SUPER-DUPER TEXAS ADJUSTER LICENSE TEST
REVIEW 3000! EXAM 2026 UPDATE
Insurance History and Regulation: Insurance ......ANSWER......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 ......ANSWER......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) ......ANSWER......Regulates the consumer interest in regard to
insurance.
Protection of Consumer Interests: Head of the Texas Department of
Insurance ......ANSWER......Insurance Commissioner
Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive
Insurance Practices ......ANSWER......was set up by the State of Texas to
establish certain practices which constitute unfair and/or deceptive
insurance acts.
pg. 1
,Protection of Consumer Interests: Texas Insurance Code requires what
within how many days of receipt of a claim that the insurer?
......ANSWER......within 15 days 1) acknowledge receipt of a claim 2)
begin investigation 3) request items from the claimant.
Insurance: What is the purpose of insurance? ......ANSWER......to
provide a way to spread risk over a large group of people
Insurance: Principle of Indemnity ......ANSWER......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? ......ANSWER......1)
to prevent the insured from profiting from a loss 2) to reduce moral
hazard
Insurance: what is risk? ......ANSWER......(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 ......ANSWER......is the first event in an
uninterrupted chain of events that leads to a loss
pg. 2
,Insurance: What are the 2 types of risk? ......ANSWER......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 ......ANSWER......to avoid risks
associated with swimming pools, don't buy a home with a pool.
Insurance: example of risk reduction ......ANSWER......to reduce fire
damage, install a sprinkler system in home
Insurance: Example of risk retention ......ANSWER......insurance
company accepts risk when they've accepted the insured.
Insurance: example of risk transference ......ANSWER......purchasing
insurance, transfers the risk from insured to insurance company.
Insurance: what is a peril? ......ANSWER......The actual cause of a loss.
Insurance: what are the two types of perils? ......ANSWER......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 ......ANSWER......1.
lightning/fire
pg. 3
, 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)
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? ......ANSWER......situations or behaviors
that increase the risk of loss of property
Insurance: Name the three kinds of hazards and give an example of
each ......ANSWER......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
pg. 4
REVIEW 3000! EXAM 2026 UPDATE
Insurance History and Regulation: Insurance ......ANSWER......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 ......ANSWER......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) ......ANSWER......Regulates the consumer interest in regard to
insurance.
Protection of Consumer Interests: Head of the Texas Department of
Insurance ......ANSWER......Insurance Commissioner
Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive
Insurance Practices ......ANSWER......was set up by the State of Texas to
establish certain practices which constitute unfair and/or deceptive
insurance acts.
pg. 1
,Protection of Consumer Interests: Texas Insurance Code requires what
within how many days of receipt of a claim that the insurer?
......ANSWER......within 15 days 1) acknowledge receipt of a claim 2)
begin investigation 3) request items from the claimant.
Insurance: What is the purpose of insurance? ......ANSWER......to
provide a way to spread risk over a large group of people
Insurance: Principle of Indemnity ......ANSWER......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? ......ANSWER......1)
to prevent the insured from profiting from a loss 2) to reduce moral
hazard
Insurance: what is risk? ......ANSWER......(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 ......ANSWER......is the first event in an
uninterrupted chain of events that leads to a loss
pg. 2
,Insurance: What are the 2 types of risk? ......ANSWER......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 ......ANSWER......to avoid risks
associated with swimming pools, don't buy a home with a pool.
Insurance: example of risk reduction ......ANSWER......to reduce fire
damage, install a sprinkler system in home
Insurance: Example of risk retention ......ANSWER......insurance
company accepts risk when they've accepted the insured.
Insurance: example of risk transference ......ANSWER......purchasing
insurance, transfers the risk from insured to insurance company.
Insurance: what is a peril? ......ANSWER......The actual cause of a loss.
Insurance: what are the two types of perils? ......ANSWER......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 ......ANSWER......1.
lightning/fire
pg. 3
, 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)
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? ......ANSWER......situations or behaviors
that increase the risk of loss of property
Insurance: Name the three kinds of hazards and give an example of
each ......ANSWER......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
pg. 4
