Texas All-Lines Adjuster course Final Exam Questions And Answers

A severe thunderstorm damaged a policyholder's residence. He called and asked how long it would be before he receives payment for his claim. Which of the following would NOT be an appropriate response? - ANS We have 6 months to reach a final settlement with you. Janelle has just graduated college and is interested in becoming an adjuster. she would like to be able to handle any type of claim. The most comprehensive type of license would be: - ANS All-Lines Jack and Rebecca own a vacation home on Galveston Island which they have insured under an HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their house burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection and some fishing equipment stolen. How would their HO-3 policy respond to this loss? - ANS The entire theft loss would be covered under Coverage C. subject the policy limits and to certain limitations. The oldest form of insurance known to exist is: - ANS Ocean Marine Insurance How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS) calculated under Texas Work Comp laws? - ANS The comp rate = (AWW - Post Injury Earnings) × 70% In workers compensation, an "injury is defined to mean: - ANS personal injury or death by "accident", arising out of work performed in the course of employment. Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the theft loss of various types of property. Justin's initial responsibility upon investigating the loss is to first determine: - ANS If coverage exists Jim is a public adjuster. He has an arrangement with a water extraction company who pays him a commission of 10% for every referral that Jim sends their way. Which of the following statements is correct? - ANS This arrangement reflects a breach of ethical conduct and a violation that could jeopardize Jim's licensure. Which of the following would NOT be covered under Coverage C Personal Property? - ANS Your 10-year old German Shepherd chokes on a bone and passes away. A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the following would NOT be covered by the Dwelling policy? - ANS Damage to another duplex right next door, also owned by the landlord. Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer goods they transport EXCEPT for damages resulting from: - ANS Acts of God You have just started your career handling Texas workers' compensation claims. Which one of the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Practices Act? - ANS Not responding to an employee's calls because you're overworked and the claim involves complex issues you just don't feel like addressing. Which type of bond would be used to cover the exposure to employee theft? - ANS Fidelity bond Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be necessary for Garrett to secure such a license? - ANS Pass a state qualifying exam or pre-licensing course that is certified by the Texas Department of Insurance that includes an approved, comprehensive final examination of 150 questions, and attach the Certificate of Completion to an application for licensure. The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANS All risks of direct physical loss are covered unless they are excluded Assume your home caught fire due to a faulty electrical device. and one month after the fire you receive a bill from the fire department for $450.00 for responding to the fire. Would this be paid under your homeowner's policy? - ANS Yes. It is called Fire Department Service Charge and is an Additional Coverage provided under the policy, limited to $500. Generally, if an employee suffers an occupational injury and accepts workers' compensation benefits, he or she: - ANS Gives up the right to sue the employer for personal injury and pain and suffering. The employee can only make claim for workers' compensation benefits. Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4 occupants, all of whom are hurt. They all sue. Each of the injured parties receives identical verdicts of $40,000. Under Janelle's bodily injury liability coverage, what is the total amount that the company would pay for the injuries to these plaintiffs? - ANS $60,000 A person or entity who guarantees the performance or payment of one party who is obligated by contract to another is called a: - ANS Surety If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after a fire loss while the property is being repaired. what would you tell him? - ANS Yes, and it's called Fair Rental Value coverage and is available under Coverage D. Fred runs a convenience store that sells gasoline. One day a customer pulls away from the pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all over the parking lot and into the storm drain. Fred files a claim under his commercial property policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was pumped out before anyone noticed and stopped the pump. The local HazMat team was called out by the authorities to clean up the parking lot and the storm drain. Fred received a bill from the County for $12.850.00 for the clean up. He sends the bill to you to pay. What kind of coverage is available to Fred as a commercial property extension of coverage needed to pay this loss? - ANS Pollution Clean Up and Removal A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan, encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber was thrown overboard to save the ship. This action is called: - ANS Jettison Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a storm, a tornado touches down and severely damages the house. Because the house is untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott Residence Inn. Under which of the following coverages would Roberto be able to recover the additional expense of the Marriott and other costs? - ANS Coverage D: Loss of Use Dwelling policies: - ANS provide basic property protection for individuals who want to protect their financial interest in a property Which of the following perils or exposure are Fidelity bonds generally used to insure against? - ANS Embezzlement To be compensable under workers' compensation laws, most jurisdictions require that an injury: - ANS arise out of and in the course of employment. A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store. The claim was assigned to you for handling. After contacting the claimant and taking a statement, you learn that the injury was minor and, at most, an inconvenience. Medical expenses were only $525.00 and there were no complications. You think the best way to handle the case Is to offer to pay her medical bills without admitting liability and try backing away without committing to any kind of settlement. How would you do it? - ANS Tell her you'll pay her bills and ask her to call you if she has any questions. You would then wish her well and, when the bills arrive, pay them under the business's Medical Payments coverage. You just started working as an adjuster with handling Texas 1st and 3rd party property damage claims. Which one of the following would NOT be an example of an unfair claim settlement practice? - ANS Deciding not to take a statement from an insured under oath in the investigation of a 1st party property claim. Joe is a property adjuster employed by State Farm. He receives a loss assignment to handle a grease fire claim for an insured. Upon contacting the insured, she advises that she has hired her own adjuster (Pete) to represent her in this matter. Pete will be providing Joe with the estimates of repair and has the insured's authority to negotiate the final settlement of the loss. Pete's fee will be paid out of the final settlement amount. Based upon this information, joe and Pete are which of the following types of adjusters? - ANS Joe is a Company Adjuster and Pete is a Public Adjuster You have, just received a new property claim from an insured homeowner who suffered damage from a fire that burned down 30% of the property. During the initial contact, what is the most important thing you should tell the insured to do while waiting for you or your appraiser to arrive? - ANS "Take any and all reasonable steps to protect your property from further damage. These costs are included as part of your coverage and I will reimburse you as part of your claim.' Which of the following would NoT be included in the definition of the term "Building" under a typical Commercial Building and Personal Property policy? - ANS Desks and personal business computers for each of the business' employees. A Texas adjuster must secure how many continuing education credits in every two year period to maintain continued licensure? - ANS 24 Alicia has a home valued at $740,000 that is insured by an HO-3 policy with Coverage A limits of $675.000, Coverage B limits of $67,500 and Coverage C limits of $337,500 and a deductible of $1,000. One summer day a severe storm rolled in with a lot of high winds. Alicia unplugged all of the major electrical devices and rode the storm out in her living room. When it was over she went outside to inspect her property, only to find her detached 2-car garage in back yard gone with only a slab remaining. Alicia immediately called her carrier to report the loss. For which perils does Alicia's HO-3 coverage form provide protection? - ANS The HO-3 policy provides "All Risk" coverage for Coverage A which includes all perils, including windstorm, unless excluded.