TEXAS ALL LINES ADJUSTER EXAM BRAND
NEW!! 2025 (200+ QUESTIONS AND
CORRECT ANSWERS) VERIFIED ANSWERS
SECTION 1: TEXAS INSURANCE CODE & REGULATIONS (20 Questions)
1. According to the Texas Insurance Code, what is the maximum number of consecutive hours an
adjuster can work without rest during a declared catastrophe?
A) 12 hours
B) 14 hours
C) 16 hours
D) 24 hours
Correct Answer: C) 16 hours
Rationale: Texas Administrative Code §19.1004 limits adjusters to 16 hours of work in a 24-hour period
during a catastrophe to prevent fatigue-related errors.
2. Under Texas law, what is the statute of limitations for filing a lawsuit on a written insurance
contract?
A) 1 year
B) 2 years
C) 4 years
D) 5 years
Correct Answer: C) 4 years
Rationale: Under the Texas Civil Practice & Remedies Code §16.051 and reinforced by recent
interpretations, written contracts generally have a 4-year statute of limitations. (Note: HB 567 clarified
that this applies to first-party claims).
3. The Texas Department of Insurance (TDI) has how many days to issue a license to an applicant who
has passed the exam, provided all requirements are met?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
,Correct Answer: D) 60 days
Rationale: TDI has 60 days to approve or deny a completed license application.
4. An adjuster who is not a resident of Texas but is licensed in their home state may work a
catastrophe in Texas without a Texas license for how many days?
A) 15 days
B) 30 days
C) 60 days
D) 90 days
Correct Answer: D) 90 days
Rationale: Non-resident adjusters licensed in their home state can operate in Texas under a reciprocity
agreement for 90 days following a catastrophe declaration.
5. What is the penalty for acting as a public insurance adjuster without a license in Texas?
A) Class C Misdemeanor
B) Class A Misdemeanor
C) 3rd Degree Felony
D) Administrative fine only
Correct Answer: B) Class A Misdemeanor
Rationale: Unlicensed activity as a public adjuster is a Class A misdemeanor, punishable by up to one
year in jail and/or a $4,000 fine.
6. Which of the following is NOT a prohibited act under the Texas Deceptive Trade Practices Act
(DTPA) regarding insurance claims?
A) Failing to attempt in good faith to settle a claim promptly.
B) Misrepresenting pertinent facts or policy provisions.
C) Requesting a sworn proof of loss within 30 days of the loss.
D) Compelling an insured to institute litigation to recover amounts due.
Correct Answer: C) Requesting a sworn proof of loss within 30 days of the loss.
Rationale: Requesting a proof of loss is a standard, lawful part of the claims process. The other options
are "unfair settlement practices" under DTPA.
7. The "Prompt Payment of Claims" statute (Texas Insurance Code Chapter 542) requires an insurer to
acknowledge receipt of a claim within:
A) 5 business days
B) 10 business days
C) 15 calendar days
D) 30 calendar days
, Correct Answer: C) 15 calendar days
Rationale: Insurers must acknowledge receipt of the claim within 15 calendar days. Failure to do so
triggers interest penalties.
8. If an insurer fails to pay a claim within the timeframes set by Chapter 542, what is the penalty
interest rate?
A) 8% per annum
B) 10% per annum
C) 18% per annum
D) Prime rate plus 1%
Correct Answer: C) 18% per annum
Rationale: If the insurer violates the prompt payment deadlines, the claim accrues interest at 18% per
annum from the date the claim was required to be paid until the date it is actually paid.
9. Which entity has the authority to suspend or revoke an adjuster’s license in Texas?
A) The National Association of Insurance Commissioners (NAIC)
B) The Commissioner of Insurance
C) The Texas Attorney General
D) The local County Judge
Correct Answer: B) The Commissioner of Insurance
Rationale: The Texas Commissioner of Insurance holds the authority to discipline licensees, including
suspension, revocation, or denial of renewal.
10. Under the Texas Labor Code, if an employee is injured on the job, the statute of limitations to file
a claim for workers’ compensation benefits is:
A) 30 days
B) 1 year
C) 2 years
D) 3 years
Correct Answer: B) 1 year
Rationale: An employee generally has one year from the date of injury to file a claim for workers’
compensation benefits with the Division of Workers’ Compensation (DWC).
11. What is the "Valued Policy Law" in Texas?
A) If a total loss occurs, the insurer pays the face amount of the policy regardless of actual cash value.
B) The insurer must value the property at 80% of replacement cost.
C) Depreciation is only applied to personal property.
D) The insured must value the property at the time of application.
NEW!! 2025 (200+ QUESTIONS AND
CORRECT ANSWERS) VERIFIED ANSWERS
SECTION 1: TEXAS INSURANCE CODE & REGULATIONS (20 Questions)
1. According to the Texas Insurance Code, what is the maximum number of consecutive hours an
adjuster can work without rest during a declared catastrophe?
A) 12 hours
B) 14 hours
C) 16 hours
D) 24 hours
Correct Answer: C) 16 hours
Rationale: Texas Administrative Code §19.1004 limits adjusters to 16 hours of work in a 24-hour period
during a catastrophe to prevent fatigue-related errors.
2. Under Texas law, what is the statute of limitations for filing a lawsuit on a written insurance
contract?
A) 1 year
B) 2 years
C) 4 years
D) 5 years
Correct Answer: C) 4 years
Rationale: Under the Texas Civil Practice & Remedies Code §16.051 and reinforced by recent
interpretations, written contracts generally have a 4-year statute of limitations. (Note: HB 567 clarified
that this applies to first-party claims).
3. The Texas Department of Insurance (TDI) has how many days to issue a license to an applicant who
has passed the exam, provided all requirements are met?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
,Correct Answer: D) 60 days
Rationale: TDI has 60 days to approve or deny a completed license application.
4. An adjuster who is not a resident of Texas but is licensed in their home state may work a
catastrophe in Texas without a Texas license for how many days?
A) 15 days
B) 30 days
C) 60 days
D) 90 days
Correct Answer: D) 90 days
Rationale: Non-resident adjusters licensed in their home state can operate in Texas under a reciprocity
agreement for 90 days following a catastrophe declaration.
5. What is the penalty for acting as a public insurance adjuster without a license in Texas?
A) Class C Misdemeanor
B) Class A Misdemeanor
C) 3rd Degree Felony
D) Administrative fine only
Correct Answer: B) Class A Misdemeanor
Rationale: Unlicensed activity as a public adjuster is a Class A misdemeanor, punishable by up to one
year in jail and/or a $4,000 fine.
6. Which of the following is NOT a prohibited act under the Texas Deceptive Trade Practices Act
(DTPA) regarding insurance claims?
A) Failing to attempt in good faith to settle a claim promptly.
B) Misrepresenting pertinent facts or policy provisions.
C) Requesting a sworn proof of loss within 30 days of the loss.
D) Compelling an insured to institute litigation to recover amounts due.
Correct Answer: C) Requesting a sworn proof of loss within 30 days of the loss.
Rationale: Requesting a proof of loss is a standard, lawful part of the claims process. The other options
are "unfair settlement practices" under DTPA.
7. The "Prompt Payment of Claims" statute (Texas Insurance Code Chapter 542) requires an insurer to
acknowledge receipt of a claim within:
A) 5 business days
B) 10 business days
C) 15 calendar days
D) 30 calendar days
, Correct Answer: C) 15 calendar days
Rationale: Insurers must acknowledge receipt of the claim within 15 calendar days. Failure to do so
triggers interest penalties.
8. If an insurer fails to pay a claim within the timeframes set by Chapter 542, what is the penalty
interest rate?
A) 8% per annum
B) 10% per annum
C) 18% per annum
D) Prime rate plus 1%
Correct Answer: C) 18% per annum
Rationale: If the insurer violates the prompt payment deadlines, the claim accrues interest at 18% per
annum from the date the claim was required to be paid until the date it is actually paid.
9. Which entity has the authority to suspend or revoke an adjuster’s license in Texas?
A) The National Association of Insurance Commissioners (NAIC)
B) The Commissioner of Insurance
C) The Texas Attorney General
D) The local County Judge
Correct Answer: B) The Commissioner of Insurance
Rationale: The Texas Commissioner of Insurance holds the authority to discipline licensees, including
suspension, revocation, or denial of renewal.
10. Under the Texas Labor Code, if an employee is injured on the job, the statute of limitations to file
a claim for workers’ compensation benefits is:
A) 30 days
B) 1 year
C) 2 years
D) 3 years
Correct Answer: B) 1 year
Rationale: An employee generally has one year from the date of injury to file a claim for workers’
compensation benefits with the Division of Workers’ Compensation (DWC).
11. What is the "Valued Policy Law" in Texas?
A) If a total loss occurs, the insurer pays the face amount of the policy regardless of actual cash value.
B) The insurer must value the property at 80% of replacement cost.
C) Depreciation is only applied to personal property.
D) The insured must value the property at the time of application.
