1|Page
TEXAS ALL LINES ADJUSTER EXAM WITH
QUESTIONS AND ANSWERS 100%
VERIFIED
Which of the following types of insurance companies must charge a
premium tax to be remitted to the state each time a policy is sold? -
correct answer_ Surplus Lines company.
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540. The
waiting period is 3 days and the retroactive period is 15 days. Which of
the following is Mark's TTD benefit if he earns $20 per hour and usually
works a 40-hour week. Mark is injured on July 14th and does not return
to work until September 3rd. Which of the following is the amount of
TTD benefit he would have received? - correct answer_ $3,809.50.
An independent adjuster acts on behalf of his or her principal. Which of
the following is the principal for an independent adjuster? - correct
answer_ The insurer.
,2|Page
Jerry is fishing from his 22-foot boat on Lake Norman when he is caught
in a sudden hail storm. His boat suffers extensive hail damage. When he
files a claim against his Homeowners policy, the most likely reason his
claim is denied because: - correct answer_ The boat was not fully
enclosed inside a building during the hail storm.
A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the
insured to receive full replacement cost coverage in the event of a
$50,000 fire loss? - correct answer_ $400,000.
Coverage for all reasonable expenses incurred by an insured in order to
continue as nearly as practicable the normal operation of his/her
business after a loss is: - correct answer_ Extra Expense Coverage
The insured has her fur coat specifically covered under a Personal
Articles policy. It has been stored in a plastic garment bag in her closet
during the summer months. She decides to take the coat out and hang
it outside to freshen up. The next door neighbor's dog sees the coat and
attacks it and ruins the garment. The insurer will: - correct answer_ Pay
the claim because the loss is not excluded
,3|Page
There are several different Commercial Property coverage forms that
can be added to a Commercial Package policy. Which of the following is
NOT described on a Commercial Property coverage form? - correct
answer_ The number of buildings the insured owns that are not
covered by the policy..
All of the following statements are TRUE regarding the standard
Businessowners policy coverage extension for "Business Personal
Property Temporarily in Portable Storage Units", EXCEPT: - correct
answer_ The coverage is provided for rented storage units away from
the insured premises.
All of the following statements are true regarding Difference in
Conditions insurance (DIC), EXCEPT: - correct answer_ Covers losses
due to windstorm..
All of the following are criteria for an accident to have occurred "in the
course of" the employment under a workers' compensation policy,
EXCEPT: - correct answer_ While performing a task that a fellow worker
requested, that was unusual to the employee's job description, but
occurred on the employer's premises during working hours.
, 4|Page
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 endorsement..
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
motorist and she sustains bodily injury damages for $262,320. How
much will Parmelia receive when she submits a claim for these
damages - correct answer_ $200,000
Which of the following endorsements must be attached to a standard
Businessowners policy for coverage to apply to a businesses freezer
that was damaged by the interruption of a power source - correct
answer_ Utility Services - Direct Damage endorsement.
After completing an inspection of an insured's pressure equipment and
fire suppression systems, the inspector determines that the pressure
equipment needs to be repaired and the suppression systems have not
been cleaned and inspected in the time frame required by the policy.
The insurer will: - correct answer_ Suspend coverage immediately by
TEXAS ALL LINES ADJUSTER EXAM WITH
QUESTIONS AND ANSWERS 100%
VERIFIED
Which of the following types of insurance companies must charge a
premium tax to be remitted to the state each time a policy is sold? -
correct answer_ Surplus Lines company.
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540. The
waiting period is 3 days and the retroactive period is 15 days. Which of
the following is Mark's TTD benefit if he earns $20 per hour and usually
works a 40-hour week. Mark is injured on July 14th and does not return
to work until September 3rd. Which of the following is the amount of
TTD benefit he would have received? - correct answer_ $3,809.50.
An independent adjuster acts on behalf of his or her principal. Which of
the following is the principal for an independent adjuster? - correct
answer_ The insurer.
,2|Page
Jerry is fishing from his 22-foot boat on Lake Norman when he is caught
in a sudden hail storm. His boat suffers extensive hail damage. When he
files a claim against his Homeowners policy, the most likely reason his
claim is denied because: - correct answer_ The boat was not fully
enclosed inside a building during the hail storm.
A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the
insured to receive full replacement cost coverage in the event of a
$50,000 fire loss? - correct answer_ $400,000.
Coverage for all reasonable expenses incurred by an insured in order to
continue as nearly as practicable the normal operation of his/her
business after a loss is: - correct answer_ Extra Expense Coverage
The insured has her fur coat specifically covered under a Personal
Articles policy. It has been stored in a plastic garment bag in her closet
during the summer months. She decides to take the coat out and hang
it outside to freshen up. The next door neighbor's dog sees the coat and
attacks it and ruins the garment. The insurer will: - correct answer_ Pay
the claim because the loss is not excluded
,3|Page
There are several different Commercial Property coverage forms that
can be added to a Commercial Package policy. Which of the following is
NOT described on a Commercial Property coverage form? - correct
answer_ The number of buildings the insured owns that are not
covered by the policy..
All of the following statements are TRUE regarding the standard
Businessowners policy coverage extension for "Business Personal
Property Temporarily in Portable Storage Units", EXCEPT: - correct
answer_ The coverage is provided for rented storage units away from
the insured premises.
All of the following statements are true regarding Difference in
Conditions insurance (DIC), EXCEPT: - correct answer_ Covers losses
due to windstorm..
All of the following are criteria for an accident to have occurred "in the
course of" the employment under a workers' compensation policy,
EXCEPT: - correct answer_ While performing a task that a fellow worker
requested, that was unusual to the employee's job description, but
occurred on the employer's premises during working hours.
, 4|Page
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 endorsement..
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
motorist and she sustains bodily injury damages for $262,320. How
much will Parmelia receive when she submits a claim for these
damages - correct answer_ $200,000
Which of the following endorsements must be attached to a standard
Businessowners policy for coverage to apply to a businesses freezer
that was damaged by the interruption of a power source - correct
answer_ Utility Services - Direct Damage endorsement.
After completing an inspection of an insured's pressure equipment and
fire suppression systems, the inspector determines that the pressure
equipment needs to be repaired and the suppression systems have not
been cleaned and inspected in the time frame required by the policy.
The insurer will: - correct answer_ Suspend coverage immediately by
