TEXAS ALL-LINES ADJUSTER COURSE
FINAL EXAM QUESTIONS AND CORRECT
ANSWERS
AA2severeA2thunderstormA2damagedA2aA2policyholder'sA2residence.A2HeA2calledA2andA2as
kedA2howA2longA2itA2wouldA2beA2beforeA2heA2receivesA2paymentA2forA2hisA2claim.A2WhichA2
ofA2theA2followingA2wouldA2NOTA2beA2anA2appropriateA2response?A2-A2Ans--
WeA2haveA26A2monthsA2toA2reachA2aA2finalA2settlementA2withA2you.
JanelleA2hasA2justA2graduatedA2collegeA2andA2isA2interestedA2inA2becomingA2anA2adjuster.
A2sheA2wouldA2likeA2toA2beA2ableA2toA2handleA2anyA2typeA2ofA2claim.A2TheA2mostA2compreh
ensiveA2typeA2ofA2licenseA2wouldA2be:A2-A2Ans--All-Lines
JackA2andA2RebeccaA2ownA2aA2vacationA2homeA2onA2GalvestonA2IslandA2whichA2theyA2ha
veA2insuredA2underA2anA2HO-
3A2policy.A2AfterA2aA2weekA2longA2winterA2skiA2tripA2toA2Aspen,A2theyA2returnA2homeA2toA2fi
ndA2theirA2houseA2burglarizedA2andA2theirA250"A2TV,A2computerA2equipment,A2jewelry,A2aA2
valuableA2gunA2collectionA2andA2someA2fishingA2equipmentA2stolen.A2HowA2wouldA2theirA2
HO-3A2policyA2respondA2toA2thisA2loss?A2-A2Ans--
TheA2entireA2theftA2lossA2wouldA2beA2coveredA2underA2CoverageA2C.A2subjectA2theA2policy
A2limitsA2andA2toA2certainA2limitations.
TheA2oldestA2formA2ofA2insuranceA2knownA2toA2existA2is:A2-A2Ans--
OceanA2MarineA2Insurance
HowA2isA2anA2injuredA2employee'sA2weeklyA2compensationA2rateA2forA2TemporaryA2Incom
eA2BenefitsA2(TIBS)A2calculatedA2underA2TexasA2Work
CompA2laws?A2-A2Ans--TheA2compA2rateA2=A2(AWWA2-A2PostA2InjuryA2Earnings)A2×A270%
InA2workersA2compensation,A2anA2"injuryA2isA2definedA2toA2mean:A2-A2Ans--
personalA2injuryA2orA2deathA2byA2"accident",A2arisingA2outA2ofA2workA2performedA2inA2theA2
courseA2ofA2employment.
JustinA2isA2aA2PropertyA2adjusterA2forA2XYZA2InsuranceA2Company.A2HeA2receivesA2aA2clai
mA2involvingA2theA2theftA2lossA2ofA2variousA2typesA2ofA2property.A2Justin'sA2initialA2responsi
bilityA2uponA2investigatingA2theA2lossA2isA2toA2firstA2determine:A2-A2Ans--
IfA2coverageA2exists
JimA2isA2aA2publicA2adjuster.A2HeA2hasA2anA2arrangementA2withA2aA2waterA2extractionA2co
mpanyA2whoA2paysA2himA2aA2commissionA2ofA210%A2forA2everyA2referralA2thatA2JimA2send
sA2theirA2way.A2WhichA2ofA2theA2followingA2statementsA2isA2correct?A2-A2Ans--
ThisA2arrangementA2reflectsA2aA2breachA2ofA2ethicalA2conductA2andA2aA2violationA2thatA2co
uldA2jeopardizeA2Jim'sA2licensure.
,WhichA2ofA2theA2followingA2wouldA2NOTA2beA2coveredA2underA2CoverageA2CA2PersonalA2
Property?A2-A2Ans--YourA210-
yearA2oldA2GermanA2ShepherdA2chokesA2onA2aA2boneA2andA2passesA2away.
AA2tornadoA2strikesA2aA2duplexA2thatA2isA2insuredA2underA2aA2DwellingA2(DP-
3)A2policy.A2WhichA2ofA2theA2followingA2wouldA2NOTA2beA2coveredA2byA2theA2DwellingA2pol
icy?A2-A2Ans--
DamageA2toA2anotherA2duplexA2rightA2nextA2door,A2alsoA2ownedA2byA2theA2landlord.
CommonA2carriersA2(i.e.A218-
wheelers,A2trains,A2planes,A2etc.)A2areA2responsibleA2forA2damageA2toA2customerA2goodsA
2theyA2transportA2EXCEPTA2forA2damagesA2resultingA2from:A2-A2Ans--ActsA2ofA2God
YouA2haveA2justA2startedA2yourA2careerA2handlingA2TexasA2workers'A2compensationA2clai
ms.A2WhichA2oneA2ofA2theA2followingA2WOULDA2BEA2consideredA2aA2violationA2ofA2theA2T
exasA2UnfairA2ClaimA2SettlementA2PracticesA2Act?A2-A2Ans--
NotA2respondingA2toA2anA2employee'sA2callsA2becauseA2you'reA2overworkedA2andA2theA2cl
aimA2involvesA2complexA2issuesA2youA2justA2don'tA2feelA2likeA2addressing.
WhichA2typeA2ofA2bondA2wouldA2beA2usedA2toA2coverA2theA2exposureA2toA2employeeA2theft
?A2-A2Ans--FidelityA2bond
GarrettA2wantsA2aA2TexasA2AllA2LinesA2Adjuster'sA2license.A2WhichA2ofA2theA2followingA2ac
tionsA2willA2beA2necessaryA2forA2GarrettA2toA2secureA2suchA2aA2license?A2-A2Ans--
PassA2aA2stateA2qualifyingA2examA2orA2pre-
licensingA2courseA2thatA2isA2certifiedA2byA2theA2TexasA2DepartmentA2ofA2InsuranceA2thatA2i
ncludesA2anA2approved,A2comprehensiveA2finalA2examinationA2ofA2150A2questions,A2andA2
attachA2theA2CertificateA2ofA2CompletionA2toA2anA2applicationA2forA2licensure.
TheA2DP.3A2DwellingA2formA2isA2anA2"OpenA2Risk"A2policy.A2ThisA2meansA2that:A2-A2Ans--
AllA2risksA2ofA2directA2physicalA2lossA2areA2coveredA2unlessA2theyA2areA2excluded
AssumeA2yourA2homeA2caughtA2fireA2dueA2toA2aA2faultyA2electricalA2device.A2andA2oneA2m
onthA2afterA2theA2fireA2youA2receiveA2aA2billA2fromA2theA2fireA2departmentA2forA2$450.00A2fo
rA2respondingA2toA2theA2fire.A2WouldA2thisA2beA2paidA2underA2yourA2homeowner'sA2policy?
A2-A2Ans--
Yes.A2ItA2isA2calledA2FireA2DepartmentA2ServiceA2ChargeA2andA2isA2anA2AdditionalA2Cover
ageA2providedA2underA2theA2policy,A2limitedA2toA2$500.
Generally,A2ifA2anA2employeeA2suffersA2anA2occupationalA2injuryA2andA2acceptsA2workers'A
2compensationA2benefits,A2heA2orA2she:A2-A2Ans--
GivesA2upA2theA2rightA2toA2sueA2theA2employerA2forA2personalA2injuryA2andA2painA2andA2suf
fering.A2TheA2employeeA2canA2onlyA2makeA2claimA2forA2workers'A2compensationA2benefits
.
, JanelleA2hasA2aA2TexasA2PersonalA2AutoA2PolicyA2withA230/60/25A2policyA2limits.A2SheA2hit
sA2aA2carA2withA24A2occupants,A2allA2ofA2whomA2areA2hurt.
TheyA2allA2sue.A2EachA2ofA2theA2injuredA2partiesA2receivesA2identicalA2verdictsA2ofA2$40,00
0.A2UnderA2Janelle'sA2bodilyA2injuryA2liabilityA2coverage,A2whatA2isA2theA2totalA2amountA2th
atA2theA2companyA2wouldA2payA2forA2theA2injuriesA2toA2theseA2plaintiffs?A2-A2Ans--$60,000
AA2personA2orA2entityA2whoA2guaranteesA2theA2performanceA2orA2paymentA2ofA2oneA2party
A2whoA2isA2obligatedA2byA2contractA2toA2anotherA2isA2calledA2a:A2-A2Ans--Surety
IfA2yourA2insuredA2wereA2toA2askA2youA2ifA2aA2DwellingA2policyA2wouldA2payA2forA2hisA2lossA
2ofA2rentalA2incomeA2afterA2aA2fireA2lossA2whileA2theA2propertyA2isA2beingA2repaired.A2whatA
2wouldA2youA2tellA2him?A2-A2Ans--
Yes,A2andA2it'sA2calledA2FairA2RentalA2ValueA2coverageA2andA2isA2availableA2underA2Cover
ageA2D.
FredA2runsA2aA2convenienceA2storeA2thatA2sellsA2gasoline.A2OneA2dayA2aA2customerA2pulls
A2awayA2fromA2theA2pumpA2whileA2theA2gasA2isA2stillA2pumping,A2breaksA2theA2pumpA2lineA2
andA2causesA2gasolineA2toA2escapeA2allA2overA2theA2parkingA2lotA2andA2intoA2theA2stormA2
drain.A2FredA2filesA2aA2claimA2underA2hisA2commercialA2propertyA2policy.A2DamageA2toA2re
pairA2theA2pumpA2totalsA2$545.00A2andA2$257.00A2worthA2ofA2gasolineA2wasA2pumpedA2ou
tA2beforeA2anyoneA2noticedA2andA2stoppedA2theA2pump.A2TheA2localA2HazMatA2teamA2was
A2calledA2outA2byA2theA2authoritiesA2toA2cleanA2upA2theA2parkingA2lotA2andA2theA2stormA2dra
in.A2FredA2receivedA2aA2billA2fromA2theA2CountyA2forA2$12.850.00A2forA2theA2cleanA2up.A2H
eA2sendsA2theA2billA2toA2youA2toA2pay.A2WhatA2kindA2ofA2coverageA2isA2availableA2toA2FredA
2asA2aA2commercialA2propertyA2extensionA2ofA2coverageA2neededA2toA2payA2thisA2loss?A2-
A2Ans--PollutionA2CleanA2UpA2andA2Removal
AA2cargoA2shipA2loadedA2withA2lumberA2andA2sailingA2fromA2Seattle,A2WashingtonA2toA2To
kyo,A2Japan,A2encounteredA2"theA2perfectA2storm"A2duringA2itsA2tripA2acrossA2theA2PacificA
2Ocean.A2SomeA2ofA2theA2lumberA2wasA2thrownA2overboardA2toA2saveA2theA2ship.A2ThisA2a
ctionA2isA2called:A2-A2Ans--Jettison
RobertoA2ownsA2aA2houseA2onA2LakeA2Conroe.A2TheA2houseA2isA2insuredA2withA2anA2HO-
3A2policy.A2DuringA2aA2storm,A2aA2tornadoA2touchesA2downA2andA2severelyA2damagesA2the
A2house.A2BecauseA2theA2houseA2isA2untenableA2andA2itA2willA2takeA22A2monthsA2toA2compl
eteA2repairs,A2RobertoA2movesA2IntoA2aA2localA2MarriottA2ResidenceA2Inn.A2UnderA2whichA
2ofA2theA2followingA2coveragesA2wouldA2RobertoA2beA2ableA2toA2recoverA2theA2additionalA2
expenseA2ofA2theA2MarriottA2andA2otherA2costs?A2-A2Ans--CoverageA2D:A2LossA2ofA2Use
DwellingA2policies:A2-A2Ans--
provideA2basicA2propertyA2protectionA2forA2individualsA2whoA2wantA2toA2protectA2theirA2fina
ncialA2interestA2inA2aA2property
WhichA2ofA2theA2followingA2perilsA2orA2exposureA2areA2FidelityA2bondsA2generallyA2usedA2t
oA2insureA2against?A2-A2Ans--Embezzlement
FINAL EXAM QUESTIONS AND CORRECT
ANSWERS
AA2severeA2thunderstormA2damagedA2aA2policyholder'sA2residence.A2HeA2calledA2andA2as
kedA2howA2longA2itA2wouldA2beA2beforeA2heA2receivesA2paymentA2forA2hisA2claim.A2WhichA2
ofA2theA2followingA2wouldA2NOTA2beA2anA2appropriateA2response?A2-A2Ans--
WeA2haveA26A2monthsA2toA2reachA2aA2finalA2settlementA2withA2you.
JanelleA2hasA2justA2graduatedA2collegeA2andA2isA2interestedA2inA2becomingA2anA2adjuster.
A2sheA2wouldA2likeA2toA2beA2ableA2toA2handleA2anyA2typeA2ofA2claim.A2TheA2mostA2compreh
ensiveA2typeA2ofA2licenseA2wouldA2be:A2-A2Ans--All-Lines
JackA2andA2RebeccaA2ownA2aA2vacationA2homeA2onA2GalvestonA2IslandA2whichA2theyA2ha
veA2insuredA2underA2anA2HO-
3A2policy.A2AfterA2aA2weekA2longA2winterA2skiA2tripA2toA2Aspen,A2theyA2returnA2homeA2toA2fi
ndA2theirA2houseA2burglarizedA2andA2theirA250"A2TV,A2computerA2equipment,A2jewelry,A2aA2
valuableA2gunA2collectionA2andA2someA2fishingA2equipmentA2stolen.A2HowA2wouldA2theirA2
HO-3A2policyA2respondA2toA2thisA2loss?A2-A2Ans--
TheA2entireA2theftA2lossA2wouldA2beA2coveredA2underA2CoverageA2C.A2subjectA2theA2policy
A2limitsA2andA2toA2certainA2limitations.
TheA2oldestA2formA2ofA2insuranceA2knownA2toA2existA2is:A2-A2Ans--
OceanA2MarineA2Insurance
HowA2isA2anA2injuredA2employee'sA2weeklyA2compensationA2rateA2forA2TemporaryA2Incom
eA2BenefitsA2(TIBS)A2calculatedA2underA2TexasA2Work
CompA2laws?A2-A2Ans--TheA2compA2rateA2=A2(AWWA2-A2PostA2InjuryA2Earnings)A2×A270%
InA2workersA2compensation,A2anA2"injuryA2isA2definedA2toA2mean:A2-A2Ans--
personalA2injuryA2orA2deathA2byA2"accident",A2arisingA2outA2ofA2workA2performedA2inA2theA2
courseA2ofA2employment.
JustinA2isA2aA2PropertyA2adjusterA2forA2XYZA2InsuranceA2Company.A2HeA2receivesA2aA2clai
mA2involvingA2theA2theftA2lossA2ofA2variousA2typesA2ofA2property.A2Justin'sA2initialA2responsi
bilityA2uponA2investigatingA2theA2lossA2isA2toA2firstA2determine:A2-A2Ans--
IfA2coverageA2exists
JimA2isA2aA2publicA2adjuster.A2HeA2hasA2anA2arrangementA2withA2aA2waterA2extractionA2co
mpanyA2whoA2paysA2himA2aA2commissionA2ofA210%A2forA2everyA2referralA2thatA2JimA2send
sA2theirA2way.A2WhichA2ofA2theA2followingA2statementsA2isA2correct?A2-A2Ans--
ThisA2arrangementA2reflectsA2aA2breachA2ofA2ethicalA2conductA2andA2aA2violationA2thatA2co
uldA2jeopardizeA2Jim'sA2licensure.
,WhichA2ofA2theA2followingA2wouldA2NOTA2beA2coveredA2underA2CoverageA2CA2PersonalA2
Property?A2-A2Ans--YourA210-
yearA2oldA2GermanA2ShepherdA2chokesA2onA2aA2boneA2andA2passesA2away.
AA2tornadoA2strikesA2aA2duplexA2thatA2isA2insuredA2underA2aA2DwellingA2(DP-
3)A2policy.A2WhichA2ofA2theA2followingA2wouldA2NOTA2beA2coveredA2byA2theA2DwellingA2pol
icy?A2-A2Ans--
DamageA2toA2anotherA2duplexA2rightA2nextA2door,A2alsoA2ownedA2byA2theA2landlord.
CommonA2carriersA2(i.e.A218-
wheelers,A2trains,A2planes,A2etc.)A2areA2responsibleA2forA2damageA2toA2customerA2goodsA
2theyA2transportA2EXCEPTA2forA2damagesA2resultingA2from:A2-A2Ans--ActsA2ofA2God
YouA2haveA2justA2startedA2yourA2careerA2handlingA2TexasA2workers'A2compensationA2clai
ms.A2WhichA2oneA2ofA2theA2followingA2WOULDA2BEA2consideredA2aA2violationA2ofA2theA2T
exasA2UnfairA2ClaimA2SettlementA2PracticesA2Act?A2-A2Ans--
NotA2respondingA2toA2anA2employee'sA2callsA2becauseA2you'reA2overworkedA2andA2theA2cl
aimA2involvesA2complexA2issuesA2youA2justA2don'tA2feelA2likeA2addressing.
WhichA2typeA2ofA2bondA2wouldA2beA2usedA2toA2coverA2theA2exposureA2toA2employeeA2theft
?A2-A2Ans--FidelityA2bond
GarrettA2wantsA2aA2TexasA2AllA2LinesA2Adjuster'sA2license.A2WhichA2ofA2theA2followingA2ac
tionsA2willA2beA2necessaryA2forA2GarrettA2toA2secureA2suchA2aA2license?A2-A2Ans--
PassA2aA2stateA2qualifyingA2examA2orA2pre-
licensingA2courseA2thatA2isA2certifiedA2byA2theA2TexasA2DepartmentA2ofA2InsuranceA2thatA2i
ncludesA2anA2approved,A2comprehensiveA2finalA2examinationA2ofA2150A2questions,A2andA2
attachA2theA2CertificateA2ofA2CompletionA2toA2anA2applicationA2forA2licensure.
TheA2DP.3A2DwellingA2formA2isA2anA2"OpenA2Risk"A2policy.A2ThisA2meansA2that:A2-A2Ans--
AllA2risksA2ofA2directA2physicalA2lossA2areA2coveredA2unlessA2theyA2areA2excluded
AssumeA2yourA2homeA2caughtA2fireA2dueA2toA2aA2faultyA2electricalA2device.A2andA2oneA2m
onthA2afterA2theA2fireA2youA2receiveA2aA2billA2fromA2theA2fireA2departmentA2forA2$450.00A2fo
rA2respondingA2toA2theA2fire.A2WouldA2thisA2beA2paidA2underA2yourA2homeowner'sA2policy?
A2-A2Ans--
Yes.A2ItA2isA2calledA2FireA2DepartmentA2ServiceA2ChargeA2andA2isA2anA2AdditionalA2Cover
ageA2providedA2underA2theA2policy,A2limitedA2toA2$500.
Generally,A2ifA2anA2employeeA2suffersA2anA2occupationalA2injuryA2andA2acceptsA2workers'A
2compensationA2benefits,A2heA2orA2she:A2-A2Ans--
GivesA2upA2theA2rightA2toA2sueA2theA2employerA2forA2personalA2injuryA2andA2painA2andA2suf
fering.A2TheA2employeeA2canA2onlyA2makeA2claimA2forA2workers'A2compensationA2benefits
.
, JanelleA2hasA2aA2TexasA2PersonalA2AutoA2PolicyA2withA230/60/25A2policyA2limits.A2SheA2hit
sA2aA2carA2withA24A2occupants,A2allA2ofA2whomA2areA2hurt.
TheyA2allA2sue.A2EachA2ofA2theA2injuredA2partiesA2receivesA2identicalA2verdictsA2ofA2$40,00
0.A2UnderA2Janelle'sA2bodilyA2injuryA2liabilityA2coverage,A2whatA2isA2theA2totalA2amountA2th
atA2theA2companyA2wouldA2payA2forA2theA2injuriesA2toA2theseA2plaintiffs?A2-A2Ans--$60,000
AA2personA2orA2entityA2whoA2guaranteesA2theA2performanceA2orA2paymentA2ofA2oneA2party
A2whoA2isA2obligatedA2byA2contractA2toA2anotherA2isA2calledA2a:A2-A2Ans--Surety
IfA2yourA2insuredA2wereA2toA2askA2youA2ifA2aA2DwellingA2policyA2wouldA2payA2forA2hisA2lossA
2ofA2rentalA2incomeA2afterA2aA2fireA2lossA2whileA2theA2propertyA2isA2beingA2repaired.A2whatA
2wouldA2youA2tellA2him?A2-A2Ans--
Yes,A2andA2it'sA2calledA2FairA2RentalA2ValueA2coverageA2andA2isA2availableA2underA2Cover
ageA2D.
FredA2runsA2aA2convenienceA2storeA2thatA2sellsA2gasoline.A2OneA2dayA2aA2customerA2pulls
A2awayA2fromA2theA2pumpA2whileA2theA2gasA2isA2stillA2pumping,A2breaksA2theA2pumpA2lineA2
andA2causesA2gasolineA2toA2escapeA2allA2overA2theA2parkingA2lotA2andA2intoA2theA2stormA2
drain.A2FredA2filesA2aA2claimA2underA2hisA2commercialA2propertyA2policy.A2DamageA2toA2re
pairA2theA2pumpA2totalsA2$545.00A2andA2$257.00A2worthA2ofA2gasolineA2wasA2pumpedA2ou
tA2beforeA2anyoneA2noticedA2andA2stoppedA2theA2pump.A2TheA2localA2HazMatA2teamA2was
A2calledA2outA2byA2theA2authoritiesA2toA2cleanA2upA2theA2parkingA2lotA2andA2theA2stormA2dra
in.A2FredA2receivedA2aA2billA2fromA2theA2CountyA2forA2$12.850.00A2forA2theA2cleanA2up.A2H
eA2sendsA2theA2billA2toA2youA2toA2pay.A2WhatA2kindA2ofA2coverageA2isA2availableA2toA2FredA
2asA2aA2commercialA2propertyA2extensionA2ofA2coverageA2neededA2toA2payA2thisA2loss?A2-
A2Ans--PollutionA2CleanA2UpA2andA2Removal
AA2cargoA2shipA2loadedA2withA2lumberA2andA2sailingA2fromA2Seattle,A2WashingtonA2toA2To
kyo,A2Japan,A2encounteredA2"theA2perfectA2storm"A2duringA2itsA2tripA2acrossA2theA2PacificA
2Ocean.A2SomeA2ofA2theA2lumberA2wasA2thrownA2overboardA2toA2saveA2theA2ship.A2ThisA2a
ctionA2isA2called:A2-A2Ans--Jettison
RobertoA2ownsA2aA2houseA2onA2LakeA2Conroe.A2TheA2houseA2isA2insuredA2withA2anA2HO-
3A2policy.A2DuringA2aA2storm,A2aA2tornadoA2touchesA2downA2andA2severelyA2damagesA2the
A2house.A2BecauseA2theA2houseA2isA2untenableA2andA2itA2willA2takeA22A2monthsA2toA2compl
eteA2repairs,A2RobertoA2movesA2IntoA2aA2localA2MarriottA2ResidenceA2Inn.A2UnderA2whichA
2ofA2theA2followingA2coveragesA2wouldA2RobertoA2beA2ableA2toA2recoverA2theA2additionalA2
expenseA2ofA2theA2MarriottA2andA2otherA2costs?A2-A2Ans--CoverageA2D:A2LossA2ofA2Use
DwellingA2policies:A2-A2Ans--
provideA2basicA2propertyA2protectionA2forA2individualsA2whoA2wantA2toA2protectA2theirA2fina
ncialA2interestA2inA2aA2property
WhichA2ofA2theA2followingA2perilsA2orA2exposureA2areA2FidelityA2bondsA2generallyA2usedA2t
oA2insureA2against?A2-A2Ans--Embezzlement
