SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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.
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
,SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
2. sudden & accidental damage from smoke
,SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
3) Moral -- embezzlement
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
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.
, SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
Claims Adjuster: CAT ( catastrophic) Adjusters - (answer) represent the insurance company that hired
the catastrophic adjusting company that you are doing claims for
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
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
CORRECT DETAILED ANSWERS
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.
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
,SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
2. sudden & accidental damage from smoke
,SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
3) Moral -- embezzlement
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
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.
, SUPER-DUPER TEXAS ADJUSTER LICENSE NEWEST 2024 ACTUAL EXAM COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
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
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
Claims Adjuster: CAT ( catastrophic) Adjusters - (answer) represent the insurance company that hired
the catastrophic adjusting company that you are doing claims for
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
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
