TEXAS ALL LINES ADJUSTER TEST PAPER
2026 COMPREHENSIVE EXAM STUDY
GUIDE WITH FULL SOLVED ANSWERS
⩥ Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? 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
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 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: Answer: Suspend coverage immediately by red tagging the
items until they are repaired, cleaned and pass reinspection
,⩥ To be eligible for coverage under a standardized Dwelling policy, the
insured must not allow more than _______ boarders to live on the
premises. Answer: 5
⩥ All of the following are "Perils of the Sea" under an Ocean Marine
policy, EXCEPT: Answer: Pirates
⩥ The amount of insurance countersigned, issued, or sold by an agent or
producer to cover immediate family members, an employer, or
employees is known as: Answer: Controlled business
⩥ Which of the following standardized Dwelling insurance forms
provides coverage for loss of rental income Answer: 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: Answer: A
passenger who is injured in another vehicle that is struck by the insured's
vehicle in an accident
⩥ Which of the following are the Texas Workers' Compensation benefits
that are increased by a cost-of-living adjustment (COLAs) Answer:
Lifetime Income Benefits (LIBs) only
,⩥ Hannah must take time away from work to help assist in the
investigation of a claim that was made against her BOP policy. The
policy will pay for Hannah's actual loss of earnings up to: Answer: $250
per day.
⩥ Surplus Lines companies in Texas have _____ to acknowledge the
receipt of a claim. Answer: 30 days.
⩥ All of the following are characteristics of a principal that a surety will
scrutinize during the underwriting process, EXCEPT: Answer:
Consideration.
⩥ Under Section II of a Homeowners policy, a cemetery plot owned by
the insured is considered to be: Answer: An insured location.
⩥ Which of the following is NOT one of the four major coverages of an
Ocean Marine policy? Answer: Seaworthiness.
⩥ A ship has suffered damage and sunk. Which of the following would
respond to cover the loss of the ship? Answer: Hull Insurance.
⩥ As a fiduciary agent, an adjuster has the power to bind the insurer.
Which of the following statements is FALSE regarding this power?
Answer: Only an adjuster's written statements can legally bind an
insurer.
, ⩥ The standardized Dwelling forms consider all eruptions of a volcano
within a __________ period to be a single "occurrence". Answer: 72-
hour
⩥ Whose responsibility is it to complete a "proof of loss"? Answer: The
claimant.
⩥ Which of the following would NOT be determined by a court when an
insurer has filed a declaratory judgment action? Answer: The type and
amount of damages that will be paid to a plaintiff for the claim that is
being disputed.
⩥ Which of the following statements is TRUE regarding the
Homeowners "additional coverage" known as Landlord's Furnishings?
Answer: The coverage is not additional insurance and does not increase
the limits of the policy.
⩥ Which of the following would be covered under the Jones Act?
Answer: Crew members of a ship.
⩥ All of the following statements are true regarding a Personal Liability
Supplement, EXCEPT: Answer: The policy will cover watercraft
liability.
2026 COMPREHENSIVE EXAM STUDY
GUIDE WITH FULL SOLVED ANSWERS
⩥ Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? 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
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 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: Answer: Suspend coverage immediately by red tagging the
items until they are repaired, cleaned and pass reinspection
,⩥ To be eligible for coverage under a standardized Dwelling policy, the
insured must not allow more than _______ boarders to live on the
premises. Answer: 5
⩥ All of the following are "Perils of the Sea" under an Ocean Marine
policy, EXCEPT: Answer: Pirates
⩥ The amount of insurance countersigned, issued, or sold by an agent or
producer to cover immediate family members, an employer, or
employees is known as: Answer: Controlled business
⩥ Which of the following standardized Dwelling insurance forms
provides coverage for loss of rental income Answer: 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: Answer: A
passenger who is injured in another vehicle that is struck by the insured's
vehicle in an accident
⩥ Which of the following are the Texas Workers' Compensation benefits
that are increased by a cost-of-living adjustment (COLAs) Answer:
Lifetime Income Benefits (LIBs) only
,⩥ Hannah must take time away from work to help assist in the
investigation of a claim that was made against her BOP policy. The
policy will pay for Hannah's actual loss of earnings up to: Answer: $250
per day.
⩥ Surplus Lines companies in Texas have _____ to acknowledge the
receipt of a claim. Answer: 30 days.
⩥ All of the following are characteristics of a principal that a surety will
scrutinize during the underwriting process, EXCEPT: Answer:
Consideration.
⩥ Under Section II of a Homeowners policy, a cemetery plot owned by
the insured is considered to be: Answer: An insured location.
⩥ Which of the following is NOT one of the four major coverages of an
Ocean Marine policy? Answer: Seaworthiness.
⩥ A ship has suffered damage and sunk. Which of the following would
respond to cover the loss of the ship? Answer: Hull Insurance.
⩥ As a fiduciary agent, an adjuster has the power to bind the insurer.
Which of the following statements is FALSE regarding this power?
Answer: Only an adjuster's written statements can legally bind an
insurer.
, ⩥ The standardized Dwelling forms consider all eruptions of a volcano
within a __________ period to be a single "occurrence". Answer: 72-
hour
⩥ Whose responsibility is it to complete a "proof of loss"? Answer: The
claimant.
⩥ Which of the following would NOT be determined by a court when an
insurer has filed a declaratory judgment action? Answer: The type and
amount of damages that will be paid to a plaintiff for the claim that is
being disputed.
⩥ Which of the following statements is TRUE regarding the
Homeowners "additional coverage" known as Landlord's Furnishings?
Answer: The coverage is not additional insurance and does not increase
the limits of the policy.
⩥ Which of the following would be covered under the Jones Act?
Answer: Crew members of a ship.
⩥ All of the following statements are true regarding a Personal Liability
Supplement, EXCEPT: Answer: The policy will cover watercraft
liability.
