TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! (200+ QUESTIONS
AND CORRECT ANSWERS) VERIFIED ANSWERS 2025/2026 Updated
The amountof insurance countersigned, issued,
or sold by an agent orproducerto cover
immediatefamily members,an employer,or employees isknownas:- CORRECT ANS -
Controlled business
All of thefollowingarecriteriafor an accidentto haveoccurred"in thecourseof"the
employment under a workers' compensation policy, EXCEPT: - CORRECT ANS -
While performinga taskthata fellowworkerrequested,thatwasunusualto
the employee's jobdescription,but occurredon the employer's premises duringworking
hours.
Which of thefollowingstatementsis NOT TRUE regardingtheimpliedwarrantiesof an
Ocean Marinepolicy? - CORRECT ANS - The implied warranties are
attached to the policy as an endorsement..
Parmeliais coveredundertwoseparatestandardizedPersonalAutomobilepolicies,with
PartC limits underbothpoliciessetat $200,000.Parmeliais involvedin an accidentwith
an uninsured motoristand shesustains bodily injurydamages for
$262,320.How much will Parmeliareceivewhenshesubmitsa claim for these
damages- CORRECT ANS - $200,000
Which of the following endorsements must be attached to a standard
Businessowners policyfor coverageto applyto a businessesfreezer that was
damaged by the interruption of a power source- CORRECT ANS - Utility
Services- Direct Damage endorsement.
After completingan inspectionof an insured'spressure equipment and fire
suppression
systems,theinspectordeterminesthatthepressureequipmentneedsto berepaired and
thesuppressionsystems have notbeencleaned and inspectedin thetime frame required
by the policy. Theinsurer will:- CORRECT ANS -
Suspendcoverageimmediatelyby redtaggingtheitemsuntil theyarerepaired,cleaned
and pass reinspection
To be eligible for coverageunder a standardizedDwelling policy, the insured mustnot
,allow more tha
n _ boarders to live on the premises.
- CORRECT ANS - 5
All of thefollowing are"Perils oftheSea"underan OceanMarine policy,
EXCEPT: - CORRECT ANS - Pirates
,Which of thefollowingstandardizedDwelling insuranceformsprovidescoveragefor
loss of rental income- CORRECT ANS - The DP-1, DP-2, and DP-3 forms
The "Part B- Medical Payments" coverage of a personal automobile policy covers
injuries
for all of the following, EXCEPT: - CORRECT ANS - A passenger whois injured in
another vehicle that is struck
by theinsured'svehicle in an accident
Which of thefollowing are theTexas Workers'Compensationbenefits that are
increased by a cost
-of-living adjustment (COLAs)- CORRECT ANS - Lifetime
Income Benefits(LIBs) only
Hannah must take time away from
work to help assistin the investigationof a claim
thatwasmadeagainsther BOP policy. The policy will pay for Hannah'sactual loss of
earnings up to:- CORRECT ANS - $250 per day.
Surplus Lines companies in Texas hav
e toacknowledgethereceiptof a
claim. - CORRECT ANS - 30 days.
All of thefollowingarecharacteristicsof a principalthata suretywill scrutinizeduring
the underwritingprocess,EXCEPT: - CORRECT ANS - Consideration.
Under SectionII of a Homeownerspolicy,a cemeteryplotownedby theinsuredis
considered to be:- CORRECT ANS - An insured location.
Which of thefollowingis NOT oneof thefourmajorcoveragesof an Ocean
Marine policy? - CORRECT ANS - Seaworthiness.
A ship has suffereddamageand sunk.Which of thefollowing would respondto cover
the loss of the ship?
- CORRECT ANS - Hull Insurance.
As a fiduciaryagent,an adjusterhas thepowerto bind theinsurer.Which of the
following statements is FALSE regarding this power?- CORRECT ANS - Only
an adjuster's written statements can
legallybind aninsurer.
, The standardized Dwelling forms consider all eruptions of a volcano within a
period to be a single "occurrence". - CORRECT ANS - 72-hour
Whoseresponsibilityis it to completea "proofof loss"?- CORRECT ANS - The
claimant.
Which of the following statements is TRUE regarding the Homeowners"additional
coverage" knownas Landlord's Furnishings? - CORRECT ANS - The coverageis not
additional insurance and does
not increase the limitsof the policy.
Which of thefollowingwouldNOT bedeterminedby a courtwhenan insurerhas filed a
declaratory judgment action? - CORRECT ANS - The type and amountof damages
that will bepaid toa plaintiff for the claim thatis being disputed.
Which of thefollowing would becoveredundertheJonesAct? - CORRECT ANS
- Crew membersof a ship.
All of thefollowingstatements
aretrueregardinga PersonalLiability Supplement,
EXCEPT: - CORRECT ANS - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage?-
CORRECT ANS - Commercialpropertycoveragecanbewrittenas
botha monolinepolicy and as part of
a package policy.
Whattypeof insurance isusually providedor subsidized bythe stateor federal
governmentbecauseit is not ordinarilyavailablefromprivateinsurers?- CORRECT
ANS - Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard
Businessowners
policy provides a "discovery period" for the insured to discover
thedishonestactand
havecoveragestill apply.Which of thefollowing statementsbest describes the
"discovery period" for this optional coverage?
- CORRECT ANS - The "discovery
period" is one year from the endthe
of policy period.
Which of thefollowingwouldbeconsideredan Unfair Claim SettlementPractice?
- CORRECT ANS - Failing to denycoverageof a claimwithina reasonable
amount oftime after concluding the investigation
AND CORRECT ANSWERS) VERIFIED ANSWERS 2025/2026 Updated
The amountof insurance countersigned, issued,
or sold by an agent orproducerto cover
immediatefamily members,an employer,or employees isknownas:- CORRECT ANS -
Controlled business
All of thefollowingarecriteriafor an accidentto haveoccurred"in thecourseof"the
employment under a workers' compensation policy, EXCEPT: - CORRECT ANS -
While performinga taskthata fellowworkerrequested,thatwasunusualto
the employee's jobdescription,but occurredon the employer's premises duringworking
hours.
Which of thefollowingstatementsis NOT TRUE regardingtheimpliedwarrantiesof an
Ocean Marinepolicy? - CORRECT ANS - The implied warranties are
attached to the policy as an endorsement..
Parmeliais coveredundertwoseparatestandardizedPersonalAutomobilepolicies,with
PartC limits underbothpoliciessetat $200,000.Parmeliais involvedin an accidentwith
an uninsured motoristand shesustains bodily injurydamages for
$262,320.How much will Parmeliareceivewhenshesubmitsa claim for these
damages- CORRECT ANS - $200,000
Which of the following endorsements must be attached to a standard
Businessowners policyfor coverageto applyto a businessesfreezer that was
damaged by the interruption of a power source- CORRECT ANS - Utility
Services- Direct Damage endorsement.
After completingan inspectionof an insured'spressure equipment and fire
suppression
systems,theinspectordeterminesthatthepressureequipmentneedsto berepaired and
thesuppressionsystems have notbeencleaned and inspectedin thetime frame required
by the policy. Theinsurer will:- CORRECT ANS -
Suspendcoverageimmediatelyby redtaggingtheitemsuntil theyarerepaired,cleaned
and pass reinspection
To be eligible for coverageunder a standardizedDwelling policy, the insured mustnot
,allow more tha
n _ boarders to live on the premises.
- CORRECT ANS - 5
All of thefollowing are"Perils oftheSea"underan OceanMarine policy,
EXCEPT: - CORRECT ANS - Pirates
,Which of thefollowingstandardizedDwelling insuranceformsprovidescoveragefor
loss of rental income- CORRECT ANS - The DP-1, DP-2, and DP-3 forms
The "Part B- Medical Payments" coverage of a personal automobile policy covers
injuries
for all of the following, EXCEPT: - CORRECT ANS - A passenger whois injured in
another vehicle that is struck
by theinsured'svehicle in an accident
Which of thefollowing are theTexas Workers'Compensationbenefits that are
increased by a cost
-of-living adjustment (COLAs)- CORRECT ANS - Lifetime
Income Benefits(LIBs) only
Hannah must take time away from
work to help assistin the investigationof a claim
thatwasmadeagainsther BOP policy. The policy will pay for Hannah'sactual loss of
earnings up to:- CORRECT ANS - $250 per day.
Surplus Lines companies in Texas hav
e toacknowledgethereceiptof a
claim. - CORRECT ANS - 30 days.
All of thefollowingarecharacteristicsof a principalthata suretywill scrutinizeduring
the underwritingprocess,EXCEPT: - CORRECT ANS - Consideration.
Under SectionII of a Homeownerspolicy,a cemeteryplotownedby theinsuredis
considered to be:- CORRECT ANS - An insured location.
Which of thefollowingis NOT oneof thefourmajorcoveragesof an Ocean
Marine policy? - CORRECT ANS - Seaworthiness.
A ship has suffereddamageand sunk.Which of thefollowing would respondto cover
the loss of the ship?
- CORRECT ANS - Hull Insurance.
As a fiduciaryagent,an adjusterhas thepowerto bind theinsurer.Which of the
following statements is FALSE regarding this power?- CORRECT ANS - Only
an adjuster's written statements can
legallybind aninsurer.
, The standardized Dwelling forms consider all eruptions of a volcano within a
period to be a single "occurrence". - CORRECT ANS - 72-hour
Whoseresponsibilityis it to completea "proofof loss"?- CORRECT ANS - The
claimant.
Which of the following statements is TRUE regarding the Homeowners"additional
coverage" knownas Landlord's Furnishings? - CORRECT ANS - The coverageis not
additional insurance and does
not increase the limitsof the policy.
Which of thefollowingwouldNOT bedeterminedby a courtwhenan insurerhas filed a
declaratory judgment action? - CORRECT ANS - The type and amountof damages
that will bepaid toa plaintiff for the claim thatis being disputed.
Which of thefollowing would becoveredundertheJonesAct? - CORRECT ANS
- Crew membersof a ship.
All of thefollowingstatements
aretrueregardinga PersonalLiability Supplement,
EXCEPT: - CORRECT ANS - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage?-
CORRECT ANS - Commercialpropertycoveragecanbewrittenas
botha monolinepolicy and as part of
a package policy.
Whattypeof insurance isusually providedor subsidized bythe stateor federal
governmentbecauseit is not ordinarilyavailablefromprivateinsurers?- CORRECT
ANS - Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard
Businessowners
policy provides a "discovery period" for the insured to discover
thedishonestactand
havecoveragestill apply.Which of thefollowing statementsbest describes the
"discovery period" for this optional coverage?
- CORRECT ANS - The "discovery
period" is one year from the endthe
of policy period.
Which of thefollowingwouldbeconsideredan Unfair Claim SettlementPractice?
- CORRECT ANS - Failing to denycoverageof a claimwithina reasonable
amount oftime after concluding the investigation
