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Texas Adjuster Pro Final Exam Questions
Exam (2025) Exam Questions & Answers |
Latest Already Graded A+ UPDATE
2025|2026!! Adjuster Pro Texas
All of the following pieces of information can be found in the
conditions section of an insurance policy EXCEPT: Ans: — Causes
of loss that are not covered
Which of the following best defines the principle of indemnity?
Ans: — 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 Ans: — a domestic insurer
What is a reserve, in insurance terms? Ans: — 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? Ans: — The insured's duty after a loss
Which of the following is found in the declarations page of an
insurance policy? Ans: — The name of the insured party
Which of the following refers to being restored to the financial
condition you were in before a loss? Ans: — 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: Ans: — 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: Ans: — Risk retention
Which of the following people committed soft fraud? Ans: —
Rafael accidentally slipped on a wet floor at the supermarket.
© 2025 All rights reserved
, 2 | Page
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: Ans: — 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: Ans: —
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: Ans: —
Morale hazard
When an insurer issues an insurance policy, the actual item,
person, or organization that is being insured is called the: Ans: —
Risk
Which of the following situations does not involve an instance of
"pure risk" Ans: — 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? Ans: — Starting fraud
busting units staffed with former detectives and police officers
Which of the following is NOT a form of insurance fraud? Ans: —
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: Ans: — 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
© 2025 All rights reserved
, 3 | Page
aid. She then sues the store for her fake injury in an effort to
collect an insurance settlement. What has Haley committed? Ans:
— 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: Ans:
— Property insurance fraud
Which of the following is an example of a hazard? Ans: — Sandra's
home is in an area of Los Angeles that is often hit by earthquakes
Risk avoidance is a risk management technique that: Ans: —
Eliminates risk
An "occurrence" is defined as: Ans: — 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. Ans: — 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? Ans: — 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: Ans: — A direct loss
Clark is filling out an application for an insurance policy. The
application asks for his birth date, and Clark writes 1/24/67. His
actual birthday is 1/24/63, but he likes to appear younger so he
uses a different date. This would be called: Ans: —
Misrepresentation
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
© 2025 All rights reserved
, 4 | Page
accident and files a claim, which of the following is most likely to
happen? Ans: — The insurer will pay the claim because of the
implied waiver they have made by not canceling Jason's policy the
previous times he was late with his payments.
What is a binder? Ans: — Temporary coverage for an insurance
applicant until the policy is issued
In order to qualify for an insurance policy, Lydia's Fine Jewels
must agree to have a security guard on the premises 24/7. This is
called a: Ans: — Warranty
Which of the following statements about the principle of estoppel
is TRUE? Ans: — Estoppel protects the insured party from an
insurer who initially approves coverage, but then later denies
coverage after the insured pays for repairs.
Driving home after a 14-hour shift Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the
East wall and roof. As a result, Sandra and her family must move
into a hotel until the repairs are completed. The cost of staying in
a hotel is: Ans: — An indirect loss
When Jim is involved in an accident, he immediately calls his
insurer and files a claim. When his insurer denies the claim, it is
required to provide Jim with: Ans: — A reason for denying the
claim
Sue decides to get a valued insurance policy on her antique car.
She and her insurance company agree to a value of $85,000. Three
years later, the car is destroyed when a tree falls on it in a parking
lot. The car depreciates at $2,000 a year, and its replacement cost
is 100,000. Ignoring any deductible, how much can Sue expect her
insurer to indemnify her? Ans: — $85,000
When Zach purposefully burned down Matt's restaurant, Matt's
insurer paid the claim and then went after Zach for the damages.
Matt is furious about what Zach did and wants to sue him as well.
Why is it NOT possible for Matt to sue Zach? Ans: — Matt has
already received indemnification from his insurer
© 2025 All rights reserved
Texas Adjuster Pro Final Exam Questions
Exam (2025) Exam Questions & Answers |
Latest Already Graded A+ UPDATE
2025|2026!! Adjuster Pro Texas
All of the following pieces of information can be found in the
conditions section of an insurance policy EXCEPT: Ans: — Causes
of loss that are not covered
Which of the following best defines the principle of indemnity?
Ans: — 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 Ans: — a domestic insurer
What is a reserve, in insurance terms? Ans: — 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? Ans: — The insured's duty after a loss
Which of the following is found in the declarations page of an
insurance policy? Ans: — The name of the insured party
Which of the following refers to being restored to the financial
condition you were in before a loss? Ans: — 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: Ans: — 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: Ans: — Risk retention
Which of the following people committed soft fraud? Ans: —
Rafael accidentally slipped on a wet floor at the supermarket.
© 2025 All rights reserved
, 2 | Page
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: Ans: — 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: Ans: —
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: Ans: —
Morale hazard
When an insurer issues an insurance policy, the actual item,
person, or organization that is being insured is called the: Ans: —
Risk
Which of the following situations does not involve an instance of
"pure risk" Ans: — 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? Ans: — Starting fraud
busting units staffed with former detectives and police officers
Which of the following is NOT a form of insurance fraud? Ans: —
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: Ans: — 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
© 2025 All rights reserved
, 3 | Page
aid. She then sues the store for her fake injury in an effort to
collect an insurance settlement. What has Haley committed? Ans:
— 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: Ans:
— Property insurance fraud
Which of the following is an example of a hazard? Ans: — Sandra's
home is in an area of Los Angeles that is often hit by earthquakes
Risk avoidance is a risk management technique that: Ans: —
Eliminates risk
An "occurrence" is defined as: Ans: — 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. Ans: — 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? Ans: — 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: Ans: — A direct loss
Clark is filling out an application for an insurance policy. The
application asks for his birth date, and Clark writes 1/24/67. His
actual birthday is 1/24/63, but he likes to appear younger so he
uses a different date. This would be called: Ans: —
Misrepresentation
Jason's auto policy states that the insurer may cancel coverage if a
premium is more than 30 days late. However, Jason is currently
more than 30 days late, and has been so five times in the last year,
and his insurer has done nothing about it. When Jason gets into an
© 2025 All rights reserved
, 4 | Page
accident and files a claim, which of the following is most likely to
happen? Ans: — The insurer will pay the claim because of the
implied waiver they have made by not canceling Jason's policy the
previous times he was late with his payments.
What is a binder? Ans: — Temporary coverage for an insurance
applicant until the policy is issued
In order to qualify for an insurance policy, Lydia's Fine Jewels
must agree to have a security guard on the premises 24/7. This is
called a: Ans: — Warranty
Which of the following statements about the principle of estoppel
is TRUE? Ans: — Estoppel protects the insured party from an
insurer who initially approves coverage, but then later denies
coverage after the insured pays for repairs.
Driving home after a 14-hour shift Sam falls asleep at the wheel
and plows into Sandra's home, causing extensive damage to the
East wall and roof. As a result, Sandra and her family must move
into a hotel until the repairs are completed. The cost of staying in
a hotel is: Ans: — An indirect loss
When Jim is involved in an accident, he immediately calls his
insurer and files a claim. When his insurer denies the claim, it is
required to provide Jim with: Ans: — A reason for denying the
claim
Sue decides to get a valued insurance policy on her antique car.
She and her insurance company agree to a value of $85,000. Three
years later, the car is destroyed when a tree falls on it in a parking
lot. The car depreciates at $2,000 a year, and its replacement cost
is 100,000. Ignoring any deductible, how much can Sue expect her
insurer to indemnify her? Ans: — $85,000
When Zach purposefully burned down Matt's restaurant, Matt's
insurer paid the claim and then went after Zach for the damages.
Matt is furious about what Zach did and wants to sue him as well.
Why is it NOT possible for Matt to sue Zach? Ans: — Matt has
already received indemnification from his insurer
© 2025 All rights reserved
