Reviewed by the CoveragePrep editorial team · Sources: state insurance departments, statutes, exam candidate handbooks · How we research
MN · PSI · 35 questions
Minnesota Property and Casualty Adjuster Practice Test
Minnesota licenses adjusters under Minnesota Statutes chapter 72B, administered by the Department of Commerce. Independent and public adjusters must be licensed, while officers, directors, managers and employees of authorized insurers are exempt, although staff adjusters can still be fined for the misconduct listed in section 72B.08. The law creates three license classes (independent, public and crop hail), and independent and public adjusters choose among three lines of authority: property and casualty, workers' compensation and crop, each with its own PSI exam. Residents must be at least 18, pass the exam for each line, be fingerprinted and apply on Sircon; there is no prelicensing course. Residents of states that do not license independent adjusters, including Wisconsin and the Dakotas, can designate Minnesota as their home state by qualifying the same way (see our designated home state guide). Fees, renewal and nonresident rules are in our Minnesota adjuster license guide.
The Property and Casualty Adjuster exam is short: 35 scored questions in one hour, and you need 70%, so at least 25 correct answers. PSI may mix in 5 to 15 unscored experimental questions that count against your time. The adjustment process is the largest section at 9 questions, followed by analyzing coverage (7), the insurance contract, types of loss and insurance terms (5 each) and licensing (4). Minnesota law reaches beyond the licensing section: the outline also lists the Minnesota Insurance Unfair Claims Practices Act and a state value policy topic under the adjustment process, and no-fault personal injury protection under types of loss. Our Minnesota questions cover chapter 72B, the claim deadlines in Minn. Stat. 72A.201, the No-Fault Act, the valued policy law, the FAIR Plan and the Minnesota Insurance Guaranty Association.
Exam vendor
PSI
Questions
35 scored (PSI may add 5 to 15 unscored experimental questions)
Time limit
1 hour
Passing score
70%
Exam fee
$25
You cannot book a new appointment on the day you test, but a candidate who fails on a Wednesday can call Thursday and retest as soon as Friday if seats are open. Each attempt costs $25, the bulletin sets no limit on attempts, and an unused fee is forfeited after one year.
Adjusters must be at least 18 but need no prelicensing course. Residents are usually fingerprinted electronically at a PSI center after passing ($66.75), then apply on Sircon. Workers' compensation and crop are separate 35-question, one-hour PSI exams at $25 each.
No exam is required if you hold an adjuster license for the same line in another state that was based on an exam (or apply within 90 days after it expires), or if you move to Minnesota with such a license and apply within 90 days.
Minnesota Insurance Law for Adjusters: practice questions (part 1 of 2)
State law is the part of the exam that general study guides skip and the part most candidates miss. These 25 questions are written from the statutes and rules cited in each explanation.
0 of 25 answered
Who must be licensed · Recall
Rachel is a salaried claim representative employed by an authorized insurer. She adjusts auto physical damage claims in Minnesota only for her employer. Under Minn. Stat. 72B.03 and 72B.10, what Minnesota license does she need?
Show answer and explanation
Correct answer: C. None, because insurer employees are exempt from adjuster licensing
Section 72B.03, subd. 1(b)(8), excludes officers, directors, managers and employees of an authorized insurer from the license requirement, and 72B.10 says staff adjusters are not subject to the application, licensing or examination rules. Chapter 72B sets no annual staff registration. Staff adjusters must still avoid the misconduct listed in 72B.08, subd. 1, clauses (3) to (15).
Minn. Stat. 72B.03, subd. 2, creates three classes of adjuster licenses. Which list names them correctly?
Show answer and explanation
Correct answer: C. Independent, public and crop hail adjuster licenses
The three classes are the independent adjuster, public adjuster and crop hail adjuster licenses. Property and casualty, workers' compensation and crop are lines of authority that an independent or public adjuster may hold, not license classes. Staff adjusters are exempt from licensing, and emergency adjusters work under the temporary authority in 72B.06 rather than a fourth license class.
Which of these people must hold a Minnesota adjuster license under Minn. Stat. 72B.03 to do the work described?
Show answer and explanation
Correct answer: B. Tomas, a contractor who settles property claims for several insurers
An independent contractor who investigates and settles property claims for insurers is an independent adjuster and must be licensed. Subdivision 1(b) exempts a person who settles only reinsurance or subrogation claims (clause 7), a fraud investigator who does not adjust losses or determine claim payments (clause 3), and a Minnesota attorney acting in a professional capacity as an attorney (clause 1).
Carlos is licensed in Georgia as an adjuster after passing Georgia's adjuster exam. He moves to Minnesota and wants a resident license for the same line. Under Minn. Stat. 72B.041, subd. 5, which statement is correct?
Show answer and explanation
Correct answer: A. He needs no exam if he applies within 90 days of becoming a resident
A person licensed as an adjuster in another state based on an adjuster examination who establishes legal residency in Minnesota must apply within 90 days to become a resident licensee, and no prelicensing examination is required of that person (72B.041, subd. 5(b)). Minnesota has no adjuster prelicensing course, and a producer license plays no part in the exemption.
Ingrid holds only a Minnesota crop hail adjuster license and has never completed FCIC loss adjustment training. An insurer asks her to adjust a drought loss under a Multiple Peril Crop Insurance policy. What does Minnesota law allow?
Show answer and explanation
Correct answer: D. She may not, because her license covers only crop damage by hail
Under 72B.02, subd. 14, a crop hail adjuster acts on policies against crop damage by hail. Commerce explains that other crop perils, including MPCI claims, require an independent or public adjuster license with the crop line. Under 72B.055, a crop hail licensee may adjust MPCI claims only after completing the FCIC Standard Reinsurance Agreement loss adjustment training and competency testing.
Under Minn. Stat. 72B.041, subd. 6, when do Minnesota individual adjuster licenses issued today expire?
Show answer and explanation
Correct answer: B. At the end of the adjuster's birth month, every two years
Individual licenses issued or first renewed on or after August 1, 2010 expire on the last day of the adjuster's birth month, with a first term of at least 12 but no more than 24 months, and then every two years after that. The October 31 expiration applies to business entity licenses and to individual licenses issued before August 1, 2010.
Devon's Minnesota adjuster license expired because he missed the renewal deadline. Four months later he asks to have it reissued. If his unpaid renewal fee was $100, what penalty does Minn. Stat. 72B.03, subd. 2, require?
Show answer and explanation
Correct answer: C. $200
An adjuster whose license expires may have it reissued within 12 months of the renewal date, but only with a penalty equal to double the unpaid renewal fee: 2 x $100 = $200. The $100 option is the fee itself, not the penalty. The 12-month reissue window in paragraph (e) is what lets Devon avoid starting over.
Amara received her first Minnesota resident independent adjuster license 10 months before the end of her continuing education biennium. Under Minn. Stat. 72B.045, how much continuing education must she report for that biennium?
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Correct answer: D. None, since she was licensed under a year when it ended
Section 72B.045 requires independent and public adjusters to complete 24 hours of continuing education, including 3 hours of ethics, reported every two years with license renewal. Subdivision 2 exempts a licensee who was not licensed for one full year before the end of the biennium, so Amara owes no hours this cycle. The statute provides no prorated requirement.
Mei lives in Georgia, where she holds a resident adjuster license, and she also holds a Minnesota nonresident adjuster license. She lets her Georgia license lapse while staying in Georgia. Under Minn. Stat. 72B.05, what happens to her Minnesota license?
Show answer and explanation
Correct answer: A. It terminates, and she must notify Minnesota in 30 days
A nonresident license depends on keeping a resident license in the home state. Under 72B.05(c), it terminates and must be surrendered if the resident license terminates for any reason other than a move that brings a new reciprocal resident license, and notice of the termination is due within 30 days. Mei has no Minnesota residence, so she cannot convert to a resident license.
Jordan lives in Wisconsin, which Commerce lists as a state that does not license independent adjusters. He holds no adjuster license anywhere and wants Minnesota as his designated home state. What must he do?
Show answer and explanation
Correct answer: B. Qualify like a Minnesota resident, including the PSI exam
Under 72B.02, subd. 17, a person whose resident state does not license adjusters designates a home state. Commerce says a resident of a listed state who picks Minnesota must qualify in the same manner as a Minnesota resident: pass the required PSI exam, submit fingerprints and apply on Sircon. The nonresident route without testing applies only when another licensing state is the designated home state.
Under Minn. Stat. 72B.06, which written statement filed by an insurer establishes that catastrophe claims will not be resolved expeditiously, allowing emergency independent adjusters?
Show answer and explanation
Correct answer: A. It expects 500 or more claims, or double the area's mean monthly claims
Section 72B.06(a) treats claims as unable to be resolved expeditiously once the insurer files a written statement that it expects at least 500 claims from the event, or that the event will generate twice the mean number of claims for one month in the affected area. The statement may be sent electronically. The statute does not depend on a governor's declaration or on caseload counts.
After a hailstorm, an insurer that filed the 72B.06 catastrophe statement deploys Luis, a Texas-licensed adjuster with no Minnesota license, on May 4. Under Minn. Stat. 72B.06, which statement is correct?
Show answer and explanation
Correct answer: C. He must be registered within five days of deployment, for 180 days
Under 72B.06(b), an otherwise qualified adjuster without a Minnesota license may act as an emergency independent adjuster if, within five days of deployment, the insurer or his employer notifies the commissioner with his name, Social Security number, the insurer, the contract date and the catastrophe details. Under 72B.06(c), the registration remains in force for 180 days and may be extended for 180 more.
The commissioner refuses to renew Sam's independent adjuster license for untrustworthiness and mails him written notice of the reason. Under Minn. Stat. 72B.08, how does Sam get a hearing?
Show answer and explanation
Correct answer: D. He files a written request with the commissioner within 30 days
Except when an application is rejected for failing a required exam, a person aggrieved by the commissioner's action may have a hearing by filing a written request within 30 days of the notice (72B.08, subd. 3). The commissioner then sets a hearing no later than 30 days after receiving the request. Without a timely request, the action stays in effect. Judicial review follows a final order.
After a hearing, the commissioner finds that a staff adjuster for a Minnesota insurer forged a claimant's signature on a release. Under Minn. Stat. 72B.10, what action may the commissioner take?
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Correct answer: A. Fine the adjuster, the insurer or both up to $500 and order a suspension
Staff adjusters are exempt from licensing but may not engage in the practices in 72B.08, subd. 1, clauses (3) to (15), which include forging another's name on an insurance document. After a hearing, 72B.10 lets the commissioner fine the staff adjuster, the employing insurer or both up to $500 and order the insurer to suspend the adjuster from all duties. There is no license to revoke.
Gabriel, an independent adjuster, learns that the third-party claimant on his file has hired a lawyer. The claimant then calls Gabriel directly to talk about settlement. Under Minn. Stat. 72B.106, what should Gabriel do?
Show answer and explanation
Correct answer: D. Avoid dealing with the claimant without the lawyer's consent
Section 72B.106(c) says an independent adjuster must not give legal advice and must not deal directly with a policyholder or claimant represented by counsel without the lawyer's consent. A call started by the claimant does not change that, and explaining how the law applies would be legal advice. Gabriel should contact the lawyer rather than abandon the claim.
Hannah, an independent adjuster, closes a restaurant fire claim and wants to buy the damaged commercial kitchen equipment for her brother's business. Under Minn. Stat. 72B.106, when may she acquire this salvage?
Show answer and explanation
Correct answer: A. Only after getting written authority from her principal
Under 72B.106(f), an independent adjuster must not have a financial interest in an adjustment or acquire salvage for herself or anyone else without first receiving written authority from her principal, the insurer or self-insurer that hired her. Paying fair value or waiting does not replace that authority. A separate rule, 72B.091, subd. 5, bars adjusters from trading for personal gain in auto salvage from their own appraisals.
A body shop's estimate for Keisha's collision repair is $2,000 higher than the insurer's appraisal, and the two disagree about the extent of damage. Under Minn. Stat. 72B.092, what must the adjuster do before adjusting the shop's appraisal?
Show answer and explanation
Correct answer: D. Conduct a physical inspection of the damaged vehicle itself
In collision cases, 72B.092, subd. 1(5), bars adjusting a repair shop's damage appraisal when the extent of damage is in dispute without a physical inspection of the vehicle. The same subdivision forbids requiring a drive-in claim center inspection, limiting the owner's choice of shop and specifying a parts vendor, although the insurer need not pay more than a reasonable market price for parts of like kind and quality.
What bond must a Minnesota public adjuster keep on file under Minn. Stat. 72B.041, subd. 3, and what happens if it terminates?
Show answer and explanation
Correct answer: A. $10,000 surety bond; license suspended until a new bond is filed
No initial or renewal public adjuster license is issued unless a $10,000 surety bond from an authorized insurer, with the state as obligee, is on file. The surety may cancel with at least 30 days' written notice to the commissioner. If the bond terminates, the public adjuster's license is automatically suspended until a new bond is filed.
Lena signs a public adjuster contract Monday at 9 a.m. That afternoon the public adjuster's crew extracts water and boards up windows. Lena mails a signed cancellation, properly addressed and stamped, Wednesday morning. Under Minn. Stat. 72B.135, what is the result?
Show answer and explanation
Correct answer: B. It is canceled; payments return, but emergency work may be billed
An insured may cancel within 72 hours after signing, and mailed notice is effective when deposited in a mailbox, properly addressed and postage prepaid (subd. 1). Wednesday morning is inside the window. The public adjuster must return the insured's payments, but subdivision 3 allows compensation for emergency services performed within the 72 hours: removing water, boarding up and reconnecting lights and heat.
Which practice does Minn. Stat. 72B.135, subd. 4, prohibit for a licensed public adjuster?
Show answer and explanation
Correct answer: D. Initiating contact with a prospective client at 9 p.m.
Subdivision 4(4) bars a public adjuster from initiating contact with a prospective client between 8 p.m. and 8 a.m. Written fee disclosure is required by subdivision 5. Fee splitting is prohibited only with someone who is not also a licensed public adjuster (subdivision 4(5)), and subdivision 3 allows compensation for emergency services such as boarding up even if the insured cancels within 72 hours.
Under Minn. Stat. 72A.201, subd. 4, how soon must an insurer or adjuster acknowledge notification of a property claim that has not already been settled?
Show answer and explanation
Correct answer: C. Within 10 business days, giving a contact number
Clause (1) requires acknowledgment within ten business days after notification of claim, unless the claim is settled within that time, along with prompt claim forms and instructions. The acknowledgment must include the phone number of a company representative who can help. Oral acknowledgment is allowed if the file is noted with the number called, the people involved, and the time and date.
Twenty-five business days after notice of a commercial roof claim, Marcus, the independent adjuster, is still waiting for an engineer's report and will not finish within 30 business days. Under Minn. Stat. 72A.201, subd. 4(3), what must be done?
Show answer and explanation
Correct answer: B. Tell the insured, before day 30, the reasons and the expected end date
The insurer must complete its investigation and tell the insured of acceptance or denial within 30 business days after notification of claim, unless the investigation cannot reasonably be completed. In that case it must notify the insured within that period of the reasons and the expected completion date. Denying a claim without a reasonable investigation is itself an unfair practice under subdivision 8(2).
On Tuesday, June 2, 2026, an insurer receives a signed settlement agreement on a theft claim. The agreement requires a proof of ownership form, which the insured delivers to the insurer on Thursday, June 4. Under Minn. Stat. 72A.201, subd. 5(5), what is the latest payment date?
Show answer and explanation
Correct answer: C. Thursday, June 11
Payment of an agreed amount is due within five business days from the insurer's receipt of the agreement or the claimant's performance of any condition in it, whichever is later. The condition was met Thursday, June 4, so counting Friday, Monday, Tuesday, Wednesday and Thursday gives Thursday, June 11. June 9 counts from the agreement date instead of the later condition, and June 18 wrongly allows ten business days.
Under Minn. Stat. 72A.201, subd. 4(8), when must an insurer advise an insured or claimant who has a known unresolved claim and no attorney that the statute of limitations will expire?
Show answer and explanation
Correct answer: D. In writing, at least 60 days before it expires
An insurer must give written notice of the expiration of a statute of limitations at least 60 days before it expires to an insured or claimant with a known unresolved claim who has not retained an attorney. A claim with no communication from the insured or claimant for the two years before the deadline is not considered known to be unresolved, so no notice is required in that case.
An adjuster is preparing a written denial of a homeowner's fire claim based on an intentional loss exclusion. Under Minn. Stat. 72A.201, subd. 8, which item must the denial include?
Show answer and explanation
Correct answer: C. The right to complain to Commerce, with its address and phone number
A denial must state its basis and the policy provision relied on, give the name, address and phone number of the claim office or representative, list the claim and policy numbers and, for a fire claim, tell the insured of the right to complain to the Department of Commerce, with its address and phone number. Discouraging an insured from hiring an adjuster is itself prohibited by subdivision 4(7).
The vendor's published outline lists these content areas. See the official candidate handbook for the full topic list.
Content area
Share of exam
Licensing
4 questions (about 11%)
Insurance Contract
5 questions (about 14%)
Analyzing Coverage
7 questions (20%)
Adjustment Process
9 questions (about 26%)
Types of Loss Investigation and Adjustment
5 questions (about 14%)
Additional Terms and Insurance-Related Concepts
5 questions (about 14%)
Outline titled "Property and Casualty Adjuster (35 scored questions)", the English content outline linked from PSI's Minnesota Insurance Candidate Information Bulletin dated 10/1/2026; the outline file dates from 2023 and prints no effective date, and its item counts are of the 35 scored questions.
Study by topic
Each topic test is a separate page with its own score breakdown, so you can drill the areas where you are weakest.
Every question counts for almost 3 points. With 35 scored questions, 25 correct is a pass and 24 is not. If PSI adds the maximum 15 experimental items you will see 50 questions in 60 minutes, so budget a little over a minute each and come back to slow ones at the end.
The adjustment process is the biggest section. Its 9 questions cover loss information, investigation, suspected fraud, replacement cost versus actual cash value, the state value policy, arbitration, litigation, appraisal and the Unfair Claims Practices Act. Learn the 72A.201 clock: 10 business days to acknowledge, 30 business days to decide or explain the delay, 60 business days after a proof of loss, and 5 business days to pay an agreed amount.
Licensing is four questions of pure Minnesota law. Know who is exempt (insurer employees, attorneys, people who only gather facts, reinsurance or subrogation only), the three license classes, 24 hours of CE with 3 of ethics every two years, the 10-day address change rule, the $10,000 public adjuster bond and 72-hour cancellation right, and the commissioner's powers, including civil penalties up to $10,000 per violation.
Know the no-fault numbers. Personal injury protection pays at least $20,000 for medical expense and $20,000 for income and other losses, with income loss at 85% of gross income up to $500 a week. Liability minimums are 30/60/10, uninsured and underinsured motorist coverages are 25/50 each, a tort suit for pain and suffering needs more than $4,000 of medical expense (not counting diagnostic X-rays or rehabilitation), 60 days of disability, or permanent injury, disfigurement or death, and no-fault, comprehensive and collision disputes of $10,000 or less go to mandatory arbitration.
Study farm coverage separately. The insurance contract section lists the farm policy and personal articles floater and pleasure craft coverage. Our banks have no farm policy set, so review a farm property and liability form on your own; our dwelling and inland marine test covers the floater and watercraft basics.
Book the right exam for each line. The property and casualty exam does not test workers' compensation. If you also want the workers' compensation or crop line, each has its own 35-question PSI exam and outline, and the workers' compensation outline gives 11 questions to Minnesota's statutory coverage.
Getting licensed in Minnesota
Independent adjusters and public adjusters must be licensed (Minn. Stat. ch. 72B); there is also a limited Crop Hail Adjuster license. Officers, directors, managers or employees of an authorized insurer (company/staff adjusters) are exempt under Minn. Stat. 72B.03.
License fee: $50
License term: 2 years; individual licenses expire on the last day of the adjuster's birth month (first term 12 to 24 months)
Continuing education: 24 hours including 3 hours of ethics every 2 years (reported with the biennial renewal)
How many questions are on the Minnesota adjuster exam?
The PSI Property and Casualty Adjuster exam has 35 scored questions and a one-hour limit. PSI may add 5 to 15 unscored experimental questions that count against the time. The adjustment process section is the largest with 9 questions, and licensing has 4.
What score do you need to pass the Minnesota adjuster exam?
You need 70% correct, which means at least 25 of the 35 scored questions. Your score appears on screen when you finish and a score report is emailed to you; a failing report includes a diagnostic breakdown of your strengths and weaknesses.
Do I need a prelicensing course for the Minnesota adjuster license?
No. Minnesota has no prelicensing education requirement for adjusters. You must be at least 18, pass the PSI exam for each line of authority, be fingerprinted for a state and FBI background check and apply on Sircon.
How much does a Minnesota adjuster license cost?
The PSI exam is $25 per line and electronic fingerprinting at a PSI center is $66.75. Minn. Stat. 72B.041 sets a $50 license fee, while NIPR's Minnesota adjuster fee schedule lists $50 plus $50 per line of authority and a $10 technology fee, so confirm the total when you apply on Sircon.
What happens if I fail the Minnesota adjuster exam?
You can retest as soon as two days later if seats are open; you cannot rebook on the day you test. Each attempt costs another $25, and PSI's bulletin sets no limit on attempts. Use the diagnostic report to target your weak sections.
Do company staff adjusters need a Minnesota license?
No. Minn. Stat. 72B.03 exempts officers, directors, managers and employees of authorized insurers, and 72B.10 frees staff adjusters from the licensing and exam requirements. They still may not engage in the misconduct listed in 72B.08, and after a hearing the commissioner can fine them or their insurer up to $500 and order a suspension.