1
ADJUSTER PRO TEXAS ACTUAL
2025/2026 QUESTIONS AND 100%
CORRECT ANSWERS
All of the following pieces of information can be found in the conditions section
of an insurance policy EXCEPT: - (ANSWER)Causes of loss that are not covered
Which of the following best defines the principle of indemnity? - (ANSWER)After
a loss, the insured should be restored to his approximate financial condition
before the loss
SureTrust Insurance was founded and operates in Texas. In Texas, Suretrust is
considered - (ANSWER)a domestic insurer
What is a reserve, in insurance terms? - (ANSWER)A pool of collected premiums
that the insurer sets aside to pay claims
Which of the following would you find in the Conditions section of an insurance
policy? - (ANSWER)The insured's duty after a loss
Which of the following is found in the declarations page of an insurance policy? -
(ANSWER)The name of the insured party
Which of the following refers to being restored to the financial condition you
were in before a loss? - (ANSWER)Indemnification
,2
Dr. Nelson routinely schedules her patients for lab tests that they dont need so
she can charge their insurers for more money. Dr. Nelson is: -
(ANSWER)committing health insurance fraud
Six Starts Development Company has just purchased several large properties in
Las Vegas. As a result of this large purchase, they are a little short on money and
decide to save money by not purchasing insurance on their new properties. Six
Stars is practicing: - (ANSWER)Risk retention
Which of the following people committed soft fraud? - (ANSWER)Rafael
accidentally slipped on a wet floor at the supermarket. Although his only injury
was a sprained ankle, he claimed he had back and neck pain when he sued the
supermarket in an effort to get more money in the settlement.
When a car stops short in front of Mike's car, he manages to hit the brakes in time
and avoids a collision. To Mike's surprise, the other driver then throws the car
into reverse and backs into Mike's car! The other drivers actions are an example
of: - (ANSWER)Hard fraud
When Louise goes online and fills out phony applications with XYZ Auto Insurance
in order to print the temporary insurance cards and sell them for a profit on the
black market, she is: - (ANSWER)Committing hard fraud
Lucy has insurance on an expensive necklace she likes to wear to work every day.
After work, she takes it off and leaves it in her car's cupholder so she can put it
back on in the morning on her way to work. Lucy's behavior would be considered
a: - (ANSWER)Morale hazard
,3
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - (ANSWER)Risk
Which of the following situations does not involve an instance of "pure risk" -
(ANSWER)Loss of money invested in the stock market
Which of the following is an example of how some insurers are fighting back
against insurance fraud? - (ANSWER)Starting fraud busting units staffed with
former detectives and police officers
Which of the following is NOT a form of insurance fraud? - (ANSWER)Increasing
your insurance coverage when you think a loss is likely
Steve has just purchased a wedding ring for his new bride. If something were to
happen to the ring, he'd be out of a lot of money, so he purchases an insurance
policy. He is able to do this because: - (ANSWER)The ring is a pure risk
Haley takes a bottle of water into a store, pours some of it on the floor when no
one is looking, and then pretends to slip and fall. She cries out for help in
apparent pain until someone comes to her aid. She then sues the store for her
fake injury in an effort to collect an insurance settlement. What has Haley
committed? - (ANSWER)Hard fraud
After an earthquake, Jake's home is still standing, but it is a little shaken. The
damage is not extensive but Jake wants to cash in on the situation, so he takes a
, 4
sledgehammer to some of his extra belongings and adds them to his claim. Jake
has committed: - (ANSWER)Property insurance fraud
Which of the following is an example of a hazard? - (ANSWER)Sandra's home is in
an area of Los Angeles that is often hit by earthquakes
Risk avoidance is a risk management technique that: - (ANSWER)Eliminates risk
An "occurrence" is defined as: - (ANSWER)An unexpected event that causes loss
When Sally applies for an auto policy, her agent issues her a _______ so that she
can benefit from insurance protection while he underwrites the policy. -
(ANSWER)Binder
Jane's shed burns to the ground during a tornado, when the high winds break a
wall of the shed, knocking over a lantern inside. What is the proximate cause of
the loss? - (ANSWER)Wind
During a storm, lightning strikes a tree in Harry's yard and starts a fire that
spreads to his shed where he keeps all his equipment for his landscaping business.
In addition to the shed, Harry has to purchase all new equipment to stay in
business. The cost to replace the equipment would be considered: - (ANSWER)A
direct loss
ADJUSTER PRO TEXAS ACTUAL
2025/2026 QUESTIONS AND 100%
CORRECT ANSWERS
All of the following pieces of information can be found in the conditions section
of an insurance policy EXCEPT: - (ANSWER)Causes of loss that are not covered
Which of the following best defines the principle of indemnity? - (ANSWER)After
a loss, the insured should be restored to his approximate financial condition
before the loss
SureTrust Insurance was founded and operates in Texas. In Texas, Suretrust is
considered - (ANSWER)a domestic insurer
What is a reserve, in insurance terms? - (ANSWER)A pool of collected premiums
that the insurer sets aside to pay claims
Which of the following would you find in the Conditions section of an insurance
policy? - (ANSWER)The insured's duty after a loss
Which of the following is found in the declarations page of an insurance policy? -
(ANSWER)The name of the insured party
Which of the following refers to being restored to the financial condition you
were in before a loss? - (ANSWER)Indemnification
,2
Dr. Nelson routinely schedules her patients for lab tests that they dont need so
she can charge their insurers for more money. Dr. Nelson is: -
(ANSWER)committing health insurance fraud
Six Starts Development Company has just purchased several large properties in
Las Vegas. As a result of this large purchase, they are a little short on money and
decide to save money by not purchasing insurance on their new properties. Six
Stars is practicing: - (ANSWER)Risk retention
Which of the following people committed soft fraud? - (ANSWER)Rafael
accidentally slipped on a wet floor at the supermarket. Although his only injury
was a sprained ankle, he claimed he had back and neck pain when he sued the
supermarket in an effort to get more money in the settlement.
When a car stops short in front of Mike's car, he manages to hit the brakes in time
and avoids a collision. To Mike's surprise, the other driver then throws the car
into reverse and backs into Mike's car! The other drivers actions are an example
of: - (ANSWER)Hard fraud
When Louise goes online and fills out phony applications with XYZ Auto Insurance
in order to print the temporary insurance cards and sell them for a profit on the
black market, she is: - (ANSWER)Committing hard fraud
Lucy has insurance on an expensive necklace she likes to wear to work every day.
After work, she takes it off and leaves it in her car's cupholder so she can put it
back on in the morning on her way to work. Lucy's behavior would be considered
a: - (ANSWER)Morale hazard
,3
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - (ANSWER)Risk
Which of the following situations does not involve an instance of "pure risk" -
(ANSWER)Loss of money invested in the stock market
Which of the following is an example of how some insurers are fighting back
against insurance fraud? - (ANSWER)Starting fraud busting units staffed with
former detectives and police officers
Which of the following is NOT a form of insurance fraud? - (ANSWER)Increasing
your insurance coverage when you think a loss is likely
Steve has just purchased a wedding ring for his new bride. If something were to
happen to the ring, he'd be out of a lot of money, so he purchases an insurance
policy. He is able to do this because: - (ANSWER)The ring is a pure risk
Haley takes a bottle of water into a store, pours some of it on the floor when no
one is looking, and then pretends to slip and fall. She cries out for help in
apparent pain until someone comes to her aid. She then sues the store for her
fake injury in an effort to collect an insurance settlement. What has Haley
committed? - (ANSWER)Hard fraud
After an earthquake, Jake's home is still standing, but it is a little shaken. The
damage is not extensive but Jake wants to cash in on the situation, so he takes a
, 4
sledgehammer to some of his extra belongings and adds them to his claim. Jake
has committed: - (ANSWER)Property insurance fraud
Which of the following is an example of a hazard? - (ANSWER)Sandra's home is in
an area of Los Angeles that is often hit by earthquakes
Risk avoidance is a risk management technique that: - (ANSWER)Eliminates risk
An "occurrence" is defined as: - (ANSWER)An unexpected event that causes loss
When Sally applies for an auto policy, her agent issues her a _______ so that she
can benefit from insurance protection while he underwrites the policy. -
(ANSWER)Binder
Jane's shed burns to the ground during a tornado, when the high winds break a
wall of the shed, knocking over a lantern inside. What is the proximate cause of
the loss? - (ANSWER)Wind
During a storm, lightning strikes a tree in Harry's yard and starts a fire that
spreads to his shed where he keeps all his equipment for his landscaping business.
In addition to the shed, Harry has to purchase all new equipment to stay in
business. The cost to replace the equipment would be considered: - (ANSWER)A
direct loss
