What's on the Texas all-lines adjuster exam

The format

Questions

150 scoreable. The outline lists no pretest questions. [Texas outline p.20]

Time

150 minutes. [Texas handbook p.19]

Passing score

70, on a scaled score that runs from 0 to 100. [Texas handbook p.16]

Languages

English or Spanish. [Texas handbook p.19]

Outline in effect

September 1, 2026. [Texas outline p.20]

The exam has two parts, a general section on basic insurance product knowledge and a state section on the laws, rules and practices unique to Texas, but you are scored on the exam as a whole, not on each part. [Texas handbook p.15] Pearson VUE mixes unscored “pretest” questions into some exams and says that where the outline gives no number there are none. [Texas handbook p.15]

The passing score is not a percentage. Several forms of the exam are in use, and a statistical procedure called equating corrects for differences in their difficulty. The number you are told is “neither the number of questions you answered correctly nor the percentage of questions you answered correctly.” [Texas handbook p.16]

The three sections

[Texas outline p.20] [Texas outline p.21]

Study by area

I. Product knowledge (40%)

The outline names these areas, with the policy provisions under each: [Texas outline p.20]

• The Standard Fire Policy: basic coverages, limitations, proof of loss, loss requirements and inventories, appraisal, replacement costs.
• Auto liability, personal and commercial.
• Personal lines homeowners coverage: dwelling and contents, and the ISO HO-2, HO-3, HO-4, HO-5 and HO-6 forms, including special limits of liability.
• Commercial lines: commercial property and causes of loss, the commercial package policy, boiler and machinery, the businessowners policy, cargo, commercial crime.
• Inland marine: definitions, personal and commercial floaters, installation floaters.
• Ocean marine: protection and indemnity, the collision (“running down”) clause, average, general average and particular average.
• Additional coverages, exclusions and extensions: business interruption, time element, law and ordinance, valuable papers, garagekeepers, aviation, umbrella, yacht and boatowners.
• Bonds and professional liability: errors and omissions.

II. Terms and concepts (40%)

The outline lists 39 terms and groups of terms, from peril to admitted and nonadmitted, and the whole list is worth knowing cold: [Texas outline p.20] [Texas outline p.21]

peril; waiver and non-waiver agreement; insurance, insurance contracts and insurable interest; estoppel; proof of loss; depreciation; deductible; limits of liability, absolute (strict) and vicarious; valued policy; appraisal; actual cash value and fair market value; robbery; burglary and theft; agreed value; replacement cost; indemnity; damages; subrogation; other insurance, primary and excess and pro rata; arbitration; constructive total loss; loss; warranties and representations; salvage; risk; hazard; liberalization; binder; reservation of rights; the parts of a policy and contract law; proximate cause; coinsurance; occurrence; cancellation; nonrenewal; vacancy and unoccupancy; negligence; endorsements; admitted and nonadmitted.

III. Texas law (20%)

The outline cites the statutes and rules to read. [Texas outline p.21] [Texas outline p.22]

• Licensing: the adjuster chapter of the Insurance Code (4101), exemptions, continuing education, denial, renewal and expiration, termination, revocation and suspension, notices to the department such as a change of address, and the Commissioner’s powers.
• Marketing practices: unfair and prohibited trade practices, claims methods and practices (Insurance Code 542), misrepresentation and defamation.
• Adjuster practices, responsibilities and duties: the functions of an adjuster (4101.001 and 4101.002) and prohibited conduct (4102.163).
• Workers’ compensation: definitions, who is covered, how an employer gets coverage, employer election, average weekly wage, the waiting period, compensable injuries, medical, income, temporary income, rehabilitation and death and burial benefits, and the Subsequent Injury Fund, all in the Labor Code.

Claim deadlines to know to the day

Section III sends you to the claim-handling rules in Chapter 542 of the Insurance Code. These are the main deadlines:

There are exceptions: a suspected arson loss gets 30 days to accept or reject, and an eligible surplus lines insurer gets 30 business days to acknowledge and 20 business days to pay. [Tex. Ins. Code §542.056] [Tex. Ins. Code §542.055] [Tex. Ins. Code §542.057] An insurer that holds up payment past the deadlines the law sets, or past 60 days where none is set, owes damages under Section 542.060. [Tex. Ins. Code §542.058]

How to study

Neither TDI nor Pearson VUE endorses or provides study materials, and you are free to use whatever you like. [Texas handbook p.18] Use the outline as a checklist, read the statutes it cites, and test yourself: the free Texas practice test gives every answer with its source.