Maryland Property and Casualty Insurance Practice Test 2026 – Complete Exam Prep

Public adjusters are hired to advocate for the insured in a property loss claim, and their compensation comes from the person they represent. Because their role is to advance the insured’s interests, they are paid by the insured (often a fee based on a percentage of the settlement, agreed to in writing). This arrangement helps prevent bias toward the insurer and keeps the adjuster accountable to the policyholder. The insurer wouldn’t pay a public adjuster, since that would create a conflict of interest, and government agencies don’t pay private adjusters. The insured themselves (or the insured’s authorized representative) normally handles the payment.