SERIES 201 EXAM QUESTIONS AND
CORRECT ANSWERS
Which40one40of40the40following40is40not40one40of40the40duties40of40the40Commissioner40of40Insu
rance?
A.40Enforcing40provisions40of40the40Insurance40Code
B.40Examining40and40licensing40individuals40and40companies40
C.40Examining40Insureds'40financial40conditions
D.40Holding40hearings40regarding40suspension40or40revocation40of40a40license40-40ans-
Examining40Insureds'40financial40conditions
Which40of40the40following40is40not40considered40an40unfair40claims40practice?
A.40Knowingly40misrepresenting40facts40or40provisions
B.40Denying40a40claim
C.40Attempting40to40settle40for40less40than40a40reasonable40amount
D.40Unreasonably40delaying40payment40-40ans-Denying40a40claim
All40of40the40following40are40types40of40adjusters40licenses40regulated40by40the40Louisiana40De
partment40of40Insurance40EXCEPT:
A.40Crop40Adjuster
B.40Automobile40Adjuster
C.40Personal40Lines40Adjuster
D.40Commercial40Lines40Adjuster40-40ans-Crop40Adjuster
The40Louisiana40Commissioner40of40Insurance40is40elected40to40a40term40of:
A.40One40Year
B.40Two40Years
C.40Three40Years
D.40Four40Years40-40ans-Four40Years
A40Louisiana40adjusters'40license40expires:
A.40January401st40of40even40numbered40years
,B.40The40last40day40of40each40adjusters40birthday40month40in40odd40numbered40years
C.40June401st40of40even40numbered40years
D.40The40last40day40of40each40adjusters40birthday40month40in40even40numbered40years40-
40ans-The40last40day40of40each40adjusters40birthday40month40in40odd40numbered40years
To40obtain40an40insurance40adjusters40license,40an40individual40must40do40all40of40the40followi
ng40EXCEPT:40
A.40Be401840years40of40age
B.40Be40fingerprinted
C.40Complete40pre-license40training
D.40Pass40an40examination40-40ans-Complete40pre-license40training
Unfair40claims40practices40will40be40assumed40to40be40intentional40if:
A.40They40occur40with40such40frequency40as40to40indicate40a40general40business40practice
B.40They40are40reported40to40the40Insurer40by40the40policyholder
C.40The40licensee40has40been40reported40for40a40similar40practice40during40the40preceding40th
ree40years
D.40The40licensee40fails40to40promptly40submit40a40required40report40-40ans-
They40occur40with40such40frequency40as40to40indicate40a40general40business40practice
When40the40Commissioner40finds40that40an40adjuster40has40knowingly40violated40the40provisi
ons40of40the40Claims40Settlement40Practices,40what40is40the40maximum40fine40that40may40be40l
evied?
A.40$1,000
B.40$10,000
C.40$50,000
D.40$100,00040-40ans-$100,000
All40of40the40following40are40required40to40have40a40Louisiana40adjusters40license40EXCEPT:40
A.40Independent40Adjusters
B.40Adjusters40handling40only40Casualty40Claims
C.40Adjusters40handling40only40Workers'40Compensation40Claims
D.40Adjusters40handling40only40Automobile40Claims40-40ans-
Adjusters40handling40only40Workers'40Compensation40Claims
Under40the40Standards40of40Conduct,40adjusters40must40adhere40to40all40of40the40following40re
quirements40EXCEPT:
A.40An40adjuster40may40not40take40an40assignment40of40any40claim40if40the40adjuster40is40not40c
ompetent40and40knowledgeable40of40the40insurance40coverage40applying40to40the40loss.40
B.40An40adjuster40may40not40acquire40any40interest40in40salvage40property.40
, C.40Licensed40comprehensive40adjusters40may40act40as40either40an40adjuster40for40an40Insur
er40or40as40a40public40adjuster,40but40not40both40on40the40same40claim.
D.40An40adjuster40may40not40permit40an40unlicensed40employee40or40representative40of40the40
adjuster40to40conduct40business40for40which40a40license40is40required.40-40ans-
Licensed40comprehensive40adjusters40may40act40as40either40an40adjuster40for40an40Insurer40o
r40as40a40public40adjuster,40but40not40both40on40the40same40claim.
Contracts40must40contain40all40of40the40following40elements40EXCEPT:
A.40Offer40&40Acceptance
B.40Competent40Parties
C.40Lawful40Purpose
D.40Monetary40Deposit40-40ans-Monetary40Deposit
Insurance40policies40may40be40described40as40all40of40the40following40EXCEPT:
A.40Unconditional40contract
B.40Contract40of40adhesion
C.40Aleatory40contract
D.40Contract40of40indemnity40-40ans-Unconditional40contract
The40principle40of40indemnity40states:
A.40That40there40is40a40clear40winner40and40clear40loser40to40every40transaction
B.40That40reward40comes40with40risk
C.40That40no40one40can40profit40from40an40insurance40loss
D.40That40all40losses40must40be40repaid40-40ans-
That40no40one40can40profit40from40an40insurance40loss
Because40an40insurer40writes40the40policy40language40and40the40insured40has40little40or40no40c
ontrol40over40the40content,40any40ambiguity40in40the40wording40is40usually40resolved40in40favor
40of40the40insured.40Because40the40design40and40wording40of40a40policy40are40in40the40hands40o
f40the40insurer,40insurance40policies40are40said40to40be:
A.40Contracts40of40adhesion
B.40Unilateral40contracts
C.40Contracts40of40indemnity
D.40Warranties40-40ans-Contracts40of40adhesion
Under40contract40law,40the40actions40by40a40party40may40intentionally40and40voluntarily40give40
up40a40known40right.40When40this40occurs,40it40is40known40as:40
A.40Warranty
B.40Waiver
C.40Representation
D.40Binding40contract40-40ans-Waiver
CORRECT ANSWERS
Which40one40of40the40following40is40not40one40of40the40duties40of40the40Commissioner40of40Insu
rance?
A.40Enforcing40provisions40of40the40Insurance40Code
B.40Examining40and40licensing40individuals40and40companies40
C.40Examining40Insureds'40financial40conditions
D.40Holding40hearings40regarding40suspension40or40revocation40of40a40license40-40ans-
Examining40Insureds'40financial40conditions
Which40of40the40following40is40not40considered40an40unfair40claims40practice?
A.40Knowingly40misrepresenting40facts40or40provisions
B.40Denying40a40claim
C.40Attempting40to40settle40for40less40than40a40reasonable40amount
D.40Unreasonably40delaying40payment40-40ans-Denying40a40claim
All40of40the40following40are40types40of40adjusters40licenses40regulated40by40the40Louisiana40De
partment40of40Insurance40EXCEPT:
A.40Crop40Adjuster
B.40Automobile40Adjuster
C.40Personal40Lines40Adjuster
D.40Commercial40Lines40Adjuster40-40ans-Crop40Adjuster
The40Louisiana40Commissioner40of40Insurance40is40elected40to40a40term40of:
A.40One40Year
B.40Two40Years
C.40Three40Years
D.40Four40Years40-40ans-Four40Years
A40Louisiana40adjusters'40license40expires:
A.40January401st40of40even40numbered40years
,B.40The40last40day40of40each40adjusters40birthday40month40in40odd40numbered40years
C.40June401st40of40even40numbered40years
D.40The40last40day40of40each40adjusters40birthday40month40in40even40numbered40years40-
40ans-The40last40day40of40each40adjusters40birthday40month40in40odd40numbered40years
To40obtain40an40insurance40adjusters40license,40an40individual40must40do40all40of40the40followi
ng40EXCEPT:40
A.40Be401840years40of40age
B.40Be40fingerprinted
C.40Complete40pre-license40training
D.40Pass40an40examination40-40ans-Complete40pre-license40training
Unfair40claims40practices40will40be40assumed40to40be40intentional40if:
A.40They40occur40with40such40frequency40as40to40indicate40a40general40business40practice
B.40They40are40reported40to40the40Insurer40by40the40policyholder
C.40The40licensee40has40been40reported40for40a40similar40practice40during40the40preceding40th
ree40years
D.40The40licensee40fails40to40promptly40submit40a40required40report40-40ans-
They40occur40with40such40frequency40as40to40indicate40a40general40business40practice
When40the40Commissioner40finds40that40an40adjuster40has40knowingly40violated40the40provisi
ons40of40the40Claims40Settlement40Practices,40what40is40the40maximum40fine40that40may40be40l
evied?
A.40$1,000
B.40$10,000
C.40$50,000
D.40$100,00040-40ans-$100,000
All40of40the40following40are40required40to40have40a40Louisiana40adjusters40license40EXCEPT:40
A.40Independent40Adjusters
B.40Adjusters40handling40only40Casualty40Claims
C.40Adjusters40handling40only40Workers'40Compensation40Claims
D.40Adjusters40handling40only40Automobile40Claims40-40ans-
Adjusters40handling40only40Workers'40Compensation40Claims
Under40the40Standards40of40Conduct,40adjusters40must40adhere40to40all40of40the40following40re
quirements40EXCEPT:
A.40An40adjuster40may40not40take40an40assignment40of40any40claim40if40the40adjuster40is40not40c
ompetent40and40knowledgeable40of40the40insurance40coverage40applying40to40the40loss.40
B.40An40adjuster40may40not40acquire40any40interest40in40salvage40property.40
, C.40Licensed40comprehensive40adjusters40may40act40as40either40an40adjuster40for40an40Insur
er40or40as40a40public40adjuster,40but40not40both40on40the40same40claim.
D.40An40adjuster40may40not40permit40an40unlicensed40employee40or40representative40of40the40
adjuster40to40conduct40business40for40which40a40license40is40required.40-40ans-
Licensed40comprehensive40adjusters40may40act40as40either40an40adjuster40for40an40Insurer40o
r40as40a40public40adjuster,40but40not40both40on40the40same40claim.
Contracts40must40contain40all40of40the40following40elements40EXCEPT:
A.40Offer40&40Acceptance
B.40Competent40Parties
C.40Lawful40Purpose
D.40Monetary40Deposit40-40ans-Monetary40Deposit
Insurance40policies40may40be40described40as40all40of40the40following40EXCEPT:
A.40Unconditional40contract
B.40Contract40of40adhesion
C.40Aleatory40contract
D.40Contract40of40indemnity40-40ans-Unconditional40contract
The40principle40of40indemnity40states:
A.40That40there40is40a40clear40winner40and40clear40loser40to40every40transaction
B.40That40reward40comes40with40risk
C.40That40no40one40can40profit40from40an40insurance40loss
D.40That40all40losses40must40be40repaid40-40ans-
That40no40one40can40profit40from40an40insurance40loss
Because40an40insurer40writes40the40policy40language40and40the40insured40has40little40or40no40c
ontrol40over40the40content,40any40ambiguity40in40the40wording40is40usually40resolved40in40favor
40of40the40insured.40Because40the40design40and40wording40of40a40policy40are40in40the40hands40o
f40the40insurer,40insurance40policies40are40said40to40be:
A.40Contracts40of40adhesion
B.40Unilateral40contracts
C.40Contracts40of40indemnity
D.40Warranties40-40ans-Contracts40of40adhesion
Under40contract40law,40the40actions40by40a40party40may40intentionally40and40voluntarily40give40
up40a40known40right.40When40this40occurs,40it40is40known40as:40
A.40Warranty
B.40Waiver
C.40Representation
D.40Binding40contract40-40ans-Waiver
