Louisiana P&C Adjuster Practice Exam 2025 – All-in-One Test Prep

The correct choice highlights that working without a license is a serious violation in the insurance industry. Adjusters are required to hold a valid license to practice legally. Being unlicensed can lead to severe penalties, including fines, as it reflects a failure to comply with regulatory standards established to protect consumers and ensure qualified professionals handle claims. This adherence to licensing laws is crucial for maintaining the integrity and professionalism of insurance practices.

While failing to pay income taxes, making late payments, or improper claim adjustments may have their own consequences, such as financial penalties or internal disciplinary action, they do not directly pertain to the legal requirements of being licensed as an insurance adjuster. In contrast, operating without a license directly undermines regulatory compliance, thus making it a more significant cause for fines specific to the role of an adjuster.