Texas all lines adjuster exam Questions
With 100%Verified AnswersA+GRADED
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - correct
answer...✔✔While performing a task that a fellow worker requested, that was unusual
to the employee's job description, but occurred on the employer's premises during
working hours.
Which of the following statements is NOT TRUE regarding the implied warranties of an
Ocean Marine policy? - correct answer...✔✔The implied warranties are attached to the
policy as an endorsement..
Parmelia is covered under two separate standardized Personal Automobile policies,
with Part C limits under both policies set at $200,000. Parmelia is involved in an
accident with an uninsured motorist and she sustains bodily injury damages for
$262,320. How much will Parmelia receive when she submits a claim for these
damages - correct answer...✔✔$200,000
Which of the following endorsements must be attached to a standard Businessowners
policy for coverage to apply to a businesses freezer that was damaged by the
interruption of a power source - correct answer...✔✔Utility Services - Direct Damage
endorsement.
After completing an inspection of an insured's pressure equipment and fire suppression
systems, the inspector determines that the pressure equipment needs to be repaired
and the suppression systems have not been cleaned and inspected in the time frame
required by the policy. The insurer will: - correct answer...✔✔Suspend coverage
immediately by red tagging the items until they are repaired, cleaned and pass
reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not
allow more than _______ boarders to live on the premises. - correct answer...✔✔5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
correct answer...✔✔Pirates
The amount of insurance countersigned, issued, or sold by an agent or producer to
cover immediate family members, an employer, or employees is known as: - correct
answer...✔✔Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for
loss of rental income - correct answer...✔✔The DP-1, DP-2, and DP-3 forms
A GRADESOLUTIONS
,The "Part B - Medical Payments" coverage of a personal automobile policy covers
injuries for all of the following, EXCEPT: - correct answer...✔✔A passenger who is
injured in another vehicle that is struck by the insured's vehicle in an accident
Which of the following are the Texas Workers' Compensation benefits that are
increased by a cost-of-living adjustment (COLAs) - correct answer...✔✔Lifetime
Income Benefits (LIBs) only
Hannah must take time away from work to help assist in the investigation of a claim that
was made against her BOP policy. The policy will pay for Hannah's actual loss of
earnings up to: - correct answer...✔✔$250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. -
correct answer...✔✔30 days.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - correct answer...✔✔Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - correct answer...✔✔An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine
policy? - correct answer...✔✔Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover
the loss of the ship? - correct answer...✔✔Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the
following statements is FALSE regarding this power? - correct answer...✔✔Only an
adjuster's written statements can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a
__________ period to be a single "occurrence". - correct answer...✔✔72-hour
Whose responsibility is it to complete a "proof of loss"? - correct answer...✔✔The
claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - correct answer...✔✔The type and amount of damages
that will be paid to a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - correct answer...✔✔The coverage is not
additional insurance and does not increase the limits of the policy.
A GRADESOLUTIONS
,Which of the following would be covered under the Jones Act? - correct answer...✔✔
Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - correct answer...✔✔The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
correct answer...✔✔Commercial property coverage can be written as both a monoline
policy and as part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal
government because it is not ordinarily available from private insurers? - correct
answer...✔✔Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners
policy provides a "discovery period" for the insured to discover the dishonest act and
have coverage still apply. Which of the following statements best describes the
"discovery period" for this optional coverage? - correct answer...✔✔The "discovery
period" is one year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? -
correct answer...✔✔Failing to deny coverage of a claim within a reasonable amount of
time after concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - correct answer...✔✔A fire must be the result of the
artificially generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five
extensions of coverage, but only if: - correct answer...✔✔An 80% or higher
coinsurance percentage is shown on the Declarations page, and the property amount of
coverage, based on that percentage, is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - correct
answer...✔✔A motorist driving with coverage up to the required state financial
responsibility limits for liability, but not high enough to pay the claims for an at-fault
accident.
Regulation of the insurance industry in the United States is primarily left to: - correct
answer...✔✔State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage
form by endorsement for coverage to apply? - correct answer...✔✔Collision.
A GRADESOLUTIONS
, Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so
he decides to have the valet park his car, saving his girlfriend from getting wet. The
valet is driving the car into the restaurant's parking garage, when he clips the side of the
garage entrance with the front fender of Chaz's car. The garage wall needs to be
repaired as well as the fender and headlight of Chaz's car. How would Part D of Chaz's
Personal Automobile respond to this loss? - correct answer...✔✔It would cover the loss
to Chaz's car because it is the insured automobile, but would not cover the damage to
the garage..
Which of the following statements is TRUE regarding the coverage extension of the
standard Businessowners policy for "Business Personal Property Temporarily in
Portable Storage Units"? - correct answer...✔✔Coverage will not apply if the storage
unit has been on the insured premises for longer than 90 days, even if the business
personal property has only been stored there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under
a Personal Automobile claim? - correct answer...✔✔A load of bricks falling from an
apartment building onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides
coverage for "Debris Removal". Which of the following statements best describes the
limit for this coverage? - correct answer...✔✔The total limit may be up to 25% of the
policy limit for the loss payable with the deductible included, plus up to an additional
$25,000 if the policy limits are exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain.
Such an act is known as: - correct answer...✔✔Fraud
Which of the following losses would be covered under a Commercial Property policy
with the special cause of loss form attached? - correct answer...✔✔A fire that breaks
out in an office building and causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a
standardized Yacht policy is breached because of something out of the control of the
insured: - correct answer...✔✔The insurer must be notified within 10 days after the
breach and any additional premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance
policy? - correct answer...✔✔Owner-occupants of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily
injury is $100,000. He also purchased a Personal Umbrella policy with a $1,000,000
limit of liability. Cameron is sued and a judgement was made against him for $500,000.
To trigger his Umbrella policy, his Homeowners policy must pay $100,000, but he finds
that the insurance company from which he purchased his Homeowners policy has
A GRADESOLUTIONS
With 100%Verified AnswersA+GRADED
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - correct
answer...✔✔While performing a task that a fellow worker requested, that was unusual
to the employee's job description, but occurred on the employer's premises during
working hours.
Which of the following statements is NOT TRUE regarding the implied warranties of an
Ocean Marine policy? - correct answer...✔✔The implied warranties are attached to the
policy as an endorsement..
Parmelia is covered under two separate standardized Personal Automobile policies,
with Part C limits under both policies set at $200,000. Parmelia is involved in an
accident with an uninsured motorist and she sustains bodily injury damages for
$262,320. How much will Parmelia receive when she submits a claim for these
damages - correct answer...✔✔$200,000
Which of the following endorsements must be attached to a standard Businessowners
policy for coverage to apply to a businesses freezer that was damaged by the
interruption of a power source - correct answer...✔✔Utility Services - Direct Damage
endorsement.
After completing an inspection of an insured's pressure equipment and fire suppression
systems, the inspector determines that the pressure equipment needs to be repaired
and the suppression systems have not been cleaned and inspected in the time frame
required by the policy. The insurer will: - correct answer...✔✔Suspend coverage
immediately by red tagging the items until they are repaired, cleaned and pass
reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not
allow more than _______ boarders to live on the premises. - correct answer...✔✔5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
correct answer...✔✔Pirates
The amount of insurance countersigned, issued, or sold by an agent or producer to
cover immediate family members, an employer, or employees is known as: - correct
answer...✔✔Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for
loss of rental income - correct answer...✔✔The DP-1, DP-2, and DP-3 forms
A GRADESOLUTIONS
,The "Part B - Medical Payments" coverage of a personal automobile policy covers
injuries for all of the following, EXCEPT: - correct answer...✔✔A passenger who is
injured in another vehicle that is struck by the insured's vehicle in an accident
Which of the following are the Texas Workers' Compensation benefits that are
increased by a cost-of-living adjustment (COLAs) - correct answer...✔✔Lifetime
Income Benefits (LIBs) only
Hannah must take time away from work to help assist in the investigation of a claim that
was made against her BOP policy. The policy will pay for Hannah's actual loss of
earnings up to: - correct answer...✔✔$250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. -
correct answer...✔✔30 days.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - correct answer...✔✔Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - correct answer...✔✔An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine
policy? - correct answer...✔✔Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover
the loss of the ship? - correct answer...✔✔Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the
following statements is FALSE regarding this power? - correct answer...✔✔Only an
adjuster's written statements can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a
__________ period to be a single "occurrence". - correct answer...✔✔72-hour
Whose responsibility is it to complete a "proof of loss"? - correct answer...✔✔The
claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - correct answer...✔✔The type and amount of damages
that will be paid to a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - correct answer...✔✔The coverage is not
additional insurance and does not increase the limits of the policy.
A GRADESOLUTIONS
,Which of the following would be covered under the Jones Act? - correct answer...✔✔
Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - correct answer...✔✔The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
correct answer...✔✔Commercial property coverage can be written as both a monoline
policy and as part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal
government because it is not ordinarily available from private insurers? - correct
answer...✔✔Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners
policy provides a "discovery period" for the insured to discover the dishonest act and
have coverage still apply. Which of the following statements best describes the
"discovery period" for this optional coverage? - correct answer...✔✔The "discovery
period" is one year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? -
correct answer...✔✔Failing to deny coverage of a claim within a reasonable amount of
time after concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - correct answer...✔✔A fire must be the result of the
artificially generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five
extensions of coverage, but only if: - correct answer...✔✔An 80% or higher
coinsurance percentage is shown on the Declarations page, and the property amount of
coverage, based on that percentage, is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - correct
answer...✔✔A motorist driving with coverage up to the required state financial
responsibility limits for liability, but not high enough to pay the claims for an at-fault
accident.
Regulation of the insurance industry in the United States is primarily left to: - correct
answer...✔✔State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage
form by endorsement for coverage to apply? - correct answer...✔✔Collision.
A GRADESOLUTIONS
, Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so
he decides to have the valet park his car, saving his girlfriend from getting wet. The
valet is driving the car into the restaurant's parking garage, when he clips the side of the
garage entrance with the front fender of Chaz's car. The garage wall needs to be
repaired as well as the fender and headlight of Chaz's car. How would Part D of Chaz's
Personal Automobile respond to this loss? - correct answer...✔✔It would cover the loss
to Chaz's car because it is the insured automobile, but would not cover the damage to
the garage..
Which of the following statements is TRUE regarding the coverage extension of the
standard Businessowners policy for "Business Personal Property Temporarily in
Portable Storage Units"? - correct answer...✔✔Coverage will not apply if the storage
unit has been on the insured premises for longer than 90 days, even if the business
personal property has only been stored there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under
a Personal Automobile claim? - correct answer...✔✔A load of bricks falling from an
apartment building onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides
coverage for "Debris Removal". Which of the following statements best describes the
limit for this coverage? - correct answer...✔✔The total limit may be up to 25% of the
policy limit for the loss payable with the deductible included, plus up to an additional
$25,000 if the policy limits are exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain.
Such an act is known as: - correct answer...✔✔Fraud
Which of the following losses would be covered under a Commercial Property policy
with the special cause of loss form attached? - correct answer...✔✔A fire that breaks
out in an office building and causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a
standardized Yacht policy is breached because of something out of the control of the
insured: - correct answer...✔✔The insurer must be notified within 10 days after the
breach and any additional premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance
policy? - correct answer...✔✔Owner-occupants of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily
injury is $100,000. He also purchased a Personal Umbrella policy with a $1,000,000
limit of liability. Cameron is sued and a judgement was made against him for $500,000.
To trigger his Umbrella policy, his Homeowners policy must pay $100,000, but he finds
that the insurance company from which he purchased his Homeowners policy has
A GRADESOLUTIONS
