Texas All-Lines Adjuster course Final Exam questions with
correct answers A+ Grade 2026\2027
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?
- correct 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:
- correct 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?
- correct answer 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:
- correct answer Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
Comp laws?
- correct answer The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean:
- correct 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:
- correct answer If coverage exists
,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?
- 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?
- correct answer 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 following would
NOT be covered by the Dwelling policy?
- correct answer Damage to another duplex right next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer goods
they transport EXCEPT for damages resulting from:
- correct 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 Practices Act?
- correct 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?
- correct answer Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be necessary for
Garrett to secure such a license?
- correct answer Pass a state qualifying exam or pre-licensing course that is certified by the Texas
Department of Insurance that includes an approved, 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:
- correct answer All risks of direct physical loss are covered unless they are excluded
,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?
- correct answer Yes. It is called Fire Department Service 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:
- correct 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 benefits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4 occupants, 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?
- correct answer $60,000
A person or entity who guarantees the performance or payment of one party who is obligated by
contract to another is called a:
- correct answer Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after a fire
loss while the property is being repaired. what would you tell him?
- correct 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 property 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?
- correct answer Pollution Clean Up and Removal
, A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan, encountered
"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:
- correct 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 untenable 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?
- correct answer Coverage D: Loss of Use
Dwelling policies:
- correct 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?
- correct answer Embezzlement
To be compensable under workers' compensation laws, most jurisdictions require that an injury:
- correct 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 statement, 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 without committing to any kind of settlement. How would you
do it?
- correct 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 damage claims.
Which one of the following would NOT be an example of an unfair claim settlement practice?
- correct answer Deciding not to take a statement from an insured under oath in the investigation of a
1st party property claim.
correct answers A+ Grade 2026\2027
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?
- correct 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:
- correct 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?
- correct answer 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:
- correct answer Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
Comp laws?
- correct answer The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean:
- correct 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:
- correct answer If coverage exists
,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?
- 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?
- correct answer 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 following would
NOT be covered by the Dwelling policy?
- correct answer Damage to another duplex right next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer goods
they transport EXCEPT for damages resulting from:
- correct 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 Practices Act?
- correct 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?
- correct answer Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be necessary for
Garrett to secure such a license?
- correct answer Pass a state qualifying exam or pre-licensing course that is certified by the Texas
Department of Insurance that includes an approved, 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:
- correct answer All risks of direct physical loss are covered unless they are excluded
,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?
- correct answer Yes. It is called Fire Department Service 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:
- correct 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 benefits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4 occupants, 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?
- correct answer $60,000
A person or entity who guarantees the performance or payment of one party who is obligated by
contract to another is called a:
- correct answer Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after a fire
loss while the property is being repaired. what would you tell him?
- correct 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 property 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?
- correct answer Pollution Clean Up and Removal
, A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan, encountered
"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:
- correct 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 untenable 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?
- correct answer Coverage D: Loss of Use
Dwelling policies:
- correct 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?
- correct answer Embezzlement
To be compensable under workers' compensation laws, most jurisdictions require that an injury:
- correct 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 statement, 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 without committing to any kind of settlement. How would you
do it?
- correct 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 damage claims.
Which one of the following would NOT be an example of an unfair claim settlement practice?
- correct answer Deciding not to take a statement from an insured under oath in the investigation of a
1st party property claim.
