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Louisiana “All Lines” Equivalent — Standard Adjuster
Covers All Lines Practice Exam Questions And Correct
Answers (Verified Answers) Plus Rationales 2025
- Which of the following is a responsibility of an insurance adjuster in Louisiana? A. Selling insurance policies B. Underwriting insurance policies C. Investigating and adjusting claims D. Licensing agents An adjuster’s primary role is to investigate, evaluate, and negotiate insurance claims; they do not sell or underwrite policies.
- In Louisiana, how many hours of continuing education must a licensed adjuster complete every renewal cycle? A. 12 hours B. 24 hours C. 36 hours D. 48 hours Louisiana requires adjusters to complete 24 CE hours, including 3 hours of ethics, every renewal cycle.
- Which Louisiana statute governs unfair claims settlement practices? A. RS 22: B. RS 22: C. RS 22: D. RS 22: RS 22:1964 defines unfair or deceptive acts, including unfair claims settlement practices.
- A Louisiana adjuster must notify the Department of Insurance within how many days if their address changes? A. 10 days B. 15 days C. 30 days D. 45 days Adjusters must notify the DOI within 30 days of a change in address or contact information.
- Which of the following best describes an independent adjuster? A. Works for the insured B. Works for an insurer on a contract basis C. Works for the state government D. Is always an attorney Independent adjusters work for insurers but are not employees; they are contracted to handle claims.
- Which is NOT considered an unfair claims practice in Louisiana? A. Misrepresenting policy provisions
10.Which is required to maintain an adjuster license in Louisiana? A. Payment of annual fees only B. Passing the exam every year C. Completing required CE hours D. None of the above Continuing education is required to maintain the license. 11.If a Louisiana insurer fails to pay a claim within the time required by law, what can happen? A. The claim is automatically denied B. The insurer may owe penalties and attorney’s fees C. The insured must pay a fine D. Nothing Under RS 22:1892, insurers can face penalties and attorney’s fees for late payment. 12.A Louisiana adjuster commits an unfair practice if they: A. Investigate thoroughly B. Misrepresent pertinent facts C. Advise the insured to get legal counsel D. Settle a claim fairly Misrepresenting facts is an unfair claims settlement practice. 13.Who is responsible for ensuring that an adjuster complies with Louisiana insurance laws? A. The insured B. The adjuster
C. The insurer only D. The attorney general Adjusters are personally responsible for following insurance laws. 14.Which of these claims must an “All Lines” adjuster handle in Louisiana? A. Auto liability B. Commercial property C. Personal property D. All of the above The “All Lines” license covers multiple lines including auto, property, and liability. 15.When an adjuster is investigating a claim, they should always: A. Delay reporting findings B. Document all findings accurately C. Hide unfavorable facts D. Ignore policy conditions Accurate documentation is vital for fair claim handling. 16.If an adjuster violates Louisiana insurance laws, what can happen? A. Nothing B. License revocation or suspension C. The insured must pay fines D. The claim is automatically denied Violations can lead to license discipline or revocation. 17.Which of these is a contract of indemnity? A. A loan
21.Louisiana requires an adjuster to act in: A. The insurer’s best interest only B. The insured’s best interest only C. Good faith and fair dealing D. Self-interest Adjusters must act in good faith and fair dealing. 22.What is subrogation? A. Replacement cost valuation B. An adjuster’s commission C. The insurer’s right to recover from a third party D. None of the above Subrogation allows the insurer to recover payments from liable third parties. 23.If a claim is paid under reservation of rights, it means: A. The claim is denied B. The adjuster is off duty C. The insurer may later deny coverage D. The insured waives all rights Reservation of rights means the insurer may later deny coverage after further investigation. 24.Which is an example of an actual cash value (ACV) settlement? A. The cost to rebuild a new structure B. Depreciated value of damaged property C. Replacement cost without depreciation
D. Agreed value only ACV means replacement cost minus depreciation. 25.An adjuster may negotiate a claim settlement on behalf of: A. The insured’s lawyer B. The insurer C. The bank D. The general public Adjusters negotiate on behalf of the insurer. 26.The deductible is: A. The amount the insurer pays B. The amount the insured pays before coverage kicks in C. Paid by the adjuster D. Added to the claim payment A deductible is paid out-of-pocket by the insured. 27.What does a reservation of rights letter do? A. Confirms policy coverage B. Preserves the insurer’s rights while investigating coverage C. Guarantees a claim payment D. Waives all policy terms It protects the insurer’s right to deny coverage later if warranted. 28.The adjuster must verify the insured’s: A. Favorite color B. Pet’s name C. Hobbies
32.What is the Louisiana Valued Policy Law (VPL)? A. Allows insurers to deny claims easily B. Requires full payment of policy limits for total losses to buildings C. Provides discounts on coverage D. Applies only to vehicles The VPL mandates full policy payout when buildings are totally destroyed by a covered peril. 33.Which line of insurance is NOT typically included in “All Lines” coverage in Louisiana? A. Auto B. Property C. Life insurance D. Workers’ compensation Life insurance is not part of “All Lines” adjuster licensing; it requires a different license. 34.Louisiana law requires insurers to initiate loss adjustment within how many days of notification? A. 5 business days B. 14 calendar days C. 30 calendar days D. 60 calendar days Insurers must begin adjusting a claim within 14 days of notice of loss. 35.When an insurer fails to pay a claim within 30 days without just cause, they are subject to:
A. Jail time B. Policy cancellation C. Statutory penalties and attorney’s fees D. Refund of premiums RS 22:1892 allows penalties for failure to pay within 30 days when liability is clear. 36.A Louisiana adjuster must be competent in handling: A. Only minor claims B. Only auto claims C. All lines they’re licensed for D. Only liability cases Adjusters must competently handle all lines covered under their license. 37.An adjuster receiving a claim assignment must first: A. Deny the claim B. Acknowledge receipt and contact the insured C. Wait for instructions from an attorney D. Issue payment immediately Adjusters should promptly acknowledge the claim and begin investigation. 38.In Louisiana, adjusters must retain their claim files for at least: A. 6 months B. 1 year C. 2 years
C. Acting honestly and in good faith D. Avoiding documentation Ethical conduct involves good faith, honesty, and transparency. 43.When investigating liability, the adjuster must consider: A. Public opinion B. The adjuster's emotions C. Negligence and duty of care D. Advertisements Liability investigations require evaluating negligence, duty, breach, and damages. 44.If a policyholder fails to cooperate, the adjuster should: A. Close the file immediately B. Ignore the issue C. Document efforts and notify the insurer D. Pay the claim anyway Documenting lack of cooperation and informing the insurer is the correct approach. 45.Which of the following types of adjusters works for a third-party administrator (TPA)? A. Staff adjuster B. Independent adjuster C. Public adjuster D. Captive agent
Independent adjusters often work through TPAs under contract with insurers. 46.What is a public adjuster? A. An insurance company employee B. A licensed individual who represents the insured C. A government auditor D. A claims examiner Public adjusters are hired by policyholders to assist in preparing and negotiating claims. 47.What is proximate cause in a claim investigation? A. The fastest route to the scene B. The policy limit C. The primary cause of the loss D. The cause of action in court Proximate cause is the dominant, effective reason the loss occurred. 48.What kind of policy pays replacement cost without deduction for depreciation? A. ACV policy B. Scheduled policy C. Replacement Cost Value (RCV) policy D. Valued policy RCV policies reimburse based on the cost to replace property without depreciation.
C. With their Louisiana license D. Under their employer’s bond Adjusters must be licensed or authorized in each state where they adjust claims. 53.Which entity determines whether an act is unfair or deceptive in insurance? A. The insurer B. The court C. The Louisiana Department of Insurance D. The adjuster The DOI reviews practices and determines whether they violate state law. 54.A loss is said to be fortuitous when: A. It was expected B. It occurs accidentally and unpredictably C. It happens on purpose D. It’s declared by the insured Insurance covers fortuitous (accidental, unforeseen) losses. 55.Which part of a policy states what is covered and the insurer’s promise to pay? A. Conditions B. Insuring agreement C. Exclusions D. Declarations The insuring agreement explains coverage and the insurer’s obligation.
56.The declarations page includes all of the following EXCEPT: A. Named insured B. Policy limits C. Definitions of terms D. Coverage dates Definitions are found in the definitions section, not the declarations page. 57.What is co-insurance in a property policy? A. Full coverage without conditions B. A penalty for underinsuring property C. A benefit for total loss D. Additional liability coverage Co-insurance encourages full coverage; penalties apply if insured below a certain threshold. 58.Under Louisiana law, when can an insurer cancel a policy mid-term for a property that has been in effect for 60+ days? A. Never B. Only for specific reasons such as fraud or non-payment C. Anytime D. If market rates increase Policies can be canceled mid-term only for legally permitted reasons. 59.When the cause of loss is unclear, the adjuster should: A. Guess B. Deny the claim C. Investigate further and seek expert opinions if needed
63.What is a “reservation of rights” letter designed to do? A. Confirm that the claim is approved B. Delay a claim decision C. Notify the insured that coverage is being investigated but not guaranteed D. Deny a claim This letter protects the insurer’s ability to later deny coverage while proceeding with investigation. 64.The Louisiana Standard Fire Policy includes coverage for which peril? A. Earthquake B. Fire and lightning C. Flood D. Mold Standard fire policies primarily cover fire and lightning losses. 65.If an adjuster receives a claim where liability is unclear, they should: A. Pay the claim anyway B. Automatically deny it C. Conduct a thorough investigation D. Refer to marketing department Claims with unclear liability require a complete and impartial investigation. 66.What is salvage in insurance terms? A. A penalty B. The remaining value of damaged property after a loss
C. A deductible D. A subrogation document Salvage refers to the residual value of damaged items, which the insurer may sell to recover costs. 67.What is the purpose of the “conditions” section in a policy? A. Lists premiums B. Explains coverage types C. Outlines responsibilities of the insurer and insured D. Describes property Conditions define the duties and responsibilities under the policy for both parties. 68.If an insurer determines a claim is fraudulent, what must the adjuster do? A. Ignore it B. Close the file C. Report it to the insurer’s fraud unit or state fraud bureau D. Call the insured Suspected fraud must be reported to appropriate parties, including the DOI or NICB. 69.Which of the following terms describes the amount an insurer will pay for a covered loss? A. Premium B. Limit of liability C. Deductible D. Coinsurance
