Insurance adjuster exam practice test 2026

1. Question 1 of 30Insurance Terms & Concepts

   A peril is best defined as:

   The cause of a lossA type of policyA condition that increases the chance of lossThe amount of a deductible
2. Question 2 of 30Standard Fire Policy

   Under the Standard Fire Policy, which two perils are covered by the basic insuring agreement without any endorsement?

   Fire and lightningWindstorm and hailTheft and vandalismFlood and earthquake
3. Question 3 of 30Auto Liability

   Uninsured/Underinsured Motorists coverage in a Personal Auto Policy protects the insured when:

   The insured damages a rental carThe insured causes damage to another vehicleAn at-fault driver has no or insufficient liability insuranceThe insured's own car is stolen
4. Question 4 of 30Personal Auto Policy

   Under the ISO Personal Auto Policy, a named insured's spouse moves out of the household during the policy period. Unless a policy naming the spouse takes effect sooner or the policy period ends first, the spouse stays 'you' under the policy until:

   The end of 90 days following the change of residencyOne year after the change of residencyThe day the spouse moves outThe end of 30 days following the change of residency
5. Question 5 of 30Personal Lines & Homeowners

   Under an HO-3, personal property (contents) is typically covered on what basis?

   Replacement cost with no exclusionsAgreed valueNamed perilsOpen perils
6. Question 6 of 30Dwelling Policies

   Which statement about DWELLING policies is correct?

   A dwelling policy covers personal property only, never the buildingOnly owner-occupied single-family homes qualifyA dwelling policy includes personal liability coverage, just as a homeowners policy doesThe building does not have to be occupied by the owner, and it may even be under construction
7. Question 7 of 30Commercial Lines

   A Commercial Package Policy (CPP) is built by combining a common declarations page and conditions with two or more:

   Coverage parts, such as commercial property and general liabilityHomeowners formsPersonal auto policiesSurety bonds
8. Question 8 of 30Inland & Ocean Marine

   The four principal coverages in ocean marine insurance are hull, cargo, freight, and:

   ComprehensiveUninsured boaterCollision damage waiverProtection and indemnity (P&I)
9. Question 9 of 30Additional Coverages & Exclusions

   Garagekeepers coverage protects:

   A homeowner's detached garageA business against liability for damage to customers' vehicles in its careA car dealer's buildingThe garage owner's personal auto
10. Question 10 of 30Bonds & Professional Liability

    A surety bond involves three parties: the principal, the obligee, and the:

    SuretyReinsurerBeneficiaryAdjuster
11. Question 11 of 30Texas Licensing & Regulation

    A Texas adjuster license is issued for a term of:

    One yearFive yearsTen yearsTwo years
12. Question 12 of 30Marketing & Unfair Claim Practices

    After receiving all items needed to prove a claim, a Texas insurer must notify the claimant of acceptance or rejection not later than:

    The 45th business dayThe 90th dayThe 15th business dayThe 5th day
13. Question 13 of 30Adjuster Duties & Ethics

    An independent adjuster differs from a company (staff) adjuster because the independent adjuster:

    Cannot settle claimsIs hired on a contract basis, often handling claims for several insurersWorks directly for TDIRepresents the policyholder
14. Question 14 of 30Texas Workers' Compensation

    Texas is unusual among states because private employers generally:

    Are covered by a state fund onlyMay elect NOT to carry workers' compensation insuranceMust always carry workers' compensationCannot buy workers' compensation
15. Question 15 of 30Insurance Terms & Concepts

    An insurance company incorporated in another country is referred to as:

    A domestic insurerA foreign insurerA reciprocal insurerAn alien insurer
16. Question 16 of 30Personal Auto Policy

    A policy carries bodily injury liability limits of $25,000 each person and $50,000 each accident. One person is hurt in an accident and has $40,000 of damages. Under the ISO Personal Auto Policy, the most the insurer pays for that person's bodily injury is:

    $12,500$25,000$50,000$40,000
17. Question 17 of 30Personal Lines & Homeowners

    TDI notes that when a Texas home policy covers additional living expenses, the ALE limit is commonly a share of the dwelling coverage — typically:

    1 to 2 percent of the dwelling amount10 to 20 percent of the dwelling amount100 percent of the dwelling amount50 to 75 percent of the dwelling amount
18. Question 18 of 30Commercial Lines

    A commercial building has a replacement cost of $800,000 and is insured for $540,000 under a 90% coinsurance clause. Ignoring any deductible, a covered $90,000 partial loss is settled for:

    $90,000$81,000$54,000$67,500
19. Question 19 of 30Texas Licensing & Regulation

    A Texas adjuster whose license has been expired for one year or more must:

    Wait two years before reapplyingAsk the commissioner to waive all licensing requirementsSimply pay a late fee and renewSubmit to reexamination unless an exemption applies
20. Question 20 of 30Marketing & Unfair Claim Practices

    If a Texas insurer has a reasonable basis to believe a loss resulted from ARSON, its deadline to notify the claimant in writing of acceptance or rejection is:

    The 15th business day after it receives all required itemsThe 60th day after the date of lossThe fifth business day after it receives all required itemsThe 30th day after it receives all items, statements, and forms it required
21. Question 21 of 30Insurance Terms & Concepts

    In a liability claim, GENERAL damages are:

    Damages for intangible loss such as pain and sufferingDamages fixed in advance by the contract between the partiesDamages for lost wages and medical billsDamages awarded to punish the defendant
22. Question 22 of 30Insurance Terms & Concepts

    A LOSS RESERVE on an insurer's books is:

    Premium the insurer has collected but not yet earnedThe amount set up as the estimated cost of a claimSurplus held to satisfy the regulator's capital requirementsThe share of each risk an insurer keeps rather than reinsuring
23. Question 23 of 30Insurance Terms & Concepts

    An AGGREGATE deductible works so that:

    The deductible is stated as a percentage of the amount of insuranceA separate deductible is subtracted from every claimAll covered losses during the year are added together and the insurer pays only once that total exceeds the deductibleThe deductible is subtracted from the policy limit rather than from the loss
24. Question 24 of 30Insurance Terms & Concepts

    Concealment in insurance is:

    The failure to disclose a known material factA type of endorsementA late premium paymentAn overstatement of value
25. Question 25 of 30Insurance Terms & Concepts

    Punitive damages differ from compensatory damages because punitive damages are intended to:

    Repair damaged propertyReplace lost wagesPunish and deter especially wrongful conductReimburse medical bills
26. Question 26 of 30Insurance Terms & Concepts

    The liberalization clause benefits an existing insured by:

    Increasing the deductibleReducing the premium each yearAutomatically extending a broadened coverage adopted at no added premiumCanceling exclusions after a claim
27. Question 27 of 30Insurance Terms & Concepts

    Under Texas law, a policy provision voiding the policy for false statements in the APPLICATION has no effect unless the matter misrepresented:

    Was repeated at renewalWas material to the risk, or contributed to the event on which the policy became payableConcerned the amount of the premiumWas made in writing rather than orally
28. Question 28 of 30Insurance Terms & Concepts

    Under the Texas Penal Code, a person commits THEFT if the person:

    Unlawfully appropriates property with intent to deprive the owner of the propertyCauses bodily injury to another while taking propertyStarts a fire intending to damage an insured buildingEnters a building without the owner's consent intending to commit a felony
29. Question 29 of 30Insurance Terms & Concepts

    The part of a policy that names the perils, persons, property, or locations for which coverage does NOT apply is the:

    Insuring agreementExclusionsConditionsDeclarations
30. Question 30 of 30Insurance Terms & Concepts

    Cancellation of a policy as of its effective date, with no premium charged, is called:

    Pro rata cancellationFlat cancellationShort rate cancellationNonrenewal

Where these come from: our app’s 500 questions were each checked against the sources they cite in independent audits in September 2026. Every one either passed or was corrected and passed. These thirty are taken only from that audited set, word for word, and only where the app’s text still matches it. They are practice questions, not the Texas exam’s.

1. Question 1 of 30Adjusting Practices

   Under the NAIC Unfair Claims Settlement Practices Act, it is an unfair claims practice to fail to provide the forms needed to present a claim, with reasonable explanations of their use, within how many calendar days of a request?

   1556030
2. Question 2 of 30Insurance Terms & Concepts

   A peril is best defined as:

   The cause of a lossA type of policyA condition that increases the chance of lossThe amount of a deductible
3. Question 3 of 30Personal Auto Policy

   Under the ISO Personal Auto Policy, a named insured's spouse moves out of the household during the policy period. Unless a policy naming the spouse takes effect sooner or the policy period ends first, the spouse stays 'you' under the policy until:

   The end of 90 days following the change of residencyOne year after the change of residencyThe day the spouse moves outThe end of 30 days following the change of residency
4. Question 4 of 30Florida No-Fault (PIP)

   Under Florida's PIP law, if a qualified provider determines that the injured person did NOT have an emergency medical condition, reimbursement for medical services is limited to:

   $5,000Nothing at all$10,000$2,500
5. Question 5 of 30Workers' Comp & Employers Liability Policy

   The standard workers compensation policy defines 'workers compensation law' as the workers compensation and occupational disease law of each state named in Item 3.A. The definition does NOT include:

   Amendments to an Item 3.A state's law that take effect during the policy periodThe occupational disease law of an Item 3.A stateAny federal workers compensation or federal occupational disease lawThe workers compensation law of an Item 3.A state
6. Question 6 of 30Florida Workers' Compensation

   A Florida worker is disabled for 15 days by a compensable injury. Under Florida law, indemnity compensation is:

   Paid from the first day of disabilityNot payable at all, because the disability lasted less than 21 daysNot allowed for the first 7 days, because the disability did not last more than 21 daysPaid only for the days after the 21st day
7. Question 7 of 30Bonds & Professional Liability

   A surety bond involves three parties: the principal, the obligee, and the:

   SuretyReinsurerBeneficiaryAdjuster
8. Question 8 of 30Dwelling Policies

   Which statement about DWELLING policies is correct?

   A dwelling policy covers personal property only, never the buildingOnly owner-occupied single-family homes qualifyA dwelling policy includes personal liability coverage, just as a homeowners policy doesThe building does not have to be occupied by the owner, and it may even be under construction
9. Question 9 of 30Personal Lines & Homeowners

   Under an HO-3, personal property (contents) is typically covered on what basis?

   Replacement cost with no exclusionsAgreed valueNamed perilsOpen perils
10. Question 10 of 30Standard Fire Policy

    Under the Standard Fire Policy, which two perils are covered by the basic insuring agreement without any endorsement?

    Fire and lightningWindstorm and hailTheft and vandalismFlood and earthquake
11. Question 11 of 30Commercial Lines

    A Commercial Package Policy (CPP) is built by combining a common declarations page and conditions with two or more:

    Coverage parts, such as commercial property and general liabilityHomeowners formsPersonal auto policiesSurety bonds
12. Question 12 of 30Inland & Ocean Marine

    The four principal coverages in ocean marine insurance are hull, cargo, freight, and:

    ComprehensiveUninsured boaterCollision damage waiverProtection and indemnity (P&I)
13. Question 13 of 30Auto Physical Damage & Mechanical Breakdown

    A car slides on ice and rolls onto its roof without striking anything. Under the ISO Personal Auto Policy, the damage is:

    An other-than-collision loss, because nothing was struckPaid only under Liability CoverageExcluded as road damageA 'collision' loss, because collision includes the upset of the auto
14. Question 14 of 30Florida Residual Markets

    Under Florida law, the Florida Automobile Joint Underwriting Association (FAJUA) serves applicants who are in good faith entitled to, but unable to obtain, auto insurance in the voluntary market at standard rates by:

    Having designated insurers issue policies and provide policyholder and claims service on behalf of all insurers in the planHaving the state itself issue the policiesMoving the applicants into Citizens Property Insurance CorporationAssigning each applicant to one insurer that keeps all premium and losses
15. Question 15 of 30Florida Statutes & Rules

    A Florida insurer pays a total loss on a motor vehicle and obtains the certificate of title. Under Florida law it must forward the title to the Department of Highway Safety and Motor Vehicles for processing within:

    90 days after the date of loss10 days after receiving the title72 hours after receiving the title30 days after paying the claim
16. Question 16 of 30Adjusting Practices

    Under the NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation, an insurer that denies a claim because of a specific policy exclusion must:

    Deny the claim by telephoneRefer to that exclusion in a written denial and document the denial in the claim fileRefer the claim to the insurance department firstOffer a compromise before any denial
17. Question 17 of 30Insurance Terms & Concepts

    An 'agreed value' provision in commercial property:

    Suspends the coinsurance penaltyRequires monthly reportingDoubles the deductibleEliminates the policy limit
18. Question 18 of 30Personal Auto Policy

    A named insured is logged into a rideshare (transportation network) app as a driver and has not yet accepted a ride when an accident happens. Under Part A of the ISO Personal Auto Policy (PP 00 01 09 18), liability coverage for the insured is:

    Excluded, because the livery exclusion applies while logged in as a driver whether or not a passenger is in the vehicleCovered, because the insured was driving the insured's own carCovered, because no passenger was in the vehicleExcluded only if the insured was paid for a ride
19. Question 19 of 30Florida No-Fault (PIP)

    Florida PIP disability benefits pay what share of the injured person's loss of gross income and loss of earning capacity from inability to work?

    60 percent80 percent100 percent66 2/3 percent
20. Question 20 of 30Dwelling Policies

    A fire makes a rental dwelling unfit to live in. Under Coverage D – Fair Rental Value of the Dwelling Property 3 – Special Form, the insurer pays:

    A full year of rent, however long repairs takeThe owner's lost profit on a planned sale of the propertyThe fair rental value of the part rented or held for rental, less expenses that do not continue, for the shortest time required to repair or replace itThe tenant's hotel bills and meals
21. Question 21 of 30Commercial Lines

    In a Commercial General Liability policy, products/completed operations coverage pays for bodily injury and property damage that:

    Arises from the insured's advertisingOccurs away from the business premises and is caused by the insured's products or completed workDamages the insured's own buildingHappens to the insured's own employees
22. Question 22 of 30Auto Physical Damage & Mechanical Breakdown

    An insured's pickup has $4,000 of custom wheels and a custom paint mural. Under the ISO Personal Auto Policy, the most Part D pays for loss to this 'custom equipment' is:

    $1,000$4,000Nothing, because custom equipment is always excluded$1,500
23. Question 23 of 30Florida Statutes & Rules

    Under Florida law, a Florida-resident appointed independent adjuster must keep the records of a particular claim at the adjuster's place of business for at least:

    3 years after the date of lossUntil the policy expires5 years after completion of the adjustment1 year after completion of the adjustment
24. Question 24 of 30Adjusting Practices

    Which kind of adjuster works on behalf of the INSURED rather than the insurer?

    A public adjusterA staff (company) adjusterAn adjustment bureau hired by the insurerAn independent adjuster retained by the insurer
25. Question 25 of 30Personal Auto Policy

    Part B (Medical Payments Coverage) of the ISO Personal Auto Policy pays reasonable expenses for necessary medical and funeral services only for services rendered within:

    One year from the date of the accidentThree years from the date of the accidentThe policy period in which the accident occurredSix months from the date of the accident
26. Question 26 of 30Dwelling Policies

    Under the Dwelling Property 3 – Special Form, the Trees, Shrubs and Other Plants coverage does NOT cover:

    Vandalism to a hedgeFire damage to a treeDamage by a vehicle not owned or operated by a residentTheft of a shrub
27. Question 27 of 30Auto Physical Damage & Mechanical Breakdown

    Under Part E of the ISO Personal Auto Policy, a person seeking Coverage for Damage to Your Auto must also:

    Obtain three written repair estimatesHave the car repaired at a shop the insurer choosesPay the deductible to the insurer before any inspectionPermit the insurer to inspect and appraise the damaged property before its repair or disposal
28. Question 28 of 30Florida Statutes & Rules

    Under Florida's claim-handling statute, if a property claim investigation involves a physical inspection, the insurer must conduct it within how many days after receiving the proof-of-loss statements?

    3014760
29. Question 29 of 30Auto Physical Damage & Mechanical Breakdown

    A car buyer pays an extra charge, some weeks after the sale, for a written agreement to cover repairs over a fixed period. Under the Magnuson-Moss Warranty Act as the FTC interprets it, that agreement is a:

    Implied warrantyWritten warrantyManufacturer's recallService contract
30. Question 30 of 30Florida Statutes & Rules

    The Florida Insurance Guaranty Association (FIGA) pays covered claims of an insolvent insurer up to what amount per claim, with an additional amount for the part of a homeowners claim that relates only to damage to the structure and contents?

    The full policy limit, whatever it isLess than $300,000, plus an additional $200,000 for homeowners structure and contents damage$100,000, with no additional amount$500,000 for every claim

Where these come from: our app’s 500 questions were each checked against the sources they cite in independent audits in September 2026. Every one either passed or was corrected and passed. These thirty are taken only from that audited set, word for word, and only where the app’s text still matches it. They are practice questions, not the Florida exam’s.