Texas all-line adjuster FINAL EXAM-REAL ACTUAL EXAM-
LATEST UPDATE 2025 | COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS-RATED 100% CORRECT!!
ALREADY GRADED A+
Which of the garage policy coverages will pay for physical damage to a garage customer's auto
regardless of legal liability? - answer-;Garagekeepers direct primary coverage.
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.
Each of the following is considered to be an "implied warranty" in an Ocean Marine insurance
policy, EXCEPT: - answer-;General Average
All of the following are listed in the common declarations of a Commercial Package policy (CPP),
EXCEPT: - answer-;A list of perils insured against.
Jim Johnson has an automobile policy with a combined single limit of $50,000. He is involved in
an accident where he is at-fault and incurs the following expenses:$30,000 bodily injury
judgment;$30,000 property damage judgment;$5,000 damage to traffic light;$6,000 attorney's
fees for his defense;$300 in premiums for appeal bond; and$75 in bail bond premiums for
related traffic violations. What is the maximum amount his insurance company will pay? -
answer-;$56,375
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for
additional living expenses if Coverage A was $60,000? - answer-;$12,000
,The form provides 20% for additional living expenses and fair rental value. You can figure this
out in your head by asking yourself, "What is 10% of $60,000" and then double it. 10% of
$60,000 is $6,000 x 2 = $12,000. This is a coverage that is frequently amended to comply with
state laws, so please notice that this question is asking about the STANDARDIZED policies.
A dead tree beside Jerry's home is best described as which of the following types of hazards? -
answer-;physical hazard
Chris is insured through Binders Keepers Insurance Company and his policy period ends in 12
months. However, Chris has decided that he wants to cancel his policy in order to purchase
another one from a company that advertises with cute commercials on television. Chris calls his
agent to cancel the policy and is informed that the unearned premium (UEP) on the cancelled
policy will be returned to him by mail in a couple of weeks. When Chris receives the check, he is
surprised to find that it's made out for less than the amount of unearned premium he should
have received. What is the most likely reason for this? - - answer-;Chris' policy had a provision
stating that UEP must be returned on a short-rate basis
In Texas, a doctor must certify that an injured employee has reached Maximum Medical
Improvement (MMI) and will assign an impairment rating (IR) for the percentage of permanent
impairment that the injured worker has experienced by using the rating criteria: - answer-;From
the 4th edition of the American Medical Association (AMA) Guides to the Evaluation of
Permanent Impairment
The limit of a bond is known as its: - answer-;The bond penalty
Which of the following serves as a deterrent for an insured to cancel an insurance policy before
its expiration date? - answer-;A short-rate penalty deducted from the unearned premium.
Which of the following would be covered by Section I of the Businessowners policy? - answer-
;The seizure of the insured's building by the civil authorities in order to stop the spread of fire.
,Which of the following protects against legal liability for loss or damage to baggage? - answer-
;Cargo Liability coverage.
Which of the following coverages is included as "no-fault" coverage on the standardized
Personal Auto policy? - answer-;Medical Payments and Physical Damage.
Which of the following types of insurance companies is a non-profit organization? - answer-
;fraternal benefit society
In order for a contract to be binding in a court of law, it must be designed for: - answer-;Legal
purposes.
Which of the following additional coverages provided by the Building and Personal Property
coverage form applies only to buildings to which the replacement cost optional coverage
applies? - answer-;Increased cost of construction
Which of the following statements is TRUE regarding the DP-2 cause of loss form? - answer-;It
automatically includes the EC perils, V&MM coverage, and the broad form perils.
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal
property would be covered if: - answer-;The wind created an opening in the structure, allowing
the wind to damage the personal property inside.
Under Ben Green's personal auto policy, each of the following would qualify as a
"family member" EXCEPT: - answer-;Susan Green, Ben's wife. Susan maintains a separate
residence although she and Ben are not divorced.
, 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.
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
Which of the following would NOT be excluded under the Commercial Property basic cause of
loss form? - answer-;A fire caused by earth movement.
Which of the following losses would be covered by Part D of a standard Personal Auto policy
providing both "Other Than Collision" (Comprehensive) and
"Collision" coverage? - answer-;A front tire blows out in a high-speed head-on collision, which
also causes extensive damage to the vehicle.
Which of the following would be covered under Part Two - Employer's Liability of a standard
workers' compensation policy? - answer-;The spouse of an injured employee sues the employer
for loss of care and services (consortium).
What coverage is provided under the BOP for a steam boiler explosion? - answer-;Steam boiler
explosions are excluded unless the damage is a result of an explosion of gases or fuels within
the object or flues.
Which of the following is NOT covered on the Commercial Property basic cause of loss form? -
answer-;Pollution clean up
Under which circumstances would it be legal for an insurer to charge one insured more than
another insured for the same coverage? - answer-;When the insured is statistically more likely
to experience a loss.
LATEST UPDATE 2025 | COMPLETE QUESTIONS WITH
CORRECT DETAILED ANSWERS-RATED 100% CORRECT!!
ALREADY GRADED A+
Which of the garage policy coverages will pay for physical damage to a garage customer's auto
regardless of legal liability? - answer-;Garagekeepers direct primary coverage.
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.
Each of the following is considered to be an "implied warranty" in an Ocean Marine insurance
policy, EXCEPT: - answer-;General Average
All of the following are listed in the common declarations of a Commercial Package policy (CPP),
EXCEPT: - answer-;A list of perils insured against.
Jim Johnson has an automobile policy with a combined single limit of $50,000. He is involved in
an accident where he is at-fault and incurs the following expenses:$30,000 bodily injury
judgment;$30,000 property damage judgment;$5,000 damage to traffic light;$6,000 attorney's
fees for his defense;$300 in premiums for appeal bond; and$75 in bail bond premiums for
related traffic violations. What is the maximum amount his insurance company will pay? -
answer-;$56,375
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for
additional living expenses if Coverage A was $60,000? - answer-;$12,000
,The form provides 20% for additional living expenses and fair rental value. You can figure this
out in your head by asking yourself, "What is 10% of $60,000" and then double it. 10% of
$60,000 is $6,000 x 2 = $12,000. This is a coverage that is frequently amended to comply with
state laws, so please notice that this question is asking about the STANDARDIZED policies.
A dead tree beside Jerry's home is best described as which of the following types of hazards? -
answer-;physical hazard
Chris is insured through Binders Keepers Insurance Company and his policy period ends in 12
months. However, Chris has decided that he wants to cancel his policy in order to purchase
another one from a company that advertises with cute commercials on television. Chris calls his
agent to cancel the policy and is informed that the unearned premium (UEP) on the cancelled
policy will be returned to him by mail in a couple of weeks. When Chris receives the check, he is
surprised to find that it's made out for less than the amount of unearned premium he should
have received. What is the most likely reason for this? - - answer-;Chris' policy had a provision
stating that UEP must be returned on a short-rate basis
In Texas, a doctor must certify that an injured employee has reached Maximum Medical
Improvement (MMI) and will assign an impairment rating (IR) for the percentage of permanent
impairment that the injured worker has experienced by using the rating criteria: - answer-;From
the 4th edition of the American Medical Association (AMA) Guides to the Evaluation of
Permanent Impairment
The limit of a bond is known as its: - answer-;The bond penalty
Which of the following serves as a deterrent for an insured to cancel an insurance policy before
its expiration date? - answer-;A short-rate penalty deducted from the unearned premium.
Which of the following would be covered by Section I of the Businessowners policy? - answer-
;The seizure of the insured's building by the civil authorities in order to stop the spread of fire.
,Which of the following protects against legal liability for loss or damage to baggage? - answer-
;Cargo Liability coverage.
Which of the following coverages is included as "no-fault" coverage on the standardized
Personal Auto policy? - answer-;Medical Payments and Physical Damage.
Which of the following types of insurance companies is a non-profit organization? - answer-
;fraternal benefit society
In order for a contract to be binding in a court of law, it must be designed for: - answer-;Legal
purposes.
Which of the following additional coverages provided by the Building and Personal Property
coverage form applies only to buildings to which the replacement cost optional coverage
applies? - answer-;Increased cost of construction
Which of the following statements is TRUE regarding the DP-2 cause of loss form? - answer-;It
automatically includes the EC perils, V&MM coverage, and the broad form perils.
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal
property would be covered if: - answer-;The wind created an opening in the structure, allowing
the wind to damage the personal property inside.
Under Ben Green's personal auto policy, each of the following would qualify as a
"family member" EXCEPT: - answer-;Susan Green, Ben's wife. Susan maintains a separate
residence although she and Ben are not divorced.
, 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.
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
Which of the following would NOT be excluded under the Commercial Property basic cause of
loss form? - answer-;A fire caused by earth movement.
Which of the following losses would be covered by Part D of a standard Personal Auto policy
providing both "Other Than Collision" (Comprehensive) and
"Collision" coverage? - answer-;A front tire blows out in a high-speed head-on collision, which
also causes extensive damage to the vehicle.
Which of the following would be covered under Part Two - Employer's Liability of a standard
workers' compensation policy? - answer-;The spouse of an injured employee sues the employer
for loss of care and services (consortium).
What coverage is provided under the BOP for a steam boiler explosion? - answer-;Steam boiler
explosions are excluded unless the damage is a result of an explosion of gases or fuels within
the object or flues.
Which of the following is NOT covered on the Commercial Property basic cause of loss form? -
answer-;Pollution clean up
Under which circumstances would it be legal for an insurer to charge one insured more than
another insured for the same coverage? - answer-;When the insured is statistically more likely
to experience a loss.
