TEXAS ADJUSTER END OF COURSE EXAM QUESTIONS AND
ANSWERS MARKED A+
✔Notice of Claim - ✔✔Written notice of a claim provided to the insurer by the claimant,
apprising the insurer of the facts of the claim.
✔✔Claimant - ✔✔A person making a claim.
✔✔Speculative Risk - ✔✔A chance of loss, no loss, or gain; not insurable.
✔✔Pure Risk - ✔✔Only a chance of loss; is insurable.
✔✔Risk - ✔✔The uncertainty or chance of a loss occurring.
✔✔Warranties - ✔✔Conditions that must be true at the time of a loss or the policy is
void.
✔✔Misrepresentation - ✔✔Incorrect information (white lies); do not affect coverage.
✔✔Material Misrepresentation - ✔✔False information (an important lie) that DOES
affect coverage; voids the contract.
✔✔Concealment - ✔✔Hiding important coverage; voids coverage.
✔✔Waiver - ✔✔The voluntary relinquishment of a known right.
✔✔Estoppel - ✔✔Waiving a right involuntarily through an act or an omission. Stops the
insurance company from being able to deny a claim.
✔✔Insurance - ✔✔Transfer of risk.
✔✔Binder - ✔✔Temporary insurance contract; oral or written.
✔✔Direct Loss - ✔✔Physical damage to tangible property.
✔✔Indirect Loss - ✔✔Loss of use as a result of a direct loss.
✔✔Hazards - ✔✔Conditions that increase the chance that perils will cause a loss.
✔✔Physical Hazards - ✔✔Visible; things you can see
✔✔Moral Hazards - ✔✔Dishonest, intentional, or illegal actions
ANSWERS MARKED A+
✔Notice of Claim - ✔✔Written notice of a claim provided to the insurer by the claimant,
apprising the insurer of the facts of the claim.
✔✔Claimant - ✔✔A person making a claim.
✔✔Speculative Risk - ✔✔A chance of loss, no loss, or gain; not insurable.
✔✔Pure Risk - ✔✔Only a chance of loss; is insurable.
✔✔Risk - ✔✔The uncertainty or chance of a loss occurring.
✔✔Warranties - ✔✔Conditions that must be true at the time of a loss or the policy is
void.
✔✔Misrepresentation - ✔✔Incorrect information (white lies); do not affect coverage.
✔✔Material Misrepresentation - ✔✔False information (an important lie) that DOES
affect coverage; voids the contract.
✔✔Concealment - ✔✔Hiding important coverage; voids coverage.
✔✔Waiver - ✔✔The voluntary relinquishment of a known right.
✔✔Estoppel - ✔✔Waiving a right involuntarily through an act or an omission. Stops the
insurance company from being able to deny a claim.
✔✔Insurance - ✔✔Transfer of risk.
✔✔Binder - ✔✔Temporary insurance contract; oral or written.
✔✔Direct Loss - ✔✔Physical damage to tangible property.
✔✔Indirect Loss - ✔✔Loss of use as a result of a direct loss.
✔✔Hazards - ✔✔Conditions that increase the chance that perils will cause a loss.
✔✔Physical Hazards - ✔✔Visible; things you can see
✔✔Moral Hazards - ✔✔Dishonest, intentional, or illegal actions
