TEXAS ALL-LINES ADJUSTER COURSE
FINAL EXAM QUESTIONS AD ANSWERS
Agseveregthunderstormgdamagedgagpolicyholder'sgresidence.gHegcalledgandgaske
dghowglonggitgwouldgbegbeforeghegreceivesgpaymentgforghisgclaim.gWhichgofgt
hegfollowinggwouldgNOTgbegangappropriategresponse?g-gans-
Weghaveg6gmonthsgtogreachgagfinalgsettlementgwithgyou.
Janelleghasgjustggraduatedgcollegegandgisginterestedgingbecominggangadjuster.gs
hegwouldglikegtogbegablegtoghandleganygtypegofgclaim.gThegmostgcomprehensiv
egtypegofglicensegwouldgbe:g-gans-All-Lines
JackgandgRebeccagowngagvacationghomegongGalvestongIslandgwhichgtheyghave
ginsuredgundergangHO-
3gpolicy.gAftergagweekglonggwintergskigtripgtogAspen,gtheygreturnghomegtogfind
gtheirghousegburglarizedgandgtheirg50"gTV,gcomputergequipment,gjewelry,gagvalu
ableggungcollectiongandgsomegfishinggequipmentgstolen.gHowgwouldgtheirgHO-
3gpolicygrespondgtogthisgloss?g-gans-
ThegentiregtheftglossgwouldgbegcoveredgundergCoveragegC.gsubjectgthegpolicygli
mitsgandgtogcertainglimitations.
Thegoldestgformgofginsurancegknowngtogexistgis:g-gans-OceangMarinegInsurance
Howgisganginjuredgemployee'sgweeklygcompensationgrategforgTemporarygIncome
gBenefitsg(TIBS)gcalculatedgundergTexasgWork
Compglaws?g-gans-Thegcompgrateg=g(AWWg-gPostgInjurygEarnings)g×g70%
Ingworkersgcompensation,gang"injurygisgdefinedgtogmean:g-gans-
personalginjurygorgdeathgbyg"accident",garisinggoutgofgworkgperformedgingthegco
ursegofgemployment.
JustingisgagPropertygadjustergforgXYZgInsurancegCompany.gHegreceivesgagclaim
ginvolvinggthegtheftglossgofgvariousgtypesgofgproperty.gJustin'sginitialgresponsibilit
yguponginvestigatinggtheglossgisgtogfirstgdetermine:g-gans-Ifgcoveragegexists
,Jimgisgagpublicgadjuster.gHeghasgangarrangementgwithgagwatergextractiongcomp
anygwhogpaysghimgagcommissiongofg10%gforgeverygreferralgthatgJimgsendsgthei
rgway.gWhichgofgthegfollowinggstatementsgisgcorrect?g-gans-
Thisgarrangementgreflectsgagbreachgofgethicalgconductgandgagviolationgthatgcoul
dgjeopardizegJim'sglicensure.
WhichgofgthegfollowinggwouldgNOTgbegcoveredgundergCoveragegCgPersonalgPr
operty?g-gans-Yourg10-
yeargoldgGermangShepherdgchokesgongagbonegandgpassesgaway.
AgtornadogstrikesgagduplexgthatgisginsuredgundergagDwellingg(DP-
3)gpolicy.gWhichgofgthegfollowinggwouldgNOTgbegcoveredgbygthegDwellinggpolic
y?g-gans-
Damagegtoganothergduplexgrightgnextgdoor,galsogownedgbygtheglandlord.
Commongcarriersg(i.e.g18-
wheelers,gtrains,gplanes,getc.)garegresponsiblegforgdamagegtogcustomerggoodsgth
eygtransportgEXCEPTgforgdamagesgresultinggfrom:g-gans-ActsgofgGod
YoughavegjustgstartedgyourgcareerghandlinggTexasgworkers'gcompensationgclaims
.gWhichgonegofgthegfollowinggWOULDgBEgconsideredgagviolationgofgthegTexasg
UnfairgClaimgSettlementgPracticesgAct?g-gans-
Notgrespondinggtogangemployee'sgcallsgbecausegyou'regoverworkedgandgthegclai
mginvolvesgcomplexgissuesgyougjustgdon'tgfeelglikegaddressing.
Whichgtypegofgbondgwouldgbegusedgtogcovergthegexposuregtogemployeegtheft?
g-gans-Fidelitygbond
GarrettgwantsgagTexasgAllgLinesgAdjuster'sglicense.gWhichgofgthegfollowinggactio
nsgwillgbegnecessarygforgGarrettgtogsecuregsuchgaglicense?g-gans-
Passgagstategqualifyinggexamgorgpre-
licensinggcoursegthatgisgcertifiedgbygthegTexasgDepartmentgofgInsurancegthatginc
ludesgangapproved,gcomprehensivegfinalgexaminationgofg150gquestions,gandgatta
chgthegCertificategofgCompletiongtogangapplicationgforglicensure.
ThegDP.3gDwellinggformgisgang"OpengRisk"gpolicy.gThisgmeansgthat:g-gans-
Allgrisksgofgdirectgphysicalglossgaregcoveredgunlessgtheygaregexcluded
Assumegyourghomegcaughtgfiregduegtogagfaultygelectricalgdevice.gandgonegmont
hgaftergthegfiregyougreceivegagbillgfromgthegfiregdepartmentgforg$450.00gforgres
pondinggtogthegfire.gWouldgthisgbegpaidgundergyourghomeowner'sgpolicy?g-gans-
Yes.gItgisgcalledgFiregDepartmentgServicegChargegandgisgangAdditionalgCoverag
egprovidedgundergthegpolicy,glimitedgtog$500.
Generally,gifgangemployeegsuffersgangoccupationalginjurygandgacceptsgworkers'gc
ompensationgbenefits,ghegorgshe:g-gans-
, Givesgupgthegrightgtogsuegthegemployergforgpersonalginjurygandgpaingandgsuffer
ing.gThegemployeegcangonlygmakegclaimgforgworkers'gcompensationgbenefits.
JanelleghasgagTexasgPersonalgAutogPolicygwithg30/60/25gpolicyglimits.gSheghits
gagcargwithg4goccupants,gallgofgwhomgareghurt.
Theygallgsue.gEachgofgtheginjuredgpartiesgreceivesgidenticalgverdictsgofg$40,000.
gUndergJanelle'sgbodilyginjurygliabilitygcoverage,gwhatgisgthegtotalgamountgthatgt
hegcompanygwouldgpaygforgtheginjuriesgtogthesegplaintiffs?g-gans-$60,000
Agpersongorgentitygwhogguaranteesgthegperformancegorgpaymentgofgonegpartyg
whogisgobligatedgbygcontractgtoganothergisgcalledga:g-gans-Surety
IfgyourginsuredgweregtogaskgyougifgagDwellinggpolicygwouldgpaygforghisglossgof
grentalgincomegaftergagfireglossgwhilegthegpropertygisgbeinggrepaired.gwhatgwoul
dgyougtellghim?g-gans-
Yes,gandgit'sgcalledgFairgRentalgValuegcoveragegandgisgavailablegundergCovera
gegD.
Fredgrunsgagconveniencegstoregthatgsellsggasoline.gOnegdaygagcustomergpullsg
awaygfromgthegpumpgwhilegtheggasgisgstillgpumping,gbreaksgthegpumpglinegand
gcausesggasolinegtogescapegallgovergthegparkingglotgandgintogthegstormgdrain.g
Fredgfilesgagclaimgunderghisgcommercialgpropertygpolicy.gDamagegtogrepairgtheg
pumpgtotalsg$545.00gandg$257.00gworthgofggasolinegwasgpumpedgoutgbeforega
nyonegnoticedgandgstoppedgthegpump.gTheglocalgHazMatgteamgwasgcalledgoutg
bygthegauthoritiesgtogcleangupgthegparkingglotgandgthegstormgdrain.gFredgreceiv
edgagbillgfromgthegCountygforg$12.850.00gforgthegcleangup.gHegsendsgthegbillgt
ogyougtogpay.gWhatgkindgofgcoveragegisgavailablegtogFredgasgagcommercialgpr
opertygextensiongofgcoveragegneededgtogpaygthisgloss?g-gans-
PollutiongCleangUpgandgRemoval
AgcargogshipgloadedgwithglumbergandgsailinggfromgSeattle,gWashingtongtogToky
o,gJapan,gencounteredg"thegperfectgstorm"gduringgitsgtripgacrossgthegPacificgOce
an.gSomegofgtheglumbergwasgthrowngoverboardgtogsavegthegship.gThisgactiongi
sgcalled:g-gans-Jettison
RobertogownsgaghousegongLakegConroe.gTheghousegisginsuredgwithgangHO-
3gpolicy.gDuringgagstorm,gagtornadogtouchesgdowngandgseverelygdamagesgtheg
house.gBecausegtheghousegisguntenablegandgitgwillgtakeg2gmonthsgtogcomplete
grepairs,gRobertogmovesgIntogaglocalgMarriottgResidencegInn.gUndergwhichgofgt
hegfollowinggcoveragesgwouldgRobertogbegablegtogrecovergthegadditionalgexpens
egofgthegMarriottgandgothergcosts?g-gans-CoveragegD:gLossgofgUse
Dwellinggpolicies:g-gans-
providegbasicgpropertygprotectiongforgindividualsgwhogwantgtogprotectgtheirgfinanc
ialginterestgingagproperty
FINAL EXAM QUESTIONS AD ANSWERS
Agseveregthunderstormgdamagedgagpolicyholder'sgresidence.gHegcalledgandgaske
dghowglonggitgwouldgbegbeforeghegreceivesgpaymentgforghisgclaim.gWhichgofgt
hegfollowinggwouldgNOTgbegangappropriategresponse?g-gans-
Weghaveg6gmonthsgtogreachgagfinalgsettlementgwithgyou.
Janelleghasgjustggraduatedgcollegegandgisginterestedgingbecominggangadjuster.gs
hegwouldglikegtogbegablegtoghandleganygtypegofgclaim.gThegmostgcomprehensiv
egtypegofglicensegwouldgbe:g-gans-All-Lines
JackgandgRebeccagowngagvacationghomegongGalvestongIslandgwhichgtheyghave
ginsuredgundergangHO-
3gpolicy.gAftergagweekglonggwintergskigtripgtogAspen,gtheygreturnghomegtogfind
gtheirghousegburglarizedgandgtheirg50"gTV,gcomputergequipment,gjewelry,gagvalu
ableggungcollectiongandgsomegfishinggequipmentgstolen.gHowgwouldgtheirgHO-
3gpolicygrespondgtogthisgloss?g-gans-
ThegentiregtheftglossgwouldgbegcoveredgundergCoveragegC.gsubjectgthegpolicygli
mitsgandgtogcertainglimitations.
Thegoldestgformgofginsurancegknowngtogexistgis:g-gans-OceangMarinegInsurance
Howgisganginjuredgemployee'sgweeklygcompensationgrategforgTemporarygIncome
gBenefitsg(TIBS)gcalculatedgundergTexasgWork
Compglaws?g-gans-Thegcompgrateg=g(AWWg-gPostgInjurygEarnings)g×g70%
Ingworkersgcompensation,gang"injurygisgdefinedgtogmean:g-gans-
personalginjurygorgdeathgbyg"accident",garisinggoutgofgworkgperformedgingthegco
ursegofgemployment.
JustingisgagPropertygadjustergforgXYZgInsurancegCompany.gHegreceivesgagclaim
ginvolvinggthegtheftglossgofgvariousgtypesgofgproperty.gJustin'sginitialgresponsibilit
yguponginvestigatinggtheglossgisgtogfirstgdetermine:g-gans-Ifgcoveragegexists
,Jimgisgagpublicgadjuster.gHeghasgangarrangementgwithgagwatergextractiongcomp
anygwhogpaysghimgagcommissiongofg10%gforgeverygreferralgthatgJimgsendsgthei
rgway.gWhichgofgthegfollowinggstatementsgisgcorrect?g-gans-
Thisgarrangementgreflectsgagbreachgofgethicalgconductgandgagviolationgthatgcoul
dgjeopardizegJim'sglicensure.
WhichgofgthegfollowinggwouldgNOTgbegcoveredgundergCoveragegCgPersonalgPr
operty?g-gans-Yourg10-
yeargoldgGermangShepherdgchokesgongagbonegandgpassesgaway.
AgtornadogstrikesgagduplexgthatgisginsuredgundergagDwellingg(DP-
3)gpolicy.gWhichgofgthegfollowinggwouldgNOTgbegcoveredgbygthegDwellinggpolic
y?g-gans-
Damagegtoganothergduplexgrightgnextgdoor,galsogownedgbygtheglandlord.
Commongcarriersg(i.e.g18-
wheelers,gtrains,gplanes,getc.)garegresponsiblegforgdamagegtogcustomerggoodsgth
eygtransportgEXCEPTgforgdamagesgresultinggfrom:g-gans-ActsgofgGod
YoughavegjustgstartedgyourgcareerghandlinggTexasgworkers'gcompensationgclaims
.gWhichgonegofgthegfollowinggWOULDgBEgconsideredgagviolationgofgthegTexasg
UnfairgClaimgSettlementgPracticesgAct?g-gans-
Notgrespondinggtogangemployee'sgcallsgbecausegyou'regoverworkedgandgthegclai
mginvolvesgcomplexgissuesgyougjustgdon'tgfeelglikegaddressing.
Whichgtypegofgbondgwouldgbegusedgtogcovergthegexposuregtogemployeegtheft?
g-gans-Fidelitygbond
GarrettgwantsgagTexasgAllgLinesgAdjuster'sglicense.gWhichgofgthegfollowinggactio
nsgwillgbegnecessarygforgGarrettgtogsecuregsuchgaglicense?g-gans-
Passgagstategqualifyinggexamgorgpre-
licensinggcoursegthatgisgcertifiedgbygthegTexasgDepartmentgofgInsurancegthatginc
ludesgangapproved,gcomprehensivegfinalgexaminationgofg150gquestions,gandgatta
chgthegCertificategofgCompletiongtogangapplicationgforglicensure.
ThegDP.3gDwellinggformgisgang"OpengRisk"gpolicy.gThisgmeansgthat:g-gans-
Allgrisksgofgdirectgphysicalglossgaregcoveredgunlessgtheygaregexcluded
Assumegyourghomegcaughtgfiregduegtogagfaultygelectricalgdevice.gandgonegmont
hgaftergthegfiregyougreceivegagbillgfromgthegfiregdepartmentgforg$450.00gforgres
pondinggtogthegfire.gWouldgthisgbegpaidgundergyourghomeowner'sgpolicy?g-gans-
Yes.gItgisgcalledgFiregDepartmentgServicegChargegandgisgangAdditionalgCoverag
egprovidedgundergthegpolicy,glimitedgtog$500.
Generally,gifgangemployeegsuffersgangoccupationalginjurygandgacceptsgworkers'gc
ompensationgbenefits,ghegorgshe:g-gans-
, Givesgupgthegrightgtogsuegthegemployergforgpersonalginjurygandgpaingandgsuffer
ing.gThegemployeegcangonlygmakegclaimgforgworkers'gcompensationgbenefits.
JanelleghasgagTexasgPersonalgAutogPolicygwithg30/60/25gpolicyglimits.gSheghits
gagcargwithg4goccupants,gallgofgwhomgareghurt.
Theygallgsue.gEachgofgtheginjuredgpartiesgreceivesgidenticalgverdictsgofg$40,000.
gUndergJanelle'sgbodilyginjurygliabilitygcoverage,gwhatgisgthegtotalgamountgthatgt
hegcompanygwouldgpaygforgtheginjuriesgtogthesegplaintiffs?g-gans-$60,000
Agpersongorgentitygwhogguaranteesgthegperformancegorgpaymentgofgonegpartyg
whogisgobligatedgbygcontractgtoganothergisgcalledga:g-gans-Surety
IfgyourginsuredgweregtogaskgyougifgagDwellinggpolicygwouldgpaygforghisglossgof
grentalgincomegaftergagfireglossgwhilegthegpropertygisgbeinggrepaired.gwhatgwoul
dgyougtellghim?g-gans-
Yes,gandgit'sgcalledgFairgRentalgValuegcoveragegandgisgavailablegundergCovera
gegD.
Fredgrunsgagconveniencegstoregthatgsellsggasoline.gOnegdaygagcustomergpullsg
awaygfromgthegpumpgwhilegtheggasgisgstillgpumping,gbreaksgthegpumpglinegand
gcausesggasolinegtogescapegallgovergthegparkingglotgandgintogthegstormgdrain.g
Fredgfilesgagclaimgunderghisgcommercialgpropertygpolicy.gDamagegtogrepairgtheg
pumpgtotalsg$545.00gandg$257.00gworthgofggasolinegwasgpumpedgoutgbeforega
nyonegnoticedgandgstoppedgthegpump.gTheglocalgHazMatgteamgwasgcalledgoutg
bygthegauthoritiesgtogcleangupgthegparkingglotgandgthegstormgdrain.gFredgreceiv
edgagbillgfromgthegCountygforg$12.850.00gforgthegcleangup.gHegsendsgthegbillgt
ogyougtogpay.gWhatgkindgofgcoveragegisgavailablegtogFredgasgagcommercialgpr
opertygextensiongofgcoveragegneededgtogpaygthisgloss?g-gans-
PollutiongCleangUpgandgRemoval
AgcargogshipgloadedgwithglumbergandgsailinggfromgSeattle,gWashingtongtogToky
o,gJapan,gencounteredg"thegperfectgstorm"gduringgitsgtripgacrossgthegPacificgOce
an.gSomegofgtheglumbergwasgthrowngoverboardgtogsavegthegship.gThisgactiongi
sgcalled:g-gans-Jettison
RobertogownsgaghousegongLakegConroe.gTheghousegisginsuredgwithgangHO-
3gpolicy.gDuringgagstorm,gagtornadogtouchesgdowngandgseverelygdamagesgtheg
house.gBecausegtheghousegisguntenablegandgitgwillgtakeg2gmonthsgtogcomplete
grepairs,gRobertogmovesgIntogaglocalgMarriottgResidencegInn.gUndergwhichgofgt
hegfollowinggcoveragesgwouldgRobertogbegablegtogrecovergthegadditionalgexpens
egofgthegMarriottgandgothergcosts?g-gans-CoveragegD:gLossgofgUse
Dwellinggpolicies:g-gans-
providegbasicgpropertygprotectiongforgindividualsgwhogwantgtogprotectgtheirgfinanc
ialginterestgingagproperty
