Connecticut All Lines Casualty Adjuster Practice Test

Correct answer: C. A salaried staff adjuster settling auto bodily injury claims for an insurer

CGS 38a-792(a) bars any person from acting as an adjuster of casualty claims for an insurance company or adjusting firm without a license, so staff adjusters need one just like independents, and Reg. 38a-792-1 lists auto injury claims first. A clerk who only routes mail is not adjusting, Reg. 38a-792-3 lets producers settle property damage losses up to $1,500, and Reg. 38a-792-2 says life adjusters need no license.

Reference: CGS 38a-792(a); Regs. Conn. State Agencies 38a-792-1 to 38a-792-3

Correct answer: A. A Connecticut bar member in good standing in the general practice of law

Subsection (d) exempts two groups: certain supervised employees who only collect claim information and enter data on portable electronics insurance claims, and members of the Connecticut bar in good standing engaged in the general practice of law. There is no low-volume exemption, an adjuster licensed only in another state still needs a Connecticut license or a catastrophe registration, and negotiating for an insured is public adjusting, which needs its own license.

Reference: CGS 38a-792(d)

Correct answer: D. A $1,200 property damage loss to an insured's detached garage

Reg. 38a-792-3 lets a licensed agent with authority to settle losses of no more than $1,500 do so without a casualty adjuster license, as long as the losses are property damage losses and the agent stays licensed as a producer. The $2,400 loss is over the limit, and bodily injury and workers compensation claims are not property damage losses, so a licensed adjuster must handle them.

Reference: Regs. Conn. State Agencies 38a-792-3 (settlement of small property damage losses by agents)

Correct answer: B. In March 2028, two years after the birthday that preceded issue

Since Public Act 24-138, an initial casualty adjuster license expires two years after the licensee's birthday that preceded the date of issue. Devon's last birthday before November 10, 2026 was March 4, 2026, so the license runs to March 2028 and then renews biennially; CID describes this as renewal in the birth month every other year. The old June 30 odd-year expiration now applies only to business entity licenses.

Reference: CGS 38a-792(a)(1), as amended by P.A. 24-138; CID Casualty Adjuster FAQ

Correct answer: A. The Commissioner may waive it since she held that license within two years

CGS 38a-792(a)(2)(B) lets the Commissioner waive the examination for an applicant who, at any time within the two years before applying, was licensed in Connecticut under the same type of license. Priya's lapse is only 18 months old, so she qualifies for a discretionary waiver. A lapse longer than two years would mean testing again, and neither continuing education nor a catastrophe registration replaces the exam.

Reference: CGS 38a-792(a)(2)(B)

Correct answer: C. The Commissioner may waive testing because he holds an equivalent license

Under CGS 38a-769(b), a nonresident license is granted only to an applicant who holds an equivalent license from another state, unless the applicant lives in a state that does not offer that license. CGS 38a-792(a)(2)(A) then lets the Commissioner waive the exam for a nonresident holding an equivalent license, which Marcus's Texas license is. Casualty adjusters have no prelicensing course; the 40-hour course applies to public adjusters.

Reference: CGS 38a-769(b); CGS 38a-792(a)(2)(A)

Correct answer: B. A registered employee of the insurer must register her for that storm

CID's catastrophe FAQ says only registered employees of an insurance company can register catastrophe adjusters; adjusters cannot register themselves and third-party vendors cannot do it for them. The insurer must register the adjuster separately for each storm, there is no fee, and catastrophe adjusters may not handle claims before they are registered. Adjusters already licensed in Connecticut need no registration.

Reference: Connecticut Insurance Department, FAQs: Catastrophe Licensing Program

Correct answer: D. 120 days; another state's adjuster license or two years as an adjuster

CID describes a catastrophe adjuster as one approved by an insurance company for 120 days after a catastrophic event that the Commissioner has declared eligible. The adjuster must either hold an active adjuster license in another state or show at least two years of work as an adjuster. The insurer must also issue a photo ID that the adjuster wears at all times while working claims, and the registration is free.

Reference: Connecticut Insurance Department, FAQs: Catastrophe Licensing Program

Correct answer: A. Notify the Commissioner in writing within 30 days after the change

CGS 38a-771(a) requires a licensed casualty adjuster to notify the Commissioner in writing no later than 30 days after a change in business, residence or email address, a change in employer or a change in name. The license stays with Jamal, so no new application is needed. Under subsection (b), he would also have 30 days to report a felony conviction, a bankruptcy or an administrative action taken against him in another state.

Reference: CGS 38a-771(a) and (b)

Correct answer: C. Suspend or revoke the license and also, or instead, fine up to $5,000

CGS 38a-774 lets the Commissioner, after reasonable notice and a hearing, suspend or revoke a license for cause shown and impose a fine of up to $5,000 in addition to or instead of suspension or revocation. No criminal conviction is required. A licensee aggrieved by the decision may appeal under CGS 4-183 to the Superior Court for the judicial district of New Britain.

Reference: CGS 38a-774 (as amended by P.A. 26-69, effective October 1, 2026)

Correct answer: D. $50,000

CGS 38a-817(b) allows up to $5,000 per act, but no more than $50,000 in total, unless the person knew or reasonably should have known of the violation. Fourteen acts at $5,000 would be $70,000, so the $50,000 aggregate cap controls. For knowing violations the limits rise to $25,000 per act and $250,000 in any six-month period, and the Commissioner may also suspend or revoke the license and order restitution.

Reference: CGS 38a-817(b)

Correct answer: B. Commits it often enough to indicate a general business practice

CGS 38a-816(6) defines unfair claim settlement practices as committing or performing any of the listed acts, subparagraphs (A) through (O), with such frequency as to indicate a general business practice. A single mishandled claim can still breach the policy or other duties, but under this subdivision the Insurance Department looks for a pattern. Claim size and representation by counsel or a public adjuster are not part of the test.

Reference: CGS 38a-816(6)

Correct answer: A. Subparagraph (O), cash offers below what the insurer would pay for repairs

CGS 38a-816(6)(O) prohibits using, as the basis for a cash settlement with a first-party auto claimant, an amount less than the insurer would pay if repairs were made, unless the insured agrees or the policy provides for it. Offering $4,800 against the insurer's own $6,200 repair estimate fits exactly. The other subparagraphs describe different practices that are not present in these facts.

Reference: CGS 38a-816(6)(O)

Correct answer: D. Failing to promptly explain the policy basis for denying a claim

Subparagraph (N) lists failing to promptly provide a reasonable explanation of the basis in the policy, in relation to the facts or applicable law, for denying a claim or offering a compromise settlement. Requesting statements, asking for documentation and inspecting damage are normal parts of a reasonable investigation, which subparagraphs (C) and (D) actually require insurers to conduct.

Reference: CGS 38a-816(6)(N)

Correct answer: C. A letter from a claimant mainly protesting a slow claim payment

For CGS 38a-816(7), a complaint is any written communication primarily expressing a grievance, so the claimant's letter about slow payment qualifies. A status call is not written and expresses no grievance, and internal notes or routine requests are not grievances. The record must show the total number of complaints, their classification by line of insurance, the nature and disposition of each, and the time taken to process it.

Reference: CGS 38a-816(7)

Correct answer: B. The Code of Ethics of the National Association of Independent Insurance Adjusters

Reg. 38a-792-4, titled National standards, says that, except as modified by state statutes or regulations, casualty adjusters are guided by the Connecticut Unfair Insurance Practices Act provision on claim settlement, CGS 38a-816(6), its implementing regulations, and the Code of Ethics of the National Association of Independent Insurance Adjusters, as amended from time to time. The other codes are not named in the regulation.

Reference: Regs. Conn. State Agencies 38a-792-4

Correct answer: A. He should not mislead her about settling, and any offer or denial should be definite

Reg. 38a-792-5 says that when an adjuster has interviewed a claimant within 30 days before the statute of limitations expires without a settlement, fair practice and public ethics require that the adjuster not mislead the claimant into believing a settlement might come before the deadline, and that notice of any offer of compromise or rejection be definite. The rule applies even if no legal duty to inform exists.

Reference: Regs. Conn. State Agencies 38a-792-5

Correct answer: C. Posing as a survey taker to question the insured's neighbor about the car

CGS 38a-978 bars pretext interviews in insurance transactions with one exception: investigating a claim where specific information available for the Commissioner's review gives a reasonable basis to suspect criminal activity, fraud, material misrepresentation or material nondisclosure. Even then, the interview may only be with a person who has no recognized privileged relationship with the subject, which rules out the doctor. Underwriting and claim size never justify a pretext.

Reference: CGS 38a-978 (use of pretext interviews)

Correct answer: D. A class D felony

CGS 53a-215 makes it insurance fraud to present a statement in support of a claim, knowing it contains false, incomplete or misleading material information, with intent to injure, defraud or deceive an insurer. The statute's definition of statement expressly includes an estimate of property damages, and subsection (d) makes insurance fraud a class D felony. CGS 38a-356 also lets insurers share auto claim fraud information with police.

Reference: CGS 53a-215

Correct answer: B. Within 24 months after inception of the loss

The Suit provision of the Connecticut standard fire policy requires that an action be commenced within 24 months next after inception of the loss. Public Act 14-175 extended the period from 18 months for policies issued or renewed on or after October 1, 2014; it was 12 months before Public Act 09-164. The same form requires a sworn proof of loss within 60 days after the loss unless the insurer extends the time in writing.

Reference: CGS 38a-307 (Suit provision); history notes P.A. 09-164 and P.A. 14-175

Correct answer: A. $30,000

Since 2012 the Connecticut standard fire policy defines a building's actual cash value as the cost to repair or replace it with material of like kind and quality, minus reasonable depreciation, meaning wear and tear. The insuring agreement also excludes any increased cost of repair caused by an ordinance or law. So the loss is $40,000 minus $10,000 of depreciation, or $30,000; the $6,000 of code upgrades is not covered.

Reference: CGS 38a-307 (insuring agreement and actual cash value definition)

Correct answer: D. A notice that the insured may contact the Department's Consumer Affairs Division

CGS 38a-323b requires a written notice of denial that ends with a statement, in at least 12-point type, that an insured who disagrees may contact the Division of Consumer Affairs within the Insurance Department, along with the division's address, toll-free number and the Department's website. The appraisal clause applies to disputes over the amount of loss, not to coverage denials, and has no 20-day filing rule.

Reference: CGS 38a-323b

Correct answer: C. Replace the adjacent tile as needed for a reasonably uniform appearance

CGS 38a-316e says that when a covered real property loss requires replacing items and the replacements do not match adjacent items in quality, color or size, the insurer must replace all such items with material of like kind and quality to achieve a reasonably uniform appearance. The rule expressly applies to interior and exterior losses, and the Connecticut Supreme Court has treated disputes over its extent as part of appraisal.

Reference: CGS 38a-316e (matching of adjacent items)

Correct answer: B. $50,000

Connecticut's minimum liability limits under CGS 14-112(a) are $25,000 per person and $50,000 per accident for bodily injury plus $25,000 for property damage, and CGS 38a-335 requires every auto liability policy to carry at least those limits. Karen's policy pays $25,000 of the $38,000 injury claim and $25,000 of the $27,500 car damage, $50,000 in total; she is personally exposed for the remaining $15,500.

Reference: CGS 14-112(a); CGS 38a-335(a)

Correct answer: D. $100,000/$300,000, the same as his bodily injury limits

CGS 38a-336(a)(2) requires UM/UIM limits equal to the bodily injury liability limits purchased unless a named insured requests a lower amount in writing and signs an informed consent form, and the limits can never fall below the CGS 14-112 minimums of $25,000/$50,000. Insurers must offer UM/UIM limits up to twice the bodily injury limits when requested and paid for, but that higher amount is not automatic.

Reference: CGS 38a-336(a)(1)(B) and (a)(2)