Texas All Lines Adjuster Test
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is an all lines adjuster license?
✔✔A license allowing adjustment of multiple types of insurance claims.
What must an adjuster do before handling a claim?
✔✔Confirm they are properly licensed and appointed if required.
What is a claim file?
✔✔The complete record of documents and notes related to a claim.
Why is documentation critical for adjusters?
✔✔It provides legal and factual support for claim decisions.
What is the duty of good faith?
✔✔The obligation to handle claims honestly and fairly.
What is bad faith in claims handling?
✔✔Unreasonable delay or denial of a valid claim.
What is misrepresentation in adjusting?
1
,✔✔Providing false or misleading information about coverage.
What is an insurer’s duty after receiving a claim?
✔✔To acknowledge and begin investigation promptly.
What is the purpose of a loss notice?
✔✔To inform the insurer that a claim has occurred.
What is an insurable interest?
✔✔A financial or legal interest in the insured property or person.
What is a policy deductible?
✔✔The amount the insured must pay before coverage applies.
What does indemnity mean?
✔✔Restoring the insured to their financial position before the loss.
What is subrogation?
✔✔The insurer’s right to recover from a responsible third party.
What is salvage?
✔✔Damaged property retained for its remaining value.
2
,What is depreciation?
✔✔Reduction in value due to age, wear, or obsolescence.
What is actual cash value?
✔✔Replacement cost minus depreciation.
What is replacement cost coverage?
✔✔Coverage paying the cost to replace without depreciation.
What is a proof of loss?
✔✔A sworn statement detailing the claim.
When must a proof of loss be submitted?
✔✔Within the time period required by the policy or law.
What is an adjuster’s ethical obligation?
✔✔To act impartially and avoid conflicts of interest.
What is claim settlement authority?
✔✔The maximum amount an adjuster can approve.
3
, What is an independent adjuster?
✔✔An adjuster hired on contract, not employed by the insurer.
What is a staff adjuster?
✔✔An adjuster employed directly by an insurance company.
What is a public adjuster?
✔✔An adjuster representing the insured, not the insurer.
What is an unfair claims practice?
✔✔Actions that violate state insurance laws.
What is the purpose of Texas prompt payment laws?
✔✔To ensure timely claim handling and payment.
What is an examination under oath?
✔✔Formal questioning of an insured regarding a claim.
What is a reservation of rights letter?
✔✔Notice that coverage may not apply while investigation continues.
What is coverage determination?
4
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is an all lines adjuster license?
✔✔A license allowing adjustment of multiple types of insurance claims.
What must an adjuster do before handling a claim?
✔✔Confirm they are properly licensed and appointed if required.
What is a claim file?
✔✔The complete record of documents and notes related to a claim.
Why is documentation critical for adjusters?
✔✔It provides legal and factual support for claim decisions.
What is the duty of good faith?
✔✔The obligation to handle claims honestly and fairly.
What is bad faith in claims handling?
✔✔Unreasonable delay or denial of a valid claim.
What is misrepresentation in adjusting?
1
,✔✔Providing false or misleading information about coverage.
What is an insurer’s duty after receiving a claim?
✔✔To acknowledge and begin investigation promptly.
What is the purpose of a loss notice?
✔✔To inform the insurer that a claim has occurred.
What is an insurable interest?
✔✔A financial or legal interest in the insured property or person.
What is a policy deductible?
✔✔The amount the insured must pay before coverage applies.
What does indemnity mean?
✔✔Restoring the insured to their financial position before the loss.
What is subrogation?
✔✔The insurer’s right to recover from a responsible third party.
What is salvage?
✔✔Damaged property retained for its remaining value.
2
,What is depreciation?
✔✔Reduction in value due to age, wear, or obsolescence.
What is actual cash value?
✔✔Replacement cost minus depreciation.
What is replacement cost coverage?
✔✔Coverage paying the cost to replace without depreciation.
What is a proof of loss?
✔✔A sworn statement detailing the claim.
When must a proof of loss be submitted?
✔✔Within the time period required by the policy or law.
What is an adjuster’s ethical obligation?
✔✔To act impartially and avoid conflicts of interest.
What is claim settlement authority?
✔✔The maximum amount an adjuster can approve.
3
, What is an independent adjuster?
✔✔An adjuster hired on contract, not employed by the insurer.
What is a staff adjuster?
✔✔An adjuster employed directly by an insurance company.
What is a public adjuster?
✔✔An adjuster representing the insured, not the insurer.
What is an unfair claims practice?
✔✔Actions that violate state insurance laws.
What is the purpose of Texas prompt payment laws?
✔✔To ensure timely claim handling and payment.
What is an examination under oath?
✔✔Formal questioning of an insured regarding a claim.
What is a reservation of rights letter?
✔✔Notice that coverage may not apply while investigation continues.
What is coverage determination?
4
