Mississippi Independent Adjuster Practice Test

Correct answer: A. No, salaried insurer employees who adjust regularly are excluded

Section 83-17-401(a) defines an adjuster broadly, including employees of independent contractors and adjustment bureaus, but subparagraph (ii) excludes a salaried employee of an insurer who is regularly engaged in adjusting, investigating or supervising claims. Marcus is a staff adjuster, so he needs no license. An independent contractor or an adjustment bureau employee doing the same work would need one, and the exclusion does not depend on the type of claim or where he works.

Reference: Miss. Code Ann. 83-17-401(a)(ii), as amended by Laws 2016, S.B. 2193

Correct answer: C. An independent contractor adjusting wind losses for an insurer

The definition covers anyone who, as an independent contractor or as an employee of an independent contractor, adjustment bureau, association or similar entity, investigates or adjusts losses for an insurer or self-insurer. The independent contractor fits squarely. The statute expressly excludes people handling only life, accident and health claims, technical experts such as engineers who assist a licensed adjuster, and multiperil crop adjusters (added by H.B. 553 in 2011).

Reference: Miss. Code Ann. 83-17-401(a), as amended by Laws 2016, S.B. 2193

Correct answer: B. No, agents handling undisputed losses on their own policies are excluded

Section 83-17-401(a)(iv) excludes a licensed agent or general agent of an authorized insurer who processes undisputed or uncontested losses for that insurer under policies the agent issued. Keisha's claim is uncontested and on her own policy, so no adjuster license is needed. If the claim became disputed or involved another agent's policy, the exclusion would no longer fit. Mississippi law sets no dollar threshold for this exclusion.

Reference: Miss. Code Ann. 83-17-401(a)(iv), as amended by Laws 2016, S.B. 2193

Correct answer: D. 3

The data entry exclusion in 83-17-401(a)(viii) applies only where no more than 25 such employees are under the supervision of one licensed independent adjuster or licensed agent. Sixty workers divided into groups of 25 or fewer needs three supervisors (25, 25 and 10). Two supervisors could cover only 50 workers, leaving 10 outside the exclusion. Four or six would also work, but the question asks for the minimum.

Reference: Miss. Code Ann. 83-17-401(a)(viii) and (d), as amended by Laws 2016, S.B. 2193

Correct answer: A. Licensed only for workers' comp, and may not represent an insured

Section 83-17-401(e), added in 2016, defines a workers' compensation adjuster as one whose scope of licensure is limited to workers' compensation insurance. Such an adjuster may not represent an insured individual and must meet the licensing and continuing education rules the Commissioner prescribes. Representing claimants for a fee describes advocacy, not this license, and the line is a regular license, not a catastrophe permit.

Reference: Miss. Code Ann. 83-17-401(e), added by Laws 2016, S.B. 2193

Correct answer: C. At least 18, and a resident of Mississippi or a reciprocal state

Section 83-17-413 requires the applicant to be at least 18 and either a bona fide Mississippi resident or a resident of a state or country that lets Mississippi residents act as adjusters there. The applicant must also be trustworthy, have adequate claims experience or training, and pass the required examination unless exempt. Age 21 is the public adjuster minimum under 83-17-511, not the adjuster rule.

Reference: Miss. Code Ann. 83-17-413(a) and (b)

Correct answer: D. An adjuster applying to renew a license already issued under the article

Section 83-17-417(1) exempts renewal applicants, adjusters licensed in a state with which the Commissioner has a reciprocal agreement, holders of a Commissioner-approved certification that required an equivalent exam, and people who finished an approved course or training program plus its exam. A workers' compensation only applicant still takes the workers' compensation adjuster exam, a producer license is not an adjuster exemption, and construction experience is not a listed exemption.

Reference: Miss. Code Ann. 83-17-417(1), as amended by Laws 2017, H.B. 957

Correct answer: B. Written proof of claims experience or special education or training

MID's independent adjuster instructions let an applicant submit written proof of experience, special education or training in handling loss claims of enough duration and extent to make the applicant competent, in place of the approved course. This mirrors the experience qualification in Miss. Code Ann. 83-17-413(e). The state exam is still required, a producer exam is not a substitute, and the affidavit limits a nonresident's line of authority, not education.

Reference: MID Independent Adjuster Licensing Instructions (rev. 07/2018), items 4 and 8; Miss. Code Ann. 83-17-413(e)

Correct answer: A. Pass the licensing exam again, as results must be under two years old

The Pearson VUE Mississippi Insurance Licensing Candidate Handbook states that, to be licensed, a candidate must pass the required examination within two years of the license application. June 2024 to September 2026 is about 27 months, so Lena's result is too old and she must retest before applying through Sircon or NIPR. Continuing education applies to renewals, and emergency licenses exist only for catastrophes.

Reference: Pearson VUE, Mississippi Insurance Licensing Candidate Handbook (July 2025), The Licensure Process

Correct answer: D. On the last day of the birth month, giving a term of 13 to 24 months

Since July 1, 2016, an individual adjuster license runs until the last day of the licensee's birth month in the second year following issuance or renewal, with a minimum term of 13 months; MID's instructions add a maximum of 24 months. Business entity adjuster licenses use a different date, May 31 in the second year, which makes that option tempting but wrong for individuals.

Reference: Miss. Code Ann. 83-17-419(1), as amended by Laws 2016, S.B. 2193; MID Independent Adjuster Licensing Instructions, item 10

Correct answer: C. 24 hours, including 3 hours of ethics

Section 83-17-415 requires 24 hours of approved continuing education, 3 of them in ethics, to renew an adjuster license that has been in effect for more than 18 months. A license in effect for 18 months or less needs only 12 hours. The Pearson VUE handbook adds that the 24 hours apply no matter how many adjuster licenses or lines of authority the person holds, so hours are not multiplied by license.

Reference: Miss. Code Ann. 83-17-415, as amended by Laws 2016, S.B. 2193; Pearson VUE Mississippi Candidate Handbook, Continuing Education

Correct answer: B. November 30, 2027, and 12 hours of continuing education

The license runs to the last day of the birth month with at least a 13-month term. November 2026 is only about 5 months away, so it expires November 30, 2027, a period MID's chart counts as 17 months (June issue, November birth month). Because the license was in effect 18 months or less, 83-17-415 requires 12 hours, not 24. June 2028 ignores the birth month rule.

Reference: Miss. Code Ann. 83-17-419(1) and 83-17-415; MID CE Calculation Chart for adjuster licenses issued after June 30, 2016

Correct answer: D. $800

Section 27-15-97, as revised in 2016, sets the privilege license tax at $400 for each incorporated company, firm or association in the business of adjusting insured losses and $100 for each person in that business. The firm owes $400 and the four adjusters owe $100 each, for $800 in total. The tax does not apply to officers or salaried employees of insurers or to agents adjusting for insurers they represent.

Reference: Miss. Code Ann. 27-15-97, as amended by Laws 2016, S.B. 2193

Correct answer: A. It stays in force until MID renews it or refuses for cause in writing

Under 83-17-419(2), once the adjuster files the renewal application and pays the required fees, the current license continues in force until the Commissioner issues the renewal or refuses it for cause and gives the adjuster written notice of the refusal. There is no 30-day cutoff, the license does not lapse while MID processes a timely renewal, and emergency licenses are a separate catastrophe license type.

Reference: Miss. Code Ann. 83-17-419(2), as amended by Laws 2016, S.B. 2193

Correct answer: C. $150

MID lets an individual adjuster reinstate within 12 months of expiration by paying the renewal fee plus a late fee of 50% of the renewal fee, with any required CE completed. That is $100 plus $50, or $150. Reinstatement gives the license a new issue date and leaves a lapse in licensure. After more than 12 months, a resident must reapply as a first-time adjuster instead.

Reference: MID Independent Adjuster Licensing Instructions, item 3; MID Adjuster Licensing page, renewals

Correct answer: B. A Mississippi-licensed independent adjuster must certify him

MID issues emergency independent adjuster licenses only after a catastrophe or emergency such as a disaster, act of God, riot, civil commotion or conflagration. The applicant must be certified by a Mississippi-licensed independent adjuster, pays $50, and the license is not eligible for renewal and expires no more than 180 days after issuance. The instructions call for no exam, and adjusters who already hold a Mississippi independent adjuster license do not need one.

Reference: MID Emergency Independent Adjuster Licensing Instructions; Miss. Code Ann. 83-17-409

Correct answer: D. It lasts up to 12 months under a supervising licensed adjuster

MID's trainee instructions set a $50 registration fee, state that the registration is not eligible for renewal and expires no more than 12 months after issuance, and require the registrant to be certified by a Mississippi-licensed independent adjuster who will employ, direct and supervise the trainee. The 180-day, catastrophe-only description fits the emergency license instead, and a trainee does not work unsupervised.

Reference: MID Independent Adjuster Trainee Registration Instructions

Correct answer: A. By filing a notarized affidavit excluding workers' comp from her license

Mississippi's independent adjuster license comes as property and casualty including workers' compensation, or workers' compensation only. MID lets a nonresident whose home license covers only property and casualty file a notarized affidavit voluntarily excluding workers' compensation and promising not to adjust those claims in Mississippi. Adding workers' comp later requires passing Mississippi's workers' compensation exam or getting that authority at home. The WC-only line would not fit her license.

Reference: MID Independent Adjuster Licensing Instructions, item 6; MID Nonresident Independent Adjuster Affidavit

Correct answer: C. Yes, by passing Mississippi's licensing exam and taking Mississippi CE

MID allows an applicant with no active resident adjuster license on the producer database to select Mississippi as the adjuster designated home state while applying for the nonresident license. Because Ohio has no licensing exam, Owen must pass the Mississippi exam (after the prelicensing course or proof of experience), and as a Mississippi designated home state licensee he must complete Mississippi continuing education to renew. Emergency licenses are catastrophe permits, not a home state route.

Reference: MID Independent Adjuster Licensing Instructions, items 6 and 7; NIPR Mississippi nonresident adjuster business rules

Correct answer: B. Registered mail sets a hearing at least 20 days out and suspends the license

Section 83-17-421(2) requires notice by registered mail to the licensee and the insurer involved, setting a hearing date not less than 20 days after mailing. The notice itself automatically suspends the license of a licensed adjuster. At the hearing the Commissioner may administer oaths and require witnesses and records, and written findings follow. The license does not stay active pending court review, and phone notice is not enough.

Reference: Miss. Code Ann. 83-17-421(2)

Correct answer: D. One year after the revocation took effect

Section 83-17-421(4) bars a revoked licensee from applying again within one year from the effective date of the revocation, or within one year of a final court order affirming it if judicial review is sought. Even after that year, the Commissioner may refuse the application unless the applicant shows good cause why the revocation should not bar a new license. The 50% late fee applies to reinstating an expired license, not a revoked one.

Reference: Miss. Code Ann. 83-17-421(4)

Correct answer: A. 10% of the insurance settlement or claim proceeds

Section 83-17-523(1)(a) caps a public adjuster's payment, commission, fee or other compensation at 10% of any insurance settlement or claim proceeds. Mississippi has no higher catastrophe percentage, and a signed agreement cannot exceed the cap. Reimbursable costs must be specified in the contract by kind and estimated amount, and no fee or retainer may be collected before a partial or full settlement.

Reference: Miss. Code Ann. 83-17-523(1)(a), as amended by Laws 2025, H.B. 1174

Correct answer: C. $1,800

When the insurer made a written settlement offer before the public adjuster contract was signed, 83-17-523(1)(g) limits the fee to no more than 10% of the amount by which the final settlement exceeds that offer. The increase is $58,000 minus $40,000, or $18,000, and 10% of that is $1,800. Charging 10% of the full $58,000 ($5,800) would take credit for money the insurer had already offered.

Reference: Miss. Code Ann. 83-17-523(1)(g), as amended by Laws 2025, H.B. 1174

Correct answer: B. He may cancel in writing within 5 business days without penalty

Section 83-17-523(1)(d) lets the insured revoke or cancel a public adjuster contract without cause, penalty or obligation for at least five business days after signing. The cancellation must be in writing, mailed or delivered to the address in the contract, and postmarked or received within that period. Anything of value the insured gave must be returned within 15 business days after the public adjuster receives the cancellation.

Reference: Miss. Code Ann. 83-17-523(1)(d), as amended by Laws 2025, H.B. 1174

Correct answer: A. A $50,000 surety bond or letter of credit

Since July 1, 2025, 83-17-511 requires a surety bond in favor of the State of Mississippi or an irrevocable letter of credit, each at least $50,000, covering people harmed by the public adjuster's errors, failure to act, or fraud or unfair practice convictions. Neither may end without 30 days' written notice, and if the security terminates or becomes impaired the license automatically terminates. MID's older rule also allowed a $50,000 E&O policy, but the statute now lists only a bond or letter of credit.

Reference: Miss. Code Ann. 83-17-511(1)(i), as amended by Laws 2025, H.B. 1174