TEXAS ALL LINES ADJUSTER EXAM 2026/2027 | Brand New
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Section 1: Texas Insurance Code & Regulatory Framework (Q1-25)
Q1
Under the Texas Insurance Code, which Title governs the regulation of property and
casualty insurance specifically?
A. Title 3
B. Title 5
C. Title 8
D. Title 10
Correct Answer: D. Title 10 [CORRECT]
Rationale: Title 10 of the Texas Insurance Code specifically addresses Property and
Casualty Insurance, including rates, forms, and claim handling standards. Title 5 covers
consumer protection generally, Title 8 covers health insurance, and Title 3 addresses
the organization of the Texas Department of Insurance.
Q2
A Texas insurance adjuster holds an All Lines license that expires on the adjuster's
birthday. Under current TDI rules, how many continuing education (CE) hours must the
adjuster complete before renewal?
A. 12 hours
B. 24 hours
C. 30 hours
D. 40 hours
Correct Answer: B. 24 hours [CORRECT]
,Rationale: Texas requires All Lines adjusters to complete 24 hours of CE, including 2
hours of ethics, during each two-year renewal cycle. TDI rules under 28 TAC §19.101
mandate this requirement for license maintenance.
Q3
The Texas Commissioner of Insurance issues a cease and desist order against an
unlicensed individual acting as a public adjuster. Under the Insurance Code, which
section grants the Commissioner this enforcement authority?
A. Texas Insurance Code §31.002
B. Texas Insurance Code §33.004
C. Texas Insurance Code §35.051
D. Texas Insurance Code §36.001
Correct Answer: D. Texas Insurance Code §36.001 [CORRECT]
Rationale: Section 36.001 of the Texas Insurance Code grants the Commissioner broad
enforcement authority, including cease and desist orders, against persons violating
insurance laws. Sections 31.002, 33.004, and 35.051 address other administrative
functions but not this specific enforcement power.
Q4
A public adjuster in Texas is negotiating a property claim settlement. Under Texas
Insurance Code §4102.163, which of the following fee arrangements is PERMISSIBLE
for the public adjuster?
A. 15% of the total claim settlement
B. 25% of the total claim settlement
C. A flat fee of $5,000 regardless of claim outcome
D. 35% of the amount recovered above the insurer's initial offer
Correct Answer: A. 15% of the total claim settlement [CORRECT]
Rationale: Texas Insurance Code §4102.163 caps public adjuster fees at 10% of the
total claim settlement for catastrophe-related claims and 15% for non-catastrophe
claims. A flat fee not contingent on recovery is generally prohibited, and percentages
exceeding these statutory limits violate the code.
Q5
,An applicant for a Texas All Lines adjuster license has a felony conviction for insurance
fraud from five years ago. Under TDI licensing rules, what is the MOST likely outcome?
A. Automatic denial with no possibility of appeal
B. The conviction is disregarded after five years
C. TDI will evaluate the application under the "character and fitness" review process
D. The applicant may receive a temporary license pending review
Correct Answer: C. TDI will evaluate the application under the "character and fitness"
review process [CORRECT]
Rationale: TDI evaluates criminal history through a character and fitness review under
28 TAC §19.302, considering the nature of the offense, time elapsed, and rehabilitation.
Automatic denial applies only in limited circumstances, and temporary licenses are not
issued pending character reviews.
Q6
Which of the following entities does NOT have jurisdiction to regulate insurance claim
handling practices in Texas?
A. Texas Department of Insurance (TDI)
B. Texas Windstorm Insurance Association (TWIA)
C. National Association of Insurance Commissioners (NAIC)
D. Texas Fair Access to Insurance Requirements (FAIR) Plan
Correct Answer: C. National Association of Insurance Commissioners (NAIC)
[CORRECT]
Rationale: The NAIC is an advisory organization that develops model laws but lacks
direct regulatory authority over Texas claim handling. TDI, TWIA, and the FAIR Plan all
operate under Texas law with direct or indirect claim oversight authority.
Q7
Under Texas Insurance Code Title 5, which provision protects consumers from unfair
discrimination in insurance rates and underwriting?
A. §551.002
B. §552.003
C. §544.002
D. §545.004
, Correct Answer: C. §544.002 [CORRECT]
Rationale: Texas Insurance Code §544.002 prohibits unfair discrimination in insurance
rates, premiums, and underwriting practices. Sections 551.002 and 552.003 address
other consumer protection matters, while §545.004 deals with rebates and
inducements.
Q8
A licensed Texas adjuster moves from Houston to Dallas and fails to notify TDI of the
address change within 30 days. Under 28 TAC §19.602, what consequence may the
adjuster face?
A. Automatic license suspension
B. Administrative penalty up to $1,000 per violation
C. Mandatory 40-hour CE requirement
D. License revocation after 60 days
Correct Answer: B. Administrative penalty up to $1,000 per violation [CORRECT]
Rationale: 28 TAC §19.602 requires adjusters to maintain current addresses with TDI
and authorizes administrative penalties for non-compliance. Automatic suspension or
revocation requires more severe violations, and increased CE is not a statutory penalty
for address non-compliance.
Q9
Under the Texas Insurance Code, which of the following is TRUE regarding the
Commissioner's authority to examine insurance company records?
A. The Commissioner must obtain a court order before examining records
B. Examinations may only occur during normal business hours with 48 hours' notice
C. The Commissioner has broad statutory authority to examine records at any
reasonable time
D. Examinations are limited to financial records only
Correct Answer: C. The Commissioner has broad statutory authority to examine records
at any reasonable time [CORRECT]
Rationale: Texas Insurance Code §33.002 grants the Commissioner broad examination
authority over insurer records, including claim files, without requiring court orders or
Questions & Correct Verified Answers | Pass Guaranteed -
A+ Graded
Section 1: Texas Insurance Code & Regulatory Framework (Q1-25)
Q1
Under the Texas Insurance Code, which Title governs the regulation of property and
casualty insurance specifically?
A. Title 3
B. Title 5
C. Title 8
D. Title 10
Correct Answer: D. Title 10 [CORRECT]
Rationale: Title 10 of the Texas Insurance Code specifically addresses Property and
Casualty Insurance, including rates, forms, and claim handling standards. Title 5 covers
consumer protection generally, Title 8 covers health insurance, and Title 3 addresses
the organization of the Texas Department of Insurance.
Q2
A Texas insurance adjuster holds an All Lines license that expires on the adjuster's
birthday. Under current TDI rules, how many continuing education (CE) hours must the
adjuster complete before renewal?
A. 12 hours
B. 24 hours
C. 30 hours
D. 40 hours
Correct Answer: B. 24 hours [CORRECT]
,Rationale: Texas requires All Lines adjusters to complete 24 hours of CE, including 2
hours of ethics, during each two-year renewal cycle. TDI rules under 28 TAC §19.101
mandate this requirement for license maintenance.
Q3
The Texas Commissioner of Insurance issues a cease and desist order against an
unlicensed individual acting as a public adjuster. Under the Insurance Code, which
section grants the Commissioner this enforcement authority?
A. Texas Insurance Code §31.002
B. Texas Insurance Code §33.004
C. Texas Insurance Code §35.051
D. Texas Insurance Code §36.001
Correct Answer: D. Texas Insurance Code §36.001 [CORRECT]
Rationale: Section 36.001 of the Texas Insurance Code grants the Commissioner broad
enforcement authority, including cease and desist orders, against persons violating
insurance laws. Sections 31.002, 33.004, and 35.051 address other administrative
functions but not this specific enforcement power.
Q4
A public adjuster in Texas is negotiating a property claim settlement. Under Texas
Insurance Code §4102.163, which of the following fee arrangements is PERMISSIBLE
for the public adjuster?
A. 15% of the total claim settlement
B. 25% of the total claim settlement
C. A flat fee of $5,000 regardless of claim outcome
D. 35% of the amount recovered above the insurer's initial offer
Correct Answer: A. 15% of the total claim settlement [CORRECT]
Rationale: Texas Insurance Code §4102.163 caps public adjuster fees at 10% of the
total claim settlement for catastrophe-related claims and 15% for non-catastrophe
claims. A flat fee not contingent on recovery is generally prohibited, and percentages
exceeding these statutory limits violate the code.
Q5
,An applicant for a Texas All Lines adjuster license has a felony conviction for insurance
fraud from five years ago. Under TDI licensing rules, what is the MOST likely outcome?
A. Automatic denial with no possibility of appeal
B. The conviction is disregarded after five years
C. TDI will evaluate the application under the "character and fitness" review process
D. The applicant may receive a temporary license pending review
Correct Answer: C. TDI will evaluate the application under the "character and fitness"
review process [CORRECT]
Rationale: TDI evaluates criminal history through a character and fitness review under
28 TAC §19.302, considering the nature of the offense, time elapsed, and rehabilitation.
Automatic denial applies only in limited circumstances, and temporary licenses are not
issued pending character reviews.
Q6
Which of the following entities does NOT have jurisdiction to regulate insurance claim
handling practices in Texas?
A. Texas Department of Insurance (TDI)
B. Texas Windstorm Insurance Association (TWIA)
C. National Association of Insurance Commissioners (NAIC)
D. Texas Fair Access to Insurance Requirements (FAIR) Plan
Correct Answer: C. National Association of Insurance Commissioners (NAIC)
[CORRECT]
Rationale: The NAIC is an advisory organization that develops model laws but lacks
direct regulatory authority over Texas claim handling. TDI, TWIA, and the FAIR Plan all
operate under Texas law with direct or indirect claim oversight authority.
Q7
Under Texas Insurance Code Title 5, which provision protects consumers from unfair
discrimination in insurance rates and underwriting?
A. §551.002
B. §552.003
C. §544.002
D. §545.004
, Correct Answer: C. §544.002 [CORRECT]
Rationale: Texas Insurance Code §544.002 prohibits unfair discrimination in insurance
rates, premiums, and underwriting practices. Sections 551.002 and 552.003 address
other consumer protection matters, while §545.004 deals with rebates and
inducements.
Q8
A licensed Texas adjuster moves from Houston to Dallas and fails to notify TDI of the
address change within 30 days. Under 28 TAC §19.602, what consequence may the
adjuster face?
A. Automatic license suspension
B. Administrative penalty up to $1,000 per violation
C. Mandatory 40-hour CE requirement
D. License revocation after 60 days
Correct Answer: B. Administrative penalty up to $1,000 per violation [CORRECT]
Rationale: 28 TAC §19.602 requires adjusters to maintain current addresses with TDI
and authorizes administrative penalties for non-compliance. Automatic suspension or
revocation requires more severe violations, and increased CE is not a statutory penalty
for address non-compliance.
Q9
Under the Texas Insurance Code, which of the following is TRUE regarding the
Commissioner's authority to examine insurance company records?
A. The Commissioner must obtain a court order before examining records
B. Examinations may only occur during normal business hours with 48 hours' notice
C. The Commissioner has broad statutory authority to examine records at any
reasonable time
D. Examinations are limited to financial records only
Correct Answer: C. The Commissioner has broad statutory authority to examine records
at any reasonable time [CORRECT]
Rationale: Texas Insurance Code §33.002 grants the Commissioner broad examination
authority over insurer records, including claim files, without requiring court orders or
