1. Which regulatory body handles violations related to insurance issues only?
a. Walker Texas Ranger
b. Board of Insurance
c. Deceptive Trade Practices Act
d. Texas Insurance Code
Answer: d. Texas Insurance Code
Rationale: The Texas Insurance Code governs insurance-related laws, regulations, and
violations within the state.
2. What license carries the minimum requirements to handle homeowner’s claims?
a. Workers' Compensation
b. Agency
c. All-Lines Adjuster
d. Property, Casualty, and Surety
Answer: d. Property, Casualty, and Surety
Rationale: A Property, Casualty, and Surety license provides the minimum authority required to
handle homeowner’s insurance claims.
3. Thirty percent of the questions on the license exam are considered “knowledge-based.”
What are the remaining 70% considered?
,a. Application-based
b. Story problems
c. Review-based
d. Ridiculous
Answer: a. Application-based
Rationale: Most licensing exams focus on practical application of knowledge through scenario-
based questions.
4. Most Workers’ Compensation policies have what type of policy limit?
a. None
b. Caps at $100,000 for incurred medical and lost wages
c. Caps at $100,000 for incurred medical expenses
d. Limited to three years of benefits from the date of loss
Answer: a. None
Rationale: Workers’ Compensation policies generally provide statutory benefits without a
specific dollar limit.
5. Which of the following penalties or remedies is not valid under the DTPA?
a. Court costs
b. Locked in the same room alone with an adjuster
c. Reasonable attorney fees
d. Actual damages
Answer: b. Locked in the same room alone with an adjuster
,Rationale: The DTPA provides legal remedies such as court costs, attorney fees, and actual
damages, but not punitive or absurd penalties.
6. Which of the following is not a qualification to become an adjuster?
a. Be trustworthy
b. Have an MBA in insurance
c. Be at least 18 years old
d. Successfully pass the adjuster’s license examination
Answer: b. Have an MBA in insurance
Rationale: An MBA is not required to become a licensed insurance adjuster.
7. If your adjuster’s license has not been renewed and the current date is six months past the
renewal date, what must you do to obtain a license?
a. Re-apply as a new applicant and pay all fees
b. Pay a 50% penalty only
c. Re-apply for an adjuster’s license and pay a 50% penalty
d. Pass “GO” and go directly to jail
Answer: c. Re-apply for an adjuster’s license and pay a 50% penalty
Rationale: Texas licensing rules require reapplication and payment of additional penalties after
a lapse period.
8. An Emergency Adjuster License is valid for 90 days with an allowable:
, a. 90-day extension
b. 60-day extension
c. 30-day extension
d. No extension
Answer: a. 90-day extension
Rationale: Emergency adjuster licenses may be extended for an additional 90 days when
approved.
9. When must a licensed adjuster renew his or her adjuster’s license in Texas?
a. Two years from your birthday after receiving your initial license
b. Six months prior to expiration date
c. One year from the date of issuance
d. Never, the Texas All-Lines Adjuster License is valid forever
Answer: a. Two years from your birthday after receiving your initial license
Rationale: Texas adjuster licenses are renewed biennially based on the licensee’s birth month.
10. In the mid-1990s, insurers shifted focus from field adjusting to in-office adjusting. This
change was known as:
a. Good Neighbor Service
b. Reorganization
c. Claim Centralization
d. Claim Pods
Answer: c. Claim Centralization
a. Walker Texas Ranger
b. Board of Insurance
c. Deceptive Trade Practices Act
d. Texas Insurance Code
Answer: d. Texas Insurance Code
Rationale: The Texas Insurance Code governs insurance-related laws, regulations, and
violations within the state.
2. What license carries the minimum requirements to handle homeowner’s claims?
a. Workers' Compensation
b. Agency
c. All-Lines Adjuster
d. Property, Casualty, and Surety
Answer: d. Property, Casualty, and Surety
Rationale: A Property, Casualty, and Surety license provides the minimum authority required to
handle homeowner’s insurance claims.
3. Thirty percent of the questions on the license exam are considered “knowledge-based.”
What are the remaining 70% considered?
,a. Application-based
b. Story problems
c. Review-based
d. Ridiculous
Answer: a. Application-based
Rationale: Most licensing exams focus on practical application of knowledge through scenario-
based questions.
4. Most Workers’ Compensation policies have what type of policy limit?
a. None
b. Caps at $100,000 for incurred medical and lost wages
c. Caps at $100,000 for incurred medical expenses
d. Limited to three years of benefits from the date of loss
Answer: a. None
Rationale: Workers’ Compensation policies generally provide statutory benefits without a
specific dollar limit.
5. Which of the following penalties or remedies is not valid under the DTPA?
a. Court costs
b. Locked in the same room alone with an adjuster
c. Reasonable attorney fees
d. Actual damages
Answer: b. Locked in the same room alone with an adjuster
,Rationale: The DTPA provides legal remedies such as court costs, attorney fees, and actual
damages, but not punitive or absurd penalties.
6. Which of the following is not a qualification to become an adjuster?
a. Be trustworthy
b. Have an MBA in insurance
c. Be at least 18 years old
d. Successfully pass the adjuster’s license examination
Answer: b. Have an MBA in insurance
Rationale: An MBA is not required to become a licensed insurance adjuster.
7. If your adjuster’s license has not been renewed and the current date is six months past the
renewal date, what must you do to obtain a license?
a. Re-apply as a new applicant and pay all fees
b. Pay a 50% penalty only
c. Re-apply for an adjuster’s license and pay a 50% penalty
d. Pass “GO” and go directly to jail
Answer: c. Re-apply for an adjuster’s license and pay a 50% penalty
Rationale: Texas licensing rules require reapplication and payment of additional penalties after
a lapse period.
8. An Emergency Adjuster License is valid for 90 days with an allowable:
, a. 90-day extension
b. 60-day extension
c. 30-day extension
d. No extension
Answer: a. 90-day extension
Rationale: Emergency adjuster licenses may be extended for an additional 90 days when
approved.
9. When must a licensed adjuster renew his or her adjuster’s license in Texas?
a. Two years from your birthday after receiving your initial license
b. Six months prior to expiration date
c. One year from the date of issuance
d. Never, the Texas All-Lines Adjuster License is valid forever
Answer: a. Two years from your birthday after receiving your initial license
Rationale: Texas adjuster licenses are renewed biennially based on the licensee’s birth month.
10. In the mid-1990s, insurers shifted focus from field adjusting to in-office adjusting. This
change was known as:
a. Good Neighbor Service
b. Reorganization
c. Claim Centralization
d. Claim Pods
Answer: c. Claim Centralization
