TEXAS ALL LINES ADJUSTER EXAM
STUDY GUIDE 2025 – 200+ Accurate
Questions with Correct Detailed Answers
|| Insurance Licensing || Verified
Category 1: Texas Insurance Laws, Rules, and Regulations
1. The Texas Department of Insurance (TDI) is responsible for all of the following EXCEPT:
A) Licensing insurance adjusters.
B) Regulating insurance rates.
C) Investigating consumer complaints.
D) Underwriting insurance policies for companies.
Answer: D) Underwriting insurance policies for companies.
Detailed Explanation: The TDI regulates the industry, licenses agents and adjusters, and
protects consumers. Underwriting is the function of the insurance companies themselves, not
the regulator.
2. According to the Texas Insurance Code, an adjuster must complete how many hours of
continuing education (CE) every two years to renew their license?
A) 15 hours
B) 24 hours
C) 30 hours
D) 40 hours
Answer: B) 24 hours
Detailed Explanation: A licensed adjuster in Texas must complete 24 hours of CE every two
years, including at least 2 hours of ethics training.
3. An adjuster acts within which type of authority when handling a claim?
A) Express and Implied
B) Fiduciary and Contractual
C) Apparent and Estoppel
D) Waiver and Election
Answer: A) Express and Implied
Detailed Explanation: Express authority is what is explicitly granted by the insurer (e.g., the
,claim handling manual). Implied authority are the acts that are necessary to carry out the
express authority (e.g., renting a ladder to inspect a roof).
4. The Texas Prompt Payment of Claims law generally requires an insurer to acknowledge
receipt of a claim within what timeframe?
A) 24 hours
B) 5 business days
C) 15 days
D) 30 days
Answer: C) 15 days
Detailed Explanation: TDI rules require an insurer to acknowledge claim communications
(not necessarily make a decision) within 15 calendar days.
5. After receiving all necessary information from a claimant, an insurer must accept or reject a
claim within:
A) 15 business days
B) 30 business days
C) 45 calendar days
D) 60 calendar days
Answer: A) 15 business days
Detailed Explanation: Under the Texas Prompt Payment of Claims Act, once an insurer
receives all items, statements, and forms it reasonably requested, it has 15 business days to
notify the claimant of its acceptance or rejection of the claim.
6. If an insurer violates the Texas Prompt Payment of Claims Act, they may be liable for:
A) Treble damages
B) Punitive damages only
C) 18% annual interest on the amount of the claim, plus attorney's fees.
D) A fine to the adjuster personally.
Answer: C) 18% annual interest on the amount of the claim, plus attorney's fees.
Detailed Explanation: This is the statutory penalty designed to incentivize insurers to pay
valid claims promptly.
7. A Public Adjuster in Texas is:
A) An employee of the insurance company.
B) An independent adjuster hired by the insurer.
C) Licensed by TDI and hired by the policyholder to represent their interest.
D) A government employee who regulates claims.
Answer: C) Licensed by TDI and hired by the policyholder to represent their interest.
, Detailed Explanation: A Public Adjuster works exclusively for the policyholder, not the
insurance company, and is paid a percentage of the settlement.
Category 2: Policy Provisions and Contract Knowledge
8. The section of an insurance policy that outlines what is and is not covered is the:
A) Declarations Page
B) Insuring Agreement
C) Conditions
D) Exclusions and Limitations
Answer: D) Exclusions and Limitations
Detailed Explanation: Exclusions specifically list perils, property, or situations that are not
covered by the policy. Limitations place caps on certain types of coverage.
9. Which of the following is a common policy condition?
A) Coinsurance
B) Liberalization Clause
C) Waiver
D) Estoppel
Answer: A) Coinsurance
Detailed Explanation: Coinsurance is a common condition in property policies that
penalizes the insured for being underinsured. B, C, and D are legal doctrines, not policy
conditions.
10. The definition of "dwelling" in a standard homeowners policy (HO-3) typically includes:
A) Land on which the dwelling is located.
B) Detached structures on the residence premises.
C) The building structure and any attached structures.
D) The insured's personal property anywhere in the world.
Answer: C) The building structure and any attached structures.
Detailed Explanation: Coverage A is for the dwelling, which includes the structure and
attached items like an attached garage. Detached structures are covered under Coverage B.
11. In a homeowners policy, which coverage is typically written on an "open perils" (all-risk)
basis?
A) Coverage A - Dwelling
B) Coverage B - Other Structures
C) Coverage C - Personal Property
D) Coverage D - Loss of Use
STUDY GUIDE 2025 – 200+ Accurate
Questions with Correct Detailed Answers
|| Insurance Licensing || Verified
Category 1: Texas Insurance Laws, Rules, and Regulations
1. The Texas Department of Insurance (TDI) is responsible for all of the following EXCEPT:
A) Licensing insurance adjusters.
B) Regulating insurance rates.
C) Investigating consumer complaints.
D) Underwriting insurance policies for companies.
Answer: D) Underwriting insurance policies for companies.
Detailed Explanation: The TDI regulates the industry, licenses agents and adjusters, and
protects consumers. Underwriting is the function of the insurance companies themselves, not
the regulator.
2. According to the Texas Insurance Code, an adjuster must complete how many hours of
continuing education (CE) every two years to renew their license?
A) 15 hours
B) 24 hours
C) 30 hours
D) 40 hours
Answer: B) 24 hours
Detailed Explanation: A licensed adjuster in Texas must complete 24 hours of CE every two
years, including at least 2 hours of ethics training.
3. An adjuster acts within which type of authority when handling a claim?
A) Express and Implied
B) Fiduciary and Contractual
C) Apparent and Estoppel
D) Waiver and Election
Answer: A) Express and Implied
Detailed Explanation: Express authority is what is explicitly granted by the insurer (e.g., the
,claim handling manual). Implied authority are the acts that are necessary to carry out the
express authority (e.g., renting a ladder to inspect a roof).
4. The Texas Prompt Payment of Claims law generally requires an insurer to acknowledge
receipt of a claim within what timeframe?
A) 24 hours
B) 5 business days
C) 15 days
D) 30 days
Answer: C) 15 days
Detailed Explanation: TDI rules require an insurer to acknowledge claim communications
(not necessarily make a decision) within 15 calendar days.
5. After receiving all necessary information from a claimant, an insurer must accept or reject a
claim within:
A) 15 business days
B) 30 business days
C) 45 calendar days
D) 60 calendar days
Answer: A) 15 business days
Detailed Explanation: Under the Texas Prompt Payment of Claims Act, once an insurer
receives all items, statements, and forms it reasonably requested, it has 15 business days to
notify the claimant of its acceptance or rejection of the claim.
6. If an insurer violates the Texas Prompt Payment of Claims Act, they may be liable for:
A) Treble damages
B) Punitive damages only
C) 18% annual interest on the amount of the claim, plus attorney's fees.
D) A fine to the adjuster personally.
Answer: C) 18% annual interest on the amount of the claim, plus attorney's fees.
Detailed Explanation: This is the statutory penalty designed to incentivize insurers to pay
valid claims promptly.
7. A Public Adjuster in Texas is:
A) An employee of the insurance company.
B) An independent adjuster hired by the insurer.
C) Licensed by TDI and hired by the policyholder to represent their interest.
D) A government employee who regulates claims.
Answer: C) Licensed by TDI and hired by the policyholder to represent their interest.
, Detailed Explanation: A Public Adjuster works exclusively for the policyholder, not the
insurance company, and is paid a percentage of the settlement.
Category 2: Policy Provisions and Contract Knowledge
8. The section of an insurance policy that outlines what is and is not covered is the:
A) Declarations Page
B) Insuring Agreement
C) Conditions
D) Exclusions and Limitations
Answer: D) Exclusions and Limitations
Detailed Explanation: Exclusions specifically list perils, property, or situations that are not
covered by the policy. Limitations place caps on certain types of coverage.
9. Which of the following is a common policy condition?
A) Coinsurance
B) Liberalization Clause
C) Waiver
D) Estoppel
Answer: A) Coinsurance
Detailed Explanation: Coinsurance is a common condition in property policies that
penalizes the insured for being underinsured. B, C, and D are legal doctrines, not policy
conditions.
10. The definition of "dwelling" in a standard homeowners policy (HO-3) typically includes:
A) Land on which the dwelling is located.
B) Detached structures on the residence premises.
C) The building structure and any attached structures.
D) The insured's personal property anywhere in the world.
Answer: C) The building structure and any attached structures.
Detailed Explanation: Coverage A is for the dwelling, which includes the structure and
attached items like an attached garage. Detached structures are covered under Coverage B.
11. In a homeowners policy, which coverage is typically written on an "open perils" (all-risk)
basis?
A) Coverage A - Dwelling
B) Coverage B - Other Structures
C) Coverage C - Personal Property
D) Coverage D - Loss of Use
