TEXAS ADJUSTERS LICENSE EXAM QUESTIONS

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TEXAS ADJUSTERS LICENSE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: The Texas Commissioner may require an interinsurance exchange to cease conducting business in Texas if its required aggregate surplus is impaired by more than:

Answer:

25% Question 2: The Texas Commissioner has decided to modify the certificate of authority held by

Binders Keepers, Inc. The Department must provide notice of the modification:

Answer:

No later than the 10th day before the date the modification will occur.Question 3: Ted holds a property & casualty adjuster's license as well as a workers' compensation adjuster's license in Texas. Which of the following statements best describes how the mandatory continuing education requirements will apply to Ted?

Answer:

Ted will be required to complete a total of 24 hours of continuing education to meet the requirement for BOTH licenses

Question 4: Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim.

Answer:

30 Days Question 5: Where in the insurance contract can an insured find the terms used throughout the policy and an explanation as to what they mean within the context of the policy?

Answer:

Definitions Question 6: The agreement between the parties to an insurance contract is known as:

Answer:

Offer and acceptance.

Question 7: Which of the following is most likely to be uninsurable?

Answer:

The purchaser of a new home wants to protect herself from a possible drop in housing prices Question 8: Three hours of the required continuing education courses in Texas for adjusters

must cover the topics of:

Answer:

Ethics or consumer protection.Question 9: Binders Keepers, Inc. is selling their insurance products via telephone calls. Which of the following insurance marketing and distribution systems is being utilized by Binders Keepers?

Answer:

Direct response system.Question 10: The Texas Insurance Commissioner may issue an emergency cease and desist

order to an insurance company for all of the following reasons, EXCEPT:

Answer:

Submitting new rates for approval.

Question 11: All of the following are remedies the Texas Commissioner may impose for a

violation of the insurance code, EXCEPT:

Answer:

Impose a criminal penalty.Question 12: Adjusters in Texas must complete at least _____ of the continuing education required to renew their license in a classroom or classroom equivalent setting.

Answer:

50% Question 13: All of the following are exempt from the Texas adjuster continuing education

requirement, EXCEPT:

Answer:

A military service member not serving in a combat theater during the continuing education reporting period.Question 14: Risk retention and purchasing groups are used to provide which of the following types of coverage?

Answer:

Products Liability insurance.Question 15: An applicant fails to disclose known facts when completing an application for

insurance. This act is known as:

Answer:

Concealment Question 16: Talia is a licensed adjuster in Texas. She has been so busy adjusting claims over the past two years, that she realizes a month before her license is scheduled to expire that she hasn't taken any continuing education courses. She applies to the Texas Department for an extension to obtain her CE credits citing her busy work schedule. Which of the following statements best describes how the Texas Department will likely answer Talia's request?

Answer:

The extension will likely be denied because the Texas Department does not grant extensions to obtain CE credit based on business reasons.

Question 17: Which of the following phrases best describes a "hazard?"

Answer:

A condition that increases the chances of a loss..Question 18: Under the A.M. Best insurance company rating system, a rating of "E" means that

the company is:

Answer:

Under state supervision..Question 19: The Texas Department issues emergency adjuster licenses in case of an emergency arising out of a disaster. An emergency license is valid for ______ days.

Answer:

90 Question 20: The Texas Commissioner has ordered that Indemnify Insurance, Inc. make restitution to those affected by their violation of the insurance code. Which of the following parameters of the restitution is NOT determined by the Commissioner?

Answer:

The explanation.Question 21: Indemnify Insurance, Inc. is a Texas insurer has violated the regulations with regard to the timely payment of claims. Indemnify will now be required to pay interest on the

amount of the claim at a rate of:

Answer:

18% per year Question 22: Horatio is a business owner who is part of a business owners group that are buying old commercial buildings in their small city and refurbishing them. Horatio has bought a beautiful historical building made mostly of wood. He installs a sprinkler system right away to prevent a fire. What risk management strategy is Horatio using?

Answer:

Risk Reduction Question 23: Joe enters into a contract with Martha to set fire to her house so she can collect on her insurance policy. Martha will pay Joe a portion of the insurance proceeds for his trouble.Which of the following parts of a valid contract is missing in this situation?

Answer:

Legal Purpose