TX ADJUSTER TEST questions and answers 2026\2027
A+ Grade
While investigating a claim, you determine that the loss was caused by a defective mechanism in the
dishwasher. You would attempt to_________________________?
- correct answer Subrogate Subrogation is the right for an insurer to legally pursue a third party that
caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim
paid by the insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of damage?
- correct answer Appraisal
__________________________________________________is a significant misstatement in an
application form. If a company had access to the correct information at the time of application, the
company might not have agreed to accept the application.
- correct answer Material Misrepresentation
As an adjuster, you should base depreciation on these three factors?
- correct answer Age, Condition and Life Expectancy
An_________________ is a person hired by the property owner to settle the claim with insurance
company on their behalf.
- correct answer Umpire
This type of policy provides coverage only for those perils that are listed in the policy?
- correct answer HO-A
_________________________ are extra charges covered by homeowner's policies over and above the
policyholder's customary living expenses.
- correct answer Additional Living Expenses
, _______________________is an event that results in an insured loss/damages?
- correct answer Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation?
- correct answer Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________.
- correct answer Incurred Expenses
________________________________is the part of the written insurance policy that states all the
policy's specific's, including the name of the policyholder, the type of property insured, the premiums,
and the term limits for the coverage.
- correct answer Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable prudence would
use under similar circumstances?
- correct answer Negligence
______________________________is the amount of money dedicated to a general contractor's cost of
doing a business and earning a profit.
- correct answer Overhead and Profit
____________________________is a situation involving a person other than an insurer and the insured.
- correct answer Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover debts to
policyholder?
- correct answer Reserves
This loss involves only the insurer and the insured?
- correct answer First Party Loss
A+ Grade
While investigating a claim, you determine that the loss was caused by a defective mechanism in the
dishwasher. You would attempt to_________________________?
- correct answer Subrogate Subrogation is the right for an insurer to legally pursue a third party that
caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim
paid by the insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of damage?
- correct answer Appraisal
__________________________________________________is a significant misstatement in an
application form. If a company had access to the correct information at the time of application, the
company might not have agreed to accept the application.
- correct answer Material Misrepresentation
As an adjuster, you should base depreciation on these three factors?
- correct answer Age, Condition and Life Expectancy
An_________________ is a person hired by the property owner to settle the claim with insurance
company on their behalf.
- correct answer Umpire
This type of policy provides coverage only for those perils that are listed in the policy?
- correct answer HO-A
_________________________ are extra charges covered by homeowner's policies over and above the
policyholder's customary living expenses.
- correct answer Additional Living Expenses
, _______________________is an event that results in an insured loss/damages?
- correct answer Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation?
- correct answer Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________.
- correct answer Incurred Expenses
________________________________is the part of the written insurance policy that states all the
policy's specific's, including the name of the policyholder, the type of property insured, the premiums,
and the term limits for the coverage.
- correct answer Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable prudence would
use under similar circumstances?
- correct answer Negligence
______________________________is the amount of money dedicated to a general contractor's cost of
doing a business and earning a profit.
- correct answer Overhead and Profit
____________________________is a situation involving a person other than an insurer and the insured.
- correct answer Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover debts to
policyholder?
- correct answer Reserves
This loss involves only the insurer and the insured?
- correct answer First Party Loss
