Maine Property and Casualty Adjuster Practice Test

Correct answer: B. No, the definition of adjuster excludes insurer employees

Section 1402(1)(B) excludes property and casualty adjusters, and workers' compensation adjusters, who are employees of insurers from the definition of adjuster, so staff adjusters need no Maine license. The Bureau of Insurance applies the exclusion to employees of a group of affiliated insurers who adjust for no unrelated insurer or insured. The $10,000 figure belongs to the separate exclusion for licensed producers with settlement authority.

Reference: 24-A M.R.S. 1402(1)(B); Maine Bureau of Insurance Adjusters FAQs

Correct answer: C. $20,000, while the catastrophe circumstances last

Section 1402(1)(C) excludes licensed producers authorized by contract to settle and pay claims within a limit set by the insurer, capped at $10,000. Under the same circumstances described in section 1475, an extraordinary loss or a series of losses from a common catastrophe, the cap may temporarily rise to $20,000. A producer who settles above the applicable cap is acting as an adjuster and needs the license.

Reference: 24-A M.R.S. 1402(1)(C) and 1475

Correct answer: A. 8 months of experience, supervised by a Maine adjuster with 4 years in business

Section 1402(2) defines an adjuster trainee as an individual with less than one year of total claims experience, not licensed as a Maine adjuster, who is employed by and under the immediate personal supervision of a Maine-licensed adjuster established in the business of adjusting for 3 years or more. Eighteen months of experience is too much, working alone fails the supervision test, and a supervisor with 1 year in business is not experienced enough.

Reference: 24-A M.R.S. 1402(1)(F) and (2)

Correct answer: D. No Maine license, since an authorized insurer sent him to adjust

Section 1475 says no adjuster license is required for an adjuster sent into Maine on behalf of an authorized insurer or fraternal benefit society to investigate or adjust a particularly unusual or extraordinary loss or a series of losses from a common catastrophe, and section 1411(2) cross-references this exception. The Bureau's adjuster FAQ adds that no official declaration of the event is needed, so the declaration and permit options add conditions the law does not impose.

Reference: 24-A M.R.S. 1475 and 1411(2); Maine Bureau of Insurance Adjusters FAQs

Correct answer: C. 2 years

Section 1410(6) says an individual who does not apply for a license within 2 years after passing one part or all of an examination must register and pay the fee for a subsequent examination. Many states allow only 12 months, so do not carry that number over to Maine. The 90-day period in Maine law applies to adjusters licensed in another state who move to Maine (section 1427-A).

Reference: 24-A M.R.S. 1410(6)

Correct answer: B. Two exams, for a total of $110

Section 1410(7) requires a separate examination and fee for each authority, so property and casualty (12-ME-31) and workers' compensation (12-ME-32) are two Pearson VUE exams at $55 each. Section 1410(9) lets a crop applicant either pass the crop exam or show federal crop insurance certification, so Andre's certification replaces the third exam (NIPR notes this route needs a paper application). Total fees: $110.

Reference: 24-A M.R.S. 1410(7) and (9); Pearson VUE Maine Insurance Candidate Handbook, Available Exams and Fees

Correct answer: C. Pay the biennial fee due by October 1 of even years

Under 24-A M.R.S. 1416-A, a Maine license continues indefinitely as long as the applicable fee is paid, and resident adjusters are billed a biennial fee due by October 1 of even-numbered years ($30 on the Bureau's renewal page). The Bureau's adjuster FAQ states that resident and nonresident adjusters do not have to complete continuing education. Nonresident adjusters pay their fee by January 1 of even-numbered years.

Reference: 24-A M.R.S. 1416-A(1) and (2); Maine Bureau of Insurance Adjusters FAQs

Correct answer: D. At least 3 years

Section 1474 requires each adjuster to keep, at the business address shown on the license, a record of all transactions: a copy of all investigations or adjustments and a statement of any fee, commission or other compensation received or to be received. Records may be kept electronically, must be available to the superintendent at all times and must be retained for at least 3 years, not just until the claim closes.

Reference: 24-A M.R.S. 1474

Correct answer: B. 9:00 a.m. Wednesday

Section 1476(1) bars an adjuster seeking to provide adjusting services to an insured, for a fee paid by the insured, from offering an adjustment services contract for at least 36 hours after the accident or occurrence. Adding 36 hours to 9:00 p.m. Monday gives 9:00 a.m. Wednesday. Tuesday at 9:00 p.m. is only 24 hours later, and Wednesday at 9:00 p.m. (48 hours) is longer than the law requires.

Reference: 24-A M.R.S. 1476(1)

Correct answer: A. A notice on page one of a right to rescind within 2 business days

Section 1476(2) requires any such contract to include a provision, prominently printed on the first page, stating that the person contracting with the adjuster may rescind within 2 business days after signing. Maine has no separate public adjuster license; the Bureau says it does not distinguish between independent and public adjusters, so this rule applies to any licensed adjuster working for an insured. Section 1476 sets no fee cap.

Reference: 24-A M.R.S. 1476(2); Maine Bureau of Insurance Adjusters FAQs

Correct answer: D. Pass the Maine licensing exam, then apply as a nonresident naming Maine

The Bureau's adjuster FAQ says a resident of a state that does not license adjusters may designate Maine as home state by passing the Maine adjuster exam and applying as a nonresident licensee with Maine listed as the designated home state. Maine does not require a certification or clearance letter. Because Maine has no adjuster CE, other states may require CE or an exam before issuing licenses based on a Maine DHS license.

Reference: Maine Bureau of Insurance Adjusters FAQs; 24-A M.R.S. 1477

Correct answer: B. He cannot be relicensed until at least 1 year has passed

Section 1418(1) bars issuing a license to a person whose license was revoked until at least 1 year after the revocation took effect, or after a final court order if appealed. The applicant must reestablish qualification and may be refused without good cause shown, so reapplying with no need to requalify is wrong. Only a second revocation makes a person permanently ineligible under section 1418(2).

Reference: 24-A M.R.S. 1418(1) and (2)

Correct answer: A. Within 30 days; hearing within 30 days after filing

Section 229(3) requires the written application within 30 days after the person knew or reasonably should have known of the act or order, unless other law sets a different period, and section 229(4) requires the hearing within 30 days after filing (or after the application is sworn to) unless postponed by mutual consent. Fourteen days is the minimum advance notice of a hearing under section 230, and a party appeals a hearing order within 30 days under section 236.

Reference: 24-A M.R.S. 229(3) and (4), 230 and 236

Correct answer: C. If done in conscious disregard or as a business practice

Section 2164-D(2) makes a subsection 3 act an unfair claims practice if it is committed in conscious disregard of the section and its rules, or with such frequency as to indicate a general business practice. One innocent slip is not automatically a violation, but a single knowing violation can be. No complaint or court finding is required; the superintendent enforces the section, which creates no private right of action.

Reference: 24-A M.R.S. 2164-D(2), (3)(B) and (8)

Correct answer: C. By June 18, 15 calendar days after the request

Section 2164-D(3)(K) lists failing to provide necessary claim forms, with reasonable explanations, within 15 calendar days of a request; the deadline does not apply to an extraordinary loss or series of losses from a catastrophe as determined by the superintendent. Section 2164-D(1) defines insurer for this section to include adjusters, producers and third-party administrators, so Carlos is bound by it too.

Reference: 24-A M.R.S. 2164-D(1) and (3)(K)

Correct answer: D. Paying claims without indicating the coverage for each

Section 2164-D(3)(H) lists making claim payments to an insured or beneficiary without indicating the coverage under which each payment is made. Like the other listed acts, it is an unfair claims practice when done in conscious disregard of the law or often enough to indicate a general business practice. Nothing in the facts suggests a lowball offer, duplicate proof demands or an altered application.

Reference: 24-A M.R.S. 2164-D(3)(H)

Correct answer: B. 24-A M.R.S. 2436-A, unfair claims settlement practices

Section 2436-A(1)(E) lets a person injured by his or her own insurer's failure, without just cause, to effectuate a prompt, fair and equitable settlement of a claim on which liability has become reasonably clear sue for damages, costs, reasonable attorney's fees and interest of 1 1/2% per month. Section 2164-D(8) says that section creates no private cause of action. Section 2436-A does not apply to workers' compensation claims.

Reference: 24-A M.R.S. 2436-A(1) and (2); 2164-D(8)

Correct answer: A. Workers' compensation insurance

Section 2164-D(9) states that the section does not apply to claims involving workers' compensation, medical malpractice, fidelity, suretyship or boiler and machinery insurance. Homeowners, commercial auto and general liability claims are all covered. Workers' compensation claims are governed by the Maine Workers' Compensation Act (Title 39-A), and section 2436-A's civil action also excludes them.

Reference: 24-A M.R.S. 2164-D(9)

Correct answer: D. After July 5

Section 2436(1) makes a claim payable within 30 days after proof of loss is received and the loss is ascertained by written agreement or arbitration award. If, during those 30 days, the insurer notifies the insured in writing that reasonable additional information is required, the undisputed claim is not overdue until 30 days after the insurer receives that information. Thirty days after June 5 is July 5; May 31 would apply without the request.

Reference: 24-A M.R.S. 2436(1)

Correct answer: C. $540

Section 2436(3) says an overdue undisputed claim bears interest at 1 1/2% per month after the due date. Three months at 1.5% is 4.5%, and 4.5% of $12,000 is $540. $180 is one month of interest, and $1,800 would be 15%. If Beatriz had hired an attorney and the insurer paid after notice of the representation, section 2436(4) would also require the insurer to pay a reasonable attorney's fee.

Reference: 24-A M.R.S. 2436(3) and (4)

Correct answer: C. 60 days

Section 2436(1) sets a general 30-day payment period, but paragraph A applies 60 days to a standard fire policy and to the fire portion of a combination policy, matching the When loss payable condition of the Maine standard fire policy in section 3002. That is why 30 days, the answer for most other claims, is wrong here. After the due date, unpaid undisputed amounts bear interest of 1 1/2% per month.

Reference: 24-A M.R.S. 2436(1)(A) and 3002

Correct answer: B. October 22

Section 3041(1) requires an insurer, or its representative such as an independent adjuster, to begin adjustment of a physical loss by fire within 20 days after receiving the notice of loss provided for by the policy. Twenty days after October 2 is October 22. Section 3041(2) adds that, in a fire statute or policy, the date of loss means the day of the fire.

Reference: 24-A M.R.S. 3041

Correct answer: A. Agent: 4 working days to transmit; insurer: 30 calendar days

Section 3042(2) requires an agent or other representative who receives a request for loss information to transmit it to the insurer within 4 working days, and section 3042(1) requires the insurer to provide the information within 30 calendar days of receiving a written request. Loss information includes the date and description of each loss, amounts paid and reserved, and whether the claim is open or closed.

Reference: 24-A M.R.S. 3042

Correct answer: B. Tell Ellen she need not use the recommended shop

Section 2164-C(2) bars an insurer or its agent or employee from requiring, directly or indirectly, that collision appraisals or repairs be made or not be made at a specified place of business, and from recommending a particular repair service or network without telling the claimant there is no obligation to use it. Section 2164-C(1) applies a similar rule to motor vehicle glass. Recommending a shop is allowed; requiring one is not.

Reference: 24-A M.R.S. 2164-C(1) and (2)

Correct answer: A. $400,000

Negligent use of a government vehicle is an exception to immunity under 14 M.R.S. 8104-A(1), but section 8105(1) caps damages, including costs, at $400,000 for any and all claims arising out of a single occurrence, and the court may allocate that amount among the claimants. The cap is per occurrence, not per claimant, so $1,200,000 is wrong. Under section 8116, insurance with limits above the cap would replace it, which is why the stem rules that out. Punitive damages are barred, and written notice of claim is due within 365 days under section 8107.

Reference: 14 M.R.S. 8104-A(1), 8105, 8107 and 8116