Texas Adjusters License Exam With Complete Solutions Latest Updated 2024

Texas Adjusters License Exam With Complete Solutions Latest Updated 2024 Milton agrees to steal and wreck Albert's car for $4,000, so that Albert can collect $8,000 under his auto insurance policy. Which of the elements of a valid contract are missing in this agreement? - Legal Purpose Any intentional misinformation provided by an applicant for an insurance policy that would have kept the insurance company from issuing the policy had that information been known is: - A material misrepresentation Which of the following best describes the purpose of the "insuring agreement(s)" contained in an insurance policy? - It contains the insurer's promise to pay in case of a loss.. Which of the following statements best describes "the law of agency"? - A relationship in which someone is authorized by contract to represent another party.. Margaret is a co-owner of a business. She purchases an insurance policy to cover the property of the business and lists Charlie, the other co-owner, on the policy. There are others covered by the policy that are referred to as employees. For the purposes of this policy, Charlie is considered to be: - A named insured When can an insured assign his or her insurance policy over to another party? - When the insurer provides written consent. All of the following statements are TRUE regarding a proof of loss statement, EXCEPT: - A proof of loss is also known as a loss notice. All of the following are part of the "entire contract", EXCEPT: - An agreement made between the insured and the agent stated verbally, that the agent will personally service the insured's policy, and it will not be delegated to a staff member is part of the entire contract. A written modification of an insurance policy is known as a(n): - Endorsement Form Libby completed an application for a new residential policy to cover her home, stating that she does not use the dwelling for business purposes. However, Libby has been conducting business operations from the home and has hired several employees who work out of the home. She also has several clients per day coming to the home for business purposes. When Libby's insurer finds out about the additional business exposures, they decide to take action. Which of the following actions is Libby's insurer most likely going to take? - Void her policy to inception. Before an insured can bring a lawsuit against their insurer to provide coverage under their policy, the insured must: - Fulfill all of their required duties as outlined in the policy. Which of the following statements best describes the term "fiduciary". - A person who is entrusted with the assets of another. Rick has three insurance policies covering his small commercial building for $700,000. Insurer 1: Carries $400,000 of the coverage. Insurer 2: Carries $200,000 of the coverage. Insurer 3: Carries $100,000 of the coverage. According to the provisions of the policies, the loss will be settled using the contribution by equal shares method. When Rick's building suffers a $500,000 covered loss, which of the following statements is correct on the amount each insurer will pay? - Insurers 1 and 2 will each pay $200,000 and Insurer 3 will pay $100,000. Where in the insurance contract can an insured find the terms used throughout the policy and an explanation as to what they mean within the context of the policy? - Definitions The time period after the policy inception and before the policy expiration is known as: - The Policy Period Horatio is a business owner who is part of a business owners group that are buying old commercial buildings in their small city and refurbishing them. Horatio has bought a beautiful historical building made mostly of wood. He installs a sprinkler system right away to prevent a fire. What risk management strategy is Horatio using? - Risk Reduction A church has had the woodwork in the building refinished and new stain and varnish has been applied. The workers placed the rags and brushes that were used to apply the varnish in a small closet and closed the door, creating the possibility of spontaneous combustion. Which of the following terms best describes this condition? - Hazard Which of the following is most likely to be uninsurable? - The purchaser of a new home wants to protect herself from a possible drop in housing prices Adverse selection occurs when: - Applicants are accepted by the insurer with little or no attention given to underwriting A risk where both profit and loss are possible is a ____________ risk. - Speculative When a person purchases several insurance policies to provide more coverage on a risk than the value of the possible loss, it is known as: - Over insurance 100-year flood is an example of which of the following types of risk? - Static Risk Which of the following phrases best describes a "hazard?" - A condition that increases the chances of a loss.. Willie's Widgets has been earning a large portion of their market share for 10 years. During Willie's 11th year in business, Wynonna's Widgets opens and her superior marketing practices leaves Willie unable to continue in business. Which of the following types of risk caused Willie's loss? - Dynamic Risk