ADJUSTER PRO TEXAS EXAM QUESTIONS & ANSWERS | 100%
VERIFIED SOLUTIONS WITH CORRECT ANSWERS 2026 LATEST
UPDATE!!
Insuring Agreement - ANS... -A statement in an insurance policy that the insurer
will, under described circumstances, make a loss payment or provide a service.
conditions - ANS... -provisions in the policy that qualify or place limitations on the
insurer's promise to perform
Endorsements - ANS... -add, modify, or take away coverage
Exclusions and Limitations - ANS... -conditions, situations, and services not
covered by the insurance carrier
Rider/addendum/attachment - ANS... -Same as endorsements
proximate cause - ANS... -The original occurrence, the source, of all the
subsequent damages.
Direct Loss - ANS... -a financial loss that results from the physical damage,
destruction, or theft of the property
Indirect Loss - ANS... -Economic loss resulting from a direct loss
Subrogation - ANS... -The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured)
who caused the loss or is otherwise legally liable for the loss.
Valuation - ANS... -determination of a monetary value
Actual Cash Value formula - ANS... -replacement cost minus depreciation
Annual Depreciation - ANS... -An item's Replacement cost divided by the number
of years the items useful life
Accumulated Depreciation - ANS... -The items annual depreciation multiplied by
its age
,Replacement Cost - ANS... -The cost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation.
obsolescence - ANS... -Something no longer used
Valued policies - ANS... -used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
Franchise Deductible - ANS... -If loose are above the deductible, the insured pays
100%, if below the insurer pays nothing
insurance - ANS... -protection against possible financial loss
Premium - ANS... -A specific sum of money paid by the insured to the insurance
company in exchange for financial protection against loss.
spreading the risk - ANS... -A method of displacing vulnerability to hazards across
a larger population through the use of insurance and aid.
indemnity - ANS... -Restoration to approximate financial condition no better no
less
4 conditions of insurance contracts to make it legal - ANS... -Agreement,
Consideration,
Competent parties, Legal purpose
Parts of the Insurance Contract - ANS... -declarations/definitions
insuring agreements, conditions,
exclusions
Personal/Property insurance - ANS... -Protects from financial loss
liability insurance - ANS... -pays for injuries to other people and property if you
are responsible for the accident
Adhesion - ANS... -One party (Insurer) dictates the terms of the contract
,Doctrine of Reasonable Expectations - ANS... -Legal principle that provides that
an insurance policy includes coverage that an average person would reasonably
expect it to include.
Utmost Good Faith - ANS... -A principle of insurance which states that the
insurance company must be able to rely on the honesty and cooperation of the
insured, and the insured must rely on the company to fulfill its obligations in good
faith.
Aleatory - ANS... -depending on an unknown future event
Unilateral Contract - ANS... -The insurer is under obligation to pay for loss
Conditional - ANS... -Damage are paid if conditions are met
Adverse Selection - ANS... -A high-risk person benefits more from insurance, so is
more likely to purchase it.
hazard - ANS... -A danger or risk.
peril - ANS... -cause of loss
Loss - ANS... -Must be unforeseen in expected and defined
exposure - ANS... -How likely a loss will occur
Law of large numbers - ANS... -The larger the number of units insured, the more
accurately the insurer can predict the number of claims from that group
Binder - ANS... -A temporary written or oral agreement to provide insurance
coverage until a formal written policy is issued.
blanket coverage - ANS... -Policy which provides a single limit of insurance for all
property falling within a specific class
Specific Limits - ANS... -Limits that apply to one specific type of property
Warranties - ANS... -Found on the conditions page... if policy holder breaks the
warranty the insurer can deny coverage
, Concealment - ANS... -Hiding the truth
Waver - ANS... -Voluntary surrender of a right, claim, or privilege
Implied Waiver - ANS... -a person's actions that cause another to believe that a
right has been relinquished
Expressed Waiver - ANS... -In writing, signed
Estoppel - ANS... -A legal principle that prevents the insurer from denying
coverage if the policy holder has been lead to believe in good faith that coverage
applies. It does not allow the insurer to change the coverage in an insurance policy
without the policyholders consent.
The declaration page includes - ANS... -Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible,
and premium
Percentage Deductible - ANS... -A deductible which requires a deduction from the
loss of a percentage of the value of the property or a percentage of the policy
limits.
Calculate the indemnity with Co insurance penalty - ANS... -Had / Should have
had x partial loss =indemnity
Coinsurance math - ANS... -Take % times $
Negligence - ANS... -careless neglect, often resulting in injury
Vicarious Liability - ANS... -Legal responsibility placed on one person for the acts
of another.
Four elements of negligence - ANS... -duty, breach, causation, damages
Degrees of Liability - ANS... -Full, partial, and no Liability
Assumption of Risk - ANS... -A defense against negligence that can be used when
the plaintiff was aware of a danger and voluntarily assumed the risk of injury from
that danger.
VERIFIED SOLUTIONS WITH CORRECT ANSWERS 2026 LATEST
UPDATE!!
Insuring Agreement - ANS... -A statement in an insurance policy that the insurer
will, under described circumstances, make a loss payment or provide a service.
conditions - ANS... -provisions in the policy that qualify or place limitations on the
insurer's promise to perform
Endorsements - ANS... -add, modify, or take away coverage
Exclusions and Limitations - ANS... -conditions, situations, and services not
covered by the insurance carrier
Rider/addendum/attachment - ANS... -Same as endorsements
proximate cause - ANS... -The original occurrence, the source, of all the
subsequent damages.
Direct Loss - ANS... -a financial loss that results from the physical damage,
destruction, or theft of the property
Indirect Loss - ANS... -Economic loss resulting from a direct loss
Subrogation - ANS... -The process by which an insurer can, after it has paid a loss
under the policy, recover the amount paid from any party (other than the insured)
who caused the loss or is otherwise legally liable for the loss.
Valuation - ANS... -determination of a monetary value
Actual Cash Value formula - ANS... -replacement cost minus depreciation
Annual Depreciation - ANS... -An item's Replacement cost divided by the number
of years the items useful life
Accumulated Depreciation - ANS... -The items annual depreciation multiplied by
its age
,Replacement Cost - ANS... -The cost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation.
obsolescence - ANS... -Something no longer used
Valued policies - ANS... -used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
Franchise Deductible - ANS... -If loose are above the deductible, the insured pays
100%, if below the insurer pays nothing
insurance - ANS... -protection against possible financial loss
Premium - ANS... -A specific sum of money paid by the insured to the insurance
company in exchange for financial protection against loss.
spreading the risk - ANS... -A method of displacing vulnerability to hazards across
a larger population through the use of insurance and aid.
indemnity - ANS... -Restoration to approximate financial condition no better no
less
4 conditions of insurance contracts to make it legal - ANS... -Agreement,
Consideration,
Competent parties, Legal purpose
Parts of the Insurance Contract - ANS... -declarations/definitions
insuring agreements, conditions,
exclusions
Personal/Property insurance - ANS... -Protects from financial loss
liability insurance - ANS... -pays for injuries to other people and property if you
are responsible for the accident
Adhesion - ANS... -One party (Insurer) dictates the terms of the contract
,Doctrine of Reasonable Expectations - ANS... -Legal principle that provides that
an insurance policy includes coverage that an average person would reasonably
expect it to include.
Utmost Good Faith - ANS... -A principle of insurance which states that the
insurance company must be able to rely on the honesty and cooperation of the
insured, and the insured must rely on the company to fulfill its obligations in good
faith.
Aleatory - ANS... -depending on an unknown future event
Unilateral Contract - ANS... -The insurer is under obligation to pay for loss
Conditional - ANS... -Damage are paid if conditions are met
Adverse Selection - ANS... -A high-risk person benefits more from insurance, so is
more likely to purchase it.
hazard - ANS... -A danger or risk.
peril - ANS... -cause of loss
Loss - ANS... -Must be unforeseen in expected and defined
exposure - ANS... -How likely a loss will occur
Law of large numbers - ANS... -The larger the number of units insured, the more
accurately the insurer can predict the number of claims from that group
Binder - ANS... -A temporary written or oral agreement to provide insurance
coverage until a formal written policy is issued.
blanket coverage - ANS... -Policy which provides a single limit of insurance for all
property falling within a specific class
Specific Limits - ANS... -Limits that apply to one specific type of property
Warranties - ANS... -Found on the conditions page... if policy holder breaks the
warranty the insurer can deny coverage
, Concealment - ANS... -Hiding the truth
Waver - ANS... -Voluntary surrender of a right, claim, or privilege
Implied Waiver - ANS... -a person's actions that cause another to believe that a
right has been relinquished
Expressed Waiver - ANS... -In writing, signed
Estoppel - ANS... -A legal principle that prevents the insurer from denying
coverage if the policy holder has been lead to believe in good faith that coverage
applies. It does not allow the insurer to change the coverage in an insurance policy
without the policyholders consent.
The declaration page includes - ANS... -Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible,
and premium
Percentage Deductible - ANS... -A deductible which requires a deduction from the
loss of a percentage of the value of the property or a percentage of the policy
limits.
Calculate the indemnity with Co insurance penalty - ANS... -Had / Should have
had x partial loss =indemnity
Coinsurance math - ANS... -Take % times $
Negligence - ANS... -careless neglect, often resulting in injury
Vicarious Liability - ANS... -Legal responsibility placed on one person for the acts
of another.
Four elements of negligence - ANS... -duty, breach, causation, damages
Degrees of Liability - ANS... -Full, partial, and no Liability
Assumption of Risk - ANS... -A defense against negligence that can be used when
the plaintiff was aware of a danger and voluntarily assumed the risk of injury from
that danger.
