TEXAS ALL LINES ADJUSTER EXAM QUESTIONS &
ANSWERS SOLUTION 2026 COMPLETE EXAM | 100%
CORRECT
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 ANSWERS 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.
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean Marine policy? - CORRECT ANSWERS
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 ANSWERS $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 ANSWERS 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 ANSWERS 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. - CORRECT ANSWERS 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - CORRECT ANSWERS 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: - CORRECT ANSWERS Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income - CORRECT ANSWERS 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 ANSWERS
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) - CORRECT
ANSWERS 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: - CORRECT ANSWERS $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. - CORRECT ANSWERS 30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT: - CORRECT ANSWERS
Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: - CORRECT ANSWERS An
insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? - CORRECT ANSWERS Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? - CORRECT ANSWERS 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? -
CORRECT ANSWERS 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". - CORRECT
ANSWERS 72-hour
Whose responsibility is it to complete a "proof of loss"? - CORRECT ANSWERS The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? - CORRECT ANSWERS
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? - CORRECT
ANSWERS 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? - CORRECT ANSWERS Crew members of a ship.
,All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: - CORRECT ANSWERS The policy will
cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? - CORRECT ANSWERS Commercial property
coverage can be written as both a monoline policy and as part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal government because it is not ordinarily available from private
insurers? - CORRECT ANSWERS Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy 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 coverage? - CORRECT ANSWERS The "discovery period" is one year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? - CORRECT ANSWERS Failing to deny coverage of a
claim within a reasonable amount of time after concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially generated electrical current"? - CORRECT ANSWERS
A fire must be the result of the artificially generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions of coverage, but only if: - CORRECT ANSWERS
An 80% or higher coinsurance percentage is shown on the Declarations page, and the property amount of coverage, based on that percentage,
is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - CORRECT ANSWERS A motorist driving with coverage up
to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident.
Regulation of the insurance industry in the United States is primarily left to: - CORRECT ANSWERS State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form by endorsement for coverage to apply? - CORRECT
ANSWERS Collision.
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he decides to have the valet park his car, saving his
girlfriend from getting wet. The valet is driving the car into the restaurant's parking garage, when he clips the side of the garage entrance with
the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and headlight of Chaz's car. How would Part D of
Chaz's Personal Automobile respond to this loss? - CORRECT ANSWERS It would cover the loss to Chaz's car because it is the insured
automobile, but would not cover the damage to the garage..
, Which of the following statements is TRUE regarding the coverage extension of the standard Businessowners policy for "Business Personal
Property Temporarily in Portable Storage Units"? - CORRECT ANSWERS Coverage will not apply if the storage unit has been on the
insured premises for longer than 90 days, even if the business personal property has only been stored there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under a Personal Automobile claim? - CORRECT ANSWERS
A load of bricks falling from an apartment building onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides coverage for "Debris Removal". Which of the following
statements best describes the limit for this coverage? - CORRECT ANSWERS The total limit may be up to 25% of the policy limit for
the loss payable with the deductible included, plus up to an additional $25,000 if the policy limits are exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an act is known as: - CORRECT ANSWERS
Fraud
Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? - CORRECT
ANSWERS A fire that breaks out in an office building and causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out
of the control of the insured: - CORRECT ANSWERS The insurer must be notified within 10 days after the breach and any additional
premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? - CORRECT ANSWERS Owner-occupants
of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is $100,000. He also purchased a Personal Umbrella
policy with a $1,000,000 limit of liability. Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella policy,
his Homeowners policy must pay $100,000, but he finds that the insurance company from which he purchased his Homeowners policy has
become insolvent. How will the Umbrella insurer pay the claim (disregarding any retention limit)? - CORRECT ANSWERS The
Umbrella policy will not become primary when the insurer carrying the underlying insurance becomes insolvent, but will pay the $400,000 as if
the underlying insurer had paid its $100,000 limit of liability..
The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if: -
CORRECT ANSWERS The insured reports the debris removal expenses to the insurance company in writing within 180 days of the
loss..
The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates
of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is
damaged and sinks. Under what circumstances would coverage apply? - CORRECT ANSWERS Only if the insurance company is
notified within 10 days of the emergency use
ANSWERS SOLUTION 2026 COMPLETE EXAM | 100%
CORRECT
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 ANSWERS 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.
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean Marine policy? - CORRECT ANSWERS
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 ANSWERS $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 ANSWERS 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 ANSWERS 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. - CORRECT ANSWERS 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - CORRECT ANSWERS 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: - CORRECT ANSWERS Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income - CORRECT ANSWERS 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 ANSWERS
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) - CORRECT
ANSWERS 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: - CORRECT ANSWERS $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. - CORRECT ANSWERS 30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT: - CORRECT ANSWERS
Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: - CORRECT ANSWERS An
insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? - CORRECT ANSWERS Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? - CORRECT ANSWERS 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? -
CORRECT ANSWERS 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". - CORRECT
ANSWERS 72-hour
Whose responsibility is it to complete a "proof of loss"? - CORRECT ANSWERS The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? - CORRECT ANSWERS
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? - CORRECT
ANSWERS 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? - CORRECT ANSWERS Crew members of a ship.
,All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: - CORRECT ANSWERS The policy will
cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? - CORRECT ANSWERS Commercial property
coverage can be written as both a monoline policy and as part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal government because it is not ordinarily available from private
insurers? - CORRECT ANSWERS Residual market insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy 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 coverage? - CORRECT ANSWERS The "discovery period" is one year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? - CORRECT ANSWERS Failing to deny coverage of a
claim within a reasonable amount of time after concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially generated electrical current"? - CORRECT ANSWERS
A fire must be the result of the artificially generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions of coverage, but only if: - CORRECT ANSWERS
An 80% or higher coinsurance percentage is shown on the Declarations page, and the property amount of coverage, based on that percentage,
is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - CORRECT ANSWERS A motorist driving with coverage up
to the required state financial responsibility limits for liability, but not high enough to pay the claims for an at-fault accident.
Regulation of the insurance industry in the United States is primarily left to: - CORRECT ANSWERS State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form by endorsement for coverage to apply? - CORRECT
ANSWERS Collision.
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he decides to have the valet park his car, saving his
girlfriend from getting wet. The valet is driving the car into the restaurant's parking garage, when he clips the side of the garage entrance with
the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and headlight of Chaz's car. How would Part D of
Chaz's Personal Automobile respond to this loss? - CORRECT ANSWERS It would cover the loss to Chaz's car because it is the insured
automobile, but would not cover the damage to the garage..
, Which of the following statements is TRUE regarding the coverage extension of the standard Businessowners policy for "Business Personal
Property Temporarily in Portable Storage Units"? - CORRECT ANSWERS Coverage will not apply if the storage unit has been on the
insured premises for longer than 90 days, even if the business personal property has only been stored there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under a Personal Automobile claim? - CORRECT ANSWERS
A load of bricks falling from an apartment building onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides coverage for "Debris Removal". Which of the following
statements best describes the limit for this coverage? - CORRECT ANSWERS The total limit may be up to 25% of the policy limit for
the loss payable with the deductible included, plus up to an additional $25,000 if the policy limits are exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an act is known as: - CORRECT ANSWERS
Fraud
Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? - CORRECT
ANSWERS A fire that breaks out in an office building and causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out
of the control of the insured: - CORRECT ANSWERS The insurer must be notified within 10 days after the breach and any additional
premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? - CORRECT ANSWERS Owner-occupants
of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is $100,000. He also purchased a Personal Umbrella
policy with a $1,000,000 limit of liability. Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella policy,
his Homeowners policy must pay $100,000, but he finds that the insurance company from which he purchased his Homeowners policy has
become insolvent. How will the Umbrella insurer pay the claim (disregarding any retention limit)? - CORRECT ANSWERS The
Umbrella policy will not become primary when the insurer carrying the underlying insurance becomes insolvent, but will pay the $400,000 as if
the underlying insurer had paid its $100,000 limit of liability..
The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if: -
CORRECT ANSWERS The insured reports the debris removal expenses to the insurance company in writing within 180 days of the
loss..
The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates
of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is
damaged and sinks. Under what circumstances would coverage apply? - CORRECT ANSWERS Only if the insurance company is
notified within 10 days of the emergency use
