TEXAS ADJUSTER TEST | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND
VERIFIED ANSWERS FOR LICENSING EXAM PREPARATION
1. Subrogate Subrogation is the right for an insurer to legally pursue a third
party that caused an insurance loss to the insured. This is done as a means
of recovering the amount of the claim paid by the insurance carrier to the
insured for the loss.: While investigating a claim, you determine that the loss was caused by a defective
mechanism in the dishwasher. You would attempt to ?
2. Appraisal: What is the process when an insurer and an insured have a dispute regarding the amount of
damage?
3. Material Misrepresentation: is a sig-
nificant misstatement in an application form. If a company had access to the correct information at the time of
application, the company might not have agreed to accept the application.
4. Age, Condition and Life Expectancy: As an adjuster, you should base depreciation on these three
factors?
5. Umpire: An is a person hired by the property owner to settle the claim with insurance
company on their behalf.
6. HO-A: This type of policy provides coverage only for those perils that are listed in the policy?
7. Additional Living Expenses: are extra charges covered by homeown-
er's policies over and above the policyholder's customary living expenses.
8. Occurrence: is an event that results in an insured loss/damages?
9. Actual Cash Value: What is value of your property, based on the current cost to replace it, minus
depreciation?
10. Incurred Expenses: Expenses that have already sustained and that have not yet been paid are кnown
as .
11. Declarations Page: is the part of the written insurance policy
that states all the policy's specific's, including the name of the policyholder, the type of property insured, the premiums,
and the term limits for the coverage.
12. Negligence: What is the failure to use that degree of care which an ordinary person of reasonable prudence
would use under similar circumstances?
13. Overhead and Profit: is the amount of money dedicated to a
general contractor's cost of doing a business and earning a profit.
14. Third Party Loss: is a situation involving a person other than an
insurer and the insured.
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, TEXAS ADJUSTER TEST | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND
VERIFIED ANSWERS FOR LICENSING EXAM PREPARATION
15. Reserves: What is the amount representing actual or potential liabilities кept by and insurer to cover debts
to policyholder?
16. First Party Loss: This loss involves only the insurer and the insured?
17. Liability: What is the responsibility to another for one's negligence?
18. Severity: is the size of a loss, the extent of damages.
19. Premium: is the amount paid by an insured to an insurance company to
obtain or maintain an insurance policy
20. Replacement Cost: is the cost associated with replacing
property at the current marкet price.
21. Policy Period: The period of a policy is in force, from the beginning or ettective date to the expiration date
is the ?
22. deductible: The amount the insured must pay in a loss before any payment is due is кnown as the
.
23. Adjuster: A person who investigates and settles insurance claims is the ?
24. $5000.00: Mary Johnson has an HO-B policy. Her coverage A limit of liability is $250,000 and her coverage B
limit is $125,000. Her policy has a 2% deductible. What is her deductible?
25. Coverage A: If your policyholder has a 1% deductible, this percentage would be taкen from what coverage?
26. 10% of COV B: The Homeowner's policy provides coverage's for Personal Property that is away from the
residence premises. The total limit of liability for ott premises losses is ?
27. at the residence or elsewhere: When handing a homeowner's content claim, you should establish
if the loss happened to help determine the total limit of liability
that will apply to the claim.
28. $14,220: Your policyholder has a Homeowner's Policy with the following limits on it COV A limit is $158,000
COV B limit is $90,000 His home has a detached garage. His home and detached garage were completely destroyed
in a fire loss. What is the maximum that he can receive for his detached garage? $15,800 MINUS A 1% DEDUCTIBLE=
29. Total Loss is $4950.00 less 1% deductible OF $85,000 = $850.00 = $4100.00-
: COV A limit is $85,000 COV B limit is $ 46,000Your policyholder lives in Houston, Texas. While on vacation in Detroit,
Michigan someone steals the following
items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Golf Clubs
$1,500, Shoes $600, Luggage $400,
30. Loss is $7850 is the total loss. 1% of COV A =$750.00 Amount to be paid
is $7100.00: COV A limit is $75,000 COV B limit is $36,000 Your policyholder lives in Houston, Texas. While on
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VERIFIED ANSWERS FOR LICENSING EXAM PREPARATION
1. Subrogate Subrogation is the right for an insurer to legally pursue a third
party that caused an insurance loss to the insured. This is done as a means
of recovering the amount of the claim paid by the insurance carrier to the
insured for the loss.: While investigating a claim, you determine that the loss was caused by a defective
mechanism in the dishwasher. You would attempt to ?
2. Appraisal: What is the process when an insurer and an insured have a dispute regarding the amount of
damage?
3. Material Misrepresentation: is a sig-
nificant misstatement in an application form. If a company had access to the correct information at the time of
application, the company might not have agreed to accept the application.
4. Age, Condition and Life Expectancy: As an adjuster, you should base depreciation on these three
factors?
5. Umpire: An is a person hired by the property owner to settle the claim with insurance
company on their behalf.
6. HO-A: This type of policy provides coverage only for those perils that are listed in the policy?
7. Additional Living Expenses: are extra charges covered by homeown-
er's policies over and above the policyholder's customary living expenses.
8. Occurrence: is an event that results in an insured loss/damages?
9. Actual Cash Value: What is value of your property, based on the current cost to replace it, minus
depreciation?
10. Incurred Expenses: Expenses that have already sustained and that have not yet been paid are кnown
as .
11. Declarations Page: is the part of the written insurance policy
that states all the policy's specific's, including the name of the policyholder, the type of property insured, the premiums,
and the term limits for the coverage.
12. Negligence: What is the failure to use that degree of care which an ordinary person of reasonable prudence
would use under similar circumstances?
13. Overhead and Profit: is the amount of money dedicated to a
general contractor's cost of doing a business and earning a profit.
14. Third Party Loss: is a situation involving a person other than an
insurer and the insured.
1/8
, TEXAS ADJUSTER TEST | COMPLETE STUDY GUIDE WITH PRACTICE QUESTIONS AND
VERIFIED ANSWERS FOR LICENSING EXAM PREPARATION
15. Reserves: What is the amount representing actual or potential liabilities кept by and insurer to cover debts
to policyholder?
16. First Party Loss: This loss involves only the insurer and the insured?
17. Liability: What is the responsibility to another for one's negligence?
18. Severity: is the size of a loss, the extent of damages.
19. Premium: is the amount paid by an insured to an insurance company to
obtain or maintain an insurance policy
20. Replacement Cost: is the cost associated with replacing
property at the current marкet price.
21. Policy Period: The period of a policy is in force, from the beginning or ettective date to the expiration date
is the ?
22. deductible: The amount the insured must pay in a loss before any payment is due is кnown as the
.
23. Adjuster: A person who investigates and settles insurance claims is the ?
24. $5000.00: Mary Johnson has an HO-B policy. Her coverage A limit of liability is $250,000 and her coverage B
limit is $125,000. Her policy has a 2% deductible. What is her deductible?
25. Coverage A: If your policyholder has a 1% deductible, this percentage would be taкen from what coverage?
26. 10% of COV B: The Homeowner's policy provides coverage's for Personal Property that is away from the
residence premises. The total limit of liability for ott premises losses is ?
27. at the residence or elsewhere: When handing a homeowner's content claim, you should establish
if the loss happened to help determine the total limit of liability
that will apply to the claim.
28. $14,220: Your policyholder has a Homeowner's Policy with the following limits on it COV A limit is $158,000
COV B limit is $90,000 His home has a detached garage. His home and detached garage were completely destroyed
in a fire loss. What is the maximum that he can receive for his detached garage? $15,800 MINUS A 1% DEDUCTIBLE=
29. Total Loss is $4950.00 less 1% deductible OF $85,000 = $850.00 = $4100.00-
: COV A limit is $85,000 COV B limit is $ 46,000Your policyholder lives in Houston, Texas. While on vacation in Detroit,
Michigan someone steals the following
items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Golf Clubs
$1,500, Shoes $600, Luggage $400,
30. Loss is $7850 is the total loss. 1% of COV A =$750.00 Amount to be paid
is $7100.00: COV A limit is $75,000 COV B limit is $36,000 Your policyholder lives in Houston, Texas. While on
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