Texas all lines adjuster exam [QUESTIONS AND
CORRECT ANSWERS) VERIFIED ANSWERS 2024/2025
All of the following are criteria for an accident to have occurred "in
the course of" the employment under a workers' compensation
policy, EXCEPT: - CORRECT ANSWER While performing a
task that a fellow worker requested, that was unusual to the
employee's job description, but occurred on the employer's
premises during working hours.
Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? - CORRECT
ANSWER The implied warranties are attached to the policy as
an endorsement..
Parmelia is covered under two separate standardized Personal
Automobile policies, with Part C limits under both policies set at
$200,000. Parmelia is involved in an accident with an uninsured
motorist and she sustains bodily injury damages for $262,320.
How much will Parmelia receive when she submits a claim for
these damages - CORRECT ANSWER $200,000
What is generally excluded on the Condominium Commercial
Unit-Owners form? - CORRECT ANSWER Building coverage..
Marcus has two Commercial Property policies covering his
warehouse. Policy A is the primary policy and has a $200,000
limit, and Policy B is an excess policy with a $100,000 limit. After
a fire causes $140,000 damage to his warehouse, how will each
of Marcus' policies respond (disregarding any deductible)? -
CORRECT ANSWER Policy A will pay $93,333 and Policy B
will pay $46,667..
,Heather's house is fully insured with a DP-3 with a limit of
$85,000. One day, the house is struck by lightning, and despite
the fire department's efforts, burns to the ground. She still had a
balance of $20,000 left on her mortgage at the time of the fire.
What is the maximum indemnification that would go to Heather,
the fire department, and her mortgage lender respectively? -
CORRECT ANSWER $65,000; $500; $20,000
The penalty for failure to satisfy a coinsurance requirement of a
property insurance policy is: - CORRECT ANSWER Only a
portion of a partial loss will be paid..
Which of the following is true regarding pure and speculative
risks? - CORRECT ANSWER With pure risk there is only the
possibility of loss.
Which "conditions" form in a complete Commercial Property
policy specifies how a disagreement on the value of damaged
property is handled? - CORRECT ANSWER The Building and
Personal Property Conditions form.
The Section II - Additional Coverages of Homeowners policies,
damage to the property of others (whether or not in the insured's
custody and regardless of fault) is covered up to: - CORRECT
ANSWER $1,000 per occurrence
Which of the following statements is TRUE regarding the DP-3
special form? - CORRECT ANSWER It provides open peril
coverage on the structure and named peril coverage on the
personal property.
"Experience rating" provides employers with the incentive to: -
CORRECT ANSWER Prioritize safety and control hazards in
the workplace.
,Which of the following types of insurance companies must charge
a premium tax to be remitted to the state each time a policy is
sold? - CORRECT ANSWER Surplus Lines company.
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540.
The waiting period is 3 days and the retroactive period is 15 days.
Which of the following is Mark's TTD benefit if he earns $20 per
hour and usually works a 40-hour week. Mark is injured on July
14th and does not return to work until September 3rd. Which of
the following is the amount of TTD benefit he would have
received? - CORRECT ANSWER $3,809.50.
An independent adjuster acts on behalf of his or her principal.
Which of the following is the principal for an independent
adjuster? - CORRECT ANSWER The insurer.
Jerry is fishing from his 22-foot boat on Lake Norman when he is
caught in a sudden hail storm. His boat suffers extensive hail
damage. When he files a claim against his Homeowners policy,
the most likely reason his claim is denied because: - CORRECT
ANSWER The boat was not fully enclosed inside a building
during the hail storm.
A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the
insured to receive full replacement cost coverage in the event of a
$50,000 fire loss? - CORRECT ANSWER $400,000.
Coverage for all reasonable expenses incurred by an insured in
order to continue as nearly as practicable the normal operation of
his/her business after a loss is: - CORRECT ANSWER Extra
Expense Coverage
, The insured has her fur coat specifically covered under a
Personal Articles policy. It has been stored in a plastic garment
bag in her closet during the summer months. She decides to take
the coat out and hang it outside to freshen up. The next door
neighbor's dog sees the coat and attacks it and ruins the garment.
The insurer will: - CORRECT ANSWER Pay the claim because
the loss is not excluded
There are several different Commercial Property coverage forms
that can be added to a Commercial Package policy. Which of the
following is NOT described on a Commercial Property coverage
form? - CORRECT ANSWER The number of buildings the
insured owns that are not covered by the policy..
All of the following statements are TRUE regarding the standard
Businessowners policy coverage extension for "Business
Personal Property Temporarily in Portable Storage Units",
EXCEPT: - CORRECT ANSWER The coverage is provided for
rented storage units away from the insured premises.
All of the following statements are true regarding Difference in
Conditions insurance (DIC), EXCEPT: - CORRECT ANSWER
Covers losses due to windstorm..
Which of the following endorsements must be attached to a
standard Businessowners policy for coverage to apply to a
businesses freezer that was damaged by the interruption of a
power source - CORRECT ANSWER Utility Services - Direct
Damage endorsement.
After completing an inspection of an insured's pressure
equipment and fire suppression systems, the inspector
determines that the pressure equipment needs to be repaired and
the suppression systems have not been cleaned and inspected in
CORRECT ANSWERS) VERIFIED ANSWERS 2024/2025
All of the following are criteria for an accident to have occurred "in
the course of" the employment under a workers' compensation
policy, EXCEPT: - CORRECT ANSWER While performing a
task that a fellow worker requested, that was unusual to the
employee's job description, but occurred on the employer's
premises during working hours.
Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? - CORRECT
ANSWER The implied warranties are attached to the policy as
an endorsement..
Parmelia is covered under two separate standardized Personal
Automobile policies, with Part C limits under both policies set at
$200,000. Parmelia is involved in an accident with an uninsured
motorist and she sustains bodily injury damages for $262,320.
How much will Parmelia receive when she submits a claim for
these damages - CORRECT ANSWER $200,000
What is generally excluded on the Condominium Commercial
Unit-Owners form? - CORRECT ANSWER Building coverage..
Marcus has two Commercial Property policies covering his
warehouse. Policy A is the primary policy and has a $200,000
limit, and Policy B is an excess policy with a $100,000 limit. After
a fire causes $140,000 damage to his warehouse, how will each
of Marcus' policies respond (disregarding any deductible)? -
CORRECT ANSWER Policy A will pay $93,333 and Policy B
will pay $46,667..
,Heather's house is fully insured with a DP-3 with a limit of
$85,000. One day, the house is struck by lightning, and despite
the fire department's efforts, burns to the ground. She still had a
balance of $20,000 left on her mortgage at the time of the fire.
What is the maximum indemnification that would go to Heather,
the fire department, and her mortgage lender respectively? -
CORRECT ANSWER $65,000; $500; $20,000
The penalty for failure to satisfy a coinsurance requirement of a
property insurance policy is: - CORRECT ANSWER Only a
portion of a partial loss will be paid..
Which of the following is true regarding pure and speculative
risks? - CORRECT ANSWER With pure risk there is only the
possibility of loss.
Which "conditions" form in a complete Commercial Property
policy specifies how a disagreement on the value of damaged
property is handled? - CORRECT ANSWER The Building and
Personal Property Conditions form.
The Section II - Additional Coverages of Homeowners policies,
damage to the property of others (whether or not in the insured's
custody and regardless of fault) is covered up to: - CORRECT
ANSWER $1,000 per occurrence
Which of the following statements is TRUE regarding the DP-3
special form? - CORRECT ANSWER It provides open peril
coverage on the structure and named peril coverage on the
personal property.
"Experience rating" provides employers with the incentive to: -
CORRECT ANSWER Prioritize safety and control hazards in
the workplace.
,Which of the following types of insurance companies must charge
a premium tax to be remitted to the state each time a policy is
sold? - CORRECT ANSWER Surplus Lines company.
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540.
The waiting period is 3 days and the retroactive period is 15 days.
Which of the following is Mark's TTD benefit if he earns $20 per
hour and usually works a 40-hour week. Mark is injured on July
14th and does not return to work until September 3rd. Which of
the following is the amount of TTD benefit he would have
received? - CORRECT ANSWER $3,809.50.
An independent adjuster acts on behalf of his or her principal.
Which of the following is the principal for an independent
adjuster? - CORRECT ANSWER The insurer.
Jerry is fishing from his 22-foot boat on Lake Norman when he is
caught in a sudden hail storm. His boat suffers extensive hail
damage. When he files a claim against his Homeowners policy,
the most likely reason his claim is denied because: - CORRECT
ANSWER The boat was not fully enclosed inside a building
during the hail storm.
A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the
insured to receive full replacement cost coverage in the event of a
$50,000 fire loss? - CORRECT ANSWER $400,000.
Coverage for all reasonable expenses incurred by an insured in
order to continue as nearly as practicable the normal operation of
his/her business after a loss is: - CORRECT ANSWER Extra
Expense Coverage
, The insured has her fur coat specifically covered under a
Personal Articles policy. It has been stored in a plastic garment
bag in her closet during the summer months. She decides to take
the coat out and hang it outside to freshen up. The next door
neighbor's dog sees the coat and attacks it and ruins the garment.
The insurer will: - CORRECT ANSWER Pay the claim because
the loss is not excluded
There are several different Commercial Property coverage forms
that can be added to a Commercial Package policy. Which of the
following is NOT described on a Commercial Property coverage
form? - CORRECT ANSWER The number of buildings the
insured owns that are not covered by the policy..
All of the following statements are TRUE regarding the standard
Businessowners policy coverage extension for "Business
Personal Property Temporarily in Portable Storage Units",
EXCEPT: - CORRECT ANSWER The coverage is provided for
rented storage units away from the insured premises.
All of the following statements are true regarding Difference in
Conditions insurance (DIC), EXCEPT: - CORRECT ANSWER
Covers losses due to windstorm..
Which of the following endorsements must be attached to a
standard Businessowners policy for coverage to apply to a
businesses freezer that was damaged by the interruption of a
power source - CORRECT ANSWER Utility Services - Direct
Damage endorsement.
After completing an inspection of an insured's pressure
equipment and fire suppression systems, the inspector
determines that the pressure equipment needs to be repaired and
the suppression systems have not been cleaned and inspected in
