the state's insurance code and issues adjuster licenses. The Secretary of State handles business entity filings, the State Bar governs attorneys, and the Real Estate Division licenses real estate professionals, none of which license adjusters.

Question 27Nevada insurance law and regulations

Which fee arrangement for a Nevada public adjuster is consistent with the compensation limits regulators impose on public adjusters?

  1. A contingency fee capped by statute as a percentage of the amount recovered for the insured Correct answer.
  2. A flat hourly fee billed regardless of whether any recovery is obtained
  3. A retainer that is nonrefundable even if no settlement is ever reached
  4. A fee equal to a percentage of the policy's total coverage limit rather than the amount paid

Explanation

Nevada's public adjuster framework ties compensation to a statutory percentage cap on the amount actually recovered for the insured. Charging against the policy limit rather than the recovery, or billing nonrefundable amounts with no recovery, conflicts with that structure. The percentage cap protects insureds from excessive charges.

Question 28Nevada insurance law and regulations

A Nevada public adjuster wants to use a contract form for insureds. Which statement about the written contract is accurate?

  1. The contract may omit the fee term until the claim is settled
  2. The contract must be in writing and include specified disclosures and a right to rescind Correct answer.
  3. An oral agreement is sufficient if the adjuster confirms it by email
  4. The contract must be approved by the insurer before it is signed

Explanation

Nevada requires public adjuster representation agreements to be written and to contain prescribed terms, including fee disclosure and a rescission right. Oral arrangements and incomplete fee terms fail that requirement. Insurer approval of the adjuster's contract with the insured is not part of the scheme.

Question 29Nevada insurance law and regulations

A Nevada public adjuster negotiates a settlement for an insured and the insured then disputes the adjuster's fee. Which standard governs whether the fee is enforceable?

  1. The fee must comply with the statutory percentage cap and the terms disclosed in the written contract Correct answer.
  2. The fee is enforceable if the adjuster orally quoted it before signing
  3. The fee is enforceable if the insurer approved the amount
  4. The fee is enforceable at any amount the insured agreed to in writing

Explanation

Enforceability depends on both the statutory cap on public adjuster compensation and the disclosures in the written representation contract. An insured's bare agreement cannot override the statutory limit, and oral quotes or insurer approval are not the governing standard.

Question 30Nevada insurance law and regulations

Which activity by a Nevada public adjuster would constitute unlicensed practice of law?

  1. Giving legal advice about the insured's rights and drafting court pleadings for a fee Correct answer.
  2. Negotiating the settlement amount with the insurer's adjuster
  3. Preparing and submitting a proof of loss to the insurer
  4. Explaining the policy's coverage terms to the insured

Explanation

Public adjusters may explain coverage, prepare proofs of loss, and negotiate settlements, but giving legal advice and drafting court pleadings is the practice of law reserved to licensed attorneys. The adjuster's license does not authorize legal representation.

Question 31Nevada insurance law and regulations

A Nevada public adjuster is asked to represent both the insured and a lienholder on the same claim. What is the adjuster's best course of action?

  1. Accept if both parties sign a waiver of the conflict
  2. Accept because lienholders are not clients
  3. Accept if the insurer agrees to the arrangement
  4. Decline the dual representation because of the conflict of interest Correct answer.

Explanation

A public adjuster owes loyalty to the insured client, and representing another party with potentially adverse interests creates a conflict that the adjuster should avoid. Waivers or insurer consent do not cure a structural conflict of this kind. The adjuster should decline rather than serve two masters.

Question 32Nevada insurance law and regulations

A Nevada public adjuster is paid by the insured but also accepts a referral fee from an attorney to whom the adjuster sends clients. What is the regulatory concern?

  1. The fee is permissible because attorneys are regulated separately
  2. The fee is permissible if it is under a fixed dollar amount
  3. The fee is permissible if it is disclosed to the insurer
  4. Undisclosed compensation from a third party compromises the adjuster's duty of loyalty Correct answer.

Explanation

A public adjuster must act solely for the insured's benefit, and undisclosed third-party compensation creates a conflict that undermines that duty. Disclosure to the insurer or a small dollar amount does not cure the problem. The adjuster's compensation should come from the insured under the representation contract.

Question 33Nevada insurance law and regulations

A Nevada public adjuster wants to solicit business by telephoning homeowners whose homes were recently damaged in a storm. Which constraint applies?

  1. There are no restrictions on solicitation by licensed adjusters
  2. Solicitation is allowed only after the claim has been paid
  3. Solicitation is allowed only if the insurer provides the homeowner's contact information
  4. Solicitation must comply with restrictions on contacting claimants, including limits on in-person solicitation at the loss site Correct answer.

Explanation

Nevada restricts how public adjusters may solicit claimants, including limits on approaching insureds at the scene of a loss. Licensing does not exempt an adjuster from those solicitation rules, and the insurer is not the source of permission for contact.

Question 34Nevada insurance law and regulations

A Nevada public adjuster includes in an advertisement the statement 'We are endorsed by the Nevada Division of Insurance.' What is the regulatory problem?

  1. The statement is acceptable if the adjuster has never been disciplined
  2. The statement is acceptable if it appears in small print
  3. The statement is acceptable if the adjuster holds an active license
  4. The statement falsely implies official state endorsement Correct answer.

Explanation

Advertising that implies endorsement or approval by a regulator is misleading, because the Division licenses adjusters but does not endorse them. Holding a license or having a clean record does not make such a claim truthful, and fine print does not cure a misleading statement.

Question 35Nevada insurance law and regulations

A Nevada public adjuster's license is suspended for a violation. Which statement describes the adjuster's authority during the suspension?

  1. The adjuster may continue if supervised by a licensed adjuster
  2. The adjuster may continue servicing existing clients but not take new ones
  3. The adjuster may not transact public adjusting business until the license is reinstated Correct answer.
  4. The adjuster may continue if the insured consents in writing

Explanation

A suspended license removes the authority to act as a public adjuster altogether, including servicing existing clients. Supervision by another licensee or client consent does not restore authority. The adjuster must obtain reinstatement before resuming business.

Question 36Nevada insurance law and regulations

A Nevada public adjuster fails to maintain the required surety bond or equivalent financial assurance. What is the most likely regulatory consequence?

  1. The adjuster may operate if the insurer posts a bond instead
  2. The adjuster may substitute a personal guarantee from the insured
  3. The adjuster may continue operating while the bond is reinstated retroactively
  4. The license may be suspended or revoked for failure to maintain the required financial assurance Correct answer.

Explanation

Maintaining the required bond or financial assurance is a condition of licensure, and failing to do so exposes the licensee to suspension or revocation. Retroactive reinstatement, client guarantees, and insurer-posted bonds are not substitutes recognized for the adjuster's own obligation.

Question 37Nevada insurance law and regulations

A Nevada public adjuster keeps client claim files in an unsecured storage unit accessible to others. Which regulatory concern does this raise?

  1. Failure to file an annual advertising report
  2. Failure to maintain the required continuing education
  3. Failure to safeguard confidential insured information Correct answer.
  4. Failure to obtain insurer approval of the storage location

Explanation

Public adjusters handle sensitive insured information and are expected to protect its confidentiality. Leaving client files accessible to others breaches that duty and can support disciplinary action. Continuing education, advertising reports, and insurer approval of storage are not the issue here.

Question 38Nevada insurance law and regulations

A Nevada public adjuster is convicted of a misdemeanor unrelated to insurance and fails to report it as required. What is the regulatory significance?

  1. Failure to report a criminal conviction as required is itself a violation that can lead to discipline Correct answer.
  2. Only felony convictions must be reported, so no report was required
  3. Only convictions involving the business of insurance must be reported
  4. The conviction is irrelevant because the adjuster's license is a state license

Explanation

Licensees must report criminal convictions as required by the Division, and failure to do so is an independent violation that can result in discipline. The reporting duty is not limited to felonies, insurance-related offenses, or only certain license types.

Question 39Nevada insurance law and regulations

A Nevada public adjuster negotiates a settlement and the insurer issues payment. What is the adjuster's obligation regarding the funds?

  1. Deposit the funds in a personal account for safekeeping
  2. Promptly account for and deliver the insured's funds as provided in the contract and applicable rules Correct answer.
  3. Retain the funds until the next policy renewal
  4. Apply the funds to the adjuster's fee without itemizing

Explanation

Settlement funds belong to the insured, and the adjuster must account for and deliver them promptly, deducting only fees authorized by the contract. Retaining funds, taking unearned fees without itemization, or commingling them in a personal account violates the adjuster's fiduciary obligations.

Question 40Nevada insurance law and regulations

A Nevada public adjuster's license expires and the adjuster continues negotiating a pending claim. Which statement is correct?

  1. The adjuster may continue if the insurer does not object
  2. The adjuster may continue if the insured signs a new contract
  3. Continuing to adjust after expiration is unlicensed activity subject to discipline Correct answer.
  4. The adjuster may finish pending claims as a courtesy under the expired license

Explanation

Once a license expires, the holder loses authority to act as a public adjuster, and continuing to negotiate claims is unlicensed activity. There is no courtesy window for pending claims, and neither a new contract nor insurer silence restores licensure.

Question 41Nevada insurance law and regulations

A Nevada public adjuster is also a licensed contractor who wants to repair the very damage that is the subject of the claim. What is the adjuster's best course of action?

  1. Avoid the arrangement because of the conflict between adjusting the claim and profiting from the repair Correct answer.
  2. Accept the repair work if a separate company performs it
  3. Accept the repair work if the contractor fee is disclosed to the insurer
  4. Accept the repair work if the insured requests it in writing

Explanation

Adjusting a claim while also profiting from repairing the damage creates a conflict that undermines the adjuster's duty to the insured. Written requests or disclosure to the insurer do not eliminate the incentive problem. The adjuster should avoid performing the repair work on a claim the adjuster handles.

Question 42Nevada insurance law and regulations

Which recordkeeping practice is most consistent with a Nevada public adjuster's regulatory obligations?

  1. Destroying claim records once the settlement is paid
  2. Keeping only summary notes rather than the underlying documents
  3. Maintaining complete claim records and making them available for examination by the Division Correct answer.
  4. Storing records only in the insurer's file

Explanation

Public adjusters must keep records of their claim transactions and make them available to the Division on request. Destroying records after settlement, keeping only summaries, or relying solely on the insurer's file fails to preserve the adjuster's own accountability.

Question 43Nevada insurance law and regulations

A Nevada public adjuster's representation contract states that the insured waives all rights to cancel. How should this term be treated?

  1. It is enforceable because the insured signed the contract
  2. It is unenforceable because the insured's cancellation right cannot be waived Correct answer.
  3. It is enforceable only for claims under a set dollar amount
  4. It is enforceable if the adjuster explains it orally

Explanation

The insured's right to cancel the public adjuster contract is a protection that the adjuster cannot contract away. A signed waiver does not make an unlawful term enforceable, and oral explanation or claim size does not change that. Such a term is unenforceable.

Question 44Nevada insurance law and regulations

A Nevada public adjuster is asked to testify about a claim in court. Which statement about the adjuster's role is accurate?

  1. The adjuster may testify as a fact witness about the claim work performed Correct answer.
  2. The adjuster may represent the insured in court as an advocate
  3. The adjuster may file pleadings on the insured's behalf
  4. The adjuster may give the insured legal advice about litigation strategy

Explanation

A public adjuster may testify as a fact witness about work performed on the claim, but representing the insured in court, filing pleadings, and advising on litigation strategy are legal services reserved to attorneys. The adjuster's license does not extend to the practice of law.

Question 45Nevada insurance law and regulations

A Nevada public adjuster's client asks the adjuster to backdate the representation contract so it appears to precede the loss. How should the adjuster respond?

  1. Agree, because the insured is the client and directs the work
  2. Agree, because the date does not affect the fee
  3. Refuse, because falsifying claim or contract records is a violation that can lead to discipline Correct answer.
  4. Agree, because the insurer is unlikely to notice

Explanation

Falsifying contract or claim records is dishonest conduct that violates the adjuster's obligations and exposes the licensee to discipline. Client direction, fee impact, and the likelihood of detection are irrelevant to the impropriety. The adjuster must refuse.

Question 46Nevada insurance law and regulations

A Nevada public adjuster advises an insured to inflate the estimate of damaged contents to increase the settlement. What is the adjuster's exposure?

  1. No exposure if the insurer ultimately pays the original amount
  2. No exposure if the inflation is later corrected
  3. Disciplinary action for participating in a fraudulent claim, in addition to potential civil and criminal liability Correct answer.
  4. No exposure if the insured, not the adjuster, signs the proof of loss

Explanation

A public adjuster who encourages or participates in inflating a claim is engaged in fraudulent conduct subject to license discipline and potentially civil or criminal liability. The insured's signature, the eventual payment amount, or a later correction does not excuse the adjuster's participation.

Question 47Nevada insurance law and regulations

Which statement best describes the Division's authority over a Nevada public adjuster's conduct?

  1. The Division may investigate complaints and impose discipline, including fines, suspension, or revocation Correct answer.
  2. The Division may act only on complaints filed by insurers
  3. The Division may only issue licenses and cannot discipline licensees
  4. The Division may discipline only if a court first convicts the adjuster

Explanation

The Division enforces the insurance code against licensees, including investigating complaints and imposing penalties such as fines, suspension, or revocation. It does not need a prior criminal conviction and can act on complaints from insureds or others, not just insurers.

Question 48Nevada insurance law and regulations

A Nevada public adjuster is offered a bonus by a restoration company for each claim steered to that company, with no disclosure to the insured. Which statement is correct?

  1. Accepting the bonus is permissible if it is reported as income
  2. Accepting the undisclosed bonus violates the adjuster's duty of loyalty to the insured Correct answer.
  3. Accepting the bonus is permissible if the insured signs the repair contract
  4. Accepting the bonus is permissible because the restoration company pays it

Explanation

Undisclosed compensation from a vendor creates a conflict that compromises the adjuster's duty to act in the insured's interest. The source of the payment, tax reporting, or the insured's signature on a repair contract does not cure the undisclosed conflict. The adjuster should decline the arrangement.

Question 49Nevada insurance law and regulations

A Nevada public adjuster wants to charge a fee before any work is performed and keep it regardless of outcome. Which statement reflects Nevada's approach?

  1. Compensation is tied to the amount recovered, subject to the statutory cap, rather than a nonrefundable upfront charge Correct answer.
  2. Upfront nonrefundable fees are permitted for commercial claims only
  3. Upfront nonrefundable fees are permitted if disclosed in the contract
  4. Upfront nonrefundable fees are permitted if the insured is represented by counsel

Explanation

Nevada's public adjuster compensation model ties fees to the amount recovered for the insured, within statutory limits, rather than permitting nonrefundable upfront charges. Disclosure, attorney involvement, or the commercial nature of the claim does not convert the fee into a permissible form.

Question 50Nevada insurance law and regulations

A Nevada public adjuster's license application contains a false statement about the applicant's prior employment. What is the likely consequence if discovered after licensing?

  1. The issue may be cured by submitting a corrected application years later
  2. The issue is irrelevant because employment history is not reviewed
  3. The license is immune from challenge once issued
  4. The license may be disciplined or revoked for the misrepresentation in the application Correct answer.

Explanation

Obtaining or attempting to obtain a license through misrepresentation is grounds for discipline, including revocation, even after the license is issued. Licensure is not immune from later challenge, and a late correction does not erase the false statement.