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SUPER-DUPER TEXAS ADJUSTER LICENSE (ACTUAL
2025/2026) COMPLETE QUESTIONS AND 100%
CORRECT DETAILED ANSWERS
Insurance History and Regulation: Insurance - (answers)Coverage by contract
whereby one party undertakes to indemnity (hold harmless) or guarantee another
against loss by a specified contingency or peril.
Insurance History and Regulation: NAIC - (answers)An organization whose
purpose is to organize the regulatory and supervisory efforts of the various state
insurance commissioners from around the United States.
Protection of Consumer Interests: The Texas Department of Insurance (TDI) -
(answers)Regulates the consumer interest in regard to insurance.
Protection of Consumer Interests: Head of the Texas Department of Insurance -
(answers)Insurance Commissioner
Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive Insurance
Practices - (answers)was set up by the State of Texas to establish certain practices
which constitute unfair and/or deceptive insurance acts.
Protection of Consumer Interests: Texas Insurance Code requires what within
how many days of receipt of a claim that the insurer? - (answers)within 15 days 1)
acknowledge receipt of a claim 2) begin investigation 3) request items from the
claimant.
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Insurance: What is the purpose of insurance? - (answers)to provide a way to
spread risk over a large group of people
Insurance: Principle of Indemnity - (answers)IS AN INSURANCE PRINCIPLE
STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE
COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. It is a
principle that returns the insured to their previous financial condition.
Insurance: What are the two purposes of indemnity? - (answers)1) to prevent the
insured from profiting from a loss 2) to reduce moral hazard
Insurance: what is risk? - (answers)(1) the potential for a financial loss or the
statistical chance of danger from exposure to a hazard or peril (2) the uncertainty
about loss that exists whenever more than one outcome is possible
Insurance: Proximate Cause - (answers)is the first event in an uninterrupted chain
of events that leads to a loss
Insurance: What are the 2 types of risk? - (answers)Speculative: affords the
opportunity for gain as well as the possibility of loss
Pure: a risk where there is the potential of real loss due to exposure to a peril
Insurance: example of risk avoidance - (answers)to avoid risks associated with
swimming pools, don't buy a home with a pool.
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Insurance: example of risk reduction - (answers)to reduce fire damage, install a
sprinkler system in home
Insurance: Example of risk retention - (answers)insurance company accepts risk
when they've accepted the insured.
Insurance: example of risk transference - (answers)purchasing insurance,
transfers the risk from insured to insurance company.
Insurance: what is a peril? - (answers)The actual cause of a loss.
Insurance: what are the two types of perils? - (answers)1) named peril -- specifies
which perils are insured against 2) open peril / all risk peril -- insures against all
perils unless specifically excluded in the policy
Insurance: 14 most common named perils - (answers)1. lightning/fire
2. sudden & accidental damage from smoke
3. explosions
4. windstorms, hurricane or hail
5. theft
6. vehicle damage
7. aircraft damage
8. vandalism/malicious mischief (V/MM)
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9. falling objects
10. weight of snow, ice or sleet
11. sudden and accidental water damage from plumbing, heating, or A/C overflow
12. freezing damage to plumbing
13. riots
14. civil disobedience
Insurance: What is a hazard? - (answers)situations or behaviors that increase the
risk of loss of property
Insurance: Name the three kinds of hazards and give an example of each -
(answers)1) Physical -- large hole in the front yard where someone could step in
and hurt themselves
2) Morale -- leaving a home with the doors unlocked and the windows opened
3) Moral -- embezzlement
Insurance: List and define the 2 types of losses - (answers)1) Direct loss -- damage
that is a direct result of a covered peril such as a fire destroying a home
2) Indirect loss -- consequential loss resulting indirectly from a direct loss due to a
covered peril such as loss of business income or loss of use
SUPER-DUPER TEXAS ADJUSTER LICENSE (ACTUAL
2025/2026) COMPLETE QUESTIONS AND 100%
CORRECT DETAILED ANSWERS
Insurance History and Regulation: Insurance - (answers)Coverage by contract
whereby one party undertakes to indemnity (hold harmless) or guarantee another
against loss by a specified contingency or peril.
Insurance History and Regulation: NAIC - (answers)An organization whose
purpose is to organize the regulatory and supervisory efforts of the various state
insurance commissioners from around the United States.
Protection of Consumer Interests: The Texas Department of Insurance (TDI) -
(answers)Regulates the consumer interest in regard to insurance.
Protection of Consumer Interests: Head of the Texas Department of Insurance -
(answers)Insurance Commissioner
Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive Insurance
Practices - (answers)was set up by the State of Texas to establish certain practices
which constitute unfair and/or deceptive insurance acts.
Protection of Consumer Interests: Texas Insurance Code requires what within
how many days of receipt of a claim that the insurer? - (answers)within 15 days 1)
acknowledge receipt of a claim 2) begin investigation 3) request items from the
claimant.
,2|Page
Insurance: What is the purpose of insurance? - (answers)to provide a way to
spread risk over a large group of people
Insurance: Principle of Indemnity - (answers)IS AN INSURANCE PRINCIPLE
STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE
COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. It is a
principle that returns the insured to their previous financial condition.
Insurance: What are the two purposes of indemnity? - (answers)1) to prevent the
insured from profiting from a loss 2) to reduce moral hazard
Insurance: what is risk? - (answers)(1) the potential for a financial loss or the
statistical chance of danger from exposure to a hazard or peril (2) the uncertainty
about loss that exists whenever more than one outcome is possible
Insurance: Proximate Cause - (answers)is the first event in an uninterrupted chain
of events that leads to a loss
Insurance: What are the 2 types of risk? - (answers)Speculative: affords the
opportunity for gain as well as the possibility of loss
Pure: a risk where there is the potential of real loss due to exposure to a peril
Insurance: example of risk avoidance - (answers)to avoid risks associated with
swimming pools, don't buy a home with a pool.
,3|Page
Insurance: example of risk reduction - (answers)to reduce fire damage, install a
sprinkler system in home
Insurance: Example of risk retention - (answers)insurance company accepts risk
when they've accepted the insured.
Insurance: example of risk transference - (answers)purchasing insurance,
transfers the risk from insured to insurance company.
Insurance: what is a peril? - (answers)The actual cause of a loss.
Insurance: what are the two types of perils? - (answers)1) named peril -- specifies
which perils are insured against 2) open peril / all risk peril -- insures against all
perils unless specifically excluded in the policy
Insurance: 14 most common named perils - (answers)1. lightning/fire
2. sudden & accidental damage from smoke
3. explosions
4. windstorms, hurricane or hail
5. theft
6. vehicle damage
7. aircraft damage
8. vandalism/malicious mischief (V/MM)
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9. falling objects
10. weight of snow, ice or sleet
11. sudden and accidental water damage from plumbing, heating, or A/C overflow
12. freezing damage to plumbing
13. riots
14. civil disobedience
Insurance: What is a hazard? - (answers)situations or behaviors that increase the
risk of loss of property
Insurance: Name the three kinds of hazards and give an example of each -
(answers)1) Physical -- large hole in the front yard where someone could step in
and hurt themselves
2) Morale -- leaving a home with the doors unlocked and the windows opened
3) Moral -- embezzlement
Insurance: List and define the 2 types of losses - (answers)1) Direct loss -- damage
that is a direct result of a covered peril such as a fire destroying a home
2) Indirect loss -- consequential loss resulting indirectly from a direct loss due to a
covered peril such as loss of business income or loss of use
