Super-Duper Texas Adjuster
License Final Exam Solved
Questions With Revised Correct
Detailed Answers
1. What is a hazard? - ANSWER situations or behaviors that increase the
risk of loss of property
2. 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
3) Moral -- embezzlement
3. Insurance: List and define the 2 types of losses
ANSWER 1) Direct loss -- damage that is a direct result of a covered peril
such as a fire destroying a home
2) Indirect loss -- consequential loss resulting indirectly from a direct loss due
to a covered peril such as loss of business income or loss of use
4. Claims Adjuster: What is a Staff/Company Adjuster? - ANSWER work for
the insurance company such as State Farm and handle claims on behalf of the
insurer; they are paid a salary with benefits.
,5. Claims Adjuster: What is an Independent Adjuster? - ANSWER work for the
insurance companies to handle and evaluate certain claims on an as-needed
basis; they are paid a percentage of the claims they settle
6. Claims Adjuster: What is a Public Adjuster? - ANSWER work for the insured
to make an evaluation of loss to be presented to the insurer; they are paid on a
fee basis (usually 10%) and are usually required to carry an adjuster bond
7. Claims Adjuster: CAT ( catastrophic) Adjusters - ANSWER represent the
insurance company that hired the catastrophic adjusting company that you are
doing claims for
8. Claims Adjuster: 11 things that a claims adjuster may do - ANSWER 1)
Determine coverage
2) determine amount of damage
3) prepare report of findings
4) Try to work out a fair settlement
5) prepare a claim file
6) interview with insured and/or witnesses
7) inspect and estimate property damage or loss
8) consult police, fire dept. and medical reports
9) take pictures and draw diagrams
10) make advance settlement payments
11) attend court hearings if necessary
,9. Claims Adjuster: 4 educational requirements that are suggested for adjusters to
have - ANSWER 1) a combination of related education and on-the-job
experience
2) at least a high school diploma
3) some post high school education is an asset
4) a valid driver's license
10. Claims Adjuster: Initial contact with the insured should be within __________
of receiving the claim. - ANSWER 24 hours
11. Claims Adjuster: The insurer has _________ to respond to a claim during non-
catastrophic situations. - ANSWER 15 days
12. Claims Adjuster: During catastrophic situations, the insurer has _________ to
respond to a claim. - ANSWER 30 days
13. Claims Adjuster: Adjusters are __________________ for they act in the best
interest of the principle and not in their own best interest. - ANSWER
Fiduciary Agents
14. Claims Adjuster: Can adjusters be sued by the client/insured ? - ANSWER
Yes, adjusters can be sued personally for unfair claims practices.
15. Claims Adjuster: Define Utmost Good Faith - ANSWER When the adjuster
and the insured are working together with honesty and integrity
, 16. Claims Adjuster: Is it considered ethical for an adjuster to adjust for family
members and/or friends? - ANSWER No -- this would be considered a conflict
of interest
Licensing Requirements: Name the 6 licensing requirements according to the
Texas Statutes for a Texas Adjuster License? - ANSWER 1) must be at least 18
years of age or older
2) must be trustworthy
3) must reside in the state practicing in or in one that has reciprocity
4) must submit appropriate application and fees to the state of Texas
5) must complete an approved pre-licensing course
6) must successfully pass a state approved examination
Licensing Requirements: Persons holding which 2 designations are exempt from
the requirements of an adjuster's license examination? - ANSWER chartered
property casualty underwriter or associate in claims
Licensing Requirements: list the 3 adjuster licenses available in Texas - ANSWER
1) all-lines adjuster 2) property & casualty adjuster 3) Worker's Compensation
Adjuster
Licensing Requirements: How many CE hours are required every two years? -
ANSWER 24 hours (at least 12 of them must be from classroom equivalent
approved courses)
Licensing Requirements: How many of the 24 CE hours have to be Ethics or
Consumer Protection? - ANSWER 2 hours
License Final Exam Solved
Questions With Revised Correct
Detailed Answers
1. What is a hazard? - ANSWER situations or behaviors that increase the
risk of loss of property
2. 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
3) Moral -- embezzlement
3. Insurance: List and define the 2 types of losses
ANSWER 1) Direct loss -- damage that is a direct result of a covered peril
such as a fire destroying a home
2) Indirect loss -- consequential loss resulting indirectly from a direct loss due
to a covered peril such as loss of business income or loss of use
4. Claims Adjuster: What is a Staff/Company Adjuster? - ANSWER work for
the insurance company such as State Farm and handle claims on behalf of the
insurer; they are paid a salary with benefits.
,5. Claims Adjuster: What is an Independent Adjuster? - ANSWER work for the
insurance companies to handle and evaluate certain claims on an as-needed
basis; they are paid a percentage of the claims they settle
6. Claims Adjuster: What is a Public Adjuster? - ANSWER work for the insured
to make an evaluation of loss to be presented to the insurer; they are paid on a
fee basis (usually 10%) and are usually required to carry an adjuster bond
7. Claims Adjuster: CAT ( catastrophic) Adjusters - ANSWER represent the
insurance company that hired the catastrophic adjusting company that you are
doing claims for
8. Claims Adjuster: 11 things that a claims adjuster may do - ANSWER 1)
Determine coverage
2) determine amount of damage
3) prepare report of findings
4) Try to work out a fair settlement
5) prepare a claim file
6) interview with insured and/or witnesses
7) inspect and estimate property damage or loss
8) consult police, fire dept. and medical reports
9) take pictures and draw diagrams
10) make advance settlement payments
11) attend court hearings if necessary
,9. Claims Adjuster: 4 educational requirements that are suggested for adjusters to
have - ANSWER 1) a combination of related education and on-the-job
experience
2) at least a high school diploma
3) some post high school education is an asset
4) a valid driver's license
10. Claims Adjuster: Initial contact with the insured should be within __________
of receiving the claim. - ANSWER 24 hours
11. Claims Adjuster: The insurer has _________ to respond to a claim during non-
catastrophic situations. - ANSWER 15 days
12. Claims Adjuster: During catastrophic situations, the insurer has _________ to
respond to a claim. - ANSWER 30 days
13. Claims Adjuster: Adjusters are __________________ for they act in the best
interest of the principle and not in their own best interest. - ANSWER
Fiduciary Agents
14. Claims Adjuster: Can adjusters be sued by the client/insured ? - ANSWER
Yes, adjusters can be sued personally for unfair claims practices.
15. Claims Adjuster: Define Utmost Good Faith - ANSWER When the adjuster
and the insured are working together with honesty and integrity
, 16. Claims Adjuster: Is it considered ethical for an adjuster to adjust for family
members and/or friends? - ANSWER No -- this would be considered a conflict
of interest
Licensing Requirements: Name the 6 licensing requirements according to the
Texas Statutes for a Texas Adjuster License? - ANSWER 1) must be at least 18
years of age or older
2) must be trustworthy
3) must reside in the state practicing in or in one that has reciprocity
4) must submit appropriate application and fees to the state of Texas
5) must complete an approved pre-licensing course
6) must successfully pass a state approved examination
Licensing Requirements: Persons holding which 2 designations are exempt from
the requirements of an adjuster's license examination? - ANSWER chartered
property casualty underwriter or associate in claims
Licensing Requirements: list the 3 adjuster licenses available in Texas - ANSWER
1) all-lines adjuster 2) property & casualty adjuster 3) Worker's Compensation
Adjuster
Licensing Requirements: How many CE hours are required every two years? -
ANSWER 24 hours (at least 12 of them must be from classroom equivalent
approved courses)
Licensing Requirements: How many of the 24 CE hours have to be Ethics or
Consumer Protection? - ANSWER 2 hours
