Unit 1 - The Texas Insurance Adjuster Flashcards
What are the 4 types of adjusters?
1) STAFF ADJUSTERS are on the payroll of an insurance company and are paid a salary or by the hour.
2) INDEPENDENT ADJUSTERS handle claims for one or more insurance companies. They may are paid in various ways, including being on payroll as a permanent employee of an independent adjusting firm (a.k.a “bureau”).
3) PUBLIC ADJUSTERS work on behalf of the insured in negotiating a claim settlement (they are typically hired by an unhappy insured). In Texas, a public adjuster is legal and requires another license.
4) TEMPORARY/EMERGENCY LICENSES. The Department allows temporary licenses for the purpose of training and in case of emergencies. This license is issued by teh Commissioner after the insurance company submits a FIVE DAY NOTICE to the Department. The firm or person requesting the emergency/temporary license is responsible for the actions of the licensee.
Who regulates the insurance industry in the state of Texas?
The TEXAS DEPARTMENT OF INSURANCE.
The Department admits/domiciles companies to write insurance in Texas (AKA issues “Certificate of Authority”), approves the wording of most of the policies issued in the state, regulates the pricing of most of the policies sold, and controls licensing of all insurance agents & adjusters doing business in Texas.
In Texas, insurance companies are categorized by which 3 domiciles?
1) DOMESTIC… An insurer organized, admitted/domiciled, and writing insurance in Texas
2) FOREIGN… An insurer domiciled outside the state where it writes insurance
3) ALIEN… An insurance company organized outside the state where it writes insurance.
Who is the chief executive officer of the Texas Department of Insurance? Who appoints them? What is the length of their term?
1) Commissioner
2) Governor of Texas
3) 2 years
What are one of the basic qualifications for adjusters in Texas?
1) Must be at least 18 years of age.
Which 3 individuals do NOT have to take an adjusters examination or re-examination?
1) A person holding a CHARTERED PROPERTY & CASUALTY UNDERWRITER (CPCU) designation
2) A person holding an ASSOCIATE IN CLAIMS (AIC) designation
3) A person who’s adjuster license has EXPIRED within a period of LESS THAN ONE YEAR.
When a licensee changes the location of his place of business, he/she must notify the Commission of this within which amount of days?
30 days.
Adjusters or agents that fail to renew a license that has expired can still be eligible for renewal so long as he/she…
… pays the renewal fee plus a 50% penalty within less than 90 days of the license expiration date.
To renew a license, what are some of the requirements an adjuster or agent must complete in order?
They must complete 24 hours of continuing education for every 2 year cycle.
1) 50% of the 24 hours must be classroom or classroom equivalent
2) 2 hours of the 24 hours must be in ethics
What are some of the powers the Commissioner of Insurance has?
1) POLICING AUTHORITY… The Commissioner of Insurance has the authority, under the Texas Insurance Code as regulator or the insurance industry, to police the activities of INSURANCE COMPANIES & INSURANCE PROFESSIONALS (including the licensing of agents & adjusters)
2) AUDIT… The Commissioner must examine (audit) all admitted/domestic insurance companies at least once ever 5 years, but may do so more often if it is deemed necessary. If a company is newly admitted, the Commissioner must examine it more often.
** NOTE: The insurance company pays for the audit.
3) DISCIPLINARY ACTIONS… The Commissioner may deny, suspend, revoke, or refuse to renew any adjuster’s or agent’s license for several reasons, especially if a LICENSEE IS CONVICTED, BY FINAL JUDGEMENT, OF A FELONY.
