TEXAS ALL LINES ADJUSTER LAWS & REGULATION REVIEW QUIZ QUESTIONS AND CORRECT ANSWERS

TEXAS ALL LINES ADJUSTER LAWS &
REGULATION REVIEW QUIZ QUESTIONS
AND CORRECT ANSWERS

AllA2ofA2theA2followingA2areA2exemptedA2fromA2theA2requirementA2ofA2anA2adjuster'sA2licen
seA2examinationA2except:A2A.A2ThoseA2personsA2holdingA2CPCUA2designation;A2B.A2those
A2personsA2adjustingA2workersA2compensationA2claims;A2C.A2ThoseA2personsA2whoA2have
A2receivedA2theA2AssociateA2inA2ClaimsA2(AIC)A2designation;A2D.A2ThoseA2personsA2whoA2
haveA2aA2certificateA2ofA2completionA2showingA2thatA2withinA2theA2pastA212A2monthsA2theA2
applicantA2hasA2completedA2aA2certifiedA2adjusterA2prelicensingA2educationA2programA2an
dA2passedA2theA2stateA2examination.A2-A2Ans--
B.A2AA2personA2adjustingA2workersA2compensationA2claimsA2isA2notA2exempt.

AllA2ofA2theA2followingA2areA2qualificationsA2ofA2applicantsA2forA2anA2adjusterA2licenseA2inA2
TexasA2except:A2A.A2isA2atA2leastA225A2yrs.A2ofA2age;A2B.A2residesA2inA2thisA2stateA2orA2aA2s
tateA2thatA2permitsA2aA2residentA2ofA2thisA2stateA2toA2actA2asA2anA2adjusterA2inA2thatA2state;
A2C.A2isA2trustworthy;A2D.A2hasA2passedA2theA2requiredA2examinationA2orA2presentsA2evide
nceA2thatA2theA2applicantA2hasA2beenA2exemptedA2fromA2theA2examination.A2-A2Ans--
A.A2ApplicantsA2mustA2beA2atA2leastA218A2yrs.A2ofA2age.

AnA2emergencyA2adjusterA2licenseA2isA2effectiveA2forA2aA2periodA2notA2toA2exceed:A2A.A218
0A2daysA2B.A2120A2days;A2C.A290A2days;A2D.A260A2days.A2-A2Ans--
C.A2AnA2emergencyA2licenseA2isA2effectiveA2forA2aA2periodA2notA2toA2exceedA290A2days.A2T
heA2commissionerA2mayA2extendA2theA2termA2ofA2theA2emergencyA2licenseA2forA2anA2addit
ionalA2periodA2ofA290A2days.

AA2licensedA2adjusterA2mustA2notifyA2theA2commissionerA2ifA2theA2adjusterA2changesA2theA
2locationA2ofA2theA2adjuster'sA2placeA2ofA2business:A2A.A2WithinA210A2days;A2B.A2WithinA22
0A2days;A2C.A2WithinA230A2days;A2D.A2NotificationA2mustA2beA2madeA2promptlyA2-A2Ans--
D.A2AA2licensedA2adjusterA2shallA2promptlyA2notifyA2theA2commissionerA2ifA2theA2adjusterA2
changesA2theA2locationA2ofA2theA2adjuster'sA2placeA2ofA2business.

AllA2licenseesA2mustA2completeA2________A2hoursA2ofA2continuingA2educationA2withinA2ea
chA2reportingA2period.A2A.A215;A2B.A220;A2C.A224;A2D.A230A2-A2Ans--
D.A2AllA2licenseesA2mustA2completeA230A2hoursA2ofA2continuingA2educationA2withinA2eachA
2reportingA2period.A2However,A2limitedA2linesA2licensees,A2thoseA2sellingA2lifeA2insuranceA2
notA2exceedingA2$15,000A2andA2countyA2mutualA2agentsA2areA2requiredA2toA2comleteA210A
2hoursA2ofA2continuingA2educationA2duringA2eachA2reportingA2period.


WhichA2oneA2ofA2theA2followingA2isA2notA2anA2exampleA2ofA2anA2unfairA2claimA2settlementA2
practice?
A2A.A2KnowinglyA2misrepresentingA2pertinentA2factsA2toA2claimants;A2B.A2FailingA2toA2ackn
owledgeA2communicationA2withinA2aA2reasonablyA2promptA2period;A2C.A2FailingA2toA2exam

, ineA2aA2claimantA2underA2oath;A2D.A2NotA2attemptingA2inA2goodA2faithA2toA2promptlyA2settle
A2aA2claimA2whenA2liabilityA2isA2clear.A2-A2Ans--
C.A2TheA2rightA2toA2examineA2policyholdersA2underA2oath,A2inA2theA2caseA2ofA2questionabl
eA2claimsA2orA2potentialA2fraud,A2isA2aA2rightA2ofA2anA2insurerA2duringA2aA2claimA2investigati
onA2andA2isA2partA2ofA2theA2contracturalA2agreementA2betweenA2theA2insurerA2andA2theA2in
sured.A2FailingA2toA2doA2soA2doesA2notA2constituteA2aA2violationA2ofA2theA2state'sA2unfairA2c
laimsA2settlementA2practices.

AA2contractA2thatA2providesA2insuranceA2coverageA2forA2upA2toA230A2days,A2pendingA2theA2
issuanceA2ofA2theA2permanentA2policy,A2isA2calledA2a:A2A.A2binder;A2B.A2endorsement;A2C.A
2lender;A2D.A2remedyA2-A2Ans--
A.A2AA2binderA2isA2aA2contractA2thatA2providesA2temporaryA2insuranceA2coverageA2forA2upA
2toA230A2days,A2pendingA2theA2issuanceA2ofA2theA2permanentA2policy.A2LendersA2mustA2ac
ceptA2bindersA2issuedA2byA2properlyA2appointedA2andA2licensedA2agents.

WhatA2happensA2whenA2aA2marriedA2coupleA2whoA2jointlyA2ownsA2residentialA2propertyA2d
ivorcesA2duringA2theA2termA2ofA2theirA2homeownersA2insuranceA2policy?
A2A.A2BothA2insuredsA2mustA2reapplyA2forA2separateA2insuranceA2onA2theA2property;A2B.A2T
heA2owner'sA2mustA2decideA2whoA2willA2becomeA2theA2namedA2insuredA2andA2transferA2o
wnershipA2ofA2theA2insuranceA2policyA2toA2thatA2person;A2C.A2TheA2insuranceA2remainsA2in
A2effect,A2andA2theA2interestsA2ofA2bothA2ownersA2areA2coveredA2asA2longA2asA2theA2policyA
2existsA2orA2asA2longA2asA2theA2policyA2isA2notA2cancelled;A2D.A2TheA2insurerA2hasA2theA2op
tionA2toA2continueA2theA2policyA2thatA2isA2inA2forceA2orA2requireA2theA2insuredsA2toA2applyA2f
orA2newA2andA2separateA2policies.A2-A2Ans--
C.A2AA2homeownersA2orA2fireA2insuranceA2policyA2issuedA2inA2TexasA2mustA2containA2aA2p
rovisionA2thatA2theA2policy,A2ifA2issuedA2toA2coverA2communityA2property,A2willA2remainA2inA
2fullA2forceA2andA2effectA2asA2toA2theA2interestA2ofA2eachA2spouseA2irrespectiveA2ofA2divorc
eA2orA2changeA2ofA2ownershipA2betweenA2theA2spouses.A2TheA2spousesA2orA2formerA2spo
usesA2mayA2applyA2forA2separateA2insurance,A2butA2theA2lawA2doesA2notA2requireA2themA2t
oA2doA2so.

AllA2ofA2theA2followingA2statementsA2regardingA2arbitrationA2agreementsA2areA2correctA2ex
cept:A2A.A2theA2agreementA2mustA2beA2inA2writingA2toA2beA2enforced;A2B.A2oneA2partyA2ma
yA2revokeA2theA2agreementA2byA2providingA2theA2fairA2valueA2forA2theA2disputedA2loss;A2C.
A2arbitrationA2agreementA2clausesA2mustA2beA2includedA2inA2allA2propertyA2andA2casualtyA2
policiesA2inA2Texas;A2d.A2theA2agreementA2mustA2existA2beforeA2theA2disputeA2arisesA2forA2
arbitrationA2toA2takeA2place.A2-A2Ans--
C.A2PropertyA2insuranceA2contractsA2mayA2containA2aA2clauseA2thatA2allowsA2theA2insurerA
2andA2insuredA2toA2arbitrateA2aA2disagreementA2aboutA2theA2amountA2toA2beA2paidA2forA2aA
2claimA2ifA2theA2agreementA2isA2inA2writing,A2ifA2theA2controversyA2existsA2atA2theA2timeA2th
eA2agreementA2isA2madeA2andA2ifA2theA2controversyA2arisesA2betweenA2theA2partiesA2after
A2theA2dateA2ofA2theA2agreement.A2TheA2agreementA2mayA2beA2revokedA2byA2eitherA2party
A2forA2aA2lawfulA2reasonA2byA2providingA2theA2fairA2valueA2ofA2theA2contract.


WhenA2canA2anA2insurerA2refuseA2toA2payA2aA2claimA2underA2aA2homeowner'sA2policyA2bec
auseA2theA2policyownerA2misrepresentedA2informationA2onA2theA2insuranceA2application?