Texas Adjuster Pro Final EXAM 2026-2027 LATEST
VERSION QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
Eric works in Texas for Gemutlich Insurance. His company is licensed to sell insurance in
Texas, but is based out of Munich, Germany. Gemutlich Insurance was formed under
German law, but follows all applicable Texas laws and possesses a Texas certificate of
authority. Which type of insurer does Eric work for? - answer>>>Alien Insurer
Which of the following is NOT a rating factor for a personal auto liability policy? -
answer>>>The condition of the vehicle
Which of the following is FALSE about risk retention groups in Texas? - answer>>>Risk
retention groups are considered an insurer of last resort
Under which law is an insurer required to explain its reasons for denying coverage? -
answer>>>IIPPA
Guaranty Associations are funded by: - answer>>>Insurers
Bill is going to switch employers, and therefore switch healthcare providers. Which federal
law ensures that he won't be denied coverage when he switches health plans? -
answer>>>HIPAA
The Insurance Guaranty Association is a mechanism that covers claims in the event of: -
answer>>>an insurer's insolvency
RWW Insurance creates a radio promotion where they advertise that they will insure any
car for $200 a year. They don't actually offer such a plan, but they figure they will be able
to sell hundreds of policies to people who show up looking for the bargain. What type of
, -
unfair insurance trade practice does this behavior exemplify? - answer>>>False
information and advertising
The state of Texas requires insurance companies to keep all records of complaints against
the company for a period of at least: - answer>>>3 years
Which unfair claims settlement practice involves an adjuster making false statements
about policy coverage in order to reduce the settlement? - answer>>>Misrepresentation
Martin works as an accountant for Smith Manufacturing. Smith Manufacturing has tasked
Martin with finding an insurance provider to meet the company's needs, so Martin
interviews several insurers. At the end of one interview with PRO Insurance, the insurance
representative hands Martin an envelope containing $5,000 in cash, on the condition that
Smith Manufacturing selects PRO Insurance as its insurance provider. What would we call
the $5,000 in cash? - answer>>>A kickback
Greg, an agent for ABC Insurance Brokers, is trying to sell a new policy to Sally. Sally,
however, is perfectly happy with her current policy and has no intention of cancelling it.
Greg tells Sally that upcoming legislation is set to increase the minimum requirements for
insurance, and that her current policy will not be available once the bill passes. He fails to
tell her that if her policy is already in effect, this legislation won't affect her insurance.
Which unlawful or unfair practice is Greg guilty of? - answer>>>Twisting
What is sit called when an insurer makes a habit of delaying payment on legitimate
claims? - answer>>>An Unfair Settlement Practice
Robert applies for an auto loan from his local bank. He meets with a loan officer, who
goes over Robert's paperwork. The loan officer tells Robert: "I'll give you a loan as long as
you insure the car with ABC Insurance." This is an example of: - answer>>>Coercion
,Under which circumstance would it be legal for an insurer to charge on insured more than
another insured for the same coverage? - answer>>>When the insured is statistically
more likely to experience a loss
John and Lucy both apply for policies with Acme Insurance at the same time. They are
exposed to similar hazards and would present essentially the same amount of risk to
Acme Insurance. Acme Insurance offers Lucy a premium policy at excellent rates, but
restricts John to a very limited policy with high premiums. Acme Insurance may be guilty
of: - answer>>>Unfair discrimination
In which of the following scenarios is the insurance company NOT engaging in an unfair
settlement practice? - answer>>>An insurance agent fails to verbally review each
provision of the insurance policy in the presence of the insured before accepting the first
premium payment.
Six Stars Development Company has just been offered a great deal on ten large properties
in Las Vegas. The economy in Las Vegas has been declining recently, but the CEO of Six
Stars expects it to recover soon. This could be an exceptional opportunity for Six Stars, but
it's also pretty risky. Ultimately, the Six Stars executive team decides not to purchase the
properties. This is an example of: - answer>>>Risk Avoidance
When would a default judgement occur? - answer>>>When a defendant does not answer
a complaint
During a strong storm, Missy's grain drill was mangled by a tornado, which rendered it
useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000
to buy a new one today. Missy's farm policy has a replacement cost endorsement, and the
grain drill is scheduled on a Mobile Agricultural Machinery and Equipment form with a
$36,000 limit. Missy replaces her grain drill with one she found on sale for $40,000. How
much total indemnification will she receive? - answer>>>$45,000 (?)
, -
When a flood inundates Paul's property, it causes $190,000 in damage to his home and
$18,000 in damage to his detached garage. Paul has a Dwelling Form flood policy with a
$200,000 limit. How much coverage should Paul use for his garage if he wants to have
enough coverage to repair his home completely? - answer>>>Paul should apply 5% to his
garage and the remainder to the home.
Nancy borrows Drew's car so she can run to the grocery store. While out, she rear-ends an
SUV, injuring the driver and 3 other passengers. Each of the passengers suffers $45,000 in
injuries, while the driver suffers $40,000. Assuming Drew has a liability policy with limits
of 50/100/50, while Nancy carries minimum coverage, how much will Nancy have to pay
out of pocket? Assume the passengers will be covered first. - answer>>>$15,000
If an adjuster needs to find clarification about what actually constitutes a collision, in
which section of an insurance policy would she find that information? -
answer>>>Definitions
The Insurance Commissioner: - answer>>>enforces state laws relating to insurance
Chandler is a photographer who is taking pictures at a reenactment of the Battle of
Gettysburg, when Harper (Union Cavalry) crashes through the brush and into Chandler,
breaking both his arms and his camera. In court, Chandler demands payment not only for
his medical bills and broken camera, but for future lost business; now that he is unable to
take pictures for the next 6 months, his clients are moving on and entering into contracts
with other photographers. When Chandler speaks of this total amount of all damages that
have resulted and will result from Harper's mistake, he is referring to: -
answer>>>Diminution of value
When record-breaking rainfall causes severe flooding in Janie's home town, Janie's rental
property suffers extensive damage. Which of the following is an indirect loss? -
VERSION QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
Eric works in Texas for Gemutlich Insurance. His company is licensed to sell insurance in
Texas, but is based out of Munich, Germany. Gemutlich Insurance was formed under
German law, but follows all applicable Texas laws and possesses a Texas certificate of
authority. Which type of insurer does Eric work for? - answer>>>Alien Insurer
Which of the following is NOT a rating factor for a personal auto liability policy? -
answer>>>The condition of the vehicle
Which of the following is FALSE about risk retention groups in Texas? - answer>>>Risk
retention groups are considered an insurer of last resort
Under which law is an insurer required to explain its reasons for denying coverage? -
answer>>>IIPPA
Guaranty Associations are funded by: - answer>>>Insurers
Bill is going to switch employers, and therefore switch healthcare providers. Which federal
law ensures that he won't be denied coverage when he switches health plans? -
answer>>>HIPAA
The Insurance Guaranty Association is a mechanism that covers claims in the event of: -
answer>>>an insurer's insolvency
RWW Insurance creates a radio promotion where they advertise that they will insure any
car for $200 a year. They don't actually offer such a plan, but they figure they will be able
to sell hundreds of policies to people who show up looking for the bargain. What type of
, -
unfair insurance trade practice does this behavior exemplify? - answer>>>False
information and advertising
The state of Texas requires insurance companies to keep all records of complaints against
the company for a period of at least: - answer>>>3 years
Which unfair claims settlement practice involves an adjuster making false statements
about policy coverage in order to reduce the settlement? - answer>>>Misrepresentation
Martin works as an accountant for Smith Manufacturing. Smith Manufacturing has tasked
Martin with finding an insurance provider to meet the company's needs, so Martin
interviews several insurers. At the end of one interview with PRO Insurance, the insurance
representative hands Martin an envelope containing $5,000 in cash, on the condition that
Smith Manufacturing selects PRO Insurance as its insurance provider. What would we call
the $5,000 in cash? - answer>>>A kickback
Greg, an agent for ABC Insurance Brokers, is trying to sell a new policy to Sally. Sally,
however, is perfectly happy with her current policy and has no intention of cancelling it.
Greg tells Sally that upcoming legislation is set to increase the minimum requirements for
insurance, and that her current policy will not be available once the bill passes. He fails to
tell her that if her policy is already in effect, this legislation won't affect her insurance.
Which unlawful or unfair practice is Greg guilty of? - answer>>>Twisting
What is sit called when an insurer makes a habit of delaying payment on legitimate
claims? - answer>>>An Unfair Settlement Practice
Robert applies for an auto loan from his local bank. He meets with a loan officer, who
goes over Robert's paperwork. The loan officer tells Robert: "I'll give you a loan as long as
you insure the car with ABC Insurance." This is an example of: - answer>>>Coercion
,Under which circumstance would it be legal for an insurer to charge on insured more than
another insured for the same coverage? - answer>>>When the insured is statistically
more likely to experience a loss
John and Lucy both apply for policies with Acme Insurance at the same time. They are
exposed to similar hazards and would present essentially the same amount of risk to
Acme Insurance. Acme Insurance offers Lucy a premium policy at excellent rates, but
restricts John to a very limited policy with high premiums. Acme Insurance may be guilty
of: - answer>>>Unfair discrimination
In which of the following scenarios is the insurance company NOT engaging in an unfair
settlement practice? - answer>>>An insurance agent fails to verbally review each
provision of the insurance policy in the presence of the insured before accepting the first
premium payment.
Six Stars Development Company has just been offered a great deal on ten large properties
in Las Vegas. The economy in Las Vegas has been declining recently, but the CEO of Six
Stars expects it to recover soon. This could be an exceptional opportunity for Six Stars, but
it's also pretty risky. Ultimately, the Six Stars executive team decides not to purchase the
properties. This is an example of: - answer>>>Risk Avoidance
When would a default judgement occur? - answer>>>When a defendant does not answer
a complaint
During a strong storm, Missy's grain drill was mangled by a tornado, which rendered it
useless. Before the damage, the grain drill was worth $25,000, but it would cost $45,000
to buy a new one today. Missy's farm policy has a replacement cost endorsement, and the
grain drill is scheduled on a Mobile Agricultural Machinery and Equipment form with a
$36,000 limit. Missy replaces her grain drill with one she found on sale for $40,000. How
much total indemnification will she receive? - answer>>>$45,000 (?)
, -
When a flood inundates Paul's property, it causes $190,000 in damage to his home and
$18,000 in damage to his detached garage. Paul has a Dwelling Form flood policy with a
$200,000 limit. How much coverage should Paul use for his garage if he wants to have
enough coverage to repair his home completely? - answer>>>Paul should apply 5% to his
garage and the remainder to the home.
Nancy borrows Drew's car so she can run to the grocery store. While out, she rear-ends an
SUV, injuring the driver and 3 other passengers. Each of the passengers suffers $45,000 in
injuries, while the driver suffers $40,000. Assuming Drew has a liability policy with limits
of 50/100/50, while Nancy carries minimum coverage, how much will Nancy have to pay
out of pocket? Assume the passengers will be covered first. - answer>>>$15,000
If an adjuster needs to find clarification about what actually constitutes a collision, in
which section of an insurance policy would she find that information? -
answer>>>Definitions
The Insurance Commissioner: - answer>>>enforces state laws relating to insurance
Chandler is a photographer who is taking pictures at a reenactment of the Battle of
Gettysburg, when Harper (Union Cavalry) crashes through the brush and into Chandler,
breaking both his arms and his camera. In court, Chandler demands payment not only for
his medical bills and broken camera, but for future lost business; now that he is unable to
take pictures for the next 6 months, his clients are moving on and entering into contracts
with other photographers. When Chandler speaks of this total amount of all damages that
have resulted and will result from Harper's mistake, he is referring to: -
answer>>>Diminution of value
When record-breaking rainfall causes severe flooding in Janie's home town, Janie's rental
property suffers extensive damage. Which of the following is an indirect loss? -
