Louisiana Property and Casualty Adjuster Practice Test

Correct answer: C. An employee of an adjustment bureau who investigates and adjusts losses for an insurer

Section 22:1661(1) defines an adjuster as an individual who investigates or adjusts losses on behalf of an insurer, either as an independent contractor or as an employee of an adjustment bureau, association, producer, independent contractor, insurer or managing general agent. Someone working for the insured is a public adjuster, licensed under a separate part. Engineers furnishing technical assistance and attorneys acting as attorneys are exempt under 22:1662.

Reference: La. R.S. 22:1661(1); La. R.S. 22:1662(1) and (3)

Correct answer: A. She is exempt from the claims adjuster licensing law

Section 22:1662(2)(b) exempts an individual employed by an insurer who adjusts a loss of no more than $2,000, or authorizes payment where the specified coverage limit is $2,000 or less, on a first-party property and casualty claim. Larger losses or third-party claims would require a license. Emergency registration is only for adjusters an insurer brings into Louisiana after a catastrophe.

Reference: La. R.S. 22:1662(2)(b)

Correct answer: D. Be at least 18 years old and pass the adjuster exam unless exempt

Section 22:1665(B) requires an individual applicant to be at least 18 and to pass the adjuster examination unless exempted by 22:1669, and Subsection A requires an office in the home state with public access. Louisiana has no prelicensing course requirement for claims adjusters. The $50,000 bond or letter of credit is a public adjuster requirement under 22:1701.

Reference: La. R.S. 22:1665(A) and (B); PSI Louisiana Candidate Information Bulletin

Correct answer: B. Designate Louisiana as his home state after passing the Louisiana adjuster exam

A nonresident who is not eligible for a reciprocal license under 22:1670 may designate Louisiana as his home state, but he must pass the Louisiana adjuster examination and meet the other requirements that apply to residents. LDI also applies its resident continuing education rule to designated home state adjusters. Catastrophe registration is filed only by insurers and is not a substitute for a license.

Reference: La. R.S. 22:1665(D); LDI Continuing Education Requirements

Correct answer: C. By applying for a resident license within 90 days of establishing residence

An individual licensed by examination as a resident adjuster in another state who moves to Louisiana must apply within 90 days of establishing legal residence, and no exam is required. The prior license must be current, or the application must arrive within 90 days of its cancellation with proof of good standing. The 24-month window in 22:1669(B) is for former Louisiana licensees, not new arrivals.

Reference: La. R.S. 22:1669(A)

Correct answer: D. He may apply without an exam because he is within 24 months

A former Louisiana claims adjuster who applies within 24 months of cancellation, was in good standing at that time and had passed the exam required by 22:1668 does not have to test again. Once more than 24 months pass, the exemption is lost. A 12-month limit is a tempting distractor, but it does not appear in this section.

Reference: La. R.S. 22:1669(B)

Correct answer: A. Notify Louisiana no later than 30 days after the change, giving current and prior addresses

Under 22:1670(D), a nonresident must keep a resident license in the home state, and the Louisiana license terminates if that license ends, unless the adjuster becomes a resident licensee in a new home state that reciprocates. She must notify Louisiana as soon as possible and no later than 30 days after the change, including her current and prior addresses. Without the new reciprocal license, her Louisiana license would terminate.

Reference: La. R.S. 22:1670(D)

Correct answer: B. Within 30 days; $50 per violation

A licensee must report a change of address, legal name or other application information within 30 days, by a method the commissioner accepts. Missing the deadline brings a $50 fine per violation, and the licensee is entitled to notice and a hearing under Chapter 12 of Title 22. The $250 figure is the maximum fine for using a nonapproved trade name under 22:1671(D).

Reference: La. R.S. 22:1671(C) and (D)

Correct answer: D. Prove continuing education through the reinstatement date and pay all fees due

An adjuster who lets a license lapse may reinstate the same license within 24 months of the expiration date by proving that all continuing education requirements are met through the date of reinstatement and paying all fees due. If the license has been lapsed for more than 24 months, the person must meet the requirements for issuance of a new license instead.

Reference: La. R.S. 22:1671(F)

Correct answer: C. None, because the first renewal after issuance is exempt

Section 22:1673(B)(1) exempts an individual renewing an adjuster license for the first time after initial issuance. After that, resident and designated home state adjusters report 24 hours every two years, including 3 hours of ethics under LDI's rules, and Acts 2025, No. 29 added a requirement of at least 2 hours on legislative updates. Nonresidents who meet reciprocal home-state requirements are also exempt.

Reference: La. R.S. 22:1673; LDI Continuing Education Requirements

Correct answer: A. Report the action to the Louisiana commissioner within 30 days, with a copy of the order

An adjuster must report any administrative action taken against him in any jurisdiction, or by another government agency, within 30 days of the final disposition, with a copy of the order, consent order or other relevant documents. Under 22:1677(B), criminal prosecutions for insurance violations, any felony, or misdemeanors involving misappropriation of funds must also be reported within 30 days of conviction.

Reference: La. R.S. 22:1677

Correct answer: B. $10,000

Section 22:1672(A) allows a fine of up to $500 for each violation, capped at $10,000 aggregate for all violations in a calendar year, unless another statute in Title 22 authorizes a greater penalty. Twenty-four violations at $500 each would be $12,000, but the annual cap limits the total to $10,000. The commissioner may also place the license on probation, suspend, revoke or refuse to renew it.

Reference: La. R.S. 22:1672(A)

Correct answer: D. $300; up to 180 days

The fee in 22:821 for a catastrophe and emergency claims adjuster registration is $25 per adjuster, so 12 registrations cost 12 x $25 = $300. Under 22:1667(C), a registration is effective for up to 180 days, and the commissioner may extend it for an additional 90 days. LDI requires the insurer or its designee, not the adjuster, to file the registrations.

Reference: La. R.S. 22:1667(C); La. R.S. 22:821(B)(23)(c); LDI Emergency Adjuster Registrations

Correct answer: A. Wen certifies within 10 days that he read it, and the insurer keeps the form

A registered catastrophe or emergency adjuster must certify, on the commissioner's form and within 10 days of registration, that he has read and understands the most recent Handbook. The insurer employing or retaining the adjuster keeps the certifications and makes them available to the commissioner on request. The Handbook is meant to equal about one hour of continuing education, and no exam is required.

Reference: La. R.S. 22:1667(A)(2) and (3); LDI Handbook for Adjusting Catastrophe or Emergency Claims (2026)

Correct answer: C. No, an adjuster may not acquire any interest in the salvage

Section 22:1674.1(A)(2) bars an adjuster from acquiring any interest in salvage of property subject to the contract with the insurer, and (A)(1) bars any financial interest in the claim beyond the agreed salary or fee. Neither rule has an exception for a fair price or for consent by the insured or the insurer, so the purchase would violate the standards of conduct.

Reference: La. R.S. 22:1674.1(A)(1) and (2)

Correct answer: B. She may not negotiate with him unless his attorney consents

Under 22:1674.1(A)(14), an adjuster may not negotiate or effect a settlement, directly or indirectly, with a third-party claimant she knows is represented by an attorney, except with the attorney's consent. Who started the call does not matter. The rule excludes the insured and the insured's resident relatives from the term third-party claimant, so it does not limit contact with her own insured.

Reference: La. R.S. 22:1674.1(A)(14)

Correct answer: A. Give the witness a copy, because a requesting witness must receive one

An adjuster may interview any witness without the consent of opposing counsel or a party, but must avoid any suggestion meant to make the witness suppress or deviate from the truth. If a witness who gives a signed or recorded statement asks for a copy, the witness must be given one. The rule sets no waiting period and no consent requirement.

Reference: La. R.S. 22:1674.1(A)(15)

Correct answer: D. The ban on recommending contractors in 22:1674.1(A)(3)

Section 22:1674.1(A)(3) prohibits an adjuster from soliciting employment for, recommending or otherwise soliciting engagement of any attorney, contractor or subcontractor in connection with a loss he is handling. The family tie also raises the bar on any direct or indirect financial interest in the claim under (A)(1). The insured's freedom to choose another roofer does not cure the violation.

Reference: La. R.S. 22:1674.1(A)(1) and (3)

Correct answer: C. Violations are unfair trade practices subject to 22:1969 penalties

The standards bind all claims adjusters, who must read and acknowledge them at license issuance and again at every renewal. A violation is grounds for administrative action and is deemed an unfair trade practice under 22:1964, so the commissioner may enforce the penalties in 22:1969. Subsection D states that the section does not create any civil action or cause of action.

Reference: La. R.S. 22:1674.1(B), (C) and (D)

Correct answer: D. Ascertain from the commissioner that the person is licensed

An insurer may not knowingly refer a claim to an unlicensed person acting as an adjuster. Before referring, it must ascertain from the commissioner whether the person holds a license, and it may keep referring claims until it learns, or the commissioner informs it, that the person is no longer licensed. The statute does not require insured consent, filings or a minimum level of experience.

Reference: La. R.S. 22:1676

Correct answer: A. Within 14 days, by June 17

Except for catastrophic losses, an insurer must initiate loss adjustment of a property damage claim within 14 days after notification of loss by the claimant. For a catastrophic loss tied to a presidential or gubernatorial declaration, the period is 30 days, which the commissioner may extend by rule. Missing the deadline exposes the insurer to a penalty of the greater of $5,000 or the Subsection I amount.

Reference: La. R.S. 22:1892(A)(3)

Correct answer: C. $1,000

The penalty is 50% of the amount found due plus proven economic damages, or $1,000, whichever is greater, in addition to the loss itself and reasonable attorney fees and costs. Here 50% of $1,600 is $800, which is less than $1,000, so the penalty is $1,000. The $2,500 minimum applies to catastrophic losses on immovable property under 22:1892.2.

Reference: La. R.S. 22:1892(A)(1) and (B)(1)(a); La. R.S. 22:1892.2(B)(1)

Correct answer: B. 60 days

For catastrophic losses under a policy on residential property, 22:1892.2(A)(2) requires payment within 60 days after receipt of satisfactory written proof of loss. Other immovable property, such as a commercial building, gets 90 days, which the commissioner may extend by up to 30 days for commercial policies covering multiple locations. The 30-day rule in 22:1892(A)(1) applies to non-catastrophic claims.

Reference: La. R.S. 22:1892.2(A)

Correct answer: D. 15 days

An insurer must issue a copy of its field adjuster report on the insured's property damage claim within 15 days of receiving the insured's request. Separately, 22:1964(14)(q) makes it an unfair claims practice, when done as a general business practice, to fail to provide the original field adjuster's repair estimate on written request or to fail to identify who revised it.

Reference: La. R.S. 22:1892(A)(5); La. R.S. 22:1964(14)(q)

Correct answer: A. $510

An insurer may not intentionally or unreasonably delay processing a properly executed and endorsed settlement check for more than three calendar days, excluding Saturdays, Sundays and legal holidays. The penalty is the greater of $200 or 15% of the face amount of the check. Here 15% x $3,400 = $510, which exceeds $200, so the insurer owes $510.

Reference: La. R.S. 22:1892(C)(2) and (3)