Texas Adjuster Exam Questions and
Answers | Latest Version | 2025/2026 |
Correct & Verified
What is the primary role of a Texas insurance adjuster?
✔✔To investigate, evaluate, and settle insurance claims fairly and lawfully.
Who licenses insurance adjusters in Texas?
✔✔The Texas Department of Insurance.
What type of license allows an adjuster to handle multiple lines of insurance?
✔✔An all-lines adjuster license.
What is an independent adjuster?
✔✔An adjuster who works on a contract basis for insurers.
What is a staff adjuster?
✔✔An adjuster employed directly by an insurance company.
What is a public adjuster?
✔✔An adjuster who represents policyholders, not insurers.
What must an adjuster do before discussing coverage with a claimant?
1
,✔✔Review the insurance policy terms.
What is a claim file?
✔✔The official record of all claim-related documents and actions.
Why is documentation critical for adjusters?
✔✔It supports claim decisions and legal compliance.
What is good faith claims handling?
✔✔Acting honestly, promptly, and fairly toward claimants.
What is bad faith in claims handling?
✔✔Unreasonable denial, delay, or underpayment of a claim.
What is a proof of loss?
✔✔A formal statement submitted by the insured detailing the claim.
What is depreciation in property claims?
✔✔Reduction in value due to age, wear, or obsolescence.
What does ACV stand for in adjusting?
✔✔Actual cash value.
2
, What is replacement cost coverage?
✔✔Coverage without deduction for depreciation.
What is a deductible?
✔✔The amount the insured must pay before coverage applies.
What is subrogation?
✔✔The insurer’s right to recover from a responsible third party.
What is salvage in insurance claims?
✔✔Damaged property with remaining value.
What is an appraisal clause used for?
✔✔Resolving disputes over claim value.
What is comparative negligence?
✔✔Fault shared between parties affecting claim payment.
What is liability insurance designed to cover?
✔✔Legal responsibility for injury or damage to others.
3
Answers | Latest Version | 2025/2026 |
Correct & Verified
What is the primary role of a Texas insurance adjuster?
✔✔To investigate, evaluate, and settle insurance claims fairly and lawfully.
Who licenses insurance adjusters in Texas?
✔✔The Texas Department of Insurance.
What type of license allows an adjuster to handle multiple lines of insurance?
✔✔An all-lines adjuster license.
What is an independent adjuster?
✔✔An adjuster who works on a contract basis for insurers.
What is a staff adjuster?
✔✔An adjuster employed directly by an insurance company.
What is a public adjuster?
✔✔An adjuster who represents policyholders, not insurers.
What must an adjuster do before discussing coverage with a claimant?
1
,✔✔Review the insurance policy terms.
What is a claim file?
✔✔The official record of all claim-related documents and actions.
Why is documentation critical for adjusters?
✔✔It supports claim decisions and legal compliance.
What is good faith claims handling?
✔✔Acting honestly, promptly, and fairly toward claimants.
What is bad faith in claims handling?
✔✔Unreasonable denial, delay, or underpayment of a claim.
What is a proof of loss?
✔✔A formal statement submitted by the insured detailing the claim.
What is depreciation in property claims?
✔✔Reduction in value due to age, wear, or obsolescence.
What does ACV stand for in adjusting?
✔✔Actual cash value.
2
, What is replacement cost coverage?
✔✔Coverage without deduction for depreciation.
What is a deductible?
✔✔The amount the insured must pay before coverage applies.
What is subrogation?
✔✔The insurer’s right to recover from a responsible third party.
What is salvage in insurance claims?
✔✔Damaged property with remaining value.
What is an appraisal clause used for?
✔✔Resolving disputes over claim value.
What is comparative negligence?
✔✔Fault shared between parties affecting claim payment.
What is liability insurance designed to cover?
✔✔Legal responsibility for injury or damage to others.
3
