TEXAS CSR WKT EXAM LATEST 2026/2027 COMPLETE ACCURATE
QUESTIONS WITH WELL ELABORATED ANSWERS AND DETAILED
RATIONALES (100% CORRECT VERIFIED SOLUTIONS) NEWEST
UPDATED VERSION 2026 EDITION |GUARANTEED SUCCESS A+
(BRAND NEW!) FULL REVISED TEXAS CSR WKT EXAM APPROVED
EXAM
1. An individual applies for a property insurance policy in Texas and pays the
initial premium. The insurer issues a conditional receipt. If the applicant dies in a
car accident two days later, before underwriting is complete, the insurer must:
A) Deny the claim because underwriting was not finished
B) Return the premium with no coverage
C) Pay the claim if the applicant would have qualified for the policy
D) Pay only 50% of the death benefit
CORRECT ANSWER: C) Pay the claim if the applicant would have qualified for
the policy. Rationale: Under Texas law, a conditional receipt provides coverage
from the date of receipt if the applicant would have been approved as a standard
risk.
2. Under the Texas Workers’ Compensation Act, which of the following is a “non-
subscriber” employer required to do?
A) Purchase workers’ compensation insurance from TDI
B) Provide notice to employees that they do not have workers’ compensation
coverage
C) Contribute to the Subsequent Injury Fund
D) Obtain a waiver from the Texas Supreme Court
CORRECT ANSWER: B) Provide notice to employees that they do not have
workers’ compensation coverage. Rationale: Non-subscribers must post a
conspicuous notice stating they do not provide workers’ comp, per Texas Labor
Code §406.004.
3. A property insurance policy in Texas includes a “valued policy” clause. Which
statement is accurate?
A) The policy pays actual cash value only after a loss
B) The insurer pays the full policy limit if a total loss occurs
,C) The policyholder must prove the replacement cost
D) The clause applies only to automobile policies
CORRECT ANSWER: B) The insurer pays the full policy limit if a total loss
occurs. Rationale: Texas Insurance Code §862.051 (Valued Policy Law) requires
that for a total loss to real property, the insurer pays the face amount of the
policy.
4. When must a Texas insurance adjuster notify TDI of a change of address?
A) Within 10 days
B) Within 30 days
C) Within 60 days
D) Within 90 days
CORRECT ANSWER: C) Within 60 days. Rationale: Texas Administrative Code
§19.1020 requires adjusters to update their address with TDI within 60 days of
any change.
5. An adjuster in Texas fails to respond to a claim for 20 business days after receipt
of all required documentation. Under the Texas Unfair Claim Settlement Practices
Act, this is:
A) Acceptable if the claim is over $10,000
B) A violation of prompt payment standards
C) Permitted if the adjuster is waiting for police reports
D) Not a violation because 20 days is the maximum
CORRECT ANSWER: B) A violation of prompt payment
standards. Rationale: 28 TAC §21.203 requires acknowledgment and action
within 15 business days; 20 days without response is unreasonable.
6. Which type of authority is explicitly granted to an agent in the written contract
with the insurer?
A) Apparent authority
B) Express authority
,C) Implied authority
D) Ratified authority
CORRECT ANSWER: B) Express authority. Rationale: Express authority is
specifically written in the agency contract; implied and apparent are derived
from conduct.
7. In Texas, which entity is responsible for liquidating an insolvent property and
casualty insurer?
A) Texas Department of Insurance
B) The Commissioner of Insurance acting as receiver
C) Federal Insurance Office
D) The guaranty association
CORRECT ANSWER: B) The Commissioner of Insurance acting as
receiver. Rationale: Texas Insurance Code §443.003 gives the Commissioner
authority to act as receiver for liquidation.
8. A commercial general liability policy (CGL) in Texas contains an “absolute
pollution exclusion.” Which claim would most likely be excluded?
A) A customer slips on a wet floor
B) A chemical release from a factory into a river
C) A product fails causing property damage
D) An employee trips over wiring
CORRECT ANSWER: B) A chemical release from a factory into a
river. Rationale: The absolute pollution exclusion bars coverage for damages
arising from pollutants, including chemical releases.
9. The Texas Windstorm Insurance Association (TWIA) provides coverage for:
A) Flood damage statewide
B) Wind and hail damage in designated coastal areas
C) Earthquake damage in West Texas
D) Wildfire damage in Hill Country
, CORRECT ANSWER: B) Wind and hail damage in designated coastal
areas. Rationale: TWIA was created as the insurer of last resort for wind and
hail in 14 coastal counties and parts of Harris County.
10. An adjuster knowingly misrepresents policy terms to a claimant to reduce a
settlement. Under Texas law, this is:
A) A clerical error
B) An unfair or deceptive act
C) Permitted if the claimant agrees
D) A standard negotiation tactic
CORRECT ANSWER: B) An unfair or deceptive act. Rationale: Texas
Insurance Code §541.060 prohibits misrepresenting policy provisions to
claimants.
11. Under the Texas Prompt Payment of Claims Act, for a claim not involving
weather-related damage, an insurer must pay or deny the claim within how many
days after receiving all requested information?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
CORRECT ANSWER: B) 15 days. Rationale: Texas Insurance Code §542.058
requires payment or denial within 15 business days after receipt of all necessary
documentation.
12. An adjuster has a fiduciary duty to:
A) The claimant only
B) The insurance agent only
C) The insurer that employs them
D) The Texas Department of Licensing
CORRECT ANSWER: C) The insurer that employs them. Rationale: An adjuster
QUESTIONS WITH WELL ELABORATED ANSWERS AND DETAILED
RATIONALES (100% CORRECT VERIFIED SOLUTIONS) NEWEST
UPDATED VERSION 2026 EDITION |GUARANTEED SUCCESS A+
(BRAND NEW!) FULL REVISED TEXAS CSR WKT EXAM APPROVED
EXAM
1. An individual applies for a property insurance policy in Texas and pays the
initial premium. The insurer issues a conditional receipt. If the applicant dies in a
car accident two days later, before underwriting is complete, the insurer must:
A) Deny the claim because underwriting was not finished
B) Return the premium with no coverage
C) Pay the claim if the applicant would have qualified for the policy
D) Pay only 50% of the death benefit
CORRECT ANSWER: C) Pay the claim if the applicant would have qualified for
the policy. Rationale: Under Texas law, a conditional receipt provides coverage
from the date of receipt if the applicant would have been approved as a standard
risk.
2. Under the Texas Workers’ Compensation Act, which of the following is a “non-
subscriber” employer required to do?
A) Purchase workers’ compensation insurance from TDI
B) Provide notice to employees that they do not have workers’ compensation
coverage
C) Contribute to the Subsequent Injury Fund
D) Obtain a waiver from the Texas Supreme Court
CORRECT ANSWER: B) Provide notice to employees that they do not have
workers’ compensation coverage. Rationale: Non-subscribers must post a
conspicuous notice stating they do not provide workers’ comp, per Texas Labor
Code §406.004.
3. A property insurance policy in Texas includes a “valued policy” clause. Which
statement is accurate?
A) The policy pays actual cash value only after a loss
B) The insurer pays the full policy limit if a total loss occurs
,C) The policyholder must prove the replacement cost
D) The clause applies only to automobile policies
CORRECT ANSWER: B) The insurer pays the full policy limit if a total loss
occurs. Rationale: Texas Insurance Code §862.051 (Valued Policy Law) requires
that for a total loss to real property, the insurer pays the face amount of the
policy.
4. When must a Texas insurance adjuster notify TDI of a change of address?
A) Within 10 days
B) Within 30 days
C) Within 60 days
D) Within 90 days
CORRECT ANSWER: C) Within 60 days. Rationale: Texas Administrative Code
§19.1020 requires adjusters to update their address with TDI within 60 days of
any change.
5. An adjuster in Texas fails to respond to a claim for 20 business days after receipt
of all required documentation. Under the Texas Unfair Claim Settlement Practices
Act, this is:
A) Acceptable if the claim is over $10,000
B) A violation of prompt payment standards
C) Permitted if the adjuster is waiting for police reports
D) Not a violation because 20 days is the maximum
CORRECT ANSWER: B) A violation of prompt payment
standards. Rationale: 28 TAC §21.203 requires acknowledgment and action
within 15 business days; 20 days without response is unreasonable.
6. Which type of authority is explicitly granted to an agent in the written contract
with the insurer?
A) Apparent authority
B) Express authority
,C) Implied authority
D) Ratified authority
CORRECT ANSWER: B) Express authority. Rationale: Express authority is
specifically written in the agency contract; implied and apparent are derived
from conduct.
7. In Texas, which entity is responsible for liquidating an insolvent property and
casualty insurer?
A) Texas Department of Insurance
B) The Commissioner of Insurance acting as receiver
C) Federal Insurance Office
D) The guaranty association
CORRECT ANSWER: B) The Commissioner of Insurance acting as
receiver. Rationale: Texas Insurance Code §443.003 gives the Commissioner
authority to act as receiver for liquidation.
8. A commercial general liability policy (CGL) in Texas contains an “absolute
pollution exclusion.” Which claim would most likely be excluded?
A) A customer slips on a wet floor
B) A chemical release from a factory into a river
C) A product fails causing property damage
D) An employee trips over wiring
CORRECT ANSWER: B) A chemical release from a factory into a
river. Rationale: The absolute pollution exclusion bars coverage for damages
arising from pollutants, including chemical releases.
9. The Texas Windstorm Insurance Association (TWIA) provides coverage for:
A) Flood damage statewide
B) Wind and hail damage in designated coastal areas
C) Earthquake damage in West Texas
D) Wildfire damage in Hill Country
, CORRECT ANSWER: B) Wind and hail damage in designated coastal
areas. Rationale: TWIA was created as the insurer of last resort for wind and
hail in 14 coastal counties and parts of Harris County.
10. An adjuster knowingly misrepresents policy terms to a claimant to reduce a
settlement. Under Texas law, this is:
A) A clerical error
B) An unfair or deceptive act
C) Permitted if the claimant agrees
D) A standard negotiation tactic
CORRECT ANSWER: B) An unfair or deceptive act. Rationale: Texas
Insurance Code §541.060 prohibits misrepresenting policy provisions to
claimants.
11. Under the Texas Prompt Payment of Claims Act, for a claim not involving
weather-related damage, an insurer must pay or deny the claim within how many
days after receiving all requested information?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
CORRECT ANSWER: B) 15 days. Rationale: Texas Insurance Code §542.058
requires payment or denial within 15 business days after receipt of all necessary
documentation.
12. An adjuster has a fiduciary duty to:
A) The claimant only
B) The insurance agent only
C) The insurer that employs them
D) The Texas Department of Licensing
CORRECT ANSWER: C) The insurer that employs them. Rationale: An adjuster
