Texas All Lines Adjuster Test with Verified Answers Updated 2024

Texas All Lines Adjuster Test with Verified Answers Updated 2024 The insured has filed a claim under the "Business Income Department Properties - Broad Form" because the primary buyer of products and services from the business has filed for bankruptcy under this form the primary buyers business would be known as A recipient location recipient location Businesses who support insured by being the primary buyer for their products HO-3 (special form) covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property is covered on a named perils basis HO-5 Comprehensive Form provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal property. HO-2 (broad form) covers the dwelling, other structures, and personal property on a named perils basis HO-4 (contents broad form) Only covers a tenant's personal property on a named perils basis The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the barn? Nothing farm property are not eligible under the dwelling policy. A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________. Temporary Substitute Auto The covered auto is defined in the policy as all of the following EXCEPT: A) any additional auto acquired in the past 30 days. B) any auto shown in the declarations. C) any auto used as a temporary substitute while an insured auto is being repaired. D) any trailer owned by the insured or spouse. Answer: A An additional auto acquired during the policy period is considered a covered auto. However, some restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on the declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars, the insured does not need to add it during that policy period. Coverage F on homeowners policy provides Medical payments to others; pays all necessary medical expenses for up to three years after an accident. Coverage F: Medical Payments to Others Does not apply to the insured or members of the insured's household Not liability coverage and is not base on fault An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners Policy. What coverage is provided by the BOP? No coverage would apply, there is no coverage for missing property when there is no physical evidence to show cause of loss Arbitration (ADR) Neutral third party hears a dispute and makes a decision both parties have agreed to follow. Mediation A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute. Not binding. Difference between Arbitration and Meditation? Mediation is not binding, Arbitration is. Mediation-Arbitration If the parties cannot reach a settlement through mediation, an arbitrator will resolve the dispute. The building and personal property coverage form provides coverage for outdoor signs Whether attached to the building or not for up to 2,500 if damaged by a peril insured against. Building and Personal Property Coverage Form Commercial Property coverage form that covers buildings, the insured's business personal property, and the personal property of others located at the business premises Foreseeability Test To determine if the defendant's conduct was the proximate cause of the plaintiff's injury, the court applies Foreseeability excludes liability for harms that were sufficiently unforeseeable at the time of the defendant's tortious conduct. Purpose of freight insurance Covers shipper fees Freight Insurance indemnifies the ship owner for the loss of earnings if the goods are damaged or lost and are not delivered. Shipper Fees. Freight Insurance insures that shipowner will receive payment for transportation charges. What perils are covered on the basic form peril of the Homeowners Policy fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and civil commotion, theft, and premises liability. What perils are covered under the broad from Homeowners Policy include basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some coverage for sudden and accidental water discharge. Exclusions to Homeowners policy earthquakes; termites, rats; freezing pipes while your house is unoccupied; losses if your house is vacant for the number of days specified by your policy; wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except necessary costs to repair or replace property damage caused by a covered water loss; and water damage resulting from continuous and repeated leakage or seepage. Landlord's furnishing Is not additional coverage and doesn't insurance the limits of the policy Power to bind means The principal is bound to the decisions of the adjuster RVC (replacement cost value) The cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose DP-3 Special Form Under this Dwelling coverage form: dwelling and other structures are covered for all direct physical damage (open peril), except for perils specifically excluded.. In a surety bonding third-party contract, who is the principal? the party whose performance is guaranteed by the obligor. in a contract between the surety and the constructor [construction company], the principal is the constructor. in a contract between the surety and a subcontractor, the principal is the subcontractor (#6, 16) . Surety bond guarantees fulfillment of certain obligations such as payment of debt, performance and certain duties, meeting contractual commitments Twisting A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. Corercive acts Process whereby the purchaser does not have a choice and is being forced into a certain buying decision Part Six - Conditions sets forth the conditions that apply to the policy, such as cancellation procedures, subrogation and the insurer's right to inspect the insured's workplace Part Five - Premium Explains how the cost of the policy is determined Part Two - Employers Liability Provides coverage to the insured for sums the insured becomes legally obligated to pay under common law because of a work related injury or occupational disease ACV (Actual Cash Value) replacement cost minus depreciation Bid bonds/surety bonds to ensure that the successful bidder will accept the contract once awarded. Performance Bond A contract bond guaranteeing that a contractor's work will be completed according to plans and specifications. Completion Bond A bond obtained by the contractor or owner, which guarantees that the project will be completed free of liens. Labor and materials bond Guarantees bills for labor and materials will be paid to the contractor as they are due. How the standard Businessowners policy additional coverage of "Collapse" becomes payable? The collapse must be such that the building cannot be used as intended. A public adjuster represents the interest of insured Which of the following would be covered under a Personal Umbrella policy? An insured who commits an intentional act of violence to protect his family. Gerald owns an expensive and rare painting. He has it appraised by an art dealer and insures it for $50,000 under a Personal Articles Floater. A year later, several other rare paintings similar to Gerald's and painted by the same artist are discovered, causing the value of Gerald's painting to be reduced to $40,000. Soon after this development, the painting is destroyed in a fire at Gerald's place of business. After ruling out fraud, how will the insurance company settle the loss? The insurance company will cover the item for the full $50,000 amount because this was the "agreed value". The Commercial Building & Personal Property coverage form includes an Additional Coverage for property removed from the premises because of being endangered by an insured peril. The coverage applies for 30 days after the property is first moved. . An insured with auto limits of 10/20/10 causes bodily injuries to a third party of $8,000. After losing in court he has defense costs of $5,000. What is the insurance company's responsibility to pay? $13,000 Bob and Pete's Used Cars has purchased a Garage policy with dealer's physical damage coverage on the cars owned by the dealership at its location. Pete goes to an auto auction 150 miles away, purchases a vehicle and drives it back to the dealership. If Pete suffers a physical damage loss during this trip: Coverage will apply only if the "Dealers Drive Away Collision" endorsement is attached to the Garage policy.. The duties of the insured after a loss are included in insurance policy language to Assist in the adjuster's investigation of the claim.. Part One of the standard workers' compensation policy describes: The insurer's duty to pay promptly, when due, the benefits required of the employer by the workers compensation statute.. Nina has the "Preservation of Property" additional coverage included in her standard Businessowners policy. How long does coverage apply while the property is being stored at another location? 30 days from the day the property was first moved John's Texas adjuster license has been expired for 16 months. Which of the following describes the procedure John will need to follow to reinstate his license? John will need to take the state licensing exam again and submit an application for a new license Homeowners policy would not cover the liability of an outboard motor of more than 25-horsepower. The pre-defined amount of an insurance claim that is paid by the policyholder is known as The deductible