Texas All Lines Adjuster Laws & Regulation Review Quiz
Questions and Answers 2023 (Verified Answers)
All of the following are exempted from the requirement of an adjuster's license
examination except: A. Those persons holding CPCU designation; B. those persons
adjusting workers compensation claims; C. Those persons who have received the
Associate in Claims (AIC) designation; D. Those persons who have a certificate of
completion showing that within the past 12 months the applicant has completed a
certified adjuster prelicensing education program and passed the state examination.
B. A person adjusting workers compensation claims is not exempt.
All of the following are qualifications of applicants for an adjuster license in Texas
except: A. is at least 25 yrs. of age; B. resides in this state or a state that permits a
resident of this state to act as an adjuster in that state; C. is trustworthy; D. has passed
the required examination or presents evidence that the applicant has been exempted
from the examination.
A. Applicants must be at least 18 yrs. of age.
An emergency adjuster license is effective for a period not to exceed: A. 180 days B.
120 days; C. 90 days; D. 60 days.
C. An emergency license is effective for a period not to exceed 90 days. The
commissioner may extend the term of the emergency license for an additional period of
90 days.
A licensed adjuster must notify the commissioner if the adjuster changes the location of
the adjuster's place of business: A. Within 10 days; B. Within 20 days; C. Within 30
days; D. Notification must be made promptly
D. A licensed adjuster shall promptly notify the commissioner if the adjuster changes the
location of the adjuster's place of business.
All licensees must complete ________ hours of continuing education within each
reporting period. A. 15; B. 20; C. 24; D. 30
D. All licensees must complete 30 hours of continuing education within each reporting
period. However, limited lines licensees, those selling life insurance not exceeding
$15,000 and county mutual agents are required to comlete 10 hours of continuing
education during each reporting period.
Which one of the following is not an example of an unfair claim settlement practice? A.
Knowingly misrepresenting pertinent facts to claimants; B. Failing to acknowledge
communication within a reasonably prompt period; C. Failing to examine a claimant
under oath; D. Not attempting in good faith to promptly settle a claim when liability is
clear.
C. The right to examine policyholders under oath, in the case of questionable claims or
potential fraud, is a right of an insurer during a claim investigation and is part of the
contractural agreement between the insurer and the insured. Failing to do so does not
constitute a violation of the state's unfair claims settlement practices.
A contract that provides insurance coverage for up to 30 days, pending the issuance of
the permanent policy, is called a: A. binder; B. endorsement; C. lender; D. remedy
, A. A binder is a contract that provides temporary insurance coverage for up to 30 days,
pending the issuance of the permanent policy. Lenders must accept binders issued by
properly appointed and licensed agents.
What happens when a married couple who jointly owns residential property divorces
during the term of their homeowners insurance policy? A. Both insureds must reapply
for separate insurance on the property; B. The owner's must decide who will become
the named insured and transfer ownership of the insurance policy to that person; C. The
insurance remains in effect, and the interests of both owners are covered as long as the
policy exists or as long as the policy is not cancelled; D. The insurer has the option to
continue the policy that is in force or require the insureds to apply for new and separate
policies.
C. A homeowners or fire insurance policy issued in Texas must contain a provision that
the policy, if issued to cover community property, will remain in full force and effect as to
the interest of each spouse irrespective of divorce or change of ownership between the
spouses. The spouses or former spouses may apply for separate insurance, but the law
does not require them to do so.
All of the following statements regarding arbitration agreements are correct except: A.
the agreement must be in writing to be enforced; B. one party may revoke the
agreement by providing the fair value for the disputed loss; C. arbitration agreement
clauses must be included in all property and casualty policies in Texas; d. the
agreement must exist before the dispute arises for arbitration to take place.
C. Property insurance contracts may contain a clause that allows the insurer and
insured to arbitrate a disagreement about the amount to be paid for a claim if the
agreement is in writing, if the controversy exists at the time the agreement is made and
if the controversy arises between the parties after the date of the agreement. The
agreement may be revoked by either party for a lawful reason by providing the fair value
of the contract.
When can an insurer refuse to pay a claim under a homeowner's policy because the
policyowner misrepresented information on the insurance application? A. when the
insurer can prove that the misrepresentation led to an event that caused the policy to
pay; B. When the insured refuses to submit a new application; C. When the claim was
submitted within the first six months that the policy was in effect; D. When the insured
can prove that the misrepresentation was made with the knowledge of the insurer's
agent.
A. No insurer may use the fact that a policyholder has given false or untrue information
on an insurance application as a reason to cancel the policy or to deny a claim unless it
can be proved that the misrepresentation led to an event that caused the policy to pay a
claim that would not otherwise have been paid.
While personal injury protection (PIP) benefits under an auto policy are paid without
regard to fault, an insurer may not pay benefits for any injury: A. caused to the insured
by the insured; B. caused by a public vehicle; C. caused by an underinsured driver; D.
under $1500.
A. Personal Injury Protection (PIP) is required under all auto policies issued in Texas
unless rejected by the insured in writing. Coverage does not apply, however, if the
insured caused the injury to him or herself or if the injury occurred while committng a
felony or while trying to evade a lawful arrest.
Questions and Answers 2023 (Verified Answers)
All of the following are exempted from the requirement of an adjuster's license
examination except: A. Those persons holding CPCU designation; B. those persons
adjusting workers compensation claims; C. Those persons who have received the
Associate in Claims (AIC) designation; D. Those persons who have a certificate of
completion showing that within the past 12 months the applicant has completed a
certified adjuster prelicensing education program and passed the state examination.
B. A person adjusting workers compensation claims is not exempt.
All of the following are qualifications of applicants for an adjuster license in Texas
except: A. is at least 25 yrs. of age; B. resides in this state or a state that permits a
resident of this state to act as an adjuster in that state; C. is trustworthy; D. has passed
the required examination or presents evidence that the applicant has been exempted
from the examination.
A. Applicants must be at least 18 yrs. of age.
An emergency adjuster license is effective for a period not to exceed: A. 180 days B.
120 days; C. 90 days; D. 60 days.
C. An emergency license is effective for a period not to exceed 90 days. The
commissioner may extend the term of the emergency license for an additional period of
90 days.
A licensed adjuster must notify the commissioner if the adjuster changes the location of
the adjuster's place of business: A. Within 10 days; B. Within 20 days; C. Within 30
days; D. Notification must be made promptly
D. A licensed adjuster shall promptly notify the commissioner if the adjuster changes the
location of the adjuster's place of business.
All licensees must complete ________ hours of continuing education within each
reporting period. A. 15; B. 20; C. 24; D. 30
D. All licensees must complete 30 hours of continuing education within each reporting
period. However, limited lines licensees, those selling life insurance not exceeding
$15,000 and county mutual agents are required to comlete 10 hours of continuing
education during each reporting period.
Which one of the following is not an example of an unfair claim settlement practice? A.
Knowingly misrepresenting pertinent facts to claimants; B. Failing to acknowledge
communication within a reasonably prompt period; C. Failing to examine a claimant
under oath; D. Not attempting in good faith to promptly settle a claim when liability is
clear.
C. The right to examine policyholders under oath, in the case of questionable claims or
potential fraud, is a right of an insurer during a claim investigation and is part of the
contractural agreement between the insurer and the insured. Failing to do so does not
constitute a violation of the state's unfair claims settlement practices.
A contract that provides insurance coverage for up to 30 days, pending the issuance of
the permanent policy, is called a: A. binder; B. endorsement; C. lender; D. remedy
, A. A binder is a contract that provides temporary insurance coverage for up to 30 days,
pending the issuance of the permanent policy. Lenders must accept binders issued by
properly appointed and licensed agents.
What happens when a married couple who jointly owns residential property divorces
during the term of their homeowners insurance policy? A. Both insureds must reapply
for separate insurance on the property; B. The owner's must decide who will become
the named insured and transfer ownership of the insurance policy to that person; C. The
insurance remains in effect, and the interests of both owners are covered as long as the
policy exists or as long as the policy is not cancelled; D. The insurer has the option to
continue the policy that is in force or require the insureds to apply for new and separate
policies.
C. A homeowners or fire insurance policy issued in Texas must contain a provision that
the policy, if issued to cover community property, will remain in full force and effect as to
the interest of each spouse irrespective of divorce or change of ownership between the
spouses. The spouses or former spouses may apply for separate insurance, but the law
does not require them to do so.
All of the following statements regarding arbitration agreements are correct except: A.
the agreement must be in writing to be enforced; B. one party may revoke the
agreement by providing the fair value for the disputed loss; C. arbitration agreement
clauses must be included in all property and casualty policies in Texas; d. the
agreement must exist before the dispute arises for arbitration to take place.
C. Property insurance contracts may contain a clause that allows the insurer and
insured to arbitrate a disagreement about the amount to be paid for a claim if the
agreement is in writing, if the controversy exists at the time the agreement is made and
if the controversy arises between the parties after the date of the agreement. The
agreement may be revoked by either party for a lawful reason by providing the fair value
of the contract.
When can an insurer refuse to pay a claim under a homeowner's policy because the
policyowner misrepresented information on the insurance application? A. when the
insurer can prove that the misrepresentation led to an event that caused the policy to
pay; B. When the insured refuses to submit a new application; C. When the claim was
submitted within the first six months that the policy was in effect; D. When the insured
can prove that the misrepresentation was made with the knowledge of the insurer's
agent.
A. No insurer may use the fact that a policyholder has given false or untrue information
on an insurance application as a reason to cancel the policy or to deny a claim unless it
can be proved that the misrepresentation led to an event that caused the policy to pay a
claim that would not otherwise have been paid.
While personal injury protection (PIP) benefits under an auto policy are paid without
regard to fault, an insurer may not pay benefits for any injury: A. caused to the insured
by the insured; B. caused by a public vehicle; C. caused by an underinsured driver; D.
under $1500.
A. Personal Injury Protection (PIP) is required under all auto policies issued in Texas
unless rejected by the insured in writing. Coverage does not apply, however, if the
insured caused the injury to him or herself or if the injury occurred while committng a
felony or while trying to evade a lawful arrest.
