A career as an insurance adjuster is great for those who enjoy investigative work and can focus on details, such as the specifics of a policy and the circumstances of a claim. If you are ready to start down the path to becoming an insurance adjuster, you will need to get your license through your state.
The first big step to getting your insurance adjuster’s license is to study for and pass the state insurance adjuster exam. A test prep course can help you prepare to pass on your first attempt. As with any exam, preparation is the most important step.
Insurance Adjuster Exam Study Plan
While each state’s insurance adjuster exam is different, most cover similar material. Before you dive into studying the ins and outs of insurance claims, how to assess the damage, and the responsibilities of an insurance adjuster, make a plan that considers your study habits, time commitments, and goals. This will help put you on the path to passing the exam the first time.
This plan divides your work into four main steps, with one week to complete each step. You may be able to move quickly or need more time to prepare. Whatever your schedule, the most important thing is to spend enough time preparing before taking your exam.
Week 1: Sit down with your calendar and set aside time to study for your insurance adjuster exam. You can schedule the exam and work backward or look at your upcoming commitments to determine when you will be prepared.
This is also the time to look into a study course, either self-directed or with an instructor. Some states even require that you take a pre-licensing or pre-education course.
Many people benefit from a deadline. If you work best when you have a tangible goal, schedule your insurance adjuster exam a month or two out. If you need to complete pre-licensing education before being able to register for the exam, look into those classes and sign up as soon as possible.
Week 2: Once you have your designated study time scheduled, use it well by working on your pre-licensing education course modules, going over flashcards and sample questions, and asking your instructor questions. There is no shortcut to learn the material except studying. A pre-licensing education course can help you focus on the most important areas.
This step may take as little as a week, but do not hesitate to give yourself more time if you need it. Take time to go through your study modules, ask questions, and really get the knowledge that you need to pass. If you rush through your studying, you may find that you need to take the exam multiple times to pass.
Week 3: If you haven’t already, make sure that you take a practice exam. If you complete a pre-licensing education course, you will take a practice exam through the class. Treat this practice test like the real thing. Turn off your electronic devices, put away your notes, and set a timer. This will give you the best idea of how you will do on the actual test.
Week 4: The week before your exam, review, and relax. You can spend time going over your study aids and notes. You may even want to take one last practice test. But your focus going into the test should be on getting plenty of rest and fuel (good food and water). This will help you focus and use all of the knowledge that you learned up to this point in your study plan.
Studying for the Insurance Adjuster Exam
Even if pre-licensing education is not required by your state, it is still the best way to prepare for the test. Preparation is the key to studying and passing the insurance adjuster exam. Look for a course that covers all of the key items within your state’s exam content outline. Make sure that you register for and take your state-specific pre-licensing education course.
What is on the Insurance Adjuster Exam?
A lot of the content tested on the insurance adjuster exam is common between states. In Texas, the main sections of the All Lines Insurance Adjuster exam include:
- Property and casualty product knowledge (fire policies, auto policies, homeowner policies, commercial policies, marine policies, and exclusions and extensions)
- Insurance terms (such as appraisal, deductible, replacement cost, and others)
- Policy provisions (including declarations, insuring agreement, conditions, exclusions, and appraisals)
Property and Casualty Product Knowledge
This is the longest of the sections of the state content outline and will likely be the majority of your studying. As an insurance adjuster, you will need to be prepared to evaluate a claim within a number of insurance products and situations. A few of the products tested on the Texas All Lines Insurance Adjuster exam include:
I. GENERAL PROPERTY AND CASUALTY INSURANCE PRODUCT KNOWLEDGE PERTINENT TO ADJUSTERS
A. Standard Fire Policy
1. Basic coverages, provisions, and clauses
2. Limitations and restrictions
3. Proof of loss
4. Loss requirements and inventories
6. Replacement costs
B. Auto liability
Spend time learning the vocabulary of insurance. If you are already working as a Claims Assistant, you may already be familiar with many of these terms. Don’t be afraid to ask for clarification during your study course if you read a term that you don’t know. This is all part of the studying process.
These terms are a sampling of those tested on the Texas All Lines Insurance Adjuster exam.
II. INSURANCE TERMS AND RELATED CONCEPTS
B. Waiver/non-waiver agreement
C. Insurance, insurance contracts, and insurable interest
E. Proof of loss
You will need to know, understand, and be able to apply the basics of policy provisions. This section is short but critical in your work as an insurance adjuster.
III. POLICY PROVISIONS
B. Insuring Agreement
State Insurance Adjuster Knowledge
The exam also includes a state-specific section that tests your knowledge of the licensing process and regulations that you will need to follow as an insurance adjuster. In Texas, these include:
IV. TEXAS STATUTES AND RULES PERTINENT TO PROPERTY AND CASUALTY ADJUSTING
A. Commissioner of Insurance
B. Licensing requirements
C. Marketing practices
D. Adjuster practices, responsibilities, and duties
E. Workers’ Compensation
Your state outline and pre-licensing education course will reference the specific laws, statutes, rules, and regulations that apply. While you do not need to be able to recite them, it can be helpful to read through them and be familiar before your exam.
Insurance Adjuster Exam Study Tips
Preparation is the most important part of studying for the insurance adjuster exam. These tips will help you make the most of your time and effort leading up to your test.
Complete a Pre-licensing Education Course
Find out if your state requires that you complete a pre-licensing education course before you can register for or take the insurance adjuster exam. This will add to the time that you need to prepare, especially if you choose to take an instructor-led course rather than one that is self-paced.
If your state does not require it, you may be tempted to skip this step to save time or money. However, the investment in a pre-licensing education course can mean passing your insurance adjuster exam the first time instead of having to take it multiple times because of not enough preparation.
Take at Least One Practice Test
You should take a minimum of one practice test during your exam preparation. This practice score will give you an idea if you are prepared and which sections you should study again. You can go into your actual test with increased confidence that you are ready to pass.
A practice test can also help calm your nerves going into the exam. Familiarize yourself with the format of the test, the types of questions you can expect to see, and how to navigate the computer-based test. You will have the chance to go through a tutorial at the testing center, but you should not wait until the big day to learn the test’s format.
General Insurance Adjuster Exam Information
The insurance adjuster exam is state-specific, but most are similar in both format and length. In Texas, the insurance adjuster exams are 150 questions for the All Lines exam, 150 questions for the Property and Casualty exam, and 100 questions for the Public Insurance Adjuster exam.
The cost for the insurance adjuster exam varies by state, usually falling between $23 and $200 per attempt. If you plan to become licensed as an All Lines adjuster, your exam may be slightly more expensive or longer due to the increased content covered.
The questions on the exam are multiple-choice with four options. Taking a practice exam will give you a good understanding of what the questions ask, how they are formatted, and how to navigate through the computer-based exam. Most states provide between one and two hours to complete the exam, not including a 30-minute pre-test tutorial.
The insurance exam is most often given at an independent testing center. Your scores will automatically be sent to your state and provided to you after the exam.
Prerequisites for the Insurance Adjuster Exam
You are not able to walk into the testing center and take the insurance adjuster exam without registering ahead of time online. You will also pay the exam fees online when you register. The testing center will not be able to process your registration or accept your payment.
Purchasing an exam voucher is another good option. Rather than registering and paying for a specific exam date, you can purchase a voucher and use it at a future date. Vouchers expire 12 months from their purchase. As long as you use the voucher within that window, you will not need to pay an additional exam fee.
Military and veterans may be eligible to have their insurance adjuster exam fees waived. Talk to a representative at the Department of Veteran’s Affairs to see if you qualify for this financial assistance.
Other common information needed or prerequisites include:
- Pre-licensing education (in some states)
- Exam registration information, including your full name, date of birth, and social security number
- Name of your exam
- Contact information (address, phone number)
- Be at least 18 years old at the time of the exam
Day of the Insurance Adjuster Test — What to Expect
Give yourself plenty of time to get to the testing center. Doing a practice commute a few days before can set your mind at ease. Make sure you account for traffic, potential accidents or delays, and parking. The testing center will not admit you to the exam if you are late, except under special circumstances.
When you arrive, a proctor will check you in and ask for your identification. You should bring two forms of identification, your exam registration and voucher (if applicable), and a copy of your pre-licensing education course completion (if applicable).
The testing center will send you a list of prohibited items before your exam. You should not bring any of these items into the testing center. While the testing center will have small lockers available for personal items such as car keys, it is best to leave all prohibited items in your vehicle or at home.
Prohibited items include:
- Personal electronic devices, including cell phones
- Financial calculators
- Books, study papers, notes
- Family, friends, and visitors
If you require special accommodations due to a disability, you can request them before you register for your exam. These can include a separate testing room, extra time, or a reader or recorder. You will need to provide paperwork documenting your disability and wait for approval to register.
A similar process is available for those who speak English as a Second Language (ESL). ESL accommodations include extra time and must be requested using the ESL Request Form provided by the testing company before registering. The test is also available in Spanish.
You can take breaks during the insurance adjuster exam, but you will not be able to access your stored items or leave the testing floor. If you need to take medication or use the restroom, you will be able to do so after notifying your exam proctor.
After your insurance adjuster exam, you will receive a PASS or FAIL notification. If you pass, congratulations! All of that studying and preparation paid off. Your passing designation will be sent to your state’s authority and you will be able to continue with the licensing process to become an insurance adjuster.
What Happens if I Fail the Insurance Adjuster Exam?
If you do not pass the insurance adjuster exam, you will receive a more detailed score report. This can help you focus on the areas where you need additional preparation. You will be able to register for a new exam within one day. Consider how much time you need for extra studying before registering and paying for another test.
If you did not complete a pre-licensing education course, you may consider taking one before your next test. You can also take additional practice tests to build up your confidence.
Is it Hard to Pass the Insurance Adjuster Exam?
The pass rate for Texas All Lines Insurance Adjuster exam is 46%, similar to the overall pass rate for all insurance exams nationwide. The insurance adjuster exam is one of the longer exams in the insurance industry. If you are unfamiliar with the test, this long exam can be daunting.
The best way to ensure that you are counted among those who pass the exam is to prepare. Make a study plan that will work for you and your schedule, take an instructor-led or self-paced pre-licensing education course, and get plenty of rest before the exam to make sure that you are ready to pass.
Passing the Insurance Adjuster Exam
The insurance adjuster exam is a major step in the path to become an insurance adjuster. Reaching this professional milestone should be celebrated. Once you have your license in hand, you will be ready to find a new career as an insurance adjuster.