TEXAS ALL LINES ADJUSTER EXAMINATION READY |
VERIFIED QUESTIONS AND ANSWERS | 2026/2027
COMPREHENSIVE LATEST VERSION
1. Under the Texas Insurance Code, an 'adjuster' is defined as a person who:
A. Sells insurance policies on behalf of an insurer
B. Investigates, settles, or adjusts claims arising under insurance contracts
C. Underwrites risks for insurance companies
D. Audits insurance company financial statements
2. Which of the following does NOT require an adjuster license in Texas?
A. An attorney adjusting claims incidental to the practice of law
B. An independent adjuster handling auto claims
C. A public adjuster representing policyholders
D. A staff adjuster employed by a surplus lines company
3. The Texas Department of Insurance (TDI) requires an adjuster license applicant
to be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
4. A Texas all-lines adjuster license allows the licensee to adjust claims in:
A. Property and casualty only
B. Life, health, and annuities only
C. All lines of insurance
D. Workers' compensation only
,5. The standard Texas adjuster license renewal period is:
A. One year
B. Two years
C. Three years
D. Five years
6. A public adjuster in Texas represents:
A. The insurance company
B. The state government
C. The insured or claimant
D. Both insurer and insured equally
7. Which of the following is considered an 'independent adjuster' in Texas?
A. An adjuster employed directly by an insurer
B. An adjuster who contracts with multiple insurers
C. A public adjuster representing policyholders
D. An adjuster employed by the TDI
8. Continuing education (CE) requirements for Texas adjusters total how many
hours per renewal period?
A. 10 hours
B. 24 hours
C. 30 hours
D. 15 hours
9. Under Texas law, an insurer must acknowledge a claim within how many days
of receiving notice?
A. 5 business days
B. 10 business days
C. 15 calendar days
D. 30 calendar days
,10. Under the Texas Prompt Payment of Claims Act, after accepting a claim an
insurer must pay within:
A. 5 business days
B. 10 business days
C. 15 business days
D. 5 calendar days
11. A 'staff adjuster' is best described as:
A. An adjuster who works for the public
B. An adjuster employed exclusively by one insurer
C. A freelance adjuster with multiple clients
D. An adjuster specializing in workers' compensation
12. The Texas Unfair Claims Settlement Practices Act prohibits:
A. Paying claims promptly
B. Conducting thorough investigations
C. Knowingly misrepresenting relevant policy provisions
D. Offering fair settlements to claimants
13. 'Subrogation' in insurance means:
A. The insurer's right to recover from a third party after paying a loss
B. The insured's right to cancel the policy
C. The process of valuing a property loss
D. Adding additional coverage to a policy
14. Under the principle of indemnity, an insured:
A. May profit from an insurance claim
B. Should be restored to the same financial position as before the loss
C. Receives the full policy limit regardless of actual loss
D. Is entitled to double recovery if two policies cover the same loss
15. 'Actual Cash Value' (ACV) is typically calculated as:
, A. Replacement cost plus appreciation
B. Replacement cost minus depreciation
C. Original purchase price plus inflation
D. Market value plus sales tax
16. An insured who intentionally conceals or misrepresents material facts on an
application may face:
A. A reduction in premium only
B. Cancellation or voiding of the policy
C. A government fine only
D. Required counseling
17. 'Pro rata' cancellation means:
A. The insurer keeps all earned premium
B. The return premium is calculated proportionally for the unexpired
policy period
C. No premium is returned
D. The insured is charged a penalty
18. Under Texas law, the maximum fee a public adjuster may charge is:
A. 5% of the claim settlement
B. 10% of the claim settlement
C. 15% of the claim settlement
D. No statutory cap exists
19. What is the purpose of an 'Examination Under Oath' (EUO)?
A. To negotiate a settlement with the claimant
B. To formally examine the insured regarding facts related to a claim
C. To terminate the insurance policy
D. To collect additional premiums
20. A 'reservation of rights' letter is used by an insurer to:
A. Unconditionally accept a claim
VERIFIED QUESTIONS AND ANSWERS | 2026/2027
COMPREHENSIVE LATEST VERSION
1. Under the Texas Insurance Code, an 'adjuster' is defined as a person who:
A. Sells insurance policies on behalf of an insurer
B. Investigates, settles, or adjusts claims arising under insurance contracts
C. Underwrites risks for insurance companies
D. Audits insurance company financial statements
2. Which of the following does NOT require an adjuster license in Texas?
A. An attorney adjusting claims incidental to the practice of law
B. An independent adjuster handling auto claims
C. A public adjuster representing policyholders
D. A staff adjuster employed by a surplus lines company
3. The Texas Department of Insurance (TDI) requires an adjuster license applicant
to be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
4. A Texas all-lines adjuster license allows the licensee to adjust claims in:
A. Property and casualty only
B. Life, health, and annuities only
C. All lines of insurance
D. Workers' compensation only
,5. The standard Texas adjuster license renewal period is:
A. One year
B. Two years
C. Three years
D. Five years
6. A public adjuster in Texas represents:
A. The insurance company
B. The state government
C. The insured or claimant
D. Both insurer and insured equally
7. Which of the following is considered an 'independent adjuster' in Texas?
A. An adjuster employed directly by an insurer
B. An adjuster who contracts with multiple insurers
C. A public adjuster representing policyholders
D. An adjuster employed by the TDI
8. Continuing education (CE) requirements for Texas adjusters total how many
hours per renewal period?
A. 10 hours
B. 24 hours
C. 30 hours
D. 15 hours
9. Under Texas law, an insurer must acknowledge a claim within how many days
of receiving notice?
A. 5 business days
B. 10 business days
C. 15 calendar days
D. 30 calendar days
,10. Under the Texas Prompt Payment of Claims Act, after accepting a claim an
insurer must pay within:
A. 5 business days
B. 10 business days
C. 15 business days
D. 5 calendar days
11. A 'staff adjuster' is best described as:
A. An adjuster who works for the public
B. An adjuster employed exclusively by one insurer
C. A freelance adjuster with multiple clients
D. An adjuster specializing in workers' compensation
12. The Texas Unfair Claims Settlement Practices Act prohibits:
A. Paying claims promptly
B. Conducting thorough investigations
C. Knowingly misrepresenting relevant policy provisions
D. Offering fair settlements to claimants
13. 'Subrogation' in insurance means:
A. The insurer's right to recover from a third party after paying a loss
B. The insured's right to cancel the policy
C. The process of valuing a property loss
D. Adding additional coverage to a policy
14. Under the principle of indemnity, an insured:
A. May profit from an insurance claim
B. Should be restored to the same financial position as before the loss
C. Receives the full policy limit regardless of actual loss
D. Is entitled to double recovery if two policies cover the same loss
15. 'Actual Cash Value' (ACV) is typically calculated as:
, A. Replacement cost plus appreciation
B. Replacement cost minus depreciation
C. Original purchase price plus inflation
D. Market value plus sales tax
16. An insured who intentionally conceals or misrepresents material facts on an
application may face:
A. A reduction in premium only
B. Cancellation or voiding of the policy
C. A government fine only
D. Required counseling
17. 'Pro rata' cancellation means:
A. The insurer keeps all earned premium
B. The return premium is calculated proportionally for the unexpired
policy period
C. No premium is returned
D. The insured is charged a penalty
18. Under Texas law, the maximum fee a public adjuster may charge is:
A. 5% of the claim settlement
B. 10% of the claim settlement
C. 15% of the claim settlement
D. No statutory cap exists
19. What is the purpose of an 'Examination Under Oath' (EUO)?
A. To negotiate a settlement with the claimant
B. To formally examine the insured regarding facts related to a claim
C. To terminate the insurance policy
D. To collect additional premiums
20. A 'reservation of rights' letter is used by an insurer to:
A. Unconditionally accept a claim
