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NEW!!! Texas all lines adjuster exam | 378
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Questions with 100% Correct Answers
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All of the following are criteria for an accident to have occurred "in the course of" the
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employment under a workers' compensation policy, EXCEPT: Correct Answer: While
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performing a task that a fellow worker requested, that was unusual to the employee's job
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description, but occurred on the employer's premises during working hours.
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Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean
Marine policy? Correct Answer: The implied warranties are attached to the policy as an
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endorsement..
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Parmelia is covered under two separate standardized Personal Automobile policies, with Part C
limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured
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motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive
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when she submits a claim for these damages Correct Answer: $200,000
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Which of the following endorsements must be attached to a standard Businessowners policy for
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coverage to apply to a businesses freezer that was damaged by the interruption of a power source
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Correct Answer: Utility Services - Direct Damage endorsement.
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After completing an inspection of an insured's pressure equipment and fire suppression systems,
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the inspector determines that the pressure equipment needs to be repaired and the suppression
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systems have not been cleaned and inspected in the time frame required by the policy. The
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insurer will: Correct Answer: Suspend coverage immediately by red tagging the items until they
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are repaired, cleaned and pass reinspection
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To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
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more than _______ boarders to live on the premises. Correct Answer: 5
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All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: Correct
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Answer: Pirates
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The amount of insurance countersigned, issued, or sold by an agent or producer to cover
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immediate family members, an employer, or employees is known as: Correct Answer:
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Controlled business
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Which of the following standardized Dwelling insurance forms provides coverage for loss of
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rental income Correct Answer: The DP-1, DP-2, and DP-3 forms
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The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for all
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of the following, EXCEPT: Correct Answer: A passenger who is injured in another vehicle that
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is struck by the insured's vehicle in an accident
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Which of the following are the Texas Workers' Compensation benefits that are increased by a
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cost-of-living adjustment (COLAs) Correct Answer: Lifetime Income Benefits (LIBs) only
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Hannah must take time away from work to help assist in the investigation of a claim that was
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made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to:
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Correct Answer: $250 per day.
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Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. Correct
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Answer: 30 days.
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All of the following are characteristics of a principal that a surety will scrutinize during the
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underwriting process, EXCEPT: Correct Answer: Consideration.
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Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to
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be: Correct Answer: An insured location.
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Which of the following is NOT one of the four major coverages of an Ocean Marine policy?
Correct Answer: Seaworthiness.
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A ship has suffered damage and sunk. Which of the following would respond to cover the loss of
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the ship? Correct Answer: Hull Insurance.
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As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
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statements is FALSE regarding this power? Correct Answer: Only an adjuster's written
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statements can legally bind an insurer.
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The standardized Dwelling forms consider all eruptions of a volcano within a __________
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period to be a single "occurrence". Correct Answer: 72-hour
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Whose responsibility is it to complete a "proof of loss"? Correct Answer: The claimant.
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Which of the following would NOT be determined by a court when an insurer has filed a
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declaratory judgment action? Correct Answer: The type and amount of damages that will be
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paid to a plaintiff for the claim that is being disputed.
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Which of the following statements is TRUE regarding the Homeowners "additional coverage"
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known as Landlord's Furnishings? Correct Answer: The coverage is not additional insurance and
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does not increase the limits of the policy.
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Which of the following would be covered under the Jones Act? Correct Answer: Crew members
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of a ship.
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All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
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Correct Answer: The policy will cover watercraft liability.
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Which of the following statements is TRUE regarding Commercial Property coverage? Correct
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Answer: Commercial property coverage can be written as both a monoline policy and as part of
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a package policy.
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What type of insurance is usually provided or subsidized by the state or federal government
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because it is not ordinarily available from private insurers? Correct Answer: Residual market
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insurance.
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The optional coverage for "Employee Dishonesty" under a standard Businessowners policy
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provides a "discovery period" for the insured to discover the dishonest act and have coverage still
apply. Which of the following statements best describes the "discovery period" for this optional
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coverage? Correct Answer: The "discovery period" is one year from the end of the policy
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period.
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Which of the following would be considered an Unfair Claim Settlement Practice? Correct
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Answer: Failing to deny coverage of a claim within a reasonable amount of time after
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concluding the investigation
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Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
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generated electrical current"? Correct Answer: A fire must be the result of the artificially
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generated electrical current for coverage to apply..
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The Commercial Building and Personal Property coverage form provides five extensions of
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coverage, but only if: Correct Answer: An 80% or higher coinsurance percentage is shown on
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the Declarations page, and the property amount of coverage, based on that percentage, is
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purchased.
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All of the following would be considered "uninsured motorists", EXCEPT: Correct Answer: A
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motorist driving with coverage up to the required state financial responsibility limits for liability,
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but not high enough to pay the claims for an at-fault accident.
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Regulation of the insurance industry in the United States is primarily left to: Correct Answer:
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State governments.
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Which of the following coverages does NOT need to be added to a Garage Coverage form by
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endorsement for coverage to apply? Correct Answer: Collision.
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Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he
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decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving
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the car into the restaurant's parking garage, when he clips the side of the garage entrance with the
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front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and
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headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss?
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Correct Answer: It would cover the loss to Chaz's car because it is the insured automobile, but
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would not cover the damage to the garage..
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Which of the following statements is TRUE regarding the coverage extension of the standard
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Businessowners policy for "Business Personal Property Temporarily in Portable Storage Units"?
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Correct Answer: Coverage will not apply if the storage unit has been on the insured premises for
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longer than 90 days, even if the business personal property has only been stored there for less
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than 90 days.
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Which of the following would be considered a Part D - Other Than Collision claim under a
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Personal Automobile claim? Correct Answer: A load of bricks falling from an apartment
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building onto the car.
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The Section I Additional Coverage of the standard Businessowners policy provides coverage for
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"Debris Removal". Which of the following statements best describes the limit for this coverage?
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Correct Answer: The total limit may be up to 25% of the policy limit for the loss payable with
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the deductible included, plus up to an additional $25,000 if the policy limits are exhausted
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An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an
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act is known as: Correct Answer: Fraud
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Which of the following losses would be covered under a Commercial Property policy with the
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special cause of loss form attached? Correct Answer: A fire that breaks out in an office building
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and causes damage to two of the offices..
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If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized
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Yacht policy is breached because of something out of the control of the insured: Correct Answer:
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The insurer must be notified within 10 days after the breach and any additional premium that is
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due must be paid.
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Which of the following is NOT eligible for a coverage under a Homeowners insurance policy?
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Correct Answer: Owner-occupants of a 5 to 6-family dwelling
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Cameron has his home covered under a Homeowners policy and his limit for bodily injury is
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$100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability.
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Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella
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policy, his Homeowners policy must pay $100,000, but he finds that the insurance company
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from which he purchased his Homeowners policy has become insolvent. How will the Umbrella
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insurer pay the claim (disregarding any retention limit)? Correct Answer: The Umbrella policy
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will not become primary when the insurer carrying the underlying insurance becomes insolvent,
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but will pay the $400,000 as if the underlying insurer had paid its $100,000 limit of liability..
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The additional coverage for debris removal under the standardized Building and Personal
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Property coverage form will only be paid if: Correct Answer: The insured reports the debris
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removal expenses to the insurance company in writing within 180 days of the loss..
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ne
NEW!!! Texas all lines adjuster exam | 378
la
tz
sh
Questions with 100% Correct Answers
Sp
GRADEDA+ ne
la
tz
sh
Sp
All of the following are criteria for an accident to have occurred "in the course of" the
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employment under a workers' compensation policy, EXCEPT: Correct Answer: While
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performing a task that a fellow worker requested, that was unusual to the employee's job
tz
description, but occurred on the employer's premises during working hours.
sh
Sp
ne
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean
Marine policy? Correct Answer: The implied warranties are attached to the policy as an
la
tz
endorsement..
sh
Sp
ne
Parmelia is covered under two separate standardized Personal Automobile policies, with Part C
limits under both policies set at $200,000. Parmelia is involved in an accident with an uninsured
la
motorist and she sustains bodily injury damages for $262,320. How much will Parmelia receive
tz
sh
when she submits a claim for these damages Correct Answer: $200,000
Sp
ne
Which of the following endorsements must be attached to a standard Businessowners policy for
la
coverage to apply to a businesses freezer that was damaged by the interruption of a power source
tz
sh
Correct Answer: Utility Services - Direct Damage endorsement.
Sp
ne
After completing an inspection of an insured's pressure equipment and fire suppression systems,
la
the inspector determines that the pressure equipment needs to be repaired and the suppression
tz
sh
systems have not been cleaned and inspected in the time frame required by the policy. The
Sp
insurer will: Correct Answer: Suspend coverage immediately by red tagging the items until they
ne
are repaired, cleaned and pass reinspection
la
tz
sh
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
Sp
more than _______ boarders to live on the premises. Correct Answer: 5
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All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: Correct
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Answer: Pirates
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Sp
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The amount of insurance countersigned, issued, or sold by an agent or producer to cover
la
immediate family members, an employer, or employees is known as: Correct Answer:
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Controlled business
sh
Sp
ne
Which of the following standardized Dwelling insurance forms provides coverage for loss of
la
rental income Correct Answer: The DP-1, DP-2, and DP-3 forms
tz
sh
Sp
ne
la
sh
Sp
la
Sp
, ne
tz
sh
ne
The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for all
la
of the following, EXCEPT: Correct Answer: A passenger who is injured in another vehicle that
tz
is struck by the insured's vehicle in an accident
sh
Sp
ne
Which of the following are the Texas Workers' Compensation benefits that are increased by a
la
cost-of-living adjustment (COLAs) Correct Answer: Lifetime Income Benefits (LIBs) only
tz
sh
Sp
Hannah must take time away from work to help assist in the investigation of a claim that was
ne
made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to:
la
Correct Answer: $250 per day.
tz
sh
Sp
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. Correct
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Answer: 30 days.
la
tz
All of the following are characteristics of a principal that a surety will scrutinize during the
sh
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underwriting process, EXCEPT: Correct Answer: Consideration.
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Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to
la
be: Correct Answer: An insured location.
tz
sh
Sp
ne
Which of the following is NOT one of the four major coverages of an Ocean Marine policy?
Correct Answer: Seaworthiness.
la
tz
sh
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of
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the ship? Correct Answer: Hull Insurance.
ne
la
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
tz
sh
statements is FALSE regarding this power? Correct Answer: Only an adjuster's written
Sp
statements can legally bind an insurer.
ne
la
The standardized Dwelling forms consider all eruptions of a volcano within a __________
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sh
period to be a single "occurrence". Correct Answer: 72-hour
Sp
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Whose responsibility is it to complete a "proof of loss"? Correct Answer: The claimant.
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tz
Which of the following would NOT be determined by a court when an insurer has filed a
sh
Sp
declaratory judgment action? Correct Answer: The type and amount of damages that will be
ne
paid to a plaintiff for the claim that is being disputed.
la
tz
Which of the following statements is TRUE regarding the Homeowners "additional coverage"
sh
Sp
known as Landlord's Furnishings? Correct Answer: The coverage is not additional insurance and
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does not increase the limits of the policy.
la
tz
Which of the following would be covered under the Jones Act? Correct Answer: Crew members
sh
Sp
of a ship.
ne
la
sh
Sp
la
Sp
, ne
tz
sh
ne
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
la
Correct Answer: The policy will cover watercraft liability.
tz
sh
Sp
Which of the following statements is TRUE regarding Commercial Property coverage? Correct
ne
Answer: Commercial property coverage can be written as both a monoline policy and as part of
la
a package policy.
tz
sh
Sp
What type of insurance is usually provided or subsidized by the state or federal government
ne
because it is not ordinarily available from private insurers? Correct Answer: Residual market
la
insurance.
tz
sh
Sp
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy
ne
provides a "discovery period" for the insured to discover the dishonest act and have coverage still
apply. Which of the following statements best describes the "discovery period" for this optional
la
tz
coverage? Correct Answer: The "discovery period" is one year from the end of the policy
sh
Sp
period.
ne
Which of the following would be considered an Unfair Claim Settlement Practice? Correct
la
Answer: Failing to deny coverage of a claim within a reasonable amount of time after
tz
sh
concluding the investigation
Sp
ne
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
la
generated electrical current"? Correct Answer: A fire must be the result of the artificially
tz
sh
generated electrical current for coverage to apply..
Sp
ne
The Commercial Building and Personal Property coverage form provides five extensions of
la
coverage, but only if: Correct Answer: An 80% or higher coinsurance percentage is shown on
tz
sh
the Declarations page, and the property amount of coverage, based on that percentage, is
Sp
purchased.
ne
la
All of the following would be considered "uninsured motorists", EXCEPT: Correct Answer: A
tz
sh
motorist driving with coverage up to the required state financial responsibility limits for liability,
Sp
but not high enough to pay the claims for an at-fault accident.
ne
la
Regulation of the insurance industry in the United States is primarily left to: Correct Answer:
tz
State governments.
sh
Sp
ne
Which of the following coverages does NOT need to be added to a Garage Coverage form by
la
endorsement for coverage to apply? Correct Answer: Collision.
tz
sh
Sp
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he
ne
decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving
la
the car into the restaurant's parking garage, when he clips the side of the garage entrance with the
tz
front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and
sh
Sp
headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss?
ne
la
sh
Sp
la
Sp
, ne
tz
sh
ne
Correct Answer: It would cover the loss to Chaz's car because it is the insured automobile, but
la
would not cover the damage to the garage..
tz
sh
Sp
Which of the following statements is TRUE regarding the coverage extension of the standard
ne
Businessowners policy for "Business Personal Property Temporarily in Portable Storage Units"?
la
Correct Answer: Coverage will not apply if the storage unit has been on the insured premises for
tz
longer than 90 days, even if the business personal property has only been stored there for less
sh
Sp
than 90 days.
ne
la
Which of the following would be considered a Part D - Other Than Collision claim under a
tz
Personal Automobile claim? Correct Answer: A load of bricks falling from an apartment
sh
Sp
building onto the car.
ne
The Section I Additional Coverage of the standard Businessowners policy provides coverage for
la
tz
"Debris Removal". Which of the following statements best describes the limit for this coverage?
sh
Sp
Correct Answer: The total limit may be up to 25% of the policy limit for the loss payable with
ne
the deductible included, plus up to an additional $25,000 if the policy limits are exhausted
la
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an
tz
sh
act is known as: Correct Answer: Fraud
Sp
ne
Which of the following losses would be covered under a Commercial Property policy with the
la
special cause of loss form attached? Correct Answer: A fire that breaks out in an office building
tz
sh
and causes damage to two of the offices..
Sp
ne
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized
la
Yacht policy is breached because of something out of the control of the insured: Correct Answer:
tz
sh
The insurer must be notified within 10 days after the breach and any additional premium that is
Sp
due must be paid.
ne
la
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy?
tz
sh
Correct Answer: Owner-occupants of a 5 to 6-family dwelling
Sp
ne
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is
la
$100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability.
tz
Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella
sh
Sp
policy, his Homeowners policy must pay $100,000, but he finds that the insurance company
ne
from which he purchased his Homeowners policy has become insolvent. How will the Umbrella
la
insurer pay the claim (disregarding any retention limit)? Correct Answer: The Umbrella policy
tz
will not become primary when the insurer carrying the underlying insurance becomes insolvent,
sh
Sp
but will pay the $400,000 as if the underlying insurer had paid its $100,000 limit of liability..
ne
la
The additional coverage for debris removal under the standardized Building and Personal
tz
Property coverage form will only be paid if: Correct Answer: The insured reports the debris
sh
Sp
removal expenses to the insurance company in writing within 180 days of the loss..
ne
la
sh
Sp
la
Sp
