Texas Adjuster Pro Final Exam Questions
Exam (2025) Exam Questions &
Answers 2026
All of the following pieces of information can be found in the conditions section of
an insurance policy EXCEPT: - Correct answer-Causes of loss that are not covered
Which of the following best defines the principle of indemnity? - Correct 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 - Correct answer-a domestic insurer
What is a reserve, in insurance terms? - Correct 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? - Correct answer-The insured's duty after a loss
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,Which of the following is found in the declarations page of an insurance policy? -
Correct 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? - Correct answer-Indemnification
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: - Correct 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: - Correct answer-Risk retention
Which of the following people committed soft fraud? - Correct 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,reverse and backs into Mike's car! The other drivers actions are an example of: -
Correct 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: - Correct 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: - Correct answer-Morale hazard
When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: - Correct answer-Risk
Which of the following situations does not involve an instance of "pure risk" -
Correct 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? - Correct answer-Starting fraud busting units staffed with
former detectives and police officers
Which of the following is NOT a form of insurance fraud? - Correct answer-
Increasing your insurance coverage when you think a loss is likely
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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: - Correct 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? - Correct
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
sledgehammer to some of his extra belongings and adds them to his claim. Jake has
committed: - Correct answer-Property insurance fraud
Which of the following is an example of a hazard? - Correct 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: - Correct answer-Eliminates
risk
An "occurrence" is defined as: - Correct answer-An unexpected event that causes
loss
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Exam (2025) Exam Questions &
Answers 2026
All of the following pieces of information can be found in the conditions section of
an insurance policy EXCEPT: - Correct answer-Causes of loss that are not covered
Which of the following best defines the principle of indemnity? - Correct 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 - Correct answer-a domestic insurer
What is a reserve, in insurance terms? - Correct 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? - Correct answer-The insured's duty after a loss
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Which of the following is found in the declarations page of an insurance policy? -
Correct 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? - Correct answer-Indemnification
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: - Correct 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: - Correct answer-Risk retention
Which of the following people committed soft fraud? - Correct 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,reverse and backs into Mike's car! The other drivers actions are an example of: -
Correct 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: - Correct 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: - Correct answer-Morale hazard
When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: - Correct answer-Risk
Which of the following situations does not involve an instance of "pure risk" -
Correct 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? - Correct answer-Starting fraud busting units staffed with
former detectives and police officers
Which of the following is NOT a form of insurance fraud? - Correct answer-
Increasing your insurance coverage when you think a loss is likely
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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: - Correct 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? - Correct
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
sledgehammer to some of his extra belongings and adds them to his claim. Jake has
committed: - Correct answer-Property insurance fraud
Which of the following is an example of a hazard? - Correct 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: - Correct answer-Eliminates
risk
An "occurrence" is defined as: - Correct answer-An unexpected event that causes
loss
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
