1 of 50
TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! 2025/2026(380 QUESTIONS
AND CORRECT ANSWERS) VERIFIED ANSWERS
All of the following items are given a "special limit of liability" under Coverage C of the
Homeowners policies, EXCEPT: - ......ANSWER........Motorized land vehicles.
All of the following sections are included on the Business and Personal Property coverage
form, EXCEPT: - ......ANSWER........Perils Insured Against.
All of the following statements are TRUE if Builders' Risk coverage is written on a
completed value basis, EXCEPT - ......ANSWER........All premiums must be paid up front
before construction can begin.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
- ......ANSWER........The policy will cover watercraft liability.
All of the following statements are TRUE regarding automobile "no-fault" laws, EXCEPT:
- ......ANSWER........Medical payments and physical damage claims are paid by the state
assigned risk fund without determining fault to any party in the accident.
All of the following statements are true regarding Difference in Conditions insurance (DIC),
EXCEPT: - ......ANSWER........Covers losses due to windstorm.
All of the following statements are TRUE regarding Section II - Liability of the Garage
Coverage form, EXCEPT: - ......ANSWER........Provides coverage when an employee causes
damage to a customer's vehicle.
All of the following statements are true regarding state Guaranty Associations, EXCEPT:
- ......ANSWER........The fund assists insurers in gaining new insurance business by
allowing them to advertise their membership in the Guaranty Association.
All of the following statements are TRUE regarding the "Equipment Breakdown" coverage
extension of the standard Businessowners policy, EXCEPT: - ......ANSWER........The
damage can be caused by a gradual wear and tear of parts within the equipment.
,2 of 50
All of the following statements are true regarding the HO-1 form, EXCEPT:
- ......ANSWER........It settles losses on an actual cash value basis unless endorsed.
All of the following statements are TRUE regarding the perils of the Homeowners forms,
EXCEPT - ......ANSWER........Fire or lightning is a named peril covering the buildings and
other structures under an HO-4 form.
All of the following statements are true regarding the revocation or modification of a
certificate of authority in Texas, EXCEPT: - ......ANSWER........The reason for the revocation
or modification is not required to be stated in the notice to the insurer.
All of the following statements are TRUE regarding the standard Businessowners policy
coverage extension for "Business Personal Property Temporarily in Portable Storage Units",
EXCEPT: - ......ANSWER........The coverage is provided for rented storage units away from
the insured premises.
All of the following statements regarding the Commercial Package Policy are correct,
EXCEPT: - ......ANSWER........Commercial Package Policies can include Ocean Marine and
Aviation Insurance coverage.
All of the following would be considered "uninsured motorists", EXCEPT:
- ......ANSWER........A motorist driving with coverage up to the required state financial
responsibility limits for liability, but not high enough to pay the claims for an at-fault
accident.
All of the following would be considered an "insured" on a Homeowners policy, EXCEPT:
- ......ANSWER........A non-related tenant living in the insured residence.
All of the following would be eligible as "your covered auto" under a standard personal
automobile policy, EXCEPT: - ......ANSWER........A motorcycle owned by the insured.
,3 of 50
All of the following would NOT be covered under any section of the Business and Personal
Property coverage form, EXCEPT: - ......ANSWER........The cost to restore electronic data
that was corrupted by a covered cause of loss.
All the following are covered under Section II of a Homeowners policy, EXCEPT:
- ......ANSWER........Intentional bodily injury to others by the insured.
Ally's insurance agency has contracted with Indemnify Insurance to sell only those
insurance products offered by Indemnify. Ally's is utilizing which of the following types of
insurance marketing and distribution systems? - ......ANSWER........Exclusive agency
system.
Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her
vehicle be repaired at a repair shop of the insurer's choice. The insurer:
- ......ANSWER........Is guilty of an unfair claims practice act.
An "other insurance" clause is included in insurance policies to deal with the problem of:
- ......ANSWER........Overinsurance.
An "uninsured motor vehicle" under a personal auto policy does not include:
- ......ANSWER........An abandoned car used as a residence.
An adjuster has uncovered some discrepancies in matters pertaining to a claim and is
unable to contact the insured to discuss these matters. What should the adjuster do in this
situation? - ......ANSWER........Send a reservation of rights letter to the insured's last known
address.
An agent with a surplus/excess lines license, will place insurance business with an
unauthorized insurer when: - ......ANSWER........The coverage cannot be obtained from
insurers authorized within the state.
An agent insured or claimant has intentionally deceived an insurer for financial gain. Such
an act is known as: - ......ANSWER........Fraud
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An applicant fails to disclose known facts when completing an application for insurance.
This act is known as: - ......ANSWER........Concealment
An independent adjuster acts on behalf of his or her principal. Which of the following is the
principal for an independent adjuster? - ......ANSWER........The insurer.
An insurance company is given a C++ rating by A.M. Best. This means:
- ......ANSWER........The financial health of the insurance company is good.
An insured does not carry enough insurance to comply with the coinsurance clause of his
Homeowners policy. If this insured would have a loss to his covered home, how will the
insurer settle the loss? - ......ANSWER........The insurer will either settle the loss at ACV or
pay the proportion of the cost to repair or replace the part of the building that was
damaged, based on the amount of insurance the insured carried.
An insured has a $1,000 insurance claim and is able to prove his loss and its value. The
insurer's adjuster offers $500, knowing that the claimant would probably take the offer to
avoid incurring the cost of an attorney to sue for the actual amount of the claim. The offer
made by the adjuster is considered - ......ANSWER........To be an unfair claims settlement
practice.
An insured has a $2 million limit of insurance under a Personal Umbrella policy with a
$2,000 self-insured retention limit. The insured is sued for $1 million in personal injury
damages and $1.5 million in property damages arising from the same occurrence. The
insured's underlying liability policies exclude coverage in this case, but the claim is
covered under the Umbrella policy. In this case, the umbrella policy will pay:
- ......ANSWER........$1,998,000 of the damages.
An insured has her dwelling covered by an HO-3 form, with a $500,000 limit of liability for
Coverage A. A fire breaks out and the dwelling is a total loss. The entire $500,000 limit is
used to cover the direct physical damage to the dwelling. However, there is a large number
of debris from the burned structure covering the insured's property that will need to be
TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! 2025/2026(380 QUESTIONS
AND CORRECT ANSWERS) VERIFIED ANSWERS
All of the following items are given a "special limit of liability" under Coverage C of the
Homeowners policies, EXCEPT: - ......ANSWER........Motorized land vehicles.
All of the following sections are included on the Business and Personal Property coverage
form, EXCEPT: - ......ANSWER........Perils Insured Against.
All of the following statements are TRUE if Builders' Risk coverage is written on a
completed value basis, EXCEPT - ......ANSWER........All premiums must be paid up front
before construction can begin.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
- ......ANSWER........The policy will cover watercraft liability.
All of the following statements are TRUE regarding automobile "no-fault" laws, EXCEPT:
- ......ANSWER........Medical payments and physical damage claims are paid by the state
assigned risk fund without determining fault to any party in the accident.
All of the following statements are true regarding Difference in Conditions insurance (DIC),
EXCEPT: - ......ANSWER........Covers losses due to windstorm.
All of the following statements are TRUE regarding Section II - Liability of the Garage
Coverage form, EXCEPT: - ......ANSWER........Provides coverage when an employee causes
damage to a customer's vehicle.
All of the following statements are true regarding state Guaranty Associations, EXCEPT:
- ......ANSWER........The fund assists insurers in gaining new insurance business by
allowing them to advertise their membership in the Guaranty Association.
All of the following statements are TRUE regarding the "Equipment Breakdown" coverage
extension of the standard Businessowners policy, EXCEPT: - ......ANSWER........The
damage can be caused by a gradual wear and tear of parts within the equipment.
,2 of 50
All of the following statements are true regarding the HO-1 form, EXCEPT:
- ......ANSWER........It settles losses on an actual cash value basis unless endorsed.
All of the following statements are TRUE regarding the perils of the Homeowners forms,
EXCEPT - ......ANSWER........Fire or lightning is a named peril covering the buildings and
other structures under an HO-4 form.
All of the following statements are true regarding the revocation or modification of a
certificate of authority in Texas, EXCEPT: - ......ANSWER........The reason for the revocation
or modification is not required to be stated in the notice to the insurer.
All of the following statements are TRUE regarding the standard Businessowners policy
coverage extension for "Business Personal Property Temporarily in Portable Storage Units",
EXCEPT: - ......ANSWER........The coverage is provided for rented storage units away from
the insured premises.
All of the following statements regarding the Commercial Package Policy are correct,
EXCEPT: - ......ANSWER........Commercial Package Policies can include Ocean Marine and
Aviation Insurance coverage.
All of the following would be considered "uninsured motorists", EXCEPT:
- ......ANSWER........A motorist driving with coverage up to the required state financial
responsibility limits for liability, but not high enough to pay the claims for an at-fault
accident.
All of the following would be considered an "insured" on a Homeowners policy, EXCEPT:
- ......ANSWER........A non-related tenant living in the insured residence.
All of the following would be eligible as "your covered auto" under a standard personal
automobile policy, EXCEPT: - ......ANSWER........A motorcycle owned by the insured.
,3 of 50
All of the following would NOT be covered under any section of the Business and Personal
Property coverage form, EXCEPT: - ......ANSWER........The cost to restore electronic data
that was corrupted by a covered cause of loss.
All the following are covered under Section II of a Homeowners policy, EXCEPT:
- ......ANSWER........Intentional bodily injury to others by the insured.
Ally's insurance agency has contracted with Indemnify Insurance to sell only those
insurance products offered by Indemnify. Ally's is utilizing which of the following types of
insurance marketing and distribution systems? - ......ANSWER........Exclusive agency
system.
Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her
vehicle be repaired at a repair shop of the insurer's choice. The insurer:
- ......ANSWER........Is guilty of an unfair claims practice act.
An "other insurance" clause is included in insurance policies to deal with the problem of:
- ......ANSWER........Overinsurance.
An "uninsured motor vehicle" under a personal auto policy does not include:
- ......ANSWER........An abandoned car used as a residence.
An adjuster has uncovered some discrepancies in matters pertaining to a claim and is
unable to contact the insured to discuss these matters. What should the adjuster do in this
situation? - ......ANSWER........Send a reservation of rights letter to the insured's last known
address.
An agent with a surplus/excess lines license, will place insurance business with an
unauthorized insurer when: - ......ANSWER........The coverage cannot be obtained from
insurers authorized within the state.
An agent insured or claimant has intentionally deceived an insurer for financial gain. Such
an act is known as: - ......ANSWER........Fraud
, 4 of 50
An applicant fails to disclose known facts when completing an application for insurance.
This act is known as: - ......ANSWER........Concealment
An independent adjuster acts on behalf of his or her principal. Which of the following is the
principal for an independent adjuster? - ......ANSWER........The insurer.
An insurance company is given a C++ rating by A.M. Best. This means:
- ......ANSWER........The financial health of the insurance company is good.
An insured does not carry enough insurance to comply with the coinsurance clause of his
Homeowners policy. If this insured would have a loss to his covered home, how will the
insurer settle the loss? - ......ANSWER........The insurer will either settle the loss at ACV or
pay the proportion of the cost to repair or replace the part of the building that was
damaged, based on the amount of insurance the insured carried.
An insured has a $1,000 insurance claim and is able to prove his loss and its value. The
insurer's adjuster offers $500, knowing that the claimant would probably take the offer to
avoid incurring the cost of an attorney to sue for the actual amount of the claim. The offer
made by the adjuster is considered - ......ANSWER........To be an unfair claims settlement
practice.
An insured has a $2 million limit of insurance under a Personal Umbrella policy with a
$2,000 self-insured retention limit. The insured is sued for $1 million in personal injury
damages and $1.5 million in property damages arising from the same occurrence. The
insured's underlying liability policies exclude coverage in this case, but the claim is
covered under the Umbrella policy. In this case, the umbrella policy will pay:
- ......ANSWER........$1,998,000 of the damages.
An insured has her dwelling covered by an HO-3 form, with a $500,000 limit of liability for
Coverage A. A fire breaks out and the dwelling is a total loss. The entire $500,000 limit is
used to cover the direct physical damage to the dwelling. However, there is a large number
of debris from the burned structure covering the insured's property that will need to be
