Louisiana Automobile Adjusters License Exam | Questions with 100% Correct Answers |
Updated &Verified | 2024-2025 | 100% Score
Interstate Commerce - ✔✔Traffic, intercourse, commercial trading or the transportation of persons or
property between or among several states of the union or from or between points in one state and
points in another state.
Paul vs. Virginia - ✔✔1869; Ratified the regulation of insurance by the states as Congress cannot
regulate non-interstate commerce and the 10th Amendment passes the authority on to the state.
US vs. Southeast Underwriter's Association - ✔✔1944; Supreme Court reverses Paul vs. Virgina by ruling
insurance as interstate commerce subject to Federal Anti-Trust Laws.
McCarron-Ferguson Act - ✔✔Public Law 15; exempts the insurance industry from Federal Anti-Trust
Laws as long as the states maintained a comprehensive regulatory system. Federal Anti-Trust Laws
would apply if state regulations were not effective.
Gramm-Leach-Bliley Act of 1999 - ✔✔Financial services moderation act; stipulates that each portion of
the financial services business is to be regulated separately. Allows states to continue regulating
insurance without interfering in a bank's ability to sell insurance.
Department of Insurance (DOI) - ✔✔Falls within the executive branch of the LA State Government.
Enforces laws enacted by the LA Legislature. These laws regulate formation of Insurers, capital and
surplus requirements, licensing of producers and adjusters, investment of funds, financial requirements
for maintaining solvency, insurance rates, marketing and claims practices, taxation of Insurers, and the
rehabilitation of financially impaired Insurers or the liquidation of insolvent ones.
Commissioner - ✔✔DOI chief executive and administrative officer charged with administering and
enforcing the LA laws as provided by Title 22 of the LA revised statutes. Commissioner is a four-year
elected term. Requirements are be 25 years of age, a qualified LA voter and have lived in LA for previous
five years. Commissioner appoints a chief duty to perform all the acts and duties of the commissioner as
well as an assistant. Commissioner acts as LA representative for the NAIC.
,National Association of Insurance Commissioners (NAIC) - ✔✔Group of state commissioners who
coordinates insurance company financial audits and design insurance regulatory laws as well as
overseeing the licensure of insurance adjusters.
Adjuster - ✔✔An individual who investigates or adjusts losses on behalf of an insurer as an independent
contractor or as an employee of an adjustment bureau, an association, a property and casualty
producer, an independent contractor, an Insurer or a managing general agent.
Auto Adjuster - ✔✔Adjuster responsible for the estimation and disposition of claims involving
automobiles.
Individual - ✔✔A natural person
Business Entity - ✔✔A corporation, association, partnership, limited liability company, limited liability
partnership, or other legal entity.
Deceptive Trade Practice - ✔✔An activity in which an individual or business engages that is calculated to
mislead or lure the public into purchasing a product or service. False advertising is the most common.
Personal Lines Adjuster - ✔✔Responsible for the estimation and disposition of claims involving policies
written on the personal and real property of an individual(s).
Commercial Lines Adjuster - ✔✔Responsible for the estimation and disposition of claims involving
coverages for businesses, commercial institutions, and professional organizations.
Comprehensive Adjuster - ✔✔Responsible for handling property and casualty claims of any type.
The COI determines by hearing that an adjuster is guilty of unfair or deceptive trade practices. What
would be the fines associated? - ✔✔Fines are $1,000 for each violation, up to $100,000 (100 violations).
If the person was aware of the practices, fines are up to $250,000 in a six-month period.
, Declaration of Uniform Treatment - ✔✔Resident and non-resident producers will be treated equally and
accepts uniform applications as the only non-resident licensing applications.
Emergency Adjuster License - ✔✔Valid for 180 days and issued in the event that additional personnel
are needed to process claims following a catastrophe.
Federal Violent Crime Control and Law Enforcement Act of 1994 - ✔✔Persons convicted of a felony
involving dishonesty or breach of trust may engage in the business of insurance only with written
consent of the commissioner.
Acceptance - ✔✔Consent to terms of a contract offered.
Aleatory Contract - ✔✔Contracts whose performance by one party depends on the occurrence of an
uncertain contingent event.
Caveat Emptor - ✔✔"Let the buyer beware"
Concealment - ✔✔Failure to disclose known facts.
Conditional Contract - ✔✔Insurer is responsible to perform only if certain conditions are met.
Consideration - ✔✔In the formation of a legal contract, each party must give up something of value.
"Quid pro quo" (something for something)
Contract - ✔✔Agreement between two or more parties which creates an obligation to do or not do a
particular thing.
Contract of Adhesion - ✔✔Contract written by one party and assented to be another. Take it or leave it.
Unbalanced situation.
Updated &Verified | 2024-2025 | 100% Score
Interstate Commerce - ✔✔Traffic, intercourse, commercial trading or the transportation of persons or
property between or among several states of the union or from or between points in one state and
points in another state.
Paul vs. Virginia - ✔✔1869; Ratified the regulation of insurance by the states as Congress cannot
regulate non-interstate commerce and the 10th Amendment passes the authority on to the state.
US vs. Southeast Underwriter's Association - ✔✔1944; Supreme Court reverses Paul vs. Virgina by ruling
insurance as interstate commerce subject to Federal Anti-Trust Laws.
McCarron-Ferguson Act - ✔✔Public Law 15; exempts the insurance industry from Federal Anti-Trust
Laws as long as the states maintained a comprehensive regulatory system. Federal Anti-Trust Laws
would apply if state regulations were not effective.
Gramm-Leach-Bliley Act of 1999 - ✔✔Financial services moderation act; stipulates that each portion of
the financial services business is to be regulated separately. Allows states to continue regulating
insurance without interfering in a bank's ability to sell insurance.
Department of Insurance (DOI) - ✔✔Falls within the executive branch of the LA State Government.
Enforces laws enacted by the LA Legislature. These laws regulate formation of Insurers, capital and
surplus requirements, licensing of producers and adjusters, investment of funds, financial requirements
for maintaining solvency, insurance rates, marketing and claims practices, taxation of Insurers, and the
rehabilitation of financially impaired Insurers or the liquidation of insolvent ones.
Commissioner - ✔✔DOI chief executive and administrative officer charged with administering and
enforcing the LA laws as provided by Title 22 of the LA revised statutes. Commissioner is a four-year
elected term. Requirements are be 25 years of age, a qualified LA voter and have lived in LA for previous
five years. Commissioner appoints a chief duty to perform all the acts and duties of the commissioner as
well as an assistant. Commissioner acts as LA representative for the NAIC.
,National Association of Insurance Commissioners (NAIC) - ✔✔Group of state commissioners who
coordinates insurance company financial audits and design insurance regulatory laws as well as
overseeing the licensure of insurance adjusters.
Adjuster - ✔✔An individual who investigates or adjusts losses on behalf of an insurer as an independent
contractor or as an employee of an adjustment bureau, an association, a property and casualty
producer, an independent contractor, an Insurer or a managing general agent.
Auto Adjuster - ✔✔Adjuster responsible for the estimation and disposition of claims involving
automobiles.
Individual - ✔✔A natural person
Business Entity - ✔✔A corporation, association, partnership, limited liability company, limited liability
partnership, or other legal entity.
Deceptive Trade Practice - ✔✔An activity in which an individual or business engages that is calculated to
mislead or lure the public into purchasing a product or service. False advertising is the most common.
Personal Lines Adjuster - ✔✔Responsible for the estimation and disposition of claims involving policies
written on the personal and real property of an individual(s).
Commercial Lines Adjuster - ✔✔Responsible for the estimation and disposition of claims involving
coverages for businesses, commercial institutions, and professional organizations.
Comprehensive Adjuster - ✔✔Responsible for handling property and casualty claims of any type.
The COI determines by hearing that an adjuster is guilty of unfair or deceptive trade practices. What
would be the fines associated? - ✔✔Fines are $1,000 for each violation, up to $100,000 (100 violations).
If the person was aware of the practices, fines are up to $250,000 in a six-month period.
, Declaration of Uniform Treatment - ✔✔Resident and non-resident producers will be treated equally and
accepts uniform applications as the only non-resident licensing applications.
Emergency Adjuster License - ✔✔Valid for 180 days and issued in the event that additional personnel
are needed to process claims following a catastrophe.
Federal Violent Crime Control and Law Enforcement Act of 1994 - ✔✔Persons convicted of a felony
involving dishonesty or breach of trust may engage in the business of insurance only with written
consent of the commissioner.
Acceptance - ✔✔Consent to terms of a contract offered.
Aleatory Contract - ✔✔Contracts whose performance by one party depends on the occurrence of an
uncertain contingent event.
Caveat Emptor - ✔✔"Let the buyer beware"
Concealment - ✔✔Failure to disclose known facts.
Conditional Contract - ✔✔Insurer is responsible to perform only if certain conditions are met.
Consideration - ✔✔In the formation of a legal contract, each party must give up something of value.
"Quid pro quo" (something for something)
Contract - ✔✔Agreement between two or more parties which creates an obligation to do or not do a
particular thing.
Contract of Adhesion - ✔✔Contract written by one party and assented to be another. Take it or leave it.
Unbalanced situation.
