ADJUSTER PRO TEXAS EXAM 2026
COMPLETE QUESTIONS AND ANSWERS
100% VERIFIED
⩥ Which of the following best defines the principle of indemnity?
Answer: After a loss, the insured should be restored to his approximate
financial condition before the loss
⩥ SureTrust Insurance was founded and operates in Texas. In Texas,
Suretrust is considered Answer: a domestic insurer
⩥ What is a reserve, in insurance terms? Answer: A pool of collected
premiums that the insurer sets aside to pay claims
⩥ Which of the following would you find in the Conditions section of an
insurance policy? Answer: The insured's duty after a loss
⩥ Which of the following is found in the declarations page of an
insurance policy? Answer: The name of the insured party
⩥ Which of the following refers to being restored to the financial
condition you were in before a loss? Answer: Indemnification
,⩥ Dr. Nelson routinely schedules her patients for lab tests that they dont
need so she can charge their insurers for more money. Dr. Nelson is:
Answer: committing health insurance fraud
⩥ Six Starts Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they are a
little short on money and decide to save money by not purchasing
insurance on their new properties. Six Stars is practicing: Answer: Risk
retention
⩥ Which of the following people committed soft fraud? Answer: Rafael
accidentally slipped on a wet floor at the supermarket. Although his only
injury was a sprained ankle, he claimed he had back and neck pain when
he sued the supermarket in an effort to get more money in the
settlement.
⩥ When a car stops short in front of Mike's car, he manages to hit the
brakes in time and avoids a collision. To Mike's surprise, the other driver
then throws the car into reverse and backs into Mike's car! The other
drivers actions are an example of: Answer: Hard fraud
⩥ When Louise goes online and fills out phony applications with XYZ
Auto Insurance in order to print the temporary insurance cards and sell
them for a profit on the black market, she is: Answer: Committing hard
fraud
,⩥ Lucy has insurance on an expensive necklace she likes to wear to
work every day. After work, she takes it off and leaves it in her car's
cupholder so she can put it back on in the morning on her way to work.
Lucy's behavior would be considered a: Answer: Morale hazard
⩥ When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: Answer: Risk
⩥ Which of the following situations does not involve an instance of
"pure risk" Answer: Loss of money invested in the stock market
⩥ Which of the following is an example of how some insurers are
fighting back against insurance fraud? Answer: Starting fraud busting
units staffed with former detectives and police officers
⩥ Which of the following is NOT a form of insurance fraud? Answer:
Increasing your insurance coverage when you think a loss is likely
⩥ Steve has just purchased a wedding ring for his new bride. If
something were to happen to the ring, he'd be out of a lot of money, so
he purchases an insurance policy. He is able to do this because: Answer:
The ring is a pure risk
⩥ Haley takes a bottle of water into a store, pours some of it on the floor
when no one is looking, and then pretends to slip and fall. She cries out
, for help in apparent pain until someone comes to her aid. She then sues
the store for her fake injury in an effort to collect an insurance
settlement. What has Haley committed? Answer: Hard fraud
⩥ After an earthquake, Jake's home is still standing, but it is a little
shaken. The damage is not extensive but Jake wants to cash in on the
situation, so he takes a sledgehammer to some of his extra belongings
and adds them to his claim. Jake has committed: Answer: Property
insurance fraud
⩥ Which of the following is an example of a hazard? Answer: Sandra's
home is in an area of Los Angeles that is often hit by earthquakes
⩥ Risk avoidance is a risk management technique that: Answer:
Eliminates risk
⩥ An "occurrence" is defined as: Answer: An unexpected event that
causes loss
⩥ When Sally applies for an auto policy, her agent issues her a _______
so that she can benefit from insurance protection while he underwrites
the policy. Answer: Binder
COMPLETE QUESTIONS AND ANSWERS
100% VERIFIED
⩥ Which of the following best defines the principle of indemnity?
Answer: After a loss, the insured should be restored to his approximate
financial condition before the loss
⩥ SureTrust Insurance was founded and operates in Texas. In Texas,
Suretrust is considered Answer: a domestic insurer
⩥ What is a reserve, in insurance terms? Answer: A pool of collected
premiums that the insurer sets aside to pay claims
⩥ Which of the following would you find in the Conditions section of an
insurance policy? Answer: The insured's duty after a loss
⩥ Which of the following is found in the declarations page of an
insurance policy? Answer: The name of the insured party
⩥ Which of the following refers to being restored to the financial
condition you were in before a loss? Answer: Indemnification
,⩥ Dr. Nelson routinely schedules her patients for lab tests that they dont
need so she can charge their insurers for more money. Dr. Nelson is:
Answer: committing health insurance fraud
⩥ Six Starts Development Company has just purchased several large
properties in Las Vegas. As a result of this large purchase, they are a
little short on money and decide to save money by not purchasing
insurance on their new properties. Six Stars is practicing: Answer: Risk
retention
⩥ Which of the following people committed soft fraud? Answer: Rafael
accidentally slipped on a wet floor at the supermarket. Although his only
injury was a sprained ankle, he claimed he had back and neck pain when
he sued the supermarket in an effort to get more money in the
settlement.
⩥ When a car stops short in front of Mike's car, he manages to hit the
brakes in time and avoids a collision. To Mike's surprise, the other driver
then throws the car into reverse and backs into Mike's car! The other
drivers actions are an example of: Answer: Hard fraud
⩥ When Louise goes online and fills out phony applications with XYZ
Auto Insurance in order to print the temporary insurance cards and sell
them for a profit on the black market, she is: Answer: Committing hard
fraud
,⩥ Lucy has insurance on an expensive necklace she likes to wear to
work every day. After work, she takes it off and leaves it in her car's
cupholder so she can put it back on in the morning on her way to work.
Lucy's behavior would be considered a: Answer: Morale hazard
⩥ When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: Answer: Risk
⩥ Which of the following situations does not involve an instance of
"pure risk" Answer: Loss of money invested in the stock market
⩥ Which of the following is an example of how some insurers are
fighting back against insurance fraud? Answer: Starting fraud busting
units staffed with former detectives and police officers
⩥ Which of the following is NOT a form of insurance fraud? Answer:
Increasing your insurance coverage when you think a loss is likely
⩥ Steve has just purchased a wedding ring for his new bride. If
something were to happen to the ring, he'd be out of a lot of money, so
he purchases an insurance policy. He is able to do this because: Answer:
The ring is a pure risk
⩥ Haley takes a bottle of water into a store, pours some of it on the floor
when no one is looking, and then pretends to slip and fall. She cries out
, for help in apparent pain until someone comes to her aid. She then sues
the store for her fake injury in an effort to collect an insurance
settlement. What has Haley committed? Answer: Hard fraud
⩥ After an earthquake, Jake's home is still standing, but it is a little
shaken. The damage is not extensive but Jake wants to cash in on the
situation, so he takes a sledgehammer to some of his extra belongings
and adds them to his claim. Jake has committed: Answer: Property
insurance fraud
⩥ Which of the following is an example of a hazard? Answer: Sandra's
home is in an area of Los Angeles that is often hit by earthquakes
⩥ Risk avoidance is a risk management technique that: Answer:
Eliminates risk
⩥ An "occurrence" is defined as: Answer: An unexpected event that
causes loss
⩥ When Sally applies for an auto policy, her agent issues her a _______
so that she can benefit from insurance protection while he underwrites
the policy. Answer: Binder
