TEXAS ALL-LINES ADJUSTER COURSE
FINAL EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
A severe thunderstorm damaged a policyholder's residence. He called and asked how long it
would be before he receives payment for his claim. Which of the following would NOT be an
appropriate response? - ANS We have 6 months to reach a final settlement with you.
Janelle has just graduated college and is interested in becoming an adjuster. she would like to be
able to handle any type of claim. The most comprehensive type of license would be: -
ANS All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under an
HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their house
burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection and some
fishing equipment stolen. How would their HO-3 policy respond to this loss? - ANS The entire
theft loss would be covered under Coverage C. subject the policy limits and to certain
limitations.
The oldest form of insurance known to exist is: - ANS Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Comp laws? - ANS The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANS personal injury or death by
"accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the theft
loss of various types of property. Justin's initial responsibility upon investigating the loss is to
first determine: - ANS If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction company who pays him
a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANS This arrangement reflects a breach of ethical conduct and a
violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C Personal Property? -
ANS Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the following
would NOT be covered by the Dwelling policy? - ANS Damage to another duplex right next
door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer
goods they transport EXCEPT for damages resulting from: - ANS Acts of God
You have just started your career handling Texas workers' compensation claims. Which one of
the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Practices
Act? - ANS Not responding to an employee's calls because you're overworked and the claim
involves complex issues you just don't feel like addressing.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Which type of bond would be used to cover the exposure to employee theft? - ANS Fidelity
bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be
necessary for Garrett to secure such a license? - ANS Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an
approved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANS All risks of direct
physical loss are covered unless they are excluded
Assume your home caught fire due to a faulty electrical device. and one month after the fire you
receive a bill from the fire department for $450.00 for responding to the fire. Would this be paid
under your homeowner's policy? - ANS Yes. It is called Fire Department Service Charge and is
an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANS Gives up the right to sue the employer for personal injury and pain
and suffering. The employee can only make claim for workers' compensation benefits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4
occupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under Janelle's
bodily injury liability coverage, what is the total amount that the company would pay for the
injuries to these plaintiffs? - ANS $60,000
A person or entity who guarantees the performance or payment of one party who is obligated
by contract to another is called a: - ANS Surety
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after a
fire loss while the property is being repaired. what would you tell him? - ANS Yes, and it's
called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the pump
while the gas is still pumping, breaks the pump line and causes gasoline to escape all over the
parking lot and into the storm drain. Fred files a claim under his commercial property policy.
Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was pumped out
before anyone noticed and stopped the pump. The local HazMat team was called out by the
authorities to clean up the parking lot and the storm drain. Fred received a bill from the County
for $12.850.00 for the clean up. He sends the bill to you to pay. What kind of coverage is
available to Fred as a commercial property extension of coverage needed to pay this loss? -
ANS Pollution Clean Up and Removal
A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan,
encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANS Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is
untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANS Coverage D: Loss of Use
Dwelling policies: - ANS provide basic property protection for individuals who want to protect
their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against? -
ANS Embezzlement
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
FINAL EXAM QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
A severe thunderstorm damaged a policyholder's residence. He called and asked how long it
would be before he receives payment for his claim. Which of the following would NOT be an
appropriate response? - ANS We have 6 months to reach a final settlement with you.
Janelle has just graduated college and is interested in becoming an adjuster. she would like to be
able to handle any type of claim. The most comprehensive type of license would be: -
ANS All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under an
HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their house
burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection and some
fishing equipment stolen. How would their HO-3 policy respond to this loss? - ANS The entire
theft loss would be covered under Coverage C. subject the policy limits and to certain
limitations.
The oldest form of insurance known to exist is: - ANS Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Comp laws? - ANS The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANS personal injury or death by
"accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the theft
loss of various types of property. Justin's initial responsibility upon investigating the loss is to
first determine: - ANS If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction company who pays him
a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANS This arrangement reflects a breach of ethical conduct and a
violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C Personal Property? -
ANS Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the following
would NOT be covered by the Dwelling policy? - ANS Damage to another duplex right next
door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer
goods they transport EXCEPT for damages resulting from: - ANS Acts of God
You have just started your career handling Texas workers' compensation claims. Which one of
the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Practices
Act? - ANS Not responding to an employee's calls because you're overworked and the claim
involves complex issues you just don't feel like addressing.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Which type of bond would be used to cover the exposure to employee theft? - ANS Fidelity
bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be
necessary for Garrett to secure such a license? - ANS Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an
approved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANS All risks of direct
physical loss are covered unless they are excluded
Assume your home caught fire due to a faulty electrical device. and one month after the fire you
receive a bill from the fire department for $450.00 for responding to the fire. Would this be paid
under your homeowner's policy? - ANS Yes. It is called Fire Department Service Charge and is
an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANS Gives up the right to sue the employer for personal injury and pain
and suffering. The employee can only make claim for workers' compensation benefits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4
occupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under Janelle's
bodily injury liability coverage, what is the total amount that the company would pay for the
injuries to these plaintiffs? - ANS $60,000
A person or entity who guarantees the performance or payment of one party who is obligated
by contract to another is called a: - ANS Surety
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after a
fire loss while the property is being repaired. what would you tell him? - ANS Yes, and it's
called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the pump
while the gas is still pumping, breaks the pump line and causes gasoline to escape all over the
parking lot and into the storm drain. Fred files a claim under his commercial property policy.
Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was pumped out
before anyone noticed and stopped the pump. The local HazMat team was called out by the
authorities to clean up the parking lot and the storm drain. Fred received a bill from the County
for $12.850.00 for the clean up. He sends the bill to you to pay. What kind of coverage is
available to Fred as a commercial property extension of coverage needed to pay this loss? -
ANS Pollution Clean Up and Removal
A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan,
encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANS Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is
untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANS Coverage D: Loss of Use
Dwelling policies: - ANS provide basic property protection for individuals who want to protect
their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against? -
ANS Embezzlement
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
