TEXAS ALL LINES ADJUSTER TEST
QUICK SHORT INSURANCE QUESTIONS WITH ANSWERS. GRADED A+
"Experience rating" provides employers with the incentive to: - ANSWER-
Prioritize safety and control hazards in the workplace.
A claim is being litigated in court by Michael on behalf of Janet who was
physically injured by a negligent party. Michael asks Janet to show the
court her disfiguring scars. Which of the following types of evidence is
Janet presenting to the court? - ANSWER-Real evidence.
A claim is made on an excess liability policy. It is discovered during the
claims investigation, that the underlying liability policy and the excess
liability policy have different inception and expiration dates. The adjuster
finds that the different dates has created a situation where the underlying
policy was not in effect at the time of the occurrence, and therefore
cannot trigger the excess liability policy to pay the claim. This situation
is known as: - ANSWER-Nonconcurrence.
A Commercial Package Policy (CPP) always includes:
I. A single Declarations page common to all coverages.
II. A single Conditions section common to all coverages.
III. A single Exclusions section common to all coverages.
- ANSWER-I and II only
A Commercial Property policy has the "Protective Safeguards
endorsement attached indicating that the insured has protective
safeguards installed such as a sprinkler system. Should the system
become inoperative, how long does the insured have to report this fact to
the insurer? - ANSWER-48 hours.
,A company that repairs customers' aircraft may need which of the
following coverages to pay for the accidental damage to the customers'
aircraft while it is in the insured's care, custody, or control? - ANSWER-
Hangarkeeper's liability coverage.
A contractor in need of a bid bond to obtain a contract is an example of
a(n): - ANSWER-Principal.
A contractor's bid bond is used: - ANSWER-As a promise from the surety
that if the principal is awarded the contract, the principal will enter into
the contract for the bid amount and provide required performance bonds.
A dead tree beside Jerry's home is best described as which of the following
types of hazards? - ANSWER-Physical hazard.
A deductible applies to all of the following additional coverages under the
standard Homeowners forms, EXCEPT: - ANSWER-Fire Department Service
Charge.
A gas line explodes outside of Mindy's Mending Shop, ruining her new
landscaping. Which coverage extension of Mindy's Commercial Property
policy would cover the cost of replacing the damaged trees and shrubs? -
ANSWER-"Outdoor Property".
A home is insured under an HO-3 policy. One of the "other structures" on
the same property is used by the insured for his business. The building
burns in a fire. It would: - ANSWER-Not be covered because buildings used
for business purposes are excluded..
A loss reserving method that establishes aggregate reserves for all claims
for a single line of insurance is known as: - ANSWER-Loss ratio method.
,A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the insured to
receive full replacement cost coverage in the event of a $50,000 fire loss?
- ANSWER-$400,000.
A non-waiver agreement allows the insurer to: - ANSWER-Investigate a
loss without implying that it is covered
A requirement that a plaintiff file a lawsuit within a specific period of
time after the cause of the lawsuit has occurred, which is oftentimes
when the injury occurred or was discovered is known as: - ANSWER-The
statute of limitations.
A ship has suffered damage and sunk. Which of the following would
respond to cover the loss of the ship? - ANSWER-Hull Insurance.
A structure made of modified fire resistive materials has a fire resistive
rating of: - ANSWER-At least 1 hour.
A surety bond is: - ANSWER-A form of credit.
A Texas adjuster may be subjected to a criminal penalty for all of the
following, EXCEPT: - ANSWER-Not paying court mandated child support.
A Texas employer who chooses NOT to provide workers' compensation
coverage:
I. Loses civil immunity.
II. May be sued for damages when an employee is injured in the of
employment.
III. Will have to pay a fee of $500.
, - ANSWER-I and II only
A Texas insurer has notified a claimant that all or part of a claim will be
paid. The claim must be paid not later than the ____ business day after the
date notice is made. - ANSWER-5th
A type of insurance that permits an insured to collect from his/her own
insurance company, without proving the negligence of a third-party, is
known as: - ANSWER-No-fault.
Acme Corp. requested three bids from different contractors for the
construction of its new office building. Acme accepted the lowest bid from
Corbett's Contracting and entered into a contract to have the office
building constructed. After construction was completed, Corbett's
presented Acme with a bill for construction costs over and above the
amount of the bid that was agreed to in the contract. Which of the
following types of bonds would protect Acme from paying the additional
costs? - ANSWER-A performance bond.
Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs.
Sullivan's insurance company pays her claim under her physical damage
coverage and makes a claim against Mr. Brown's insurance company for
the same amount. This process is called: - ANSWER-Subrogation
Adjusters in Texas must complete at least _____ of the continuing
education required to renew their license in a classroom or classroom
equivalent setting - ANSWER-50%
After completing an inspection of an insured's pressure equipment and
fire suppression systems, the inspector determines that the pressure
equipment needs to be repaired and the suppression systems have not
been cleaned and inspected in the time frame required by the policy. The
QUICK SHORT INSURANCE QUESTIONS WITH ANSWERS. GRADED A+
"Experience rating" provides employers with the incentive to: - ANSWER-
Prioritize safety and control hazards in the workplace.
A claim is being litigated in court by Michael on behalf of Janet who was
physically injured by a negligent party. Michael asks Janet to show the
court her disfiguring scars. Which of the following types of evidence is
Janet presenting to the court? - ANSWER-Real evidence.
A claim is made on an excess liability policy. It is discovered during the
claims investigation, that the underlying liability policy and the excess
liability policy have different inception and expiration dates. The adjuster
finds that the different dates has created a situation where the underlying
policy was not in effect at the time of the occurrence, and therefore
cannot trigger the excess liability policy to pay the claim. This situation
is known as: - ANSWER-Nonconcurrence.
A Commercial Package Policy (CPP) always includes:
I. A single Declarations page common to all coverages.
II. A single Conditions section common to all coverages.
III. A single Exclusions section common to all coverages.
- ANSWER-I and II only
A Commercial Property policy has the "Protective Safeguards
endorsement attached indicating that the insured has protective
safeguards installed such as a sprinkler system. Should the system
become inoperative, how long does the insured have to report this fact to
the insurer? - ANSWER-48 hours.
,A company that repairs customers' aircraft may need which of the
following coverages to pay for the accidental damage to the customers'
aircraft while it is in the insured's care, custody, or control? - ANSWER-
Hangarkeeper's liability coverage.
A contractor in need of a bid bond to obtain a contract is an example of
a(n): - ANSWER-Principal.
A contractor's bid bond is used: - ANSWER-As a promise from the surety
that if the principal is awarded the contract, the principal will enter into
the contract for the bid amount and provide required performance bonds.
A dead tree beside Jerry's home is best described as which of the following
types of hazards? - ANSWER-Physical hazard.
A deductible applies to all of the following additional coverages under the
standard Homeowners forms, EXCEPT: - ANSWER-Fire Department Service
Charge.
A gas line explodes outside of Mindy's Mending Shop, ruining her new
landscaping. Which coverage extension of Mindy's Commercial Property
policy would cover the cost of replacing the damaged trees and shrubs? -
ANSWER-"Outdoor Property".
A home is insured under an HO-3 policy. One of the "other structures" on
the same property is used by the insured for his business. The building
burns in a fire. It would: - ANSWER-Not be covered because buildings used
for business purposes are excluded..
A loss reserving method that establishes aggregate reserves for all claims
for a single line of insurance is known as: - ANSWER-Loss ratio method.
,A new home that cost $500,000 to build, would need which of the
following coverage amounts under a Homeowners policy for the insured to
receive full replacement cost coverage in the event of a $50,000 fire loss?
- ANSWER-$400,000.
A non-waiver agreement allows the insurer to: - ANSWER-Investigate a
loss without implying that it is covered
A requirement that a plaintiff file a lawsuit within a specific period of
time after the cause of the lawsuit has occurred, which is oftentimes
when the injury occurred or was discovered is known as: - ANSWER-The
statute of limitations.
A ship has suffered damage and sunk. Which of the following would
respond to cover the loss of the ship? - ANSWER-Hull Insurance.
A structure made of modified fire resistive materials has a fire resistive
rating of: - ANSWER-At least 1 hour.
A surety bond is: - ANSWER-A form of credit.
A Texas adjuster may be subjected to a criminal penalty for all of the
following, EXCEPT: - ANSWER-Not paying court mandated child support.
A Texas employer who chooses NOT to provide workers' compensation
coverage:
I. Loses civil immunity.
II. May be sued for damages when an employee is injured in the of
employment.
III. Will have to pay a fee of $500.
, - ANSWER-I and II only
A Texas insurer has notified a claimant that all or part of a claim will be
paid. The claim must be paid not later than the ____ business day after the
date notice is made. - ANSWER-5th
A type of insurance that permits an insured to collect from his/her own
insurance company, without proving the negligence of a third-party, is
known as: - ANSWER-No-fault.
Acme Corp. requested three bids from different contractors for the
construction of its new office building. Acme accepted the lowest bid from
Corbett's Contracting and entered into a contract to have the office
building constructed. After construction was completed, Corbett's
presented Acme with a bill for construction costs over and above the
amount of the bid that was agreed to in the contract. Which of the
following types of bonds would protect Acme from paying the additional
costs? - ANSWER-A performance bond.
Adele Sullivan's car is hit from the rear by Clarence Brown's car. Mrs.
Sullivan's insurance company pays her claim under her physical damage
coverage and makes a claim against Mr. Brown's insurance company for
the same amount. This process is called: - ANSWER-Subrogation
Adjusters in Texas must complete at least _____ of the continuing
education required to renew their license in a classroom or classroom
equivalent setting - ANSWER-50%
After completing an inspection of an insured's pressure equipment and
fire suppression systems, the inspector determines that the pressure
equipment needs to be repaired and the suppression systems have not
been cleaned and inspected in the time frame required by the policy. The
