Texas All Lines Adjuster Exam Latest
Questions Pack and Solutions (Top Score
A+)
• Insurance -✓✓financial tool that protects individuals and organizations from
unforeseen and extraordinary financial losses by transferring risk from one party to
another
• Insured -✓✓A person covered by an insurance policy; pays premiums in exchange for
protection
• Insurer -✓✓provides financial protection to insured
• reserve -✓✓collective premiums go in a pool or a
• claimant -✓✓after filing an claim the insured becomes the
• Principle of Indemnity -✓✓Restoration to approximate previous financial condition; no
more, no less.
• agreement (acceptance and offer)
consideration
competent parties
legal purpose -✓✓a insurance policy is binding because it meets what 4 requirements of
a legal contract
• Upmost good faith -✓✓insurance contracts assume; applicants must be honest about
the risk to the insurer
• unilateral -✓✓insurance contracts are considered
• dec page
insuring agreement
conditions
exclusions -✓✓an insurance contract has four essential parts think DICE
• Dec page -✓✓always the first part in a contract that establishes:
name (insured and insurer)
policy #
location and description of insured item
value of insured item
dates of policy (beginning and end)
, amount/limit of coverage
deductible
premium
• definitions page -✓✓defines terms used in policy and includes important language
adjuster needs to know
• insuring agreement -✓✓summarizes:
what is covered
which causes of loss are covered
any exclusions
maximum limit of coverage in dollars
• conditions -✓✓insurer specifies any limits or qualifications the policy holder must meet
• exclusions -✓✓lists what the policy does NOT cover
commonly: earthquakes, floods, war, nuclear hazards, intentional acts
• endorsements
rider
addendum
attachment -✓✓addictions to an insurance policy (can add or reduce coverage, change
policy provisions, premium price changes after policy ends)
• re-insurer -✓✓when and insurer buys insurance to reduce its exposure to loss
• domestic insurer -✓✓located in a particular state, abides by state's laws
• foreign insurer -✓✓obeys' a states or us laws but can be located elsewhere
• alien insurer -✓✓obeys laws of another country altogether
• reciprocal insurer -✓✓group of people or organizations that insures each other
• re-insurer -✓✓insurance for insurers
• fraternal benefit societies -✓✓non profit mutual aid organization that will usually offer
insurance benefits to members and families
• risk retention group -✓✓alternative to traditional insurance, owned by its members,
provides liability coverage for multiple companies in the same business
• a risk -✓✓potential for financial loss being exposed or open to damage
an insured item
Questions Pack and Solutions (Top Score
A+)
• Insurance -✓✓financial tool that protects individuals and organizations from
unforeseen and extraordinary financial losses by transferring risk from one party to
another
• Insured -✓✓A person covered by an insurance policy; pays premiums in exchange for
protection
• Insurer -✓✓provides financial protection to insured
• reserve -✓✓collective premiums go in a pool or a
• claimant -✓✓after filing an claim the insured becomes the
• Principle of Indemnity -✓✓Restoration to approximate previous financial condition; no
more, no less.
• agreement (acceptance and offer)
consideration
competent parties
legal purpose -✓✓a insurance policy is binding because it meets what 4 requirements of
a legal contract
• Upmost good faith -✓✓insurance contracts assume; applicants must be honest about
the risk to the insurer
• unilateral -✓✓insurance contracts are considered
• dec page
insuring agreement
conditions
exclusions -✓✓an insurance contract has four essential parts think DICE
• Dec page -✓✓always the first part in a contract that establishes:
name (insured and insurer)
policy #
location and description of insured item
value of insured item
dates of policy (beginning and end)
, amount/limit of coverage
deductible
premium
• definitions page -✓✓defines terms used in policy and includes important language
adjuster needs to know
• insuring agreement -✓✓summarizes:
what is covered
which causes of loss are covered
any exclusions
maximum limit of coverage in dollars
• conditions -✓✓insurer specifies any limits or qualifications the policy holder must meet
• exclusions -✓✓lists what the policy does NOT cover
commonly: earthquakes, floods, war, nuclear hazards, intentional acts
• endorsements
rider
addendum
attachment -✓✓addictions to an insurance policy (can add or reduce coverage, change
policy provisions, premium price changes after policy ends)
• re-insurer -✓✓when and insurer buys insurance to reduce its exposure to loss
• domestic insurer -✓✓located in a particular state, abides by state's laws
• foreign insurer -✓✓obeys' a states or us laws but can be located elsewhere
• alien insurer -✓✓obeys laws of another country altogether
• reciprocal insurer -✓✓group of people or organizations that insures each other
• re-insurer -✓✓insurance for insurers
• fraternal benefit societies -✓✓non profit mutual aid organization that will usually offer
insurance benefits to members and families
• risk retention group -✓✓alternative to traditional insurance, owned by its members,
provides liability coverage for multiple companies in the same business
• a risk -✓✓potential for financial loss being exposed or open to damage
an insured item
