TEXAS ALL LINES ADJUSTER LATEST
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
SURE A+
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils that are NOT covered by the policy.
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely.
✔✔Fair Credit Reporting - ✔✔Federal legislation that gives an applicant for insurance
the right to investigate the reasons his insurance application was denied.
✔✔Fall Down Case - ✔✔A lawsuit brought against a property owner by someone who
has fallen down on the property.
✔✔False Advertising - ✔✔Presenting something in a deceptive or untrue manner to the
consumer; misrepresentations in advertisements.
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for injury and damage to a third party.
✔✔Farm Property Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for the dwelling, other structures, farm structures, and both
household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In Farm insurance, a farmer must reside and do business on the same premises.
,✔✔Federal Crop Insurance Act - ✔✔Legislation passed by Congress that established
the Federal crop insurance program.
✔✔Federal Crop Insurance Corporation (FCIC) - ✔✔A government-owned corporation
that manages the Federal crop insurance program.
✔✔FEMA - ✔✔Federal Emergency Management Agency - a branch of homeland
security that coordinates relief programs when disaster strikes an entire community.
✔✔Fiduciary - ✔✔One of the terms that describes the adjuster's relationship with the
principal (the insurer). As Fiduciary Agent, the adjuster acts for the benefit of the
principal, rather than for his own benefit.
✔✔Final planting date - ✔✔The last day to plant crops in order to receive the full
insurance yield and/or revenue guarantee selected.
✔✔First Named Insured - ✔✔The first person or entity named as insured on the
declarations page of a policy.
✔✔Floater - ✔✔A term for Inland Marine policies that cover mobile property.
✔✔Flood - ✔✔An overflow of inland or tidal waters; an unusual or rapid accumulation of
runoff or surface waters from any source; mud flows; collapse or subsidence of land
along the shore of a lake or other body of water.
✔✔Flood Insurance - ✔✔provides relief following flood damage to communities who
participate in the NFIP floodplain management system; covers damages to the building
and its contents
✔✔Floodplain Management - ✔✔maps out areas with high risk of flood, so that
communities will avoid building in these areas
✔✔Fraternal Benefit Societies - ✔✔Fraternal Benefit Societies, or Fraternal
Associations, are non-profit, mutual aid organizations that engage primarily in charitable
or benevolent activities. They offer their members insurance against death, disease,
and disability.
✔✔Fraud - ✔✔The act of deceiving an insurance company in order to collect more
money than one is legally entitled to.
✔✔Fraud, Hard - ✔✔Deliberately faking or causing an incident in order to collect
money.
, ✔✔Fraud, Soft - ✔✔Inflating the gravity or the extent of claims in order to receive a
higher indemnification.
✔✔Full and legal purpose - ✔✔See also "Legal Purpose." One of the four qualifications
of a legally binding contract. The purpose of the contract must be legal (e.g. no
contracts for illicit drug deals).
✔✔Good faith - ✔✔Acting honestly and fairly, with good intentions and full disclosure.
✔✔Group Risk Income Protection (Crop Insurance) - ✔✔A form of Crop Revenue
Insurance that protects a whole county or area instead of individual farmers.
Automatically indemnifies if county income falls below a certain level.
✔✔Hazard, Moral - ✔✔Hazard caused by insured persons deliberately engaging in risky
behavior because they know that insurance will indemnify them for the losses.
✔✔Hazard - ✔✔Anything that increases the chance of loss.
✔✔Hazard morale - ✔✔Unconscious tendency of insured people to engage in riskier
behavior.
✔✔Hazard Physical - ✔✔Any physical condition that increases the chance of a loss.
✔✔HIPAA - ✔✔Health Insurance Portability and Accountability Act, 1996 US law
protecting consumer privacy, regulating collection, use and storage of private
information.
✔✔HO Forms 2 - ✔✔The "broad" or "cheap" form of Homeowners Insurance; a basic,
named-peril HO form that nevertheless is less limited than the HO-8.
✔✔HO Forms 3 - ✔✔"Special form" of Homeowners Insurance; all-peril coverage for
structures, named-peril coverage for contents.
✔✔HO Forms 4 - ✔✔"Contents broad form"; named-peril renter's policy covering only
personal property and any structural improvements made at tenant's own expense.
✔✔HO Forms 5 - ✔✔"Comprehensive form" of Homeowners Insurance; provides all-
peril coverage to both structures and contents; the Cadillac of HO forms.
✔✔HO Forms 6 - ✔✔"Condo" or "unit owner's form"; named-peril homeowners policy
covering personal property and the surface structure of a condominium.
COMPREHENSIVE EXAM QUESTIONS AND ANSWERS
SURE A+
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils that are NOT covered by the policy.
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely.
✔✔Fair Credit Reporting - ✔✔Federal legislation that gives an applicant for insurance
the right to investigate the reasons his insurance application was denied.
✔✔Fall Down Case - ✔✔A lawsuit brought against a property owner by someone who
has fallen down on the property.
✔✔False Advertising - ✔✔Presenting something in a deceptive or untrue manner to the
consumer; misrepresentations in advertisements.
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for injury and damage to a third party.
✔✔Farm Property Coverage Form - ✔✔A form added to a farm insurance policy that
provides coverage for the dwelling, other structures, farm structures, and both
household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In Farm insurance, a farmer must reside and do business on the same premises.
,✔✔Federal Crop Insurance Act - ✔✔Legislation passed by Congress that established
the Federal crop insurance program.
✔✔Federal Crop Insurance Corporation (FCIC) - ✔✔A government-owned corporation
that manages the Federal crop insurance program.
✔✔FEMA - ✔✔Federal Emergency Management Agency - a branch of homeland
security that coordinates relief programs when disaster strikes an entire community.
✔✔Fiduciary - ✔✔One of the terms that describes the adjuster's relationship with the
principal (the insurer). As Fiduciary Agent, the adjuster acts for the benefit of the
principal, rather than for his own benefit.
✔✔Final planting date - ✔✔The last day to plant crops in order to receive the full
insurance yield and/or revenue guarantee selected.
✔✔First Named Insured - ✔✔The first person or entity named as insured on the
declarations page of a policy.
✔✔Floater - ✔✔A term for Inland Marine policies that cover mobile property.
✔✔Flood - ✔✔An overflow of inland or tidal waters; an unusual or rapid accumulation of
runoff or surface waters from any source; mud flows; collapse or subsidence of land
along the shore of a lake or other body of water.
✔✔Flood Insurance - ✔✔provides relief following flood damage to communities who
participate in the NFIP floodplain management system; covers damages to the building
and its contents
✔✔Floodplain Management - ✔✔maps out areas with high risk of flood, so that
communities will avoid building in these areas
✔✔Fraternal Benefit Societies - ✔✔Fraternal Benefit Societies, or Fraternal
Associations, are non-profit, mutual aid organizations that engage primarily in charitable
or benevolent activities. They offer their members insurance against death, disease,
and disability.
✔✔Fraud - ✔✔The act of deceiving an insurance company in order to collect more
money than one is legally entitled to.
✔✔Fraud, Hard - ✔✔Deliberately faking or causing an incident in order to collect
money.
, ✔✔Fraud, Soft - ✔✔Inflating the gravity or the extent of claims in order to receive a
higher indemnification.
✔✔Full and legal purpose - ✔✔See also "Legal Purpose." One of the four qualifications
of a legally binding contract. The purpose of the contract must be legal (e.g. no
contracts for illicit drug deals).
✔✔Good faith - ✔✔Acting honestly and fairly, with good intentions and full disclosure.
✔✔Group Risk Income Protection (Crop Insurance) - ✔✔A form of Crop Revenue
Insurance that protects a whole county or area instead of individual farmers.
Automatically indemnifies if county income falls below a certain level.
✔✔Hazard, Moral - ✔✔Hazard caused by insured persons deliberately engaging in risky
behavior because they know that insurance will indemnify them for the losses.
✔✔Hazard - ✔✔Anything that increases the chance of loss.
✔✔Hazard morale - ✔✔Unconscious tendency of insured people to engage in riskier
behavior.
✔✔Hazard Physical - ✔✔Any physical condition that increases the chance of a loss.
✔✔HIPAA - ✔✔Health Insurance Portability and Accountability Act, 1996 US law
protecting consumer privacy, regulating collection, use and storage of private
information.
✔✔HO Forms 2 - ✔✔The "broad" or "cheap" form of Homeowners Insurance; a basic,
named-peril HO form that nevertheless is less limited than the HO-8.
✔✔HO Forms 3 - ✔✔"Special form" of Homeowners Insurance; all-peril coverage for
structures, named-peril coverage for contents.
✔✔HO Forms 4 - ✔✔"Contents broad form"; named-peril renter's policy covering only
personal property and any structural improvements made at tenant's own expense.
✔✔HO Forms 5 - ✔✔"Comprehensive form" of Homeowners Insurance; provides all-
peril coverage to both structures and contents; the Cadillac of HO forms.
✔✔HO Forms 6 - ✔✔"Condo" or "unit owner's form"; named-peril homeowners policy
covering personal property and the surface structure of a condominium.
