Texas Adjuster Pro Final Exam Newest
2025/2026 Complete Questions and Correct
Detailed Answers Already Graded A+|Brand
New Version
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. -
CORRECT ANSWER-Binder
Jane's shed burns to the ground during a tornado, when the high winds break a
wall of the shed, knocking over a lantern inside. What is the proximate cause of
the loss? - CORRECT ANSWER-Wind
During a storm, lightning strikes a tree in Harry's yard and starts a fire that
spreads to his shed where he keeps all his equipment for his landscaping business.
In addition to the shed, Harry has to purchase all new equipment to stay in
business. The cost to replace the equipment would be considered: - CORRECT
ANSWER-A direct loss
,Clark is filling out an application for an insurance policy. The application asks for
his birth date, and Clark writes 1/24/67. His actual birthday is 1/24/63, but he
likes to appear younger so he uses a different date. This would be called: -
CORRECT ANSWER-Misrepresentation
All of the following pieces of information can be found in the conditions section of
an insurance policy EXCEPT: - CORRECT ANSWER-Causes of loss that are not
covered
Which of the following best defines the principle of indemnity? - CORRECT
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 - CORRECT ANSWER-a domestic insurer
What is a reserve, in insurance terms? - CORRECT 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? - CORRECT ANSWER-The insured's duty after a loss
,Which of the following is found in the declarations page of an insurance policy? -
CORRECT 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? - CORRECT 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: - CORRECT
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: - CORRECT ANSWER-Risk retention
Which of the following people committed soft fraud? - CORRECT 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: - CORRECT 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: - CORRECT 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: - CORRECT ANSWER-Morale hazard
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - CORRECT ANSWER-Risk
Which of the following situations does not involve an instance of "pure risk" -
CORRECT 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? - CORRECT ANSWER-Starting fraud busting units
staffed with former detectives and police officers
2025/2026 Complete Questions and Correct
Detailed Answers Already Graded A+|Brand
New Version
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. -
CORRECT ANSWER-Binder
Jane's shed burns to the ground during a tornado, when the high winds break a
wall of the shed, knocking over a lantern inside. What is the proximate cause of
the loss? - CORRECT ANSWER-Wind
During a storm, lightning strikes a tree in Harry's yard and starts a fire that
spreads to his shed where he keeps all his equipment for his landscaping business.
In addition to the shed, Harry has to purchase all new equipment to stay in
business. The cost to replace the equipment would be considered: - CORRECT
ANSWER-A direct loss
,Clark is filling out an application for an insurance policy. The application asks for
his birth date, and Clark writes 1/24/67. His actual birthday is 1/24/63, but he
likes to appear younger so he uses a different date. This would be called: -
CORRECT ANSWER-Misrepresentation
All of the following pieces of information can be found in the conditions section of
an insurance policy EXCEPT: - CORRECT ANSWER-Causes of loss that are not
covered
Which of the following best defines the principle of indemnity? - CORRECT
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 - CORRECT ANSWER-a domestic insurer
What is a reserve, in insurance terms? - CORRECT 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? - CORRECT ANSWER-The insured's duty after a loss
,Which of the following is found in the declarations page of an insurance policy? -
CORRECT 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? - CORRECT 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: - CORRECT
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: - CORRECT ANSWER-Risk retention
Which of the following people committed soft fraud? - CORRECT 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: - CORRECT 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: - CORRECT 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: - CORRECT ANSWER-Morale hazard
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - CORRECT ANSWER-Risk
Which of the following situations does not involve an instance of "pure risk" -
CORRECT 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? - CORRECT ANSWER-Starting fraud busting units
staffed with former detectives and police officers
