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WA · PSI · 100 questions
Washington Adjuster Practice Test
Washington licenses three kinds of adjusters under RCW 48.17: independent adjusters who work for insurers, public adjusters who work for insureds, and crop adjusters, each with a separate license and a $50 fee. Since 2021, anyone who negotiates a property and casualty claim settlement or applies the facts of a loss to policy provisions is an adjuster, while salaried insurer and MGA employees (outside crop claims), attorneys who adjust only incidentally, marine adjusters, and appraisers and umpires working under an appraisal clause are excluded. Residents first qualify through experience, a designation or a trainee program, then pass the PSI exam (unless salaried insurer experience exempts them), apply online and are fingerprinted. Nonresidents licensed in their home state apply online without an exam or fingerprints; see our Washington adjuster license guide and our designated home state guide.
The exam has 100 scored questions in 135 minutes, and you need 70% to pass. Washington law is one 20-item section, Licensing and Regulation, which covers the commissioner's powers and hearings, licensing and discipline under RCW 48.17, the unfair claims settlement rules in WAC 284-30-300 through 284-30-400, the Insurance Fair Conduct Act (RCW 48.30.015), the claim fraud statutes and the environmental claim rules. Five more items test federal law, and the personal auto section includes PIP definitions and UM and UIM rejection. Our 40 Washington questions cover those rules plus the 25/50/10 auto minimums and the Washington Insurance Guaranty Association, and each one names its source rule.
Exam vendor
PSI
Questions
100 scored (PSI may add 1 to 10 unscored experimental items)
Time limit
135 minutes (2 hours 15 minutes)
Passing score
70%
Exam fee
$38
There is no limit on retakes. You cannot book a new appointment on the day you test, but a candidate who fails on a Wednesday can call on Thursday and retest as early as Friday if seats are open. Each attempt costs $38, and exam fees are not refundable.
Residents must meet the experience or education requirement before testing: 12 months as a salaried insurer or MGA adjuster (which can also exempt you from the exam), an AIC, CPCU or AEI property designation, or a 6 to 9 month adjuster-trainee program. Submit the application, fees and fingerprints within 180 days of passing, or you must retest.
Test at a PSI center or by remote proctoring, which since August 3, 2026 requires a smartphone as a second camera. Unscored experimental items count against the 135 minutes, and candidates whose first language is not English can request time and a half with a letter from an English instructor or sponsoring company.
Washington 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 · Application
Dana is a full-time salaried claims employee of an admitted insurer and settles homeowners claims in Washington only under her employer's policies. Under RCW 48.17.010, which statement about her licensing status is correct?
Show answer and explanation
Correct answer: B. She is not deemed an adjuster unless she adjusts crop claims
RCW 48.17.010(1) says a salaried employee of an insurer or managing general agent is not deemed an adjuster for licensing purposes, except when acting as a crop adjuster. Dana therefore needs no individual license for this work. Independent adjusters are outside parties who represent insurers, public adjusters represent insureds, and emergency registration exists only for nonresident independent adjusters after a declared emergency or single loss.
After a windstorm, a Spokane roofing contractor gives a homeowner a repair estimate, then begins debating with the insurer how the policy's matching and building code provisions should apply to the claim. Under RCW 48.17.010 and OIC guidance on the 2021 adjuster definition, what is the contractor's status?
Show answer and explanation
Correct answer: C. Acting as an adjuster, so those policy discussions require a license
Since 2021, RCW 48.17.010(1) defines an adjuster as anyone who negotiates claim settlements or applies the facts of a loss to policy provisions. The OIC says a contractor who only prepares and updates a repair estimate needs no license, but one who discusses how coverage or policy provisions apply is conducting insurance business and must be licensed. A direct payment authorization does not change that, and no appraisal was invoked.
Omar is a licensed Washington property and casualty producer appointed by Cascade Mutual. Cascade asks him to investigate and report on a small theft claim made by one of its policyholders. Under RCW 48.17.420(1), does Omar need an adjuster license?
Show answer and explanation
Correct answer: D. No, as long as the claim does not arise under crop insurance
RCW 48.17.420(1) lets an insurance producer, from time to time, act as an adjuster on behalf of and as authorized by an insurer that appointed him, investigating and reporting on claims without an adjuster license. The exception is crop insurance: a producer needs a crop adjuster license (or, if a salaried insurer employee, federal CAPP certification) for those claims. Emergency registration applies only to nonresident independent adjusters.
Experience and education requirement · Application
Under WAC 284-17-123(1), which statement correctly describes the adjuster-trainee route to meeting Washington's experience requirement for a resident adjuster license?
Show answer and explanation
Correct answer: A. At least 6 months, at most 9, as a salaried trainee of a resident licensed adjuster
WAC 284-17-123(1) lets a trainee sit for the licensing exam after at least six months, and no one may be a trainee for more than one nine-month period. A resident licensed adjuster must supervise, pay must be salary only, and the trainee is limited to factual investigation and tentative closing of losses, with all transactions completed in the supervisor's name. The OIC describes the program as at least 960 hours.
Experience and education requirement · Application
Keiko, a Washington resident with no claims experience, earns the Associate in Claims (AIC) designation. Under WAC 284-17-123(2) and OIC guidance, which statement about her path to a resident independent adjuster license is correct?
Show answer and explanation
Correct answer: C. The AIC satisfies the education rule, but she must pass the licensing exam
WAC 284-17-123(2) accepts the CPCU, the AIC, or the American Educational Institute property claim law specialist designation as the special education that satisfies RCW 48.17.380(3)(d), in place of experience or a trainee program. The OIC states that a designation holder must still take and pass the Washington licensing exam. The $5,000 surety bond is a public adjuster requirement under RCW 48.17.430, not a substitute for testing.
Tomas spent 14 months, ending last month, as a full-time salaried property claims adjuster for an admitted insurer, then left to work independently. He now applies for a Washington resident independent adjuster license. Under RCW 48.17.110(2)(b), what is his licensing exam status?
Show answer and explanation
Correct answer: B. He may be exempt from the licensing exam due to his salaried work
RCW 48.17.110(2)(b) exempts adjuster applicants, other than crop adjusters, who worked one year as full-time salaried employees of an insurer or managing general agent adjusting, investigating or reporting claims, with part of that year falling in the year before the application. Tomas meets that test. The OIC phrases it as 12 consecutive months verified by the employer on letterhead, after which the applicant may not need the licensing exam.
Rafael lives in a state that issues no adjuster licenses of any kind. He holds an active, good-standing Texas nonresident adjuster license that he earned by passing the Texas licensing exam. Under WAC 284-17-123(3), how does he meet Washington's examination requirement for a nonresident adjuster license?
Show answer and explanation
Correct answer: D. His passed Texas exam is deemed to satisfy Washington's requirement
WAC 284-17-123(3)(b) normally requires a nonresident whose home state issues no adjuster license to pass Washington's written adjuster exam. Subsection (3)(c) creates an exception: if the applicant holds an active nonresident license in good standing from another state that requires an exam, and passed that exam, the commissioner deems Washington's exam requirement met. Rafael's Texas license fits that exception, so no Washington exam is needed.
The governor proclaims a state of emergency after severe windstorms on March 1. Jordan, an independent adjuster licensed only in Georgia, files the OIC's emergency adjuster registration on March 20 to handle claims for two insurers. Under RCW 48.17.420(3) and OIC guidance, when does his authority end unless extended?
Show answer and explanation
Correct answer: A. 180 days after March 1, the proclamation date
Under RCW 48.17.420(3)(a), an emergency adjuster may not operate longer than 180 days unless the commissioner extends it. The OIC counts the 180 days from the governor's proclamation date, not the date the form was submitted, and requires a new registration for each declared disaster or if the proclamation runs past 180 days. Registration is free, lists the insurers represented, and does not cover crop losses.
The commissioner mails a licensed adjuster an order suspending the license for misappropriating claim funds. Under RCW 48.04.010(3) and RCW 48.17.550, which statement is correct?
Show answer and explanation
Correct answer: D. The adjuster has 90 days to demand a hearing; the suspension may run up to 12 months
Under RCW 48.04.010(3), a licensee who does not demand a hearing within 90 days after the commissioner mails the order to the licensee's address of record waives the right to one. RCW 48.17.550 requires every suspension order to state its period, which may never exceed 12 months. Misappropriating money received in the insurance business is a ground for discipline under RCW 48.17.530(1)(d).
Aisha, whose birthday is in May, receives her first Washington independent adjuster license on February 10, 2026. Under WAC 284-17-423, on what date does that license first expire?
Show answer and explanation
Correct answer: B. May 31, 2027
WAC 284-17-423(1) makes an initial individual license valid from issuance until the end of the licensee's next birth month plus one year. Aisha's next birth month after February 10, 2026 is May 2026, so the license runs to May 31, 2027. After that it renews every two years, with the $50 adjuster renewal fee and, for residents, 24 hours of continuing education.
Under WAC 284-17-224 and 284-17-252, what continuing education must a resident Washington independent adjuster complete in each two-year license period?
Show answer and explanation
Correct answer: C. 24 credit hours including 3 of ethics, with no carry-over of extra hours
Since July 2022, WAC 284-17-224 requires resident adjusters (independent, public and crop) to complete 24 credit hours of approved continuing education, including 3 hours of ethics, within the 24 months before the license expires. Adjusters must take property and casualty or claim adjusting courses. WAC 284-17-252 bars carrying excess hours into the next period. The OIC does not require its CE of nonresident adjusters unless Washington is their designated home state.
Luis forgets to renew his Washington independent adjuster license, which has a $50 renewal fee. His renewal request and payment reach the OIC 40 days after the expiration date. Under RCW 48.17.170(6), what total must he pay?
Show answer and explanation
Correct answer: C. $100
RCW 48.17.170(6) adds a surcharge of 50% of the renewal fee for the first 30 days of delinquency and 100% for the next 30 days. At 40 days late, Luis owes $50 plus a $50 surcharge, or $100. Within 30 days it would have been $75, and after 60 days the request becomes a reinstatement at the license fee plus 200%, or $150. He may not act under the license until it is renewed.
Grace's Washington independent adjuster license expired eight months ago, and she has done no claims work since. Under RCW 48.17.170 and WAC 284-17-490, which statement about getting the license back is correct?
Show answer and explanation
Correct answer: A. She may reinstate without retesting with $150 and proof of 24 CE hours
A license more than 60 days but less than 12 months past expiration may be reinstated without an exam (RCW 48.17.170(7) and (9); WAC 284-17-490). Grace pays the $50 license fee plus a 200% surcharge, $150 in total, and submits certificates for 24 CE hours, including 3 of ethics, completed in the prior 24 months. After 12 months she would have to pass the licensing exam and apply as a new applicant.
Before Washington issues a public adjuster license, RCW 48.17.430 requires the applicant to file which of the following with the commissioner?
Show answer and explanation
Correct answer: B. A $5,000 surety bond conditioned on accounting to insureds
RCW 48.17.430 requires a $5,000 surety bond in favor of the people of Washington, kept in force while licensed and conditioned on the public adjuster accounting to insureds for money or settlements received on their claims. The surety may cancel only on 30 days' advance written notice filed with the commissioner. The OIC adds that the bond amount does not increase with additional affiliates.
Under RCW 48.17.410, an individual who holds both a Washington independent adjuster license and a public adjuster license may:
Show answer and explanation
Correct answer: D. Represent either side, but never both in the same transaction
RCW 48.17.410 limits an independent adjuster to acting on behalf of insurers and a public adjuster to acting on behalf of insureds, and it bars an adjuster licensed as both from representing the insurer and the insured in the same transaction. Consent does not cure the conflict. RCW 48.17.390 allows holding both licenses at once, with the full fee paid for each.
Under RCW 48.17.470, how long must a Washington adjuster keep the record of each investigation or adjustment, including any fee received, open to the commissioner's inspection?
Show answer and explanation
Correct answer: A. 5 years after the transaction is completed
RCW 48.17.470 requires every adjuster to keep an organized record of each investigation or adjustment undertaken or completed, with a statement of any fee, commission or other compensation for it. The records must be available to the commissioner at any business time for five years after the transaction is completed. Three years is the retention period for continuing education certificates under WAC 284-17-224, not for claim records.
On June 3, Oregon's insurance regulator issues a final order fining Peter, an adjuster who also holds a Washington nonresident license, $500. Under RCW 48.17.597, what must Peter do?
Show answer and explanation
Correct answer: C. Report it to the commissioner by July 3, attaching the order
RCW 48.17.597(1) requires an adjuster to report any administrative action taken in another jurisdiction to the Washington commissioner within 30 days of the final disposition, attaching the order or other relevant documents. June 3 plus 30 days is July 3. Criminal prosecutions must be reported within 30 days of the initial pretrial hearing date, with a copy of the complaint and the resulting order.
After a hearing, the Washington commissioner fines a licensed adjuster instead of revoking the license. Under RCW 48.17.560, which statement about the fine is correct?
Show answer and explanation
Correct answer: B. Up to $1,000 per offense, due 15 to 30 days after the order
RCW 48.17.560 allows a fine of up to $1,000 for each offense, after a hearing or by stipulation, in addition to or instead of suspension, revocation or refusal to renew. The order must make the fine payable not less than 15 nor more than 30 days from its date, and an unpaid fine requires the commissioner to revoke the license. The $25,000 figure is the civil penalty for unlicensed activity under RCW 48.17.063.
A homeowner reports a kitchen fire to her insurer under an individual homeowners policy. Under WAC 284-30-360(1), unless it pays the claim sooner, how quickly must the insurer acknowledge receiving the notice of claim?
Show answer and explanation
Correct answer: D. Within 10 business days
WAC 284-30-360(1) requires acknowledgment within 10 business days for claims under individual policies and 15 business days for group contracts; the text in force before October 18, 2026 says working days, the same period. Payment within that time counts as acknowledgment, an oral acknowledgment must be noted in the claim file, and notice given to the insurer's agent is notice to the insurer.
Under WAC 284-30-370, unless the investigation cannot reasonably be completed in that time, an insurer must finish investigating a claim within how many days after notification of the claim?
Show answer and explanation
Correct answer: A. 30 days
WAC 284-30-370 sets a 30-day standard for completing the investigation after notification of claim, unless it cannot reasonably be done in that time, and everyone involved must give the insurer reasonable assistance. Amendments effective October 18, 2026 keep the 30 calendar days and add a written notice to the claimant explaining any delay, followed by updates every 30 days.
Under WAC 284-30-380(1), when an insurer denies a first party claim on the basis of a specific policy exclusion, the denial must be:
Show answer and explanation
Correct answer: B. In writing, citing the exclusion, with a copy kept in the claim file
WAC 284-30-380(1) bars denying a claim on a specific policy provision, condition or exclusion unless the denial refers to it, and the denial must be in writing with a copy in the claim file. A file note for an oral denial is allowed only under subsection (2), for denials based on other reasons. WAC 284-30-330(13) also requires a reasonable explanation of the basis for any denial.
Hector, who is not an attorney and has not hired one, is negotiating his bodily injury claim directly with the at-fault driver's insurer, and the statute of limitations is approaching. Under WAC 284-30-380(5), when must the insurer give him written notice that the time limit may expire?
Show answer and explanation
Correct answer: D. At least 60 days before it expires
WAC 284-30-380(5) forbids continuing settlement talks with an unrepresented claimant until a statute of limitations or policy time limit may affect the claimant's rights, unless the insurer first gives written notice that the limit may be expiring. Hector is a third-party claimant, so the notice is due 60 days before the limit expires. First party claimants must get the notice 30 days before.
On a settled liability claim, the insurer receives the claimant's properly executed release. Under WAC 284-30-330(16), unless a statute, rule or contract sets another time, the insurer's procedures must be designed to deliver payment within:
Show answer and explanation
Correct answer: A. 15 business days
WAC 284-30-330(16) treats payment procedures as unacceptable unless they are designed to deliver payment within 15 business days after the insurer or its attorney receives properly executed releases or other settlement documents. If the insurer must supply the release, it has 20 working days after settlement to do so, and under subsection (15) a settlement draft must be honored within three working days after notice of receipt by the payor bank; the amendments effective October 18, 2026 call both periods business days.
Nadia's attorney sends the insurer a letter of representation on her bodily injury claim. A week later, the adjuster calls Nadia directly with a settlement offer without telling the attorney. Under WAC 284-30-330(19), this conduct is:
Show answer and explanation
Correct answer: C. An unfair practice, since she is known to have an attorney
WAC 284-30-330(19) makes it an unfair claims settlement practice to negotiate or settle directly with a claimant known to be represented by an attorney without the attorney's knowledge and consent. The rule still allows routine inquiries to a first party claimant to identify the claimant or obtain claim details, but a settlement offer is negotiation. The amount of the offer does not matter.
An insurer pays the undisputed $8,000 of a first party theft claim while the rest remains in dispute. The check states that cashing it releases the insurer from all liability for the loss. Under WAC 284-30-350(6), this check is:
Show answer and explanation
Correct answer: D. Prohibited, as partial payments cannot release all liability
WAC 284-30-350(6) bars checks or drafts in partial settlement of a loss under a specific coverage that contain language releasing the insurer or its insured from total liability. Subsection (5) similarly bars asking a first party claimant to sign a release broader than the subject matter of the payment. The undisputed amount should be paid without that condition while the dispute continues.
The vendor's published outline lists these content areas. See the official candidate handbook for the full topic list.
Content area
Share of exam
Federal Laws and Regulations
5 items (5%)
Licensing and Regulation
20 items (20%)
General Insurance Concepts
10 items (10%)
Property and Casualty Insurance Basics
20 items (20%)
Dwelling Policy Concepts
4 items (4%)
Homeowners Policy Concepts
9 items (9%)
Commercial Property Policies
3 items (3%)
Personal Automobile Policy
9 items (9%)
Commercial Automobile Policy
3 items (3%)
Commercial General Liability
3 items (3%)
Other Types of Insurance Policies
1 item (1%)
Adjustment Process
13 items (13%)
PSI content outline titled "Washington Insurance Adjuster" (100 items, 135 minutes; a 2024 file that prints no effective date), linked as "WA Adjuster" from the PSI Washington Candidate Information Bulletin last revised August 3, 2026; item counts are of the 100 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.
Washington law is a fifth of the exam. Know the $50 license and renewal fee, a license that expires at the end of your birth month and renews every two years, 24 CE hours with 3 of ethics, late renewal totals of $75 and $100, $150 reinstatement within 12 months, the $5,000 public adjuster bond, 5-year records, 30-day reports of actions elsewhere, $1,000 fines, 90 days to demand a hearing and a 12-month cap on suspensions.
Memorize the claim clock. Acknowledge a claim within 10 business days (15 for group policies), finish the investigation within 30 days, pay within 15 business days of a signed release, honor drafts within 3 business days, warn unrepresented claimants 30 days (first party) or 60 days (third party) before a time limit runs, and give 5 calendar days before ending storage payments.
Watch the October 18, 2026 amendments. Amended WAC 284-30 rules taking effect that day set a 30 calendar day deadline, counted from notice of claim, to accept or deny a first party claim (the older text used 15 working days after proof of loss), cut insurer responses to OIC complaint inquiries from 15 working days to 10 business days, and add claim file, mitigation and auto repair duties. Learn both versions.
Learn the auto and IFCA rules. Liability minimums are 25/50/10. PIP must be offered and can be rejected only in writing, UIM matches liability limits unless rejected in writing, and a phantom vehicle needs a police report within 72 hours plus corroboration. Total loss settlements include taxes and fees, and the Insurance Fair Conduct Act requires 20 days' written notice before suit and allows up to triple damages.
Study the federal items separately. Five questions cover 18 U.S.C. 1033 and 1034 (people convicted of certain felonies need written consent from a regulator to work in insurance), the NFIP, the Terrorism Risk Insurance Act, the MCS-90 endorsement and Gramm-Leach-Bliley privacy. Our flood and commercial auto banks cover the NFIP and MCS-90; review the other three from the laws themselves.
Budget your time. 135 minutes for 100 questions is 81 seconds each, and any unscored experimental items come out of the same clock. Insurance concepts and property and casualty basics are 30 items, the policy sections 32 and the adjustment process 13, so take our timed 100-question practice exams until you score 80% or better.
Getting licensed in Washington
Washington licenses three adjuster types: independent (representing insurers), public (representing insureds) and crop. Under RCW 48.17.010, as amended in 2021, anyone who negotiates P&C claim settlements or applies the facts of a loss to policy provisions is an adjuster. Salaried employees of insurers or MGAs are not adjusters for licensing purposes unless they adjust crop claims without USDA-RMA (CAPP) certification. All resident adjusters must be licensed.
License fee: $50
License term: 2 years per renewal period (OIC). Licenses can be renewed up to 90 days before and 60 days after expiration, and reinstated up to 12 months after expiration without re-examination.
Continuing education: 24 hours including 3 hours of ethics every 2 years (each license renewal period)
How many questions are on the Washington adjuster exam?
The PSI Washington Insurance Adjuster exam has 100 scored questions and a 135-minute limit. PSI may add one to ten unscored experimental questions, and the time spent on them counts against the 135 minutes. Licensing and Regulation (Washington law) and property and casualty basics are the largest sections with 20 items each, followed by the adjustment process with 13.
What score do you need to pass, and can you retake it?
You need 70% correct. Your score appears on screen and a score report is emailed to you; a failing report includes a diagnostic report of your strengths and weaknesses. There is no limit on attempts, but you cannot rebook on the day you test. A candidate who fails on a Wednesday can call on Thursday and retest as soon as Friday, paying the $38 fee again.
Do I need experience before taking the Washington adjuster exam?
Residents must first qualify in one of three ways: 12 consecutive months as a full-time salaried adjuster for an admitted insurer or MGA, verified on letterhead; an AIC, CPCU or AEI property claim law designation; or a 6 to 9 month salaried adjuster-trainee program of at least 960 hours under a resident licensed adjuster. The salaried experience can also exempt you from the exam under RCW 48.17.110; designation holders and trainees must still pass it.
Does Washington accept my adjuster license from another state?
Usually. A nonresident with an adjuster license in good standing from a home state that also licenses Washington adjusters as nonresidents gets a nonresident license online, with no exam or fingerprints. If your home state issues no adjuster license, WAC 284-17-123 accepts an exam you passed for a nonresident license in another state, such as Texas; otherwise you must pass the Washington exam. Designating Washington as your home state means meeting resident requirements.
How much does a Washington adjuster license cost?
Plan on $38 for the PSI exam, $50 for the license (independent, public or crop) and $52 for IdentoGO fingerprints if you are a resident (the fee rose from $49 on October 1, 2026). Renewal is $50 every two years; renewing late costs $75 within 30 days or $100 within 60 days, and reinstatement from 61 days to 12 months after expiration costs $150. Public adjusters also need a $5,000 surety bond.
Do Washington adjusters need continuing education?
Yes, if you are a resident or designate Washington as your home state. Independent, public and crop adjusters must complete 24 credit hours every two-year license period, including 3 hours of ethics, in property and casualty or claim adjusting courses, and extra hours do not carry over. Washington does not require its CE of nonresident adjusters who have another home state.