Texas All Lines Adjuster License Actual
Practice Exam & State Certification
Preparation
DOMAIN 1: TEXAS INSURANCE LAWS & REGULATIONS (Q1-15)
1. According to Texas Insurance Code §542.056, an adjuster must acknowledge receipt
of a claim within:
A. 5 calendar days
B. 10 business days
C. 15 calendar days
D. 30 business days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §542.056 requires insurers (through their
adjusters) to acknowledge receipt of a claim within 15 calendar days. This is a specific
Texas prompt payment requirement. The 5-day (A) and 10-day (B) requirements apply to
different aspects of claims handling. Business days (D) are not used in this statute.
2. Under Texas law, an adjuster's license must be renewed every:
A. 1 year (some states but not Texas)
B. 2 years (common misconception)
C. 3 years (correct per Texas Insurance Code)
D. 5 years (other professions but not adjusters)
Correct Answer: C
Rationale: C is correct. Per Texas Insurance Code §4101.054, an adjuster license is valid
for three years from the date of issuance. Renewal requires completing continuing
,education and paying renewal fees. This three-year cycle is specific to Texas and differs
from some other states' requirements.
3. Under Texas Insurance Code §541.060, an adjuster commits an unfair claims
settlement practice by:
A. Requesting reasonable documentation to verify a claim
B. Offering a fair settlement within policy limits
C. Failing to provide a reasonable explanation for denial of a claim
D. Conducting a thorough investigation of the loss
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §541.060 lists unfair claims settlement
practices, including failing to provide reasonable explanations for claim denials.
Requesting documentation (A) and thorough investigations (D) are proper practices.
Fair settlements (B) are required. Claim denials without explanation violate Texas law
and subject adjusters to disciplinary action.
4. A Texas adjuster must complete continuing education hours before license renewal.
The requirement is:
A. 10 hours annually
B. 15 hours every two years
C. 24 hours every three years (including 2 hours of ethics)
D. 30 hours every three years
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.101 and TDI rules require 24 hours
of continuing education every three years, including 2 hours specifically in ethics.
Annual requirements (A) and 15-hour requirements (B) apply to other states. The
30-hour requirement (D) exceeds Texas standards.
5. Under Texas Insurance Code §542.058, after receiving all requested documentation,
an insurer must notify the claimant of acceptance or rejection within:
A. 30 calendar days
B. 45 business days
C. 60 calendar days
, D. 90 calendar days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §542.058 requires insurers to notify
claimants of acceptance or rejection within 60 calendar days after receiving all
requested information. This prompt payment requirement applies to first-party claims in
Texas. Shorter periods (A, B) are not statutory. The 90-day period (D) exceeds the legal
deadline and violates prompt payment requirements.
6. When a Texas adjuster moves to a new address, they must notify the Texas
Department of Insurance within:
A. 10 days
B. 15 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.103 requires adjusters to notify TDI
of address changes within 30 days. This ensures the department can maintain accurate
records and deliver important regulatory communications. Failure to update addresses
can result in missed renewal notices and license expiration. Shorter periods (A, B) are
not required, and 60 days (D) exceeds the statutory limit.
7. Under Texas law, an adjuster who is also a contractor may:
A. Adjust claims and perform repairs on the same claim for efficiency
B. Accept referral fees from contractors for claim referrals
C. Not act as a contractor on claims they adjust due to conflict of interest
D. Require claimants to use their contracting services for claim payment
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.051 and TDI rules prohibit
adjusters from acting as contractors on claims they adjust due to conflict of interest
and prohibited compensation practices. Dual roles (A) create self-dealing conflicts.
Practice Exam & State Certification
Preparation
DOMAIN 1: TEXAS INSURANCE LAWS & REGULATIONS (Q1-15)
1. According to Texas Insurance Code §542.056, an adjuster must acknowledge receipt
of a claim within:
A. 5 calendar days
B. 10 business days
C. 15 calendar days
D. 30 business days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §542.056 requires insurers (through their
adjusters) to acknowledge receipt of a claim within 15 calendar days. This is a specific
Texas prompt payment requirement. The 5-day (A) and 10-day (B) requirements apply to
different aspects of claims handling. Business days (D) are not used in this statute.
2. Under Texas law, an adjuster's license must be renewed every:
A. 1 year (some states but not Texas)
B. 2 years (common misconception)
C. 3 years (correct per Texas Insurance Code)
D. 5 years (other professions but not adjusters)
Correct Answer: C
Rationale: C is correct. Per Texas Insurance Code §4101.054, an adjuster license is valid
for three years from the date of issuance. Renewal requires completing continuing
,education and paying renewal fees. This three-year cycle is specific to Texas and differs
from some other states' requirements.
3. Under Texas Insurance Code §541.060, an adjuster commits an unfair claims
settlement practice by:
A. Requesting reasonable documentation to verify a claim
B. Offering a fair settlement within policy limits
C. Failing to provide a reasonable explanation for denial of a claim
D. Conducting a thorough investigation of the loss
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §541.060 lists unfair claims settlement
practices, including failing to provide reasonable explanations for claim denials.
Requesting documentation (A) and thorough investigations (D) are proper practices.
Fair settlements (B) are required. Claim denials without explanation violate Texas law
and subject adjusters to disciplinary action.
4. A Texas adjuster must complete continuing education hours before license renewal.
The requirement is:
A. 10 hours annually
B. 15 hours every two years
C. 24 hours every three years (including 2 hours of ethics)
D. 30 hours every three years
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.101 and TDI rules require 24 hours
of continuing education every three years, including 2 hours specifically in ethics.
Annual requirements (A) and 15-hour requirements (B) apply to other states. The
30-hour requirement (D) exceeds Texas standards.
5. Under Texas Insurance Code §542.058, after receiving all requested documentation,
an insurer must notify the claimant of acceptance or rejection within:
A. 30 calendar days
B. 45 business days
C. 60 calendar days
, D. 90 calendar days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §542.058 requires insurers to notify
claimants of acceptance or rejection within 60 calendar days after receiving all
requested information. This prompt payment requirement applies to first-party claims in
Texas. Shorter periods (A, B) are not statutory. The 90-day period (D) exceeds the legal
deadline and violates prompt payment requirements.
6. When a Texas adjuster moves to a new address, they must notify the Texas
Department of Insurance within:
A. 10 days
B. 15 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.103 requires adjusters to notify TDI
of address changes within 30 days. This ensures the department can maintain accurate
records and deliver important regulatory communications. Failure to update addresses
can result in missed renewal notices and license expiration. Shorter periods (A, B) are
not required, and 60 days (D) exceeds the statutory limit.
7. Under Texas law, an adjuster who is also a contractor may:
A. Adjust claims and perform repairs on the same claim for efficiency
B. Accept referral fees from contractors for claim referrals
C. Not act as a contractor on claims they adjust due to conflict of interest
D. Require claimants to use their contracting services for claim payment
Correct Answer: C
Rationale: C is correct. Texas Insurance Code §4101.051 and TDI rules prohibit
adjusters from acting as contractors on claims they adjust due to conflict of interest
and prohibited compensation practices. Dual roles (A) create self-dealing conflicts.
