Delaware Property Adjuster Practice Test

Correct answer: A. A Delaware adjuster license for the property line

Section 1702(1) defines an adjuster as a licensee who investigates or negotiates claim settlements as an independent contractor or on behalf of an independent contractor, insurer, self-insurer, producer or managing general agent. Section 1703 bars anyone from transacting insurance, which 1702(25) says includes adjusting claims, without a license for that line. Delaware has no staff adjuster exemption, so an insurer's own employee needs the license too.

Reference: 18 Del. C. 1702(1), 1702(25) and 1703

Correct answer: D. Personal lines insurance

Section 1707(d) lists seven adjuster lines: property, casualty, fidelity and surety, automobile, marine and transportation, crop, and workers' compensation. Personal lines is a producer line of authority under 1707(a)(6), not an adjuster line. Each adjuster line has its own Pearson VUE exam except crop, where the Department accepts a federal crop adjuster proficiency (CAPP) card instead of a test.

Reference: 18 Del. C. 1707(a)(6) and 1707(d); Delaware DOI Licensing Procedures (2025)

Correct answer: B. Lena only, because she appraises damage for insurers

An appraiser is a licensee who assesses property damage to motor vehicles (1702(3)), and 1707(c) makes the appraiser license the authority for that work. Regulation 602 adds that an appraisal does not include an estimate of repairs to be performed by the person or business making the estimate, so Marcus's shop estimate is not an appraisal. Lena's work for insurers is exactly what the license covers.

Reference: 18 Del. C. 1702(3) and 1707(c); 18 DE Admin. Code 602, section 1.0

Correct answer: C. A supervising adjuster's signed certification of responsibility

Section 1706(c) requires a certification from a licensed adjuster or appraiser who assumes responsibility for the apprentice's training and for everything the apprentice does under the license. Department procedures add that the apprentice must be a full-time employee under that licensee's supervision and must submit criminal history reports. The fee is $75 (18 Del. C. 701(29)), the license is valid for 1 year, and the Department's apprentice checklist lists no exam or prelicensing course.

Reference: 18 Del. C. 1706(c) and 701(29); Delaware DOI Licensing Procedures (2025)

Correct answer: A. Written notice to the Commissioner within 10 calendar days

Section 1707(e)(1) exempts an adjuster or appraiser sent in by an insurer for an unusual or extraordinary loss, or a series of losses from a common catastrophe, if written notice reaches the Commissioner within 10 calendar days of the work. In practice the Department has these adjusters apply through NIPR for an Emergency CAT license, issued without a state fee for 60 days unless extended, with a letter from the insurer naming the responsible company official.

Reference: 18 Del. C. 1707(e)(1); Delaware DOI Notice: Catastrophic Adjuster/Appraiser

Correct answer: C. A licensed producer, on a policy issued through or serviced by her

Section 1707(e)(3) lets a licensed agent or broker adjust or assist in adjusting losses under policies issued through or serviced by that agent or broker, subject to any limits the Commissioner sets by regulation. A contractor who negotiates for the insured for a fee is acting as a public adjuster under 18 Del. C. 1750. A per-file adjuster and an out-of-state adjuster on an ordinary claim both need a Delaware adjuster license.

Reference: 18 Del. C. 1707(e)(3) and 1750(4)

Correct answer: D. He must apply within 90 days and needs no exam for lines he held

Section 1709(b) requires a producer, adjuster or appraiser licensed in another state who moves to Delaware to apply for a resident license within 90 days of establishing legal residence. No prelicensing education or examination is required for any line of authority held in the prior state unless the Commissioner provides otherwise by regulation. As a resident applicant he still submits state and FBI criminal history reports under 1706(b).

Reference: 18 Del. C. 1709(b) and 1706(b)

Correct answer: B. Pass the Delaware exam and file state and FBI background reports

Section 1708(a) requires nonresident adjusters whose home state, including a designated home state, has no adjuster exam to satisfy Delaware's exam requirement. Department procedures say applicants licensed nowhere must pass the Delaware exam and submit Form 2A with state and FBI criminal history reports dated within 90 days, and NIPR lets them designate Delaware as their adjuster home state. Delaware has no adjuster prelicensing course, and a public adjuster license is a different license.

Reference: 18 Del. C. 1708(a); Delaware DOI Licensing Procedures (2025)

Correct answer: C. Insurer, insured, policy number and settlement amount, kept 5 years

Section 1707(m)(1)b. requires an adjuster to keep, at the principal place of business, the license and a record of each claim settled or adjusted showing the insurer, the insured, the policy number and the amount settled, plus anything else the Commissioner requires. Under 1707(m)(2) the records must be kept and open to the Commissioner's inspection for 5 years. Appraisers keep a copy of each written appraisal on the same terms.

Reference: 18 Del. C. 1707(m)

Correct answer: A. $60,000

Section 1712(d) allows a fine of not less than $200 and not more than $20,000 for each violation, in addition to or instead of denial, suspension or revocation. Three violations at the $20,000 maximum total 3 x $20,000 = $60,000. The fine is due no sooner than 30 days after the order unless the order says otherwise, and a licensee who fails to pay has the license revoked.

Reference: 18 Del. C. 1712(d)

Correct answer: D. She has 10 days to demand a hearing and must wait 1 year to reapply

Under 1712(b), an applicant who is denied a license gets the reasons in writing and may make a written demand for a hearing before the Commissioner within 10 days; the hearing follows the Administrative Procedures Act. Section 1712(h) makes an applicant denied for a 1712(a) cause, such as giving misleading information on the application, ineligible to reapply for 1 year from the date of the denial.

Reference: 18 Del. C. 1712(a)(1), (b) and (h)

Correct answer: B. A $250 penalty, double the unpaid fee

Section 1707(g) lets a licensee whose license lapsed for late renewal reapply within 12 months of the due date without a new exam. A renewal fee received during the first 6-month grace period carries a penalty of double the unpaid renewal fee, here 2 x $125 = $250. The $200 to $1,000 civil fine applies in the second 6-month grace period and to licensees who neither renew nor surrender the license.

Reference: 18 Del. C. 1707(f) and (g)

Correct answer: B. She owes no renewal fee and no CE for the biennium she was licensed

Section 701(27)(c) excuses resident adjusters first licensed within 90 days before the February 28 deadline (December 1 to February 28) from the renewal fee for that renewal period. Regulation 504 section 8.2.5 applies no CE requirement during the biennium in which a person is newly licensed. Resident licenses renew by February 28 of even-numbered years for $125, so her first full CE cycle is the following biennium.

Reference: 18 Del. C. 701(27); 18 DE Admin. Code 504, section 8.2.5

Correct answer: D. 12 credit hours, including 3 in ethics

Regulation 504 section 8.2.2 sets 12 credit hours, 3 of them in ethics, each biennium for resident adjusters and public adjusters; the 24-hour requirement in section 8.2.1 applies to producers. The biennium ends on the last day of February in even-numbered years. Missing the requirement without an approved extension can bring a fine of up to $2,000 and a 1-year license suspension under section 9.1.

Reference: 18 DE Admin. Code 504, sections 2.0, 8.2.2 and 9.1

Correct answer: A. One licensed only for marine and transportation

Section 8.8 of Regulation 504 exempts resident adjusters licensed for fidelity and surety and/or marine and transportation. A property adjuster has the full 12-hour requirement, and Regulation 507 separately requires 12 hours, 3 in ethics, of workers' compensation adjusters. A CPCU earns automatic credits under section 8.3 but is not exempt from the requirement.

Reference: 18 DE Admin. Code 504, sections 8.3 and 8.8; 18 DE Admin. Code 507, section 6.0

Correct answer: C. 6 hours, including all 3 required ethics hours

Adjusters continuously licensed for 25 years or more, or holding an approved designation, receive 6 automatic credits per biennium under section 8.3, but automatic credits cannot satisfy the ethics requirement. Her 12-hour requirement is 9 general hours plus 3 ethics hours. The 6 automatic credits cover 6 general hours, leaving 3 general and 3 ethics hours, or 6 hours in total.

Reference: 18 DE Admin. Code 504, sections 8.2.2 and 8.3

Correct answer: C. Election by the state's voters for a term of 4 years

Section 301 makes the Insurance Commissioner the chief officer of the Insurance Department, elected by Delaware's qualified voters at a general election for a 4-year term and commissioned by the Governor. The Commissioner takes office on the first Tuesday of January after the election. Delaware is one of the few states that elect their insurance regulator instead of having the Governor appoint one.

Reference: 18 Del. C. 301

Correct answer: A. 15 working days of receiving his communication

Regulation 902 section 3.1.2 treats failing to acknowledge and respond within 15 working days of receipt to an insured's claim communications as an unfair claim settlement practice when it happens often enough to be a general business practice. It puts a number on the duty in 18 Del. C. 2304(16)b. to acknowledge and act reasonably promptly on claim communications. The 10-working-day deadline in section 3.1.3 is for starting the investigation.

Reference: 18 DE Admin. Code 902, section 3.1.2; 18 Del. C. 2304(16)b.

Correct answer: D. Begin investigating within 10 working days of notice of loss; affirm or deny within 30 days of proof of loss

Section 3.1.3 requires a prompt investigation to begin within 10 working days after the insurer receives notice of loss. Section 3.1.5 requires the insurer to affirm or deny coverage, or explain in writing why it cannot yet do so, within 30 days after it receives proof of loss statements. The 15-working-day figure in section 3.1.2 applies to acknowledging and responding to claim communications.

Reference: 18 DE Admin. Code 902, sections 3.1.3 and 3.1.5

Correct answer: B. Affirm or deny, or tell Jamal in writing why it cannot do so yet

Section 3.1.5 requires the insurer, within 30 days after receiving proof of loss statements, to affirm or deny coverage or advise the claimant in writing, or in another proper legal manner, of the reason it cannot yet do so. A missing police report does not stop the clock; it is a reason to give in the written explanation. The insurer is not required to pay a claim it has not finished investigating.

Reference: 18 DE Admin. Code 902, section 3.1.5; 18 Del. C. 2304(16)e.

Correct answer: A. Prima facie evidence of a general business practice, rebuttable

Twelve of 250 files is 12 / 250 = 4.8%. Section 3.2 treats a rate above 4% of sampled claims, within a single category of prohibited practice and a single 12-month period, as prima facie evidence of a general business practice. Section 3.3 says the presumption is not itself an additional violation, and section 3.4 lets the insurer rebut it with evidence about harm to claimants, the nature of the violation and its intent.

Reference: 18 DE Admin. Code 902, sections 3.2 to 3.4

Correct answer: D. Verbally, as long as it is documented in the claim file

Section 3.1.13 makes it an unfair practice to fail, when asked, to promptly explain the policy basis, in relation to the facts or law, for denying a claim or offering a compromise. The explanation may be given verbally, but it must then be documented in the claim file. 18 Del. C. 2304(16)n. likewise requires a prompt, reasonable explanation of the basis for a denial or a compromise offer.

Reference: 18 DE Admin. Code 902, section 3.1.13; 18 Del. C. 2304(16)n.

Correct answer: C. Delaying a clear collision payment to pressure a disputed injury claim

Section 2304(16)m. lists failing to promptly settle claims where liability is reasonably clear under one part of the policy in order to influence settlements under other parts. Recorded statements and appraisal are legitimate claim tools, and a denial based on a reasonable investigation is what 2304(16)d. requires, since it forbids refusing to pay without one. These practices are violations when committed often enough to show a general business practice.

Reference: 18 Del. C. 2304(16)d. and m.

Correct answer: B. A statement of the coverage under which the payment is made

Section 2304(16)j. lists making claim payments to insureds or beneficiaries without a statement setting forth the coverage under which the payment is made, and Regulation 902 section 3.1.10 repeats the rule. The statement lets the insured see which coverage, such as personal property subject to a special limit for jewelry, the money came from. A release or a waiver of supplemental claims is not required with every payment.

Reference: 18 Del. C. 2304(16)j.; 18 DE Admin. Code 902, section 3.1.10

Correct answer: D. Within 30 days; interest at the prime rate plus 3% on the claim

Regulation 903 defines prompt payment as remitting the check or electronic payment within 30 days of the triggering date, such as full execution of the settlement agreement or a final court order. After a hearing finding bad-faith failures that amount to a general business practice, the Commissioner may award interest at the prime rate plus 3% from that date and impose fines. Three late payments within 36 months create a rebuttable presumption of a violation.

Reference: 18 DE Admin. Code 903, sections 5.1, 6.1 and 7.1