TEXAS ADJUSTER EXAM 2026 FINAL REVIEW
PACK COMPLETE QUESTION SET AND CORE
CONCEPT SUMMARY
◉ Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? Answer: The implied
warranties are attached to the policy as an endorsement..
◉ Parmelia is covered under two separate standardized Personal
Automobile policies, with Part C limits under both policies set at
$200,000. Parmelia is involved in an accident with an uninsured
motorist and she sustains bodily injury damages for $262,320. How
much will Parmelia receive when she submits a claim for these
damages Answer: $200,000
◉ Which of the following endorsements must be attached to a
standard Businessowners policy for coverage to apply to a
businesses freezer that was damaged by the interruption of a power
source Answer: Utility Services - Direct Damage endorsement.
◉ 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 insurer will: Answer: Suspend
,coverage immediately by red tagging the items until they are
repaired, cleaned and pass reinspection
◉ To be eligible for coverage under a standardized Dwelling policy,
the insured must not allow more than _______ boarders to live on the
premises. Answer: 5
◉ All of the following are "Perils of the Sea" under an Ocean Marine
policy, EXCEPT: Answer: Pirates
◉ The amount of insurance countersigned, issued, or sold by an
agent or producer to cover immediate family members, an employer,
or employees is known as: Answer: Controlled business
◉ Which of the following standardized Dwelling insurance forms
provides coverage for loss of rental income Answer: The DP-1, DP-2,
and DP-3 forms
◉ The "Part B - Medical Payments" coverage of a personal
automobile policy covers injuries for all of the following, EXCEPT:
Answer: A passenger who is injured in another vehicle that is struck
by the insured's vehicle in an accident
,◉ Which of the following are the Texas Workers' Compensation
benefits that are increased by a cost-of-living adjustment (COLAs)
Answer: Lifetime Income Benefits (LIBs) only
◉ Hannah must take time away from work to help assist in the
investigation of a claim that was made against her BOP policy. The
policy will pay for Hannah's actual loss of earnings up to: Answer:
$250 per day.
◉ Surplus Lines companies in Texas have _____ to acknowledge the
receipt of a claim. Answer: 30 days.
◉ All of the following are characteristics of a principal that a surety
will scrutinize during the underwriting process, EXCEPT: Answer:
Consideration.
◉ Under Section II of a Homeowners policy, a cemetery plot owned
by the insured is considered to be: Answer: An insured location.
◉ Which of the following is NOT one of the four major coverages of
an Ocean Marine policy? Answer: Seaworthiness.
◉ A ship has suffered damage and sunk. Which of the following
would respond to cover the loss of the ship? Answer: Hull Insurance.
, ◉ As a fiduciary agent, an adjuster has the power to bind the insurer.
Which of the following statements is FALSE regarding this power?
Answer: Only an adjuster's written statements can legally bind an
insurer.
◉ The standardized Dwelling forms consider all eruptions of a
volcano within a __________ period to be a single "occurrence".
Answer: 72-hour
◉ Whose responsibility is it to complete a "proof of loss"? Answer:
The claimant.
◉ Which of the following would NOT be determined by a court when
an insurer has filed a declaratory judgment action? Answer: The
type and amount of damages that will be paid to a plaintiff for the
claim that is being disputed.
◉ Which of the following statements is TRUE regarding the
Homeowners "additional coverage" known as Landlord's
Furnishings? Answer: The coverage is not additional insurance and
does not increase the limits of the policy.
◉ Which of the following would be covered under the Jones Act?
Answer: Crew members of a ship.
PACK COMPLETE QUESTION SET AND CORE
CONCEPT SUMMARY
◉ Which of the following statements is NOT TRUE regarding the
implied warranties of an Ocean Marine policy? Answer: The implied
warranties are attached to the policy as an endorsement..
◉ Parmelia is covered under two separate standardized Personal
Automobile policies, with Part C limits under both policies set at
$200,000. Parmelia is involved in an accident with an uninsured
motorist and she sustains bodily injury damages for $262,320. How
much will Parmelia receive when she submits a claim for these
damages Answer: $200,000
◉ Which of the following endorsements must be attached to a
standard Businessowners policy for coverage to apply to a
businesses freezer that was damaged by the interruption of a power
source Answer: Utility Services - Direct Damage endorsement.
◉ 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 insurer will: Answer: Suspend
,coverage immediately by red tagging the items until they are
repaired, cleaned and pass reinspection
◉ To be eligible for coverage under a standardized Dwelling policy,
the insured must not allow more than _______ boarders to live on the
premises. Answer: 5
◉ All of the following are "Perils of the Sea" under an Ocean Marine
policy, EXCEPT: Answer: Pirates
◉ The amount of insurance countersigned, issued, or sold by an
agent or producer to cover immediate family members, an employer,
or employees is known as: Answer: Controlled business
◉ Which of the following standardized Dwelling insurance forms
provides coverage for loss of rental income Answer: The DP-1, DP-2,
and DP-3 forms
◉ The "Part B - Medical Payments" coverage of a personal
automobile policy covers injuries for all of the following, EXCEPT:
Answer: A passenger who is injured in another vehicle that is struck
by the insured's vehicle in an accident
,◉ Which of the following are the Texas Workers' Compensation
benefits that are increased by a cost-of-living adjustment (COLAs)
Answer: Lifetime Income Benefits (LIBs) only
◉ Hannah must take time away from work to help assist in the
investigation of a claim that was made against her BOP policy. The
policy will pay for Hannah's actual loss of earnings up to: Answer:
$250 per day.
◉ Surplus Lines companies in Texas have _____ to acknowledge the
receipt of a claim. Answer: 30 days.
◉ All of the following are characteristics of a principal that a surety
will scrutinize during the underwriting process, EXCEPT: Answer:
Consideration.
◉ Under Section II of a Homeowners policy, a cemetery plot owned
by the insured is considered to be: Answer: An insured location.
◉ Which of the following is NOT one of the four major coverages of
an Ocean Marine policy? Answer: Seaworthiness.
◉ A ship has suffered damage and sunk. Which of the following
would respond to cover the loss of the ship? Answer: Hull Insurance.
, ◉ As a fiduciary agent, an adjuster has the power to bind the insurer.
Which of the following statements is FALSE regarding this power?
Answer: Only an adjuster's written statements can legally bind an
insurer.
◉ The standardized Dwelling forms consider all eruptions of a
volcano within a __________ period to be a single "occurrence".
Answer: 72-hour
◉ Whose responsibility is it to complete a "proof of loss"? Answer:
The claimant.
◉ Which of the following would NOT be determined by a court when
an insurer has filed a declaratory judgment action? Answer: The
type and amount of damages that will be paid to a plaintiff for the
claim that is being disputed.
◉ Which of the following statements is TRUE regarding the
Homeowners "additional coverage" known as Landlord's
Furnishings? Answer: The coverage is not additional insurance and
does not increase the limits of the policy.
◉ Which of the following would be covered under the Jones Act?
Answer: Crew members of a ship.
