TEXAS ALL LINES ADJUSTER EXAM QUESTIONS AND CORRECT ANSWERS

TEXAS ALL LINES ADJUSTER EXAM
QUESTIONS AND CORRECT ANSWERS

AllA2ofA2theA2followingA2areA2criteriaA2forA2anA2accidentA2toA2haveA2occurredA2"inA2theA2cou
rseA2of"A2theA2employmentA2underA2aA2workers'A2compensationA2policy,A2EXCEPT:A2-
A2Ans--
WhileA2performingA2aA2taskA2thatA2aA2fellowA2workerA2requested,A2thatA2wasA2unusualA2toA
2theA2employee'sA2jobA2description,A2butA2occurredA2onA2theA2employer'sA2premisesA2duri
ngA2workingA2hours.

WhichA2ofA2theA2followingA2statementsA2isA2NOTA2TRUEA2regardingA2theA2impliedA2warra
ntiesA2ofA2anA2OceanA2MarineA2policy?A2-A2Ans--
TheA2impliedA2warrantiesA2areA2attachedA2toA2theA2policyA2asA2anA2endorsement..

ParmeliaA2isA2coveredA2underA2twoA2separateA2standardizedA2PersonalA2AutomobileA2poli
cies,A2withA2PartA2CA2limitsA2underA2bothA2policiesA2setA2atA2$200,000.A2ParmeliaA2isA2invo
lvedA2inA2anA2accidentA2withA2anA2uninsuredA2motoristA2andA2sheA2sustainsA2bodilyA2injury
A2damagesA2forA2$262,320.A2HowA2muchA2willA2ParmeliaA2receiveA2whenA2sheA2submitsA2
aA2claimA2forA2theseA2damagesA2-A2Ans--$200,000

WhichA2ofA2theA2followingA2endorsementsA2mustA2beA2attachedA2toA2aA2standardA2Busine
ssownersA2policyA2forA2coverageA2toA2applyA2toA2aA2businessesA2freezerA2thatA2wasA2dam
agedA2byA2theA2interruptionA2ofA2aA2powerA2sourceA2-A2Ans--UtilityA2ServicesA2-
A2DirectA2DamageA2endorsement.


AfterA2completingA2anA2inspectionA2ofA2anA2insured'sA2pressureA2equipmentA2andA2fireA2s
uppressionA2systems,A2theA2inspectorA2determinesA2thatA2theA2pressureA2equipmentA2nee
dsA2toA2beA2repairedA2andA2theA2suppressionA2systemsA2haveA2notA2beenA2cleanedA2andA
2inspectedA2inA2theA2timeA2frameA2requiredA2byA2theA2policy.A2TheA2insurerA2will:A2-A2Ans--
SuspendA2coverageA2immediatelyA2byA2redA2taggingA2theA2itemsA2untilA2theyA2areA2repair
ed,A2cleanedA2andA2passA2reinspection

ToA2beA2eligibleA2forA2coverageA2underA2aA2standardizedA2DwellingA2policy,A2theA2insured
A2mustA2notA2allowA2moreA2thanA2_______A2boardersA2toA2liveA2onA2theA2premises.A2-
A2Ans--5


AllA2ofA2theA2followingA2areA2"PerilsA2ofA2theA2Sea"A2underA2anA2OceanA2MarineA2policy,A2
EXCEPT:A2-A2Ans--Pirates

TheA2amountA2ofA2insuranceA2countersigned,A2issued,A2orA2soldA2byA2anA2agentA2orA2prod
ucerA2toA2coverA2immediateA2familyA2members,A2anA2employer,A2orA2employeesA2isA2kno
wnA2as:A2-A2Ans--ControlledA2business

,WhichA2ofA2theA2followingA2standardizedA2DwellingA2insuranceA2formsA2providesA2coverag
eA2forA2lossA2ofA2rentalA2incomeA2-A2Ans--TheA2DP-1,A2DP-2,A2andA2DP-3A2forms

TheA2"PartA2BA2-
A2MedicalA2Payments"A2coverageA2ofA2aA2personalA2automobileA2policyA2coversA2injuriesA2
forA2allA2ofA2theA2following,A2EXCEPT:A2-A2Ans--
AA2passengerA2whoA2isA2injuredA2inA2anotherA2vehicleA2thatA2isA2struckA2byA2theA2insured's
A2vehicleA2inA2anA2accident


WhichA2ofA2theA2followingA2areA2theA2TexasA2Workers'A2CompensationA2benefitsA2thatA2ar
eA2increasedA2byA2aA2cost-of-livingA2adjustmentA2(COLAs)A2-A2Ans--
LifetimeA2IncomeA2BenefitsA2(LIBs)A2only

HannahA2mustA2takeA2timeA2awayA2fromA2workA2toA2helpA2assistA2inA2theA2investigationA2o
fA2aA2claimA2thatA2wasA2madeA2againstA2herA2BOPA2policy.A2TheA2policyA2willA2payA2forA2H
annah'sA2actualA2lossA2ofA2earningsA2upA2to:A2-A2Ans--$250A2perA2day.

SurplusA2LinesA2companiesA2inA2TexasA2haveA2_____A2toA2acknowledgeA2theA2receiptA2of
A2aA2claim.A2-A2Ans--30A2days.


AllA2ofA2theA2followingA2areA2characteristicsA2ofA2aA2principalA2thatA2aA2suretyA2willA2scrutini
zeA2duringA2theA2underwritingA2process,A2EXCEPT:A2-A2Ans--Consideration.

UnderA2SectionA2IIA2ofA2aA2HomeownersA2policy,A2aA2cemeteryA2plotA2ownedA2byA2theA2ins
uredA2isA2consideredA2toA2be:A2-A2Ans--AnA2insuredA2location.

WhichA2ofA2theA2followingA2isA2NOTA2oneA2ofA2theA2fourA2majorA2coveragesA2ofA2anA2Ocea
nA2MarineA2policy?A2-A2Ans--Seaworthiness.

AA2shipA2hasA2sufferedA2damageA2andA2sunk.A2WhichA2ofA2theA2followingA2wouldA2respon
dA2toA2coverA2theA2lossA2ofA2theA2ship?A2-A2Ans--HullA2Insurance.

AsA2aA2fiduciaryA2agent,A2anA2adjusterA2hasA2theA2powerA2toA2bindA2theA2insurer.A2WhichA2
ofA2theA2followingA2statementsA2isA2FALSEA2regardingA2thisA2power?A2-A2Ans--
OnlyA2anA2adjuster'sA2writtenA2statementsA2canA2legallyA2bindA2anA2insurer.

TheA2standardizedA2DwellingA2formsA2considerA2allA2eruptionsA2ofA2aA2volcanoA2withinA2aA
2__________A2periodA2toA2beA2aA2singleA2"occurrence".A2-A2Ans--72-hour


WhoseA2responsibilityA2isA2itA2toA2completeA2aA2"proofA2ofA2loss"?A2-A2Ans--TheA2claimant.

WhichA2ofA2theA2followingA2wouldA2NOTA2beA2determinedA2byA2aA2courtA2whenA2anA2insur
erA2hasA2filedA2aA2declaratoryA2judgmentA2action?A2-A2Ans--
TheA2typeA2andA2amountA2ofA2damagesA2thatA2willA2beA2paidA2toA2aA2plaintiffA2forA2theA2clai
mA2thatA2isA2beingA2disputed.

,WhichA2ofA2theA2followingA2statementsA2isA2TRUEA2regardingA2theA2HomeownersA2"additi
onalA2coverage"A2knownA2asA2Landlord'sA2Furnishings?A2-A2Ans--
TheA2coverageA2isA2notA2additionalA2insuranceA2andA2doesA2notA2increaseA2theA2limitsA2of
A2theA2policy.


WhichA2ofA2theA2followingA2wouldA2beA2coveredA2underA2theA2JonesA2Act?A2-A2Ans--
CrewA2membersA2ofA2aA2ship.

AllA2ofA2theA2followingA2statementsA2areA2trueA2regardingA2aA2PersonalA2LiabilityA2Supple
ment,A2EXCEPT:A2-A2Ans--TheA2policyA2willA2coverA2watercraftA2liability.

WhichA2ofA2theA2followingA2statementsA2isA2TRUEA2regardingA2CommercialA2PropertyA2co
verage?A2-A2Ans--
CommercialA2propertyA2coverageA2canA2beA2writtenA2asA2bothA2aA2monolineA2policyA2andA
2asA2partA2ofA2aA2packageA2policy.


WhatA2typeA2ofA2insuranceA2isA2usuallyA2providedA2orA2subsidizedA2byA2theA2stateA2orA2fed
eralA2governmentA2becauseA2itA2isA2notA2ordinarilyA2availableA2fromA2privateA2insurers?A2-
A2Ans--ResidualA2marketA2insurance.


TheA2optionalA2coverageA2forA2"EmployeeA2Dishonesty"A2underA2aA2standardA2Businesso
wnersA2policyA2providesA2aA2"discoveryA2period"A2forA2theA2insuredA2toA2discoverA2theA2dis
honestA2actA2andA2haveA2coverageA2stillA2apply.A2WhichA2ofA2theA2followingA2statementsA2
bestA2describesA2theA2"discoveryA2period"A2forA2thisA2optionalA2coverage?A2-A2Ans--
TheA2"discoveryA2period"A2isA2oneA2yearA2fromA2theA2endA2ofA2theA2policyA2period.

WhichA2ofA2theA2followingA2wouldA2beA2consideredA2anA2UnfairA2ClaimA2SettlementA2Pract
ice?A2-A2Ans--
FailingA2toA2denyA2coverageA2ofA2aA2claimA2withinA2aA2reasonableA2amountA2ofA2timeA2afte
rA2concludingA2theA2investigation

WhichA2ofA2theA2followingA2isA2TRUEA2regardingA2theA2DP-
2A2BroadA2FormA2coverageA2forA2"artificiallyA2generatedA2electricalA2current"?A2-A2Ans--
AA2fireA2mustA2beA2theA2resultA2ofA2theA2artificiallyA2generatedA2electricalA2currentA2forA2co
verageA2toA2apply..

TheA2CommercialA2BuildingA2andA2PersonalA2PropertyA2coverageA2formA2providesA2fiveA2
extensionsA2ofA2coverage,A2butA2onlyA2if:A2-A2Ans--
AnA280%A2orA2higherA2coinsuranceA2percentageA2isA2shownA2onA2theA2DeclarationsA2pag
e,A2andA2theA2propertyA2amountA2ofA2coverage,A2basedA2onA2thatA2percentage,A2isA2purch
ased.

AllA2ofA2theA2followingA2wouldA2beA2consideredA2"uninsuredA2motorists",A2EXCEPT:A2-
A2Ans--
AA2motoristA2drivingA2withA2coverageA2upA2toA2theA2requiredA2stateA2financialA2responsibili

, tyA2limitsA2forA2liability,A2butA2notA2highA2enoughA2toA2payA2theA2claimsA2forA2anA2at-
faultA2accident.

RegulationA2ofA2theA2insuranceA2industryA2inA2theA2UnitedA2StatesA2isA2primarilyA2leftA2to:A2
-A2Ans--StateA2governments.

WhichA2ofA2theA2followingA2coveragesA2doesA2NOTA2needA2toA2beA2addedA2toA2aA2Garage
A2CoverageA2formA2byA2endorsementA2forA2coverageA2toA2apply?A2-A2Ans--Collision.


ChazA2takesA2hisA2girlfriendA2toA2anA2expensiveA2restaurantA2forA2Valentine'sA2Day.A2ItA2is
A2raining,A2soA2heA2decidesA2toA2haveA2theA2valetA2parkA2hisA2car,A2savingA2hisA2girlfriendA2
fromA2gettingA2wet.A2TheA2valetA2isA2drivingA2theA2carA2intoA2theA2restaurant'sA2parkingA2ga
rage,A2whenA2heA2clipsA2theA2sideA2ofA2theA2garageA2entranceA2withA2theA2frontA2fenderA2o
fA2Chaz'sA2car.A2TheA2garageA2wallA2needsA2toA2beA2repairedA2asA2wellA2asA2theA2fenderA2
andA2headlightA2ofA2Chaz'sA2car.A2HowA2wouldA2PartA2DA2ofA2Chaz'sA2PersonalA2Automobi
leA2respondA2toA2thisA2loss?A2-A2Ans--
ItA2wouldA2coverA2theA2lossA2toA2Chaz'sA2carA2becauseA2itA2isA2theA2insuredA2automobile,A2
butA2wouldA2notA2coverA2theA2damageA2toA2theA2garage..

WhichA2ofA2theA2followingA2statementsA2isA2TRUEA2regardingA2theA2coverageA2extensionA
2ofA2theA2standardA2BusinessownersA2policyA2forA2"BusinessA2PersonalA2PropertyA2Temp
orarilyA2inA2PortableA2StorageA2Units"?A2-A2Ans--
CoverageA2willA2notA2applyA2ifA2theA2storageA2unitA2hasA2beenA2onA2theA2insuredA2premise
sA2forA2longerA2thanA290A2days,A2evenA2ifA2theA2businessA2personalA2propertyA2hasA2onlyA2
beenA2storedA2thereA2forA2lessA2thanA290A2days.

WhichA2ofA2theA2followingA2wouldA2beA2consideredA2aA2PartA2DA2-
A2OtherA2ThanA2CollisionA2claimA2underA2aA2PersonalA2AutomobileA2claim?A2-A2Ans--
AA2loadA2ofA2bricksA2fallingA2fromA2anA2apartmentA2buildingA2ontoA2theA2car.

TheA2SectionA2IA2AdditionalA2CoverageA2ofA2theA2standardA2BusinessownersA2policyA2pro
videsA2coverageA2forA2"DebrisA2Removal".A2WhichA2ofA2theA2followingA2statementsA2bestA2
describesA2theA2limitA2forA2thisA2coverage?A2-A2Ans--
TheA2totalA2limitA2mayA2beA2upA2toA225%A2ofA2theA2policyA2limitA2forA2theA2lossA2payableA2w
ithA2theA2deductibleA2included,A2plusA2upA2toA2anA2additionalA2$25,000A2ifA2theA2policyA2lim
itsA2areA2exhausted

AnA2agent,A2insuredA2orA2claimantA2hasA2intentionallyA2deceivedA2anA2insurerA2forA2financi
alA2gain.A2SuchA2anA2actA2isA2knownA2as:A2-A2Ans--Fraud

WhichA2ofA2theA2followingA2lossesA2wouldA2beA2coveredA2underA2aA2CommercialA2Propert
yA2policyA2withA2theA2specialA2causeA2ofA2lossA2formA2attached?A2-A2Ans--
AA2fireA2thatA2breaksA2outA2inA2anA2officeA2buildingA2andA2causesA2damageA2toA2twoA2ofA2t
heA2offices..