TEXAS INSURANCE ADJUSTER LICENSING EXAM – PRACTICE
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF
1. Which of the following is NOT a type of insurance adjuster recognized by the
Texas Department of Insurance (TDI)?
A. Staff Adjuster
B. Public Adjuster
C. Independent Adjuster
D. Insurance Agent
Rationale: Insurance agents sell policies; they are not licensed as adjusters.
Adjusters handle claims, not sales.
2. The Texas Department of Insurance regulates adjusters under which chapter
of the Texas Insurance Code?
A. Chapter 541
B. Chapter 4101
C. Chapter 2301
D. Chapter 552
Rationale: Chapter 4101 of the Texas Insurance Code governs licensing and
conduct of adjusters.
3. Which of the following is required to obtain a Texas adjuster license?
A. Be a Texas resident
B. Be at least 18 years old
C. Hold a degree in insurance
D. Have 2 years of experience
Rationale: Applicants must be 18 or older and meet the requirements but do not
need a degree or prior experience.
,4. What is the primary duty of an insurance adjuster?
A. Investigate and settle claims
B. Sell insurance policies
C. Underwrite new policies
D. Collect premiums
Rationale: Adjusters investigate, evaluate, and settle claims on behalf of insurers
or policyholders.
5. The Texas Department of Insurance may revoke an adjuster’s license for all
EXCEPT:
A. Fraud
B. Misrepresentation
C. Changing employers
D. Untrustworthiness
Rationale: Changing employers is not a violation. Fraud, misrepresentation, or
dishonesty can cause revocation.
6. Which of the following is an example of an independent adjuster?
A. Employee of an insurance company
B. Contracted adjuster who handles claims for multiple insurers
C. Public adjuster representing policyholders
D. TDI investigator
Rationale: Independent adjusters are hired by insurance companies on contract
to adjust claims.
7. Public adjusters represent whom?
A. Insurance companies
B. Brokers
C. Policyholders
D. The state
, Rationale: Public adjusters represent insureds (policyholders) in negotiating
claim settlements.
8. The Texas adjuster license must be renewed every:
A. One year
B. Two years
C. Three years
D. Four years
Rationale: Texas adjuster licenses renew every two years after the issue date.
9. How many continuing education (CE) hours are required for each renewal
period?
A. 10
B. 20
C. 24
D. 30
Rationale: Texas adjusters must complete 24 CE hours, including ethics, every
two years.
10. Of the 24 CE hours required, how many must be in ethics?
A. 1
B. 2
C. 3
D. 4
Rationale: Two hours of ethics training are required each renewal period.
11. A “catastrophe adjuster” is authorized to work in Texas when:
A. They apply directly to TDI
B. A state of emergency or catastrophe is declared
C. They hold a real estate license
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2026 Q&A | INSTANT DOWNLOAD PDF
1. Which of the following is NOT a type of insurance adjuster recognized by the
Texas Department of Insurance (TDI)?
A. Staff Adjuster
B. Public Adjuster
C. Independent Adjuster
D. Insurance Agent
Rationale: Insurance agents sell policies; they are not licensed as adjusters.
Adjusters handle claims, not sales.
2. The Texas Department of Insurance regulates adjusters under which chapter
of the Texas Insurance Code?
A. Chapter 541
B. Chapter 4101
C. Chapter 2301
D. Chapter 552
Rationale: Chapter 4101 of the Texas Insurance Code governs licensing and
conduct of adjusters.
3. Which of the following is required to obtain a Texas adjuster license?
A. Be a Texas resident
B. Be at least 18 years old
C. Hold a degree in insurance
D. Have 2 years of experience
Rationale: Applicants must be 18 or older and meet the requirements but do not
need a degree or prior experience.
,4. What is the primary duty of an insurance adjuster?
A. Investigate and settle claims
B. Sell insurance policies
C. Underwrite new policies
D. Collect premiums
Rationale: Adjusters investigate, evaluate, and settle claims on behalf of insurers
or policyholders.
5. The Texas Department of Insurance may revoke an adjuster’s license for all
EXCEPT:
A. Fraud
B. Misrepresentation
C. Changing employers
D. Untrustworthiness
Rationale: Changing employers is not a violation. Fraud, misrepresentation, or
dishonesty can cause revocation.
6. Which of the following is an example of an independent adjuster?
A. Employee of an insurance company
B. Contracted adjuster who handles claims for multiple insurers
C. Public adjuster representing policyholders
D. TDI investigator
Rationale: Independent adjusters are hired by insurance companies on contract
to adjust claims.
7. Public adjusters represent whom?
A. Insurance companies
B. Brokers
C. Policyholders
D. The state
, Rationale: Public adjusters represent insureds (policyholders) in negotiating
claim settlements.
8. The Texas adjuster license must be renewed every:
A. One year
B. Two years
C. Three years
D. Four years
Rationale: Texas adjuster licenses renew every two years after the issue date.
9. How many continuing education (CE) hours are required for each renewal
period?
A. 10
B. 20
C. 24
D. 30
Rationale: Texas adjusters must complete 24 CE hours, including ethics, every
two years.
10. Of the 24 CE hours required, how many must be in ethics?
A. 1
B. 2
C. 3
D. 4
Rationale: Two hours of ethics training are required each renewal period.
11. A “catastrophe adjuster” is authorized to work in Texas when:
A. They apply directly to TDI
B. A state of emergency or catastrophe is declared
C. They hold a real estate license
