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

   Under the Dwelling Property 3 – Special Form (DP 00 03), the insured may use up to what share of the Coverage A limit for loss by a peril insured against to other structures?

   20 percent5 percent10 percent50 percent
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

    The Commissioner may deny, suspend, or revoke an adjuster license for:

    Fraudulent or dishonest practices and material misrepresentationMoving out of stateCharging the customary feeAdjusting too many claims
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

    Limits are $25,000 each person / $50,000 each accident for bodily injury. Three people are hurt in one accident, with damages of $30,000, $20,000 and $10,000. Under the ISO Personal Auto Policy, the most the insurer pays for all bodily injury is:

    $75,000$55,000$60,000$50,000
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

    Motor truck cargo insurance covers:

    The truck itself against collisionThe trucking company's buildingThe driver's medical expensesProperty being transported by a trucker for others
19. Question 19 of 30Texas Licensing & Regulation

    Texas rules exempt a person from the adjuster licensing EXAMINATION if the person holds:

    A Texas driver license and five years of claims workA Texas real estate licenseThe CPCU designation or the Associate in Claims (AIC) designationA high school diploma
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

    A managing general agent (MGA) is:

    An insurer's salaried claim examinerAn independent adjuster who handles claims for several insurersA public adjuster retained by the policyholderAn agent contractually authorized by an insurer to manage all or part of the insurer's business activities
22. Question 22 of 30Insurance Terms & Concepts

    In underwriting and rating, the FREQUENCY of loss refers to:

    The number of times a loss occursThe size of an individual lossThe premium an insured pays each yearThe insurer's ratio of expenses to premium
23. Question 23 of 30Insurance Terms & Concepts

    An 'agreed value' provision in commercial property:

    Suspends the coinsurance penaltyRequires monthly reportingDoubles the deductibleEliminates the policy limit
24. Question 24 of 30Insurance Terms & Concepts

    Most property policies prohibit 'abandonment,' meaning the insured cannot:

    Force the insurer to accept damaged property and pay a total lossSell salvageRepair the propertyFile a proof of loss
25. Question 25 of 30Insurance Terms & Concepts

    Robbery is distinguished from burglary because robbery involves:

    Unlawful entry into a closed premisesEmployee dishonestyLoss without any evidenceTaking property from a person by force or threat
26. Question 26 of 30Insurance Terms & Concepts

    A 'first-party' claim is one in which:

    The agent files the claimThe insurer sues a strangerThe insured seeks payment from its own insurerA third party sues the insured
27. Question 27 of 30Insurance Terms & Concepts

    Under Texas law, EXEMPLARY DAMAGES are:

    Damages that will be incurred after the date of the judgmentDamages for physical pain, mental anguish, and disfigurementDamages awarded as a penalty or by way of punishment, not for compensatory purposesDamages that compensate a claimant for actual pecuniary loss
28. Question 28 of 30Insurance Terms & Concepts

    Under the Texas Penal Code, BURGLARY is entering a habitation, or a building not then open to the public, without the owner's effective consent and with intent to commit:

    A felony, theft, or an assaultAny traffic offenseOnly a theftOnly 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

   Under the Dwelling Property 3 – Special Form (DP 00 03), the insured may use up to what share of the Coverage A limit for loss by a peril insured against to other structures?

   20 percent5 percent10 percent50 percent
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

    The declarations page of a policy contains:

    The list of covered perilsThe exclusionsThe named insured, property, limits, premium, and policy periodThe claims-handling procedures
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

    Under the Dwelling Property 3 – Special Form, if a civil authority prohibits use of the described location because of direct damage to a NEIGHBORING location by a peril insured against, Fair Rental Value is covered for:

    No more than two weeksUp to 12 monthsNothing, because the insured location itself was not damagedNo more than 30 days
21. Question 21 of 30Commercial Lines

    A commercial property policy with an 80% coinsurance clause insures a building whose replacement cost is $500,000. To fully satisfy coinsurance, the insured must carry at least:

    $500,000$300,000$400,000$250,000
22. Question 22 of 30Auto Physical Damage & Mechanical Breakdown

    An aftermarket audio unit is permanently installed in a location the auto manufacturer did not use for such equipment. Under the ISO Personal Auto Policy, the most Part D pays for it is:

    Its full actual cash value$1,500$1,000$500
23. Question 23 of 30Florida Statutes & Rules

    Under Florida law, an individual adjuster's appointment continues until suspended, revoked or terminated, but is subject to a renewal request filed by the appointing entity:

    Only when the appointee changes employersIn the appointee's birth month and every 24 months after thatEvery January 1Every 12 months on the license issue date
24. Question 24 of 30Adjusting Practices

    The NAIC Insurance Fraud Prevention Model Act requires a fraud warning on claim forms and applications. If a form lacks the warning, then in a prosecution for a fraudulent insurance act the missing warning:

    Is a complete defenseShifts the burden of proof to the insurerReduces the offense to a misdemeanorIs not a defense
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

    The insured and the insurer disagree on the amount of a Part D loss, and appraisal is demanded under the ISO Personal Auto Policy. The amount of loss becomes binding when:

    Any two of the three (the two appraisers and the umpire) agreeA court confirms the awardThe umpire alone decides, whatever the appraisers foundThe insurer's appraiser signs the award
28. Question 28 of 30Florida Statutes & Rules

    Under Florida law, when a residential property insurer receives a communication about a claim, it must review and acknowledge receipt, unless it pays the claim in that time, within:

    14 calendar days30 calendar days15 calendar days7 calendar days
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.