Los Angeles Claims Adjuster Property and Causality Practice Exam

What action can the Commissioner of Insurance take against a claims adjuster's license?

1. Increase the licensing fee

2. Place on probation or revoke the license

3. Extend the license duration

4. Manage any claims filed by the adjuster

The correct answer is: Place on probation or revoke the license

The action that the Commissioner of Insurance can take against a claims adjuster's license, particularly placing the adjuster on probation or revoking the license, directly pertains to maintaining regulatory standards and ensuring that all licensed adjusters adhere to the laws and ethical guidelines governing the insurance industry. When claims adjusters fail to comply with these regulations—such as engaging in unethical behavior, fraud, or incompetence—the Commissioner has the authority to implement disciplinary measures, which may include probation, where specific terms and monitoring are established, or outright revocation of the license, which prohibits the adjuster from practicing altogether. This authority is essential for protecting the public and maintaining trust in the insurance system. Other options, such as increasing the licensing fee, extending the license duration, or managing claims filed by the adjuster, do not fall under the corrective or disciplinary powers of the Commissioner in the context of individual license management and accountability. These options are outside the scope of regulatory enforcement related to license discipline.