A severe thunderstorm damaged a policyholder's residence. He called and asked how long it
would be before he receives payment for his claim. Which of the following would NOT be an
appropriate response? - ANSWER We have 6 months to reach a final settlement with you.
Janelle has just graduated college and is interested in becoming an adjuster. she would like
to be able to handle any type of claim. The most comprehensive type of license would be: -
ANSWER All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under
an HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their
house burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection
and some fishing equipment stolen. How would their HO-3 policy respond to this loss? - AN-
SWER The entire theft loss would be covered under Coverage C. subject the policy limits
and to certain limitations.
The oldest form of insurance known to exist is: - ANSWER Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits
(TIBS) calculated under Texas Work
Comp laws? - ANSWER The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANSWER personal injury or
death by "accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the
theft loss of various types of property. Justin's initial responsibility upon investigating the
loss is to first determine: - ANSWER If coverage exists
1
,Jim is a public adjuster. He has an arrangement with a water extraction company who pays
him a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANSWER This arrangement reflects a breach of ethical conduct
and a violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C Personal Property? - AN-
SWER Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the fol-
lowing would NOT be covered by the Dwelling policy? - ANSWER Damage to another du-
plex right next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to cus-
tomer goods they transport EXCEPT for damages resulting from: - ANSWER Acts of God
You have just started your career handling Texas workers' compensation claims. Which one
of the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Prac-
tices Act? - ANSWER Not responding to an employee's calls because you're overworked
and the claim involves complex issues you just don't feel like addressing.
Which type of bond would be used to cover the exposure to employee theft? - ANSWER
Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be nec-
essary for Garrett to secure such a license? - ANSWER Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an ap-
proved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANSWER All risks of
direct physical loss are covered unless they are excluded
2
,Assume your home caught fire due to a faulty electrical device. and one month after the fire
you receive a bill from the fire department for $450.00 for responding to the fire. Would this
be paid under your homeowner's policy? - ANSWER Yes. It is called Fire Department Ser-
vice Charge and is an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANSWER Gives up the right to sue the employer for personal injury
and pain and suffering. The employee can only make claim for workers' compensation bene-
fits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4 oc-
cupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under
Janelle's bodily injury liability coverage, what is the total amount that the company would
pay for the injuries to these plaintiffs? - ANSWER $60,000
A person or entity who guarantees the performance or payment of one party who is obli-
gated by contract to another is called a: - ANSWER Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income af-
ter a fire loss while the property is being repaired. what would you tell him? - ANSWER
Yes, and it's called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the
pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all
over the parking lot and into the storm drain. Fred files a claim under his commercial prop-
erty policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was
pumped out before anyone noticed and stopped the pump. The local HazMat team was
called out by the authorities to clean up the parking lot and the storm drain. Fred received a
bill from the County for $12.850.00 for the clean up. He sends the bill to you to pay. What
kind of coverage is available to Fred as a commercial property extension of coverage needed
to pay this loss? - ANSWER Pollution Clean Up and Removal
3
, A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan, en-
countered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANSWER Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is un-
tenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANSWER Coverage D: Loss of Use
Dwelling policies: - ANSWER provide basic property protection for individuals who want
to protect their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against?
- ANSWER Embezzlement
To be compensable under workers' compensation laws, most jurisdictions require that an in-
jury: - ANSWER arise out of and in the course of employment.
A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store.
The claim was assigned to you for handling. After contacting the claimant and taking a state-
ment, you learn that the injury was minor and, at most, an inconvenience. Medical expenses
were only $525.00 and there were no complications. You think the best way to handle the
case Is to offer to pay her medical bills without admitting liability and try backing away with-
out committing to any kind of settlement. How would you do it? - ANSWER Tell her you'll
pay her bills and ask her to call you if she has any questions. You would then wish her well
and, when the bills arrive, pay them under the business's Medical Payments coverage.
You just started working as an adjuster with handling Texas 1st and 3rd party property dam-
age claims. Which one of the following would NOT be an example of an unfair claim settle-
ment practice? - ANSWER Deciding not to take a statement from an insured under oath
in the investigation of a 1st party property claim.
4
would be before he receives payment for his claim. Which of the following would NOT be an
appropriate response? - ANSWER We have 6 months to reach a final settlement with you.
Janelle has just graduated college and is interested in becoming an adjuster. she would like
to be able to handle any type of claim. The most comprehensive type of license would be: -
ANSWER All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under
an HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their
house burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection
and some fishing equipment stolen. How would their HO-3 policy respond to this loss? - AN-
SWER The entire theft loss would be covered under Coverage C. subject the policy limits
and to certain limitations.
The oldest form of insurance known to exist is: - ANSWER Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits
(TIBS) calculated under Texas Work
Comp laws? - ANSWER The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANSWER personal injury or
death by "accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the
theft loss of various types of property. Justin's initial responsibility upon investigating the
loss is to first determine: - ANSWER If coverage exists
1
,Jim is a public adjuster. He has an arrangement with a water extraction company who pays
him a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANSWER This arrangement reflects a breach of ethical conduct
and a violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C Personal Property? - AN-
SWER Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the fol-
lowing would NOT be covered by the Dwelling policy? - ANSWER Damage to another du-
plex right next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to cus-
tomer goods they transport EXCEPT for damages resulting from: - ANSWER Acts of God
You have just started your career handling Texas workers' compensation claims. Which one
of the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Prac-
tices Act? - ANSWER Not responding to an employee's calls because you're overworked
and the claim involves complex issues you just don't feel like addressing.
Which type of bond would be used to cover the exposure to employee theft? - ANSWER
Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be nec-
essary for Garrett to secure such a license? - ANSWER Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an ap-
proved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANSWER All risks of
direct physical loss are covered unless they are excluded
2
,Assume your home caught fire due to a faulty electrical device. and one month after the fire
you receive a bill from the fire department for $450.00 for responding to the fire. Would this
be paid under your homeowner's policy? - ANSWER Yes. It is called Fire Department Ser-
vice Charge and is an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANSWER Gives up the right to sue the employer for personal injury
and pain and suffering. The employee can only make claim for workers' compensation bene-
fits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4 oc-
cupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under
Janelle's bodily injury liability coverage, what is the total amount that the company would
pay for the injuries to these plaintiffs? - ANSWER $60,000
A person or entity who guarantees the performance or payment of one party who is obli-
gated by contract to another is called a: - ANSWER Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income af-
ter a fire loss while the property is being repaired. what would you tell him? - ANSWER
Yes, and it's called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the
pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all
over the parking lot and into the storm drain. Fred files a claim under his commercial prop-
erty policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was
pumped out before anyone noticed and stopped the pump. The local HazMat team was
called out by the authorities to clean up the parking lot and the storm drain. Fred received a
bill from the County for $12.850.00 for the clean up. He sends the bill to you to pay. What
kind of coverage is available to Fred as a commercial property extension of coverage needed
to pay this loss? - ANSWER Pollution Clean Up and Removal
3
, A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan, en-
countered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANSWER Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is un-
tenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANSWER Coverage D: Loss of Use
Dwelling policies: - ANSWER provide basic property protection for individuals who want
to protect their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against?
- ANSWER Embezzlement
To be compensable under workers' compensation laws, most jurisdictions require that an in-
jury: - ANSWER arise out of and in the course of employment.
A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store.
The claim was assigned to you for handling. After contacting the claimant and taking a state-
ment, you learn that the injury was minor and, at most, an inconvenience. Medical expenses
were only $525.00 and there were no complications. You think the best way to handle the
case Is to offer to pay her medical bills without admitting liability and try backing away with-
out committing to any kind of settlement. How would you do it? - ANSWER Tell her you'll
pay her bills and ask her to call you if she has any questions. You would then wish her well
and, when the bills arrive, pay them under the business's Medical Payments coverage.
You just started working as an adjuster with handling Texas 1st and 3rd party property dam-
age claims. Which one of the following would NOT be an example of an unfair claim settle-
ment practice? - ANSWER Deciding not to take a statement from an insured under oath
in the investigation of a 1st party property claim.
4
