TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
A home is insured under an HO-3 policy. One of the "other structures" on the same
property is used by the insured for his business. The building burns in a fire. It would: -
answer>>>>Not be covered because buildings used for business purposes are
excluded..
A loss reserving method that establishes aggregate reserves for all claims for a single
line of insurance is known as: - answer>>>>Loss ratio method.
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? - answer>>>>$400,000.
A non-waiver agreement allows the insurer to: - answer>>>>Investigate a loss without
implying that it is covered
A requirement that a plaintiff file a lawsuit within a specific period of time after the cause
of the lawsuit has occurred, which is oftentimes when the injury occurred or was
discovered is known as: - answer>>>>The statute of limitations.
A ship has suffered damage and sunk. Which of the following would respond to cover
the loss of the ship? - answer>>>>Hull Insurance.
A structure made of modified fire resistive materials has a fire resistive rating of: -
answer>>>>At least 1 hour.
A surety bond is: - answer>>>>A form of credit.
A Texas adjuster may be subjected to a criminal penalty for all of the following,
EXCEPT: - answer>>>>Not paying court mandated child support.
A Texas employer who chooses NOT to provide workers' compensation coverage:I.
Loses civil immunity.II. May be sued for damages when an employee is injured in the of
employment.III. Will have to pay a fee of $500. - answer>>>>I and II only
A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim
must be paid not later than the ____ business day after the date notice is made. -
answer>>>>5th
,A type of insurance that permits an insured to collect from his/her own insurance
company, without proving the negligence of a third-party, is known as: - answer>>>>No-
fault.
Acme Corp. requested three bids from different contractors for the construction of its
new office building. Acme accepted the lowest bid from Corbett's Contracting and
entered into a contract to have the office building constructed. After construction was
completed, Corbett's presented Acme with a bill for construction costs over and above
the amount of the bid that was agreed to in the contract. Which of the following types of
bonds would protect Acme from paying the additional costs? - answer>>>>A
performance bond.
Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs. Sullivan's
insurance company pays her claim under her physical damage coverage and makes a
claim against Mr. Brown's insurance company for the same amount. This process is
called: - answer>>>>Subrogation
Adjusters in Texas must complete at least _____ of the continuing education required to
renew their license in a classroom or classroom equivalent setting - answer>>>>50%
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 the time frame
required by the policy. The insurer will: - answer>>>>Suspend coverage immediately by
red tagging the items until they are repaired, cleaned and pass reinspection
Aircraft liability coverage is very similar to auto insurance coverage with which of
following exceptions? - answer>>>>Liability to passengers is treated as a separate
exposure.
Alec goes to an amusement park and rides a roller coaster that was designed to flip the
riders upside down. Alec is taller than the average person so when the roller coaster
flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim
against the amusement park, seeking payment for his medical bills, pain and suffering.
What defense against negligence would the amusement park most likely use to deny
this claim? - answer>>>>Assumption of risk
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
answer>>>>Pirates
All of the following are a "cause of loss" form, EXCEPT: - answer>>>>Comprehensive.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - answer>>>>Consideration.
,All of the following are correct statements regarding the limits of liability under Part A of
a Personal Auto policy, EXCEPT: - answer>>>>When the Part A limits are exhausted,
any limits for Uninsured Motorists coverage can be used to pay the entire claim..
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - 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.
All of the following are duties of the insured after a loss, EXCEPT: - answer>>>>To
provide the insurer with the amount they expect to be paid for the claim submitted.
All of the following are duties of the insurer in case of a loss as specified by insurance
policies, EXCEPT: - answer>>>>To pay amounts to the insured or a third-party claimant
that are at least as high as the national average of similar claim settlements.
All of the following are duties that a Texas insurer must perform within 15 days after
receipt of the claim, EXCEPT: - answer>>>>Schedule a hearing to dispute the claim, if
necessary.
All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: -
answer>>>>Goods manufactured in the United States for export to other countries.
All of the following are examples of forms used to cover cargo in Ocean Marine
insurance, EXCEPT: - answer>>>>Load form.
All of the following are exclusions under the Standard Fire policy, EXCEPT: -
answer>>>>Fire damage that is the result of a riot..
All of the following are included in the Businessowners policy coverage territory,
EXCEPT: - answer>>>>Mexico.
All of the following are listed in the common declarations of a Commercial Package
policy (CPP), EXCEPT: - answer>>>>A list of perils insured against.
All of the following are perils NOT typically covered by property cause of loss forms,
EXCEPT: - answer>>>>Hail
All of the following are reasons an IME may be requested by a workers' compensation
insurer, EXCEPT: - answer>>>>When the injured worker's primary care provider
charges higher rates than the insurer would like to pay.
All of the following is a function of the standard mortgage clause in a property insurance
policy, EXCEPT: - answer>>>>Guarantees that the mortgage payments will be made by
an insurance policy, if the insured does not make the payments. .
, All of the following items are given a "special limit of liability" under Coverage C of the
Homeowners policies, EXCEPT: - answer>>>>Motorized land vehicles.
All of the following sections are included on the Business and Personal Property
coverage form, EXCEPT: - answer>>>>Perils Insured Against.
All of the following statements are TRUE if Builders' Risk coverage is written on a
completed value basis, EXCEPT - answer>>>>All premiums must be paid up front
before construction can begin..
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - answer>>>>The policy will cover watercraft liability.
All of the following statements are TRUE regarding automobile "no-fault" laws,
EXCEPT: - answer>>>>Medical payments and physical damage claims are paid by the
state assigned risk fund without determining fault to any party in the accident.
All of the following statements are true regarding Difference in Conditions insurance
(DIC), EXCEPT: - answer>>>>Covers losses due to windstorm..
All of the following statements are TRUE regarding Section II - Liability of the Garage
Coverage form, EXCEPT: - answer>>>>Provides coverage when an employee causes
damage to a customer's vehicle.
All of the following statements are true regarding state Guaranty Associations,
EXCEPT: - answer>>>>The fund assists insurers in gaining new insurance business by
allowing them to advertise their membership in the Guaranty Association.
All of the following statements are TRUE regarding the "Equipment Breakdown"
coverage extension of the standard Businessowners policy, EXCEPT: -
answer>>>>The damage can be caused by a gradual wear and tear of parts within the
equipment.
All of the following statements are true regarding the HO-1 form, EXCEPT: -
answer>>>>It settles losses on an actual cash value basis unless endorsed.
All of the following statements are TRUE regarding the perils of the Homeowners forms,
EXCEPT - answer>>>>Fire or lightning is a named peril covering the buildings and
other structures under an HO-4 form..
All of the following statements are true regarding the revocation or modification of a
certificate of authority in Texas, EXCEPT: - answer>>>>The reason for the revocation
or modification is not required to be stated in the notice to the insurer.
All of the following statements are TRUE regarding the standard Businessowners policy
coverage extension for "Business Personal Property Temporarily in Portable Storage
(200+ QUESTIONS AND CORRECT ANSWERS)
A home is insured under an HO-3 policy. One of the "other structures" on the same
property is used by the insured for his business. The building burns in a fire. It would: -
answer>>>>Not be covered because buildings used for business purposes are
excluded..
A loss reserving method that establishes aggregate reserves for all claims for a single
line of insurance is known as: - answer>>>>Loss ratio method.
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? - answer>>>>$400,000.
A non-waiver agreement allows the insurer to: - answer>>>>Investigate a loss without
implying that it is covered
A requirement that a plaintiff file a lawsuit within a specific period of time after the cause
of the lawsuit has occurred, which is oftentimes when the injury occurred or was
discovered is known as: - answer>>>>The statute of limitations.
A ship has suffered damage and sunk. Which of the following would respond to cover
the loss of the ship? - answer>>>>Hull Insurance.
A structure made of modified fire resistive materials has a fire resistive rating of: -
answer>>>>At least 1 hour.
A surety bond is: - answer>>>>A form of credit.
A Texas adjuster may be subjected to a criminal penalty for all of the following,
EXCEPT: - answer>>>>Not paying court mandated child support.
A Texas employer who chooses NOT to provide workers' compensation coverage:I.
Loses civil immunity.II. May be sued for damages when an employee is injured in the of
employment.III. Will have to pay a fee of $500. - answer>>>>I and II only
A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim
must be paid not later than the ____ business day after the date notice is made. -
answer>>>>5th
,A type of insurance that permits an insured to collect from his/her own insurance
company, without proving the negligence of a third-party, is known as: - answer>>>>No-
fault.
Acme Corp. requested three bids from different contractors for the construction of its
new office building. Acme accepted the lowest bid from Corbett's Contracting and
entered into a contract to have the office building constructed. After construction was
completed, Corbett's presented Acme with a bill for construction costs over and above
the amount of the bid that was agreed to in the contract. Which of the following types of
bonds would protect Acme from paying the additional costs? - answer>>>>A
performance bond.
Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs. Sullivan's
insurance company pays her claim under her physical damage coverage and makes a
claim against Mr. Brown's insurance company for the same amount. This process is
called: - answer>>>>Subrogation
Adjusters in Texas must complete at least _____ of the continuing education required to
renew their license in a classroom or classroom equivalent setting - answer>>>>50%
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 the time frame
required by the policy. The insurer will: - answer>>>>Suspend coverage immediately by
red tagging the items until they are repaired, cleaned and pass reinspection
Aircraft liability coverage is very similar to auto insurance coverage with which of
following exceptions? - answer>>>>Liability to passengers is treated as a separate
exposure.
Alec goes to an amusement park and rides a roller coaster that was designed to flip the
riders upside down. Alec is taller than the average person so when the roller coaster
flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim
against the amusement park, seeking payment for his medical bills, pain and suffering.
What defense against negligence would the amusement park most likely use to deny
this claim? - answer>>>>Assumption of risk
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
answer>>>>Pirates
All of the following are a "cause of loss" form, EXCEPT: - answer>>>>Comprehensive.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - answer>>>>Consideration.
,All of the following are correct statements regarding the limits of liability under Part A of
a Personal Auto policy, EXCEPT: - answer>>>>When the Part A limits are exhausted,
any limits for Uninsured Motorists coverage can be used to pay the entire claim..
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - 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.
All of the following are duties of the insured after a loss, EXCEPT: - answer>>>>To
provide the insurer with the amount they expect to be paid for the claim submitted.
All of the following are duties of the insurer in case of a loss as specified by insurance
policies, EXCEPT: - answer>>>>To pay amounts to the insured or a third-party claimant
that are at least as high as the national average of similar claim settlements.
All of the following are duties that a Texas insurer must perform within 15 days after
receipt of the claim, EXCEPT: - answer>>>>Schedule a hearing to dispute the claim, if
necessary.
All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: -
answer>>>>Goods manufactured in the United States for export to other countries.
All of the following are examples of forms used to cover cargo in Ocean Marine
insurance, EXCEPT: - answer>>>>Load form.
All of the following are exclusions under the Standard Fire policy, EXCEPT: -
answer>>>>Fire damage that is the result of a riot..
All of the following are included in the Businessowners policy coverage territory,
EXCEPT: - answer>>>>Mexico.
All of the following are listed in the common declarations of a Commercial Package
policy (CPP), EXCEPT: - answer>>>>A list of perils insured against.
All of the following are perils NOT typically covered by property cause of loss forms,
EXCEPT: - answer>>>>Hail
All of the following are reasons an IME may be requested by a workers' compensation
insurer, EXCEPT: - answer>>>>When the injured worker's primary care provider
charges higher rates than the insurer would like to pay.
All of the following is a function of the standard mortgage clause in a property insurance
policy, EXCEPT: - answer>>>>Guarantees that the mortgage payments will be made by
an insurance policy, if the insured does not make the payments. .
, All of the following items are given a "special limit of liability" under Coverage C of the
Homeowners policies, EXCEPT: - answer>>>>Motorized land vehicles.
All of the following sections are included on the Business and Personal Property
coverage form, EXCEPT: - answer>>>>Perils Insured Against.
All of the following statements are TRUE if Builders' Risk coverage is written on a
completed value basis, EXCEPT - answer>>>>All premiums must be paid up front
before construction can begin..
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - answer>>>>The policy will cover watercraft liability.
All of the following statements are TRUE regarding automobile "no-fault" laws,
EXCEPT: - answer>>>>Medical payments and physical damage claims are paid by the
state assigned risk fund without determining fault to any party in the accident.
All of the following statements are true regarding Difference in Conditions insurance
(DIC), EXCEPT: - answer>>>>Covers losses due to windstorm..
All of the following statements are TRUE regarding Section II - Liability of the Garage
Coverage form, EXCEPT: - answer>>>>Provides coverage when an employee causes
damage to a customer's vehicle.
All of the following statements are true regarding state Guaranty Associations,
EXCEPT: - answer>>>>The fund assists insurers in gaining new insurance business by
allowing them to advertise their membership in the Guaranty Association.
All of the following statements are TRUE regarding the "Equipment Breakdown"
coverage extension of the standard Businessowners policy, EXCEPT: -
answer>>>>The damage can be caused by a gradual wear and tear of parts within the
equipment.
All of the following statements are true regarding the HO-1 form, EXCEPT: -
answer>>>>It settles losses on an actual cash value basis unless endorsed.
All of the following statements are TRUE regarding the perils of the Homeowners forms,
EXCEPT - answer>>>>Fire or lightning is a named peril covering the buildings and
other structures under an HO-4 form..
All of the following statements are true regarding the revocation or modification of a
certificate of authority in Texas, EXCEPT: - answer>>>>The reason for the revocation
or modification is not required to be stated in the notice to the insurer.
All of the following statements are TRUE regarding the standard Businessowners policy
coverage extension for "Business Personal Property Temporarily in Portable Storage
