Louisiana Insurance Adjuster
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary function of an insurance claims adjuster?
A. Sell insurance policies
B. Determine premiums for applicants
C. Investigate, evaluate, and resolve insurance claims
D. Approve insurance company investments
Answer: C. Investigate, evaluate, and resolve insurance claims
Rationale: An adjuster investigates the facts surrounding a loss,
determines whether coverage applies, evaluates the amount of damage,
and assists in reaching an appropriate claim disposition.
2. Which Louisiana agency regulates insurance within the state?
A. Louisiana Department of Revenue
B. Louisiana Department of Insurance
C. Louisiana Secretary of State
D. Louisiana Department of Labor
Answer: B. Louisiana Department of Insurance
Rationale: The Louisiana Department of Insurance, under the
Commissioner of Insurance, regulates insurance companies,
producers, adjusters, and other insurance professionals in Louisiana.
, 3. Which entity currently administers Louisiana insurance licensing
examinations?
A. Prometric
B. Pearson VUE
C. PSI
D. FINRA
Answer: C. PSI
Rationale: PSI is the examination vendor currently used for Louisiana
insurance licensing examinations.
4. Which of the following is an important responsibility of an
adjuster?
A. Favoring the insurer regardless of the policy
B. Treating claimants fairly
C. Maximizing the insurer's investment return
D. Selling additional insurance
Answer: B. Treating claimants fairly
Rationale: Louisiana law establishes standards of conduct requiring
claims adjusters to treat all claimants fairly and to avoid prejudicial or
favored treatment.
5. Which action is most consistent with proper claims handling?
A. Ignoring unfavorable evidence
B. Conducting a thorough investigation
C. Delaying the claim indefinitely
D. Relying solely on the claimant's first statement
Answer: B. Conducting a thorough investigation
,Rationale: A proper adjustment requires gathering and evaluating
relevant evidence rather than selectively relying on information
favorable to one side.
6. What is the purpose of an insurance policy?
A. To guarantee that every loss will be paid
B. To transfer specified risks from an insured to an insurer according to
contractual terms
C. To eliminate all financial uncertainty
D. To provide unlimited compensation
Answer: B. To transfer specified risks from an insured to an insurer
according to contractual terms
Rationale: Insurance is a contractual mechanism for transferring
specified risks to an insurer in exchange for consideration, subject to
policy terms, conditions, exclusions, and limits.
7. Which principle requires an insured to have a financial or other
legally recognized interest in the subject of insurance?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
Answer: B. Insurable interest
Rationale: Insurable interest helps establish that the insured would
experience a legally recognized loss if the covered property, person, or
interest were damaged or destroyed.
8. What does indemnity generally mean?
, A. The insured should profit from a loss
B. The insurer should place the insured in approximately the same
financial position occupied before the covered loss
C. Every claim must be paid in cash
D. The insurer must replace every item regardless of policy terms
Answer: B. The insurer should place the insured in approximately
the same financial position occupied before the covered loss
Rationale: The principle of indemnity is intended to compensate for
covered loss without creating an unjustified financial gain.
9. What is a peril?
A. A policy limit
B. A cause of loss
C. An insurance premium
D. A deductible
Answer: B. A cause of loss
Rationale: A peril is a cause of loss, such as fire, windstorm, theft, or
collision, depending on the policy.
10. What is a hazard?
A. A condition that increases the chance or severity of loss
B. A claim payment
C. A policy declaration
D. A coverage limit
Answer: A. A condition that increases the chance or severity of loss
Rationale: Hazards can increase either the probability of a loss or its
potential severity.
11. Which is an example of a physical hazard?
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. What is the primary function of an insurance claims adjuster?
A. Sell insurance policies
B. Determine premiums for applicants
C. Investigate, evaluate, and resolve insurance claims
D. Approve insurance company investments
Answer: C. Investigate, evaluate, and resolve insurance claims
Rationale: An adjuster investigates the facts surrounding a loss,
determines whether coverage applies, evaluates the amount of damage,
and assists in reaching an appropriate claim disposition.
2. Which Louisiana agency regulates insurance within the state?
A. Louisiana Department of Revenue
B. Louisiana Department of Insurance
C. Louisiana Secretary of State
D. Louisiana Department of Labor
Answer: B. Louisiana Department of Insurance
Rationale: The Louisiana Department of Insurance, under the
Commissioner of Insurance, regulates insurance companies,
producers, adjusters, and other insurance professionals in Louisiana.
, 3. Which entity currently administers Louisiana insurance licensing
examinations?
A. Prometric
B. Pearson VUE
C. PSI
D. FINRA
Answer: C. PSI
Rationale: PSI is the examination vendor currently used for Louisiana
insurance licensing examinations.
4. Which of the following is an important responsibility of an
adjuster?
A. Favoring the insurer regardless of the policy
B. Treating claimants fairly
C. Maximizing the insurer's investment return
D. Selling additional insurance
Answer: B. Treating claimants fairly
Rationale: Louisiana law establishes standards of conduct requiring
claims adjusters to treat all claimants fairly and to avoid prejudicial or
favored treatment.
5. Which action is most consistent with proper claims handling?
A. Ignoring unfavorable evidence
B. Conducting a thorough investigation
C. Delaying the claim indefinitely
D. Relying solely on the claimant's first statement
Answer: B. Conducting a thorough investigation
,Rationale: A proper adjustment requires gathering and evaluating
relevant evidence rather than selectively relying on information
favorable to one side.
6. What is the purpose of an insurance policy?
A. To guarantee that every loss will be paid
B. To transfer specified risks from an insured to an insurer according to
contractual terms
C. To eliminate all financial uncertainty
D. To provide unlimited compensation
Answer: B. To transfer specified risks from an insured to an insurer
according to contractual terms
Rationale: Insurance is a contractual mechanism for transferring
specified risks to an insurer in exchange for consideration, subject to
policy terms, conditions, exclusions, and limits.
7. Which principle requires an insured to have a financial or other
legally recognized interest in the subject of insurance?
A. Indemnity
B. Insurable interest
C. Subrogation
D. Contribution
Answer: B. Insurable interest
Rationale: Insurable interest helps establish that the insured would
experience a legally recognized loss if the covered property, person, or
interest were damaged or destroyed.
8. What does indemnity generally mean?
, A. The insured should profit from a loss
B. The insurer should place the insured in approximately the same
financial position occupied before the covered loss
C. Every claim must be paid in cash
D. The insurer must replace every item regardless of policy terms
Answer: B. The insurer should place the insured in approximately
the same financial position occupied before the covered loss
Rationale: The principle of indemnity is intended to compensate for
covered loss without creating an unjustified financial gain.
9. What is a peril?
A. A policy limit
B. A cause of loss
C. An insurance premium
D. A deductible
Answer: B. A cause of loss
Rationale: A peril is a cause of loss, such as fire, windstorm, theft, or
collision, depending on the policy.
10. What is a hazard?
A. A condition that increases the chance or severity of loss
B. A claim payment
C. A policy declaration
D. A coverage limit
Answer: A. A condition that increases the chance or severity of loss
Rationale: Hazards can increase either the probability of a loss or its
potential severity.
11. Which is an example of a physical hazard?
