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TX · Pearson VUE · 150 questions
Texas All-Lines Adjuster Practice Test
The Texas all-lines adjuster license is the most popular adjuster license in the country: Texas residents need it to adjust claims, and residents of states that do not license adjusters can take the same exam to earn a Texas designated home state (DHS) license that many other states accept as the basis for a nonresident license.
The Pearson VUE exam has 150 scored questions in 150 minutes. Forty percent covers property and casualty policies, forty percent covers insurance terms and concepts, and twenty percent covers Texas law. The Texas questions below are written straight from the Insurance Code, the Labor Code and the Texas Administrative Code, with the section cited in every explanation.
Exam vendor
Pearson VUE
Exam code
InsTX-ALAdj16 (Spanish: InsTX-ALAdj36)
Questions
150 scored
Time limit
150 minutes
Passing score
Scaled score of 70
Exam fee
$49
You can retake the exam as soon as the next day, with no limit on attempts. Each attempt needs a new fee.
Apply for the license within 12 months of passing, or you will have to test again.
A TDI-certified prelicensing course of at least 40 hours, or the CPCU or AIC designation, replaces the state exam.
Texas Insurance Law for Adjusters: practice questions (part 1 of 4)
State law is the part of the exam that general study guides skip and the part most candidates miss. These 25 questions are written from the statutes and rules cited in each explanation.
0 of 25 answered
Who must be licensed · Recall
Under Texas Insurance Code Chapter 4101, which person needs a Texas adjuster license to perform the described work?
Show answer and explanation
Correct answer: B. A salaried insurer employee who investigates and settles auto claims daily
Sec. 4101.001 defines an adjuster to include an insurer's own employee who investigates or adjusts losses, so staff adjusters need a license just as independent adjusters do. Sec. 4101.002(a) exempts people who only give technical help to a licensed adjuster (such as a photographer), clerical workers who do not negotiate disputed claims, and attorneys who adjust losses only periodically and incidentally to practicing law.
Maya Thompson is a salaried employee of a Dallas insurer and holds no adjuster license. She is asked to adjust a first-party homeowners claim for a damaged mailbox and fence totaling $450. Under Texas Insurance Code Sec. 4101.002, which statement is correct?
Show answer and explanation
Correct answer: C. She may adjust it without a license because the loss does not exceed $500
Sec. 4101.002(a)(11) exempts an individual employed by an insurer or its affiliate who adjusts a first-party property and casualty loss of $500 or less, or authorizes payment where the specified coverage limit is $500 or less. A larger loss would require a license or another exemption. Trainee registration under Sec. 4101.003 is a separate temporary exemption for people training under a licensed adjuster, not a rule tied to claim size.
A licensed property and casualty agent in Lubbock wants to handle a claim without an adjuster license. Under Texas Insurance Code Sec. 4101.002(a)(4), when is that allowed?
Show answer and explanation
Correct answer: B. When the agent processes an undisputed loss under a policy the agent issued
Sec. 4101.002(a)(4) exempts an agent or general agent of an authorized insurer who processes an undisputed or uncontested loss for the insurer under a policy issued by that agent. Under 28 TAC 19.603, an undisputed or uncontested loss is one that involves no negotiation over coverage, damage, or liability. Once a claim becomes disputed, or the policy was written by someone else, the exemption no longer applies.
Texas Insurance Code Sec. 4101.002 exempts several kinds of claim handlers from adjuster licensing. Which claim handler is NOT exempt?
Show answer and explanation
Correct answer: C. A carrier employee who adjusts only workers' compensation claims
Sec. 4101.002(a)(6) exempts people who handle claims under life, accident, and health policies, and (a)(8) exempts fraud investigators who do not adjust losses or determine payments. Sec. 4101.002(c) states that workers' compensation claims are not life, accident, or health claims, and Sec. 4101.001(a)(1)(C) expressly includes people who adjust workers' compensation claims for a carrier, so that handler needs a license.
Darnell Jackson holds an adjuster license only in Georgia, his home state. After a hurricane strikes Corpus Christi, his firm sends him to adjust losses caused by that storm. Under Texas Insurance Code Sec. 4101.002(b), which statement is correct?
Show answer and explanation
Correct answer: B. He may adjust these catastrophe losses without a Texas license
Sec. 4101.002(b) lets a nonresident adjuster work without a Texas license to adjust a single loss in Texas, to adjust losses arising out of a catastrophe common to all those losses, or to act as a temporary substitute for a licensed adjuster. TDI disaster bulletins routinely remind insurers that they may use nonresident and emergency adjusters. The single-loss rule is a separate exemption and does not limit catastrophe work.
Under Texas Insurance Code Sec. 4101.003, an individual training under a licensed adjuster's supervision may act as an adjuster without a license for up to how long, if registered as a trainee at the start of the period?
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Correct answer: D. 12 months
Sec. 4101.003 creates a temporary exemption: a trainee working under the supervision of a licensed adjuster may act as an adjuster for up to 12 months without a license, but only if registered with the commissioner as a trainee at the beginning of that period. Ninety days is the term of an emergency license under Sec. 4101.101, not the trainee period.
Hassan Ali, a Houston resident, has earned the Associate in Claims (AIC) designation and is applying for a Texas all-lines adjuster license. Under 28 TAC 19.602(b), what is true about the licensing exam?
Show answer and explanation
Correct answer: C. He is exempt from the exam because he holds the AIC designation
28 TAC 19.602(b) exempts from the adjuster license exam anyone holding the CPCU or Associate in Claims (AIC) designation. Other exemptions include completing a certified prelicensing course and its proctored exam within the past 12 months, and a license expired more than 90 days but less than one year. The designation alone is enough; no course is also required, though other requirements such as fingerprints still apply.
To qualify for an exam exemption through a TDI-certified adjuster prelicensing course, 28 TAC 19.1003(c) requires a course of at least how many hours, with how many of those hours in a classroom or classroom-equivalent setting?
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Correct answer: B. 40 hours total, with at least 30 classroom hours
28 TAC 19.1003(c) requires a certified adjuster prelicensing course of not less than 40 hours, at least 30 of them classroom or classroom equivalent, plus a passing score on the course exam. Texas Insurance Code Sec. 4101.056 adds that the course exam must be proctored by an approved disinterested third party. The 24-hour and 12-hour figures belong to continuing education for licensed adjusters, not prelicensing.
Sam Whitfield passes the Texas all-lines adjuster licensing examination (InsTX-ALAdj16). According to TDI, how long does he have to submit his license application before he would have to retake that examination?
Show answer and explanation
Correct answer: D. One year
TDI tells applicants to submit the license application through Sircon within one year of passing the exam, or they will need to retake it, and the Pearson VUE candidate handbook gives the same 12-month window. TDI also warns that applying before passing means a second application and fee. The 90-day figure relates to late renewal of an expired license, a different rule.
Grace Kim's Texas all-lines adjuster license expired 40 days ago because she forgot to pay the renewal fee. Her CE was completed on time. Under Texas Insurance Code Sec. 4101.057 and TDI's current $50 fee, how much must she pay to renew?
Show answer and explanation
Correct answer: B. $75
Sec. 4101.057(b) lets a license that has been expired not more than 90 days be renewed if the applicant pays the renewal fee plus a fee equal to one-half of the original application fee. TDI's renewal fee is $50 and its late fee is $25, so she owes $50 + $25 = $75. After 90 days the license can no longer be renewed and must be reinstated through a new application.
Marcus Lee's Texas adjuster license expired seven months ago. He holds no professional designation. Under 28 TAC 19.602, how may he become licensed again?
Show answer and explanation
Correct answer: C. Submit a new license application without retaking the exam
Under 28 TAC 19.602(d), only a license that has not expired, or has been expired 90 days or less, may be renewed; otherwise a new application is required. Sec. 19.602(b)(4) exempts from the exam an applicant whose license has been expired more than 90 days but less than one year. At seven months, Marcus applies for a new license without an exam. After one year or more, reexamination is required.
Emily Schultz let her Texas adjuster license lapse and did nothing for 15 months. She has no CPCU or AIC designation and has not taken a prelicensing course. Under 28 TAC 19.602(e), what must she do to be licensed again?
Show answer and explanation
Correct answer: D. Pass the licensing exam within the 12 months before applying
28 TAC 19.602(e) requires an applicant whose adjuster license has been expired one year or more to submit to reexamination, completed within the 12 months before the application, unless an exemption in subsection (b) applies, such as a CPCU or AIC designation or a recent certified prelicensing course. The no-exam reinstatement route covers only licenses expired more than 90 days but less than one year.
How much continuing education must a Texas resident all-lines adjuster complete during each two-year license period?
Show answer and explanation
Correct answer: B. 24 hours, including 3 hours of ethics
Texas Insurance Code Sec. 4004.053 requires an adjuster to complete 24 hours of CE each license period, and Sec. 4004.054 requires 3 of those hours to be in ethics. TDI notes that only 2 ethics hours applied to licenses that expired on or before August 31, 2022. Holding several licenses never raises the total above 24 hours per period.
Ivan Petrov needs 24 CE hours for his Texas adjuster license period. So far he has completed 15 hours, all in self-study courses that are not classroom or classroom equivalent. What is the minimum number of additional classroom or classroom-equivalent hours he must complete?
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Correct answer: D. 12
Texas Insurance Code Sec. 4004.051(c) requires at least 50 percent of the required CE hours to be completed in a classroom or classroom-equivalent setting. Half of 24 is 12, and none of his 15 hours qualify, so he needs at least 12 classroom hours and will finish with 27 total. Taking only 9 more hours would reach 24 total but leave him short of the classroom minimum.
Olumide Bakare's Texas adjuster license expired in 2026 with 12 of his 24 required CE hours incomplete. Under 28 TAC 19.1016, what automatic fine applies for that license and reporting period?
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Correct answer: A. $500
28 TAC 19.1016(b)(2) sets an automatic fine of $50 for each CE hour not completed, capped at $500 per license per reporting period (for licenses renewed or applied for on or after June 1, 2018). Twelve hours times $50 is $600, so the cap limits the fine to $500. Paying the fine does not excuse the hours, and Sec. 4004.055 bars renewal unless CE is completed within 90 days after the period ends.
After a tornado in Lubbock, an insurer with a Texas office and a Texas certificate of authority brings in Chen Wei, who holds no adjuster license anywhere. Chen begins adjusting on June 2. Under Texas Insurance Code Sec. 4101.101, the insurer must certify his emergency license application no later than:
Show answer and explanation
Correct answer: A. June 7
Sec. 4101.101(a) requires the emergency license application to be certified to the commissioner not later than the fifth day after the person begins work as an adjuster, by a licensed adjuster or by an insurer with a Texas office and certificate of authority. Five days after June 2 is June 7. The license may be issued regardless of residency or other licensing, lasts up to 90 days, and may be extended 90 more.
Which statement about a Texas emergency adjuster license issued under Texas Insurance Code Sec. 4101.101 is correct?
Show answer and explanation
Correct answer: C. It is effective up to 90 days and may be extended another 90 days
Sec. 4101.101(d) makes an emergency license effective for up to 90 days, and the commissioner may extend it for an additional 90 days. Subsection (f) allows issuance whether or not the applicant is a Texas resident or otherwise licensed. TDI states that no exam and no fingerprint check are required for an emergency license, and the statute caps its fee at $20.
During a hail catastrophe in Amarillo, Brandon Okafor adjusts claims under an emergency license that a licensed Texas adjusting firm certified. TDI later finds he misrepresented policy provisions to several claimants. Under Texas Insurance Code Sec. 4101.101(b), who is responsible for his loss or claims practices?
Show answer and explanation
Correct answer: B. The licensed adjusting firm that certified his application
Sec. 4101.101(b) makes the person or insurer that certifies an emergency license application responsible for the loss or claims practices of the emergency license holder it certifies, which is why sponsors must supervise emergency adjusters closely. Under subsection (c), the commissioner may also revoke the emergency license after notice and hearing, but TDI does not become responsible for the adjuster's conduct.
Olivia Brooks lives in a state that does not license insurance adjusters. She wants to adjust Texas claims regularly and use Texas as her licensing home state. Which Texas license fits her situation?
Show answer and explanation
Correct answer: D. A designated home state license, which needs the Texas exam or an exemption
Texas Insurance Code Sec. 4101.001(a)(4) lets an adjuster whose state of residence does not license adjusters designate as home state a state where the adjuster is licensed. TDI's designated home state (DHS) license requires the InsTX-ALAdj16 exam unless an exemption applies, fingerprints, and an application within one year of passing. A regular Texas nonresident license requires an active resident license in good standing, which she cannot get.
A Beaumont man with no adjuster license tells storm victims he is an insurance adjuster and adjusts their losses for an insurer. Under Texas Insurance Code Sec. 4101.203, acting as an adjuster without a required license is:
Show answer and explanation
Correct answer: C. A misdemeanor with up to a $500 fine, 6 months in jail, or both
Sec. 4101.203 makes it an offense to violate Sec. 4101.051 (acting as, or representing oneself as, an adjuster without a license) or Sec. 4101.102(c) (adjusting outside a limited license). The offense is a misdemeanor punishable by a fine of not more than $500, confinement in the county jail for not more than six months, or both. TDI may also pursue administrative action.
Unless another insurance law sets a different amount, what is the maximum administrative penalty that may be imposed for each violation under Texas Insurance Code Sec. 84.022?
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Correct answer: D. $25,000
Sec. 84.022 caps an administrative penalty at $25,000 per violation unless the code or another insurance law specifies a greater or lesser amount. The amount depends on factors such as the seriousness of the violation, economic harm, prior violations, the need for deterrence, efforts to correct the violation, and whether it was intentional. Automatic fines, such as CE fines, are set separately by rule.
Ana Delgado, a licensed adjuster in Laredo, receives a written inquiry from TDI about a consumer complaint on one of her claims. Under Texas Insurance Code Sec. 38.001, how long does she have to respond in writing?
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Correct answer: B. 15 days, extendable 10 days on written request
Sec. 38.001(c) requires a person who receives a TDI inquiry to respond in writing not later than the 15th day after receiving it. If TDI receives written notice that more time is needed, it must grant a 10-day extension. Failing to respond can lead to discipline. The 61-day period belongs to pre-suit notices under Chapters 541 and 542A, not TDI inquiries.
Under Texas Insurance Code Sec. 4101.152, what must an insurer do before referring a Texas claim to an independent adjuster for adjustment?
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Correct answer: C. Confirm with the commissioner that the adjuster is licensed
Sec. 4101.152 bars an insurer from knowingly referring a claim to an unlicensed person and requires it to ascertain from the commissioner whether the person holds a license before referring. Once verified, it may keep referring claims until it learns the person no longer holds a license. The insured's consent and bonding are not required, and CE runs on a two-year period, not one year.
Texas Insurance Code Sec. 4001.252(a) lists events that an individual agent licensee must report to TDI, and TDI's adjuster licensing pages cite the same section. Which group of events matches that list?
Show answer and explanation
Correct answer: D. Address changes, felony convictions, and regulators' actions
Sec. 4001.252(a) requires an individual licensed as an agent to notify TDI, on a monthly basis, of a change of mailing address, a felony conviction, and an administrative action by a financial or insurance regulator of Texas, another state, or the United States. TDI cites this section on its adjuster pages and tells adjusters to report contact changes immediately. Sec. 4005.109 allows fines for unreported address changes and other regulators' actions, and Sec. 4101.151(b) requires prompt notice of a new place of business.
A Tyler homeowner sues both her insurer and the independent adjuster who handled her claim under Texas Insurance Code Chapter 541, alleging the adjuster misrepresented policy provisions. Can the adjuster be held personally liable under that chapter?
Show answer and explanation
Correct answer: A. Yes, because a 'person' under Chapter 541 includes an adjuster
Sec. 541.002(2) defines 'person' to include any individual or entity engaged in the business of insurance, including an agent, broker, or adjuster. Because the private action in Sec. 541.151 runs against the person who committed the unfair act, an adjuster can be sued individually. In a weather-related property suit, however, Sec. 542A.006 lets the insurer elect to accept its adjuster's liability, which ends the claims against the adjuster.
The vendor's published outline lists these content areas. See the official candidate handbook for the full topic list.
Content area
Share of exam
I. General property and casualty insurance product knowledge pertinent to adjusters
40% (about 60 questions)
II. Insurance terms and related concepts
40% (about 60 questions)
III. Texas statutes and rules pertinent to property and casualty adjusting
20% (about 30 questions)
Outline effective September 1, 2026. Within section I, the Texas rule for certified course exams (28 TAC 19.1018) weights homeowners and commercial lines at 10% each, additional coverages at 7%, the standard fire policy, auto liability and bonds at 3% each, and inland and ocean marine at 2% each. Within section III it weights licensing and marketing practices at 7% each and adjuster practices and workers compensation at 3% each.
Study by topic
Each topic test is a separate page with its own score breakdown, so you can drill the areas where you are weakest.
Budget a minute per question. 150 questions in 150 minutes leaves no time for long detours. Answer what you know, flag the rest and come back.
Memorize the Texas deadlines. Prompt payment (15 days to acknowledge, 15 business days to accept or reject, 5 business days to pay), TWIA filing and decision deadlines, the 90-day emergency license and the 12-month trainee rule show up again and again.
Know the licensing numbers. $50 license fee, 24 hours of continuing education every two years including 3 hours of ethics, at least half in a classroom or classroom equivalent, and 12 months to apply after passing.
Do not neglect section II. Insurance terms and concepts are 40% of the exam: waiver and estoppel, proximate cause, coinsurance, other insurance, vacancy and unoccupancy, valued policies and constructive total loss.
Learn the Texas twists on familiar coverage. Personal injury protection of $2,500 and uninsured motorist coverage are included unless rejected in writing, and Texas employers may choose not to carry workers compensation.
Finish with timed exams. Take our 150-question timed exam until you score above 80% on two different forms, then schedule the real one.
Getting licensed in Texas
Texas requires a TDI license for anyone who investigates or adjusts losses for an insurer or self-insurer. That covers independent adjusters and company (staff) adjusters, and only listed exemptions apply, such as salaried insurer employees not regularly engaged in adjusting, life/health claim handlers, and losses of $500 or less. The main license is the All Lines Adjuster license; narrower Property & Casualty and Workers' Compensation adjuster licenses also exist. Public adjusters need a separate license under Insurance Code Chapter 4102.
License fee: $50
License term: 2 years. By statute (TIC 4003.001) an individual license expires on the holder's birthday; a TDI notice says expiration is moving to the last day of the birth month. Applications must be filed within 12 months of passing the exam.
Continuing education: 24 hours including 3 hours of ethics every 2 years (each license period)
How many questions are on the Texas all-lines adjuster exam?
The Pearson VUE exam (InsTX-ALAdj16) has 150 scored questions and a 150-minute time limit. The Texas handbook lists no pretest items for this exam, so every question counts.
What score do you need to pass the Texas adjuster exam?
You need a scaled score of 70. A scaled score is not the same as 70% correct: Pearson VUE converts your raw score so that every version of the exam has the same difficulty. Aim for 80% or more on practice exams to be safe.
Can I skip the Texas adjuster exam?
Yes. Completing a TDI-certified adjuster prelicensing course of at least 40 hours, including its proctored final exam, within the last 12 months replaces the state exam. The CPCU and AIC designations also qualify, as does an adjuster license from a state that has reciprocity with Texas.
How much does it cost to get a Texas adjuster license?
The Pearson VUE exam costs $49 and the TDI license application costs $50. Texas residents and DHS applicants also pay for fingerprinting through IdentoGO. If you take a 40-hour course instead of the state exam, add the course price.
What happens if I fail the Texas adjuster exam?
You can schedule a new attempt as soon as the next day and there is no limit on the number of attempts, but you pay the $49 fee each time. Use the score report diagnostics to find your weakest sections before you retest.
Is the Texas adjuster exam offered in Spanish?
Yes. The Spanish version is InsTX-ALAdj36, and candidates taking it can switch between English and Spanish during the exam.