ADJUSTER PRO TEXAS ACTUAL EXAM
PAPER 2026 QUESTIONS WITH VERIFIED
ANSWERS
⩥ Premium. Answer: A specific sum of money paid by the insured to the
insurance company in exchange for financial protection against loss.
⩥ spreading the risk. Answer: A method of displacing vulnerability to
hazards across a larger population through the use of insurance and aid.
⩥ indemnity. Answer: Restoration to approximate financial condition no
better no less
⩥ 4 conditions of insurance contracts to make it legal. Answer:
Agreement, Consideration,
Competent parties, Legal purpose
⩥ Parts of the Insurance Contract. Answer: declarations/definitions
insuring agreements, conditions,
exclusions
⩥ Personal/Property insurance. Answer: Protects from financial loss
,⩥ liability insurance. Answer: pays for injuries to other people and
property if you are responsible for the accident
⩥ Adhesion. Answer: One party (Insurer) dictates the terms of the
contract
⩥ Doctrine of Reasonable Expectations. Answer: Legal principle that
provides that an insurance policy includes coverage that an average
person would reasonably expect it to include.
⩥ Utmost Good Faith. Answer: A principle of insurance which states
that the insurance company must be able to rely on the honesty and
cooperation of the insured, and the insured must rely on the company to
fulfill its obligations in good faith.
⩥ Aleatory. Answer: depending on an unknown future event
⩥ Unilateral Contract. Answer: The insurer is under obligation to pay for
loss
⩥ Conditional. Answer: Damage are paid if conditions are met
⩥ Adverse Selection. Answer: A high-risk person benefits more from
insurance, so is more likely to purchase it.
,⩥ hazard. Answer: A danger or risk.
⩥ peril. Answer: cause of loss
⩥ Loss. Answer: Must be unforeseen in expected and defined
⩥ exposure. Answer: How likely a loss will occur
⩥ Law of large numbers. Answer: The larger the number of units
insured, the more accurately the insurer can predict the number of claims
from that group
⩥ Binder. Answer: A temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued.
⩥ blanket coverage. Answer: Policy which provides a single limit of
insurance for all property falling within a specific class
⩥ Specific Limits. Answer: Limits that apply to one specific type of
property
, ⩥ Warranties. Answer: Found on the conditions page... if policy holder
breaks the warranty the insurer can deny coverage
⩥ Concealment. Answer: Hiding the truth
⩥ Waver. Answer: Voluntary surrender of a right, claim, or privilege
⩥ Implied Waiver. Answer: a person's actions that cause another to
believe that a right has been relinquished
⩥ Expressed Waiver. Answer: In writing, signed
⩥ Estoppel. Answer: A legal principle that prevents the insurer from
denying coverage if the policy holder has been lead to believe in good
faith that coverage applies. It does not allow the insurer to change the
coverage in an insurance policy without the policyholders consent.
⩥ The declaration page includes. Answer: Names, policy #, location &
description of insured item, value, dates of the policy, amount and limit
of coverage, deductible, and premium
⩥ Insuring Agreement. Answer: A statement in an insurance policy that
the insurer will, under described circumstances, make a loss payment or
provide a service.
PAPER 2026 QUESTIONS WITH VERIFIED
ANSWERS
⩥ Premium. Answer: A specific sum of money paid by the insured to the
insurance company in exchange for financial protection against loss.
⩥ spreading the risk. Answer: A method of displacing vulnerability to
hazards across a larger population through the use of insurance and aid.
⩥ indemnity. Answer: Restoration to approximate financial condition no
better no less
⩥ 4 conditions of insurance contracts to make it legal. Answer:
Agreement, Consideration,
Competent parties, Legal purpose
⩥ Parts of the Insurance Contract. Answer: declarations/definitions
insuring agreements, conditions,
exclusions
⩥ Personal/Property insurance. Answer: Protects from financial loss
,⩥ liability insurance. Answer: pays for injuries to other people and
property if you are responsible for the accident
⩥ Adhesion. Answer: One party (Insurer) dictates the terms of the
contract
⩥ Doctrine of Reasonable Expectations. Answer: Legal principle that
provides that an insurance policy includes coverage that an average
person would reasonably expect it to include.
⩥ Utmost Good Faith. Answer: A principle of insurance which states
that the insurance company must be able to rely on the honesty and
cooperation of the insured, and the insured must rely on the company to
fulfill its obligations in good faith.
⩥ Aleatory. Answer: depending on an unknown future event
⩥ Unilateral Contract. Answer: The insurer is under obligation to pay for
loss
⩥ Conditional. Answer: Damage are paid if conditions are met
⩥ Adverse Selection. Answer: A high-risk person benefits more from
insurance, so is more likely to purchase it.
,⩥ hazard. Answer: A danger or risk.
⩥ peril. Answer: cause of loss
⩥ Loss. Answer: Must be unforeseen in expected and defined
⩥ exposure. Answer: How likely a loss will occur
⩥ Law of large numbers. Answer: The larger the number of units
insured, the more accurately the insurer can predict the number of claims
from that group
⩥ Binder. Answer: A temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued.
⩥ blanket coverage. Answer: Policy which provides a single limit of
insurance for all property falling within a specific class
⩥ Specific Limits. Answer: Limits that apply to one specific type of
property
, ⩥ Warranties. Answer: Found on the conditions page... if policy holder
breaks the warranty the insurer can deny coverage
⩥ Concealment. Answer: Hiding the truth
⩥ Waver. Answer: Voluntary surrender of a right, claim, or privilege
⩥ Implied Waiver. Answer: a person's actions that cause another to
believe that a right has been relinquished
⩥ Expressed Waiver. Answer: In writing, signed
⩥ Estoppel. Answer: A legal principle that prevents the insurer from
denying coverage if the policy holder has been lead to believe in good
faith that coverage applies. It does not allow the insurer to change the
coverage in an insurance policy without the policyholders consent.
⩥ The declaration page includes. Answer: Names, policy #, location &
description of insured item, value, dates of the policy, amount and limit
of coverage, deductible, and premium
⩥ Insuring Agreement. Answer: A statement in an insurance policy that
the insurer will, under described circumstances, make a loss payment or
provide a service.
