TEXAS ADJUSTER EXAM 2026 PRACTICE TEST
QUESTIONS AND DETAILED PROPERTY CLAIMS
LIABILITY ADJUSTING AND LOSS EVALUATION
BREAKDOWN FULL REVIEW
◉ Which of the following statements is NOT TRUE regarding
"common law"? Answer: Codified law is NOT common law
a "body of law" based on court decisions rather than codes or
statutes
◉ An insurer that was chartered under the laws of Canadian
province but conducting business in Minnesota, would be
considered a _____ insurer by the Minnesota Department of
Insurance. Answer: Alien
◉ Which of the following is NOT TRUE re FAIR Plans? Answer: A
FAIR Plan cannot deny coverage to anyone bc their roof is in need of
repair. A FAIR Plan CAN deny coverage to someone whose roof is in
need of repair. The Plan will usually make coverage contingent upon
repairs. States offer diff plans. Usually used in high risk cases.
◉ Public Law 15 reserved with of the following insurance regulation
functions for the federal government Answer: Anti- Trust matters
and fair labor standards
,◉ All of the following are eligible risks for Commercial Inland
Marine insurance, EXC Answer: Goods manufactured in the US for
EXPORT to other countries
◉ An insured has his dwelling and a detached garage covered under
a DP2 form when a tornado takes the roof off both structures. The
insured pays to have temporary repairs completed on the roofs of
both structures. He also purchases a cover to protect his sports car
that was parked in the garage that no longer has a roof. In this
situation, which of the following statements are TRUE? Answer: The
insurer will pay for the temporary repairs on both of the roofs to
protect the dwelling and garage and the contents within them from
further damage.
◉ The owner of a movie theater was held liable when the balcony in
the theater collapsed and killed d12 ppl. This is an ex of Answer: A
tort violation - a civil wrong that causes harm by violating a
protected right.
◉ Which of the following vehicles is considered a "temporary
substitute auto" under a standardized personal auto policy? Answer:
An auto loaned by the garage while the vehicle of the insured is
being repaired. auto not owned but barrowed with permission of
owner.
,◉ Angela is using her own vehicle to pick up lunch at a local
restaurant for her co-workers. She becomes distracted when a text
message comes in and she swerves off the road and hits a tree.
Angela's medical expenses will be paid Answer: By the medical
payments coverage of Angela's own personal auto policy bc she was
using her own car.
◉ Melinda's insurance policy is cancelled bc she has not paid the
premium. In this scenario, which of the elements of a valid contract
is missing? Answer: A valuable consideration (the premium) is
missing.
◉ Which of the following statements is TRUE re an "examination
under oath"? Answer: Only requested by an insurer if they have
reason to believe an insured has not been truthful in their account of
the circumstances of the loss.
◉ Which of the following is NOT eligible for a coverage under a
Homeowners insurance policy? Answer: Owner-occupants of a 5-6
family dwelling. A HO policy will not cover any dwelling that houses
more than 4 families in a household
◉ Which of the following statements is TRUE re nonwaiver
agreements and reservation of rights letters? Answer: They are used
only w first party claimants to protect the rights of insureds and
insurers.
, ◉ Which of the following is TRUE re nuclear energy loss coverage
under a Personal Auto policy? Answer: The personal auto policy will
NOT provide coverage for bodily injury or property damage caused
by the insured's nuclear energy losses. They will be covered under a
specialized nuclear energy liability policy.
◉ The Commercial Building & Personal Property coverage form
includes an Additional Coverage for property removed from the
premises bc of being endangered by an insured peril. The coverage
applies for Answer: 30 days after the property is first moved.
◉ Maci has $500 cash destroyed by fire in her covered home. She
files a claim under her standard Homeowners policy. How much will
the policy pay on this claim? Answer: $200 the standard HO policies
cover money, but money is subject to a special limit of liability of
$200.
◉ All of the following statements are TRUE re the coverage of mobile
or trailer homes under a Dwelling insurance policy, EXC Answer:
Mobile or trailer homes can NOT be owner or tenant occupied. Only
applies to owner occupied.
◉ Many stationary objects, such as bridges, tunnels, and powerlines
fall within the nationwide marine definition bc they are considered
QUESTIONS AND DETAILED PROPERTY CLAIMS
LIABILITY ADJUSTING AND LOSS EVALUATION
BREAKDOWN FULL REVIEW
◉ Which of the following statements is NOT TRUE regarding
"common law"? Answer: Codified law is NOT common law
a "body of law" based on court decisions rather than codes or
statutes
◉ An insurer that was chartered under the laws of Canadian
province but conducting business in Minnesota, would be
considered a _____ insurer by the Minnesota Department of
Insurance. Answer: Alien
◉ Which of the following is NOT TRUE re FAIR Plans? Answer: A
FAIR Plan cannot deny coverage to anyone bc their roof is in need of
repair. A FAIR Plan CAN deny coverage to someone whose roof is in
need of repair. The Plan will usually make coverage contingent upon
repairs. States offer diff plans. Usually used in high risk cases.
◉ Public Law 15 reserved with of the following insurance regulation
functions for the federal government Answer: Anti- Trust matters
and fair labor standards
,◉ All of the following are eligible risks for Commercial Inland
Marine insurance, EXC Answer: Goods manufactured in the US for
EXPORT to other countries
◉ An insured has his dwelling and a detached garage covered under
a DP2 form when a tornado takes the roof off both structures. The
insured pays to have temporary repairs completed on the roofs of
both structures. He also purchases a cover to protect his sports car
that was parked in the garage that no longer has a roof. In this
situation, which of the following statements are TRUE? Answer: The
insurer will pay for the temporary repairs on both of the roofs to
protect the dwelling and garage and the contents within them from
further damage.
◉ The owner of a movie theater was held liable when the balcony in
the theater collapsed and killed d12 ppl. This is an ex of Answer: A
tort violation - a civil wrong that causes harm by violating a
protected right.
◉ Which of the following vehicles is considered a "temporary
substitute auto" under a standardized personal auto policy? Answer:
An auto loaned by the garage while the vehicle of the insured is
being repaired. auto not owned but barrowed with permission of
owner.
,◉ Angela is using her own vehicle to pick up lunch at a local
restaurant for her co-workers. She becomes distracted when a text
message comes in and she swerves off the road and hits a tree.
Angela's medical expenses will be paid Answer: By the medical
payments coverage of Angela's own personal auto policy bc she was
using her own car.
◉ Melinda's insurance policy is cancelled bc she has not paid the
premium. In this scenario, which of the elements of a valid contract
is missing? Answer: A valuable consideration (the premium) is
missing.
◉ Which of the following statements is TRUE re an "examination
under oath"? Answer: Only requested by an insurer if they have
reason to believe an insured has not been truthful in their account of
the circumstances of the loss.
◉ Which of the following is NOT eligible for a coverage under a
Homeowners insurance policy? Answer: Owner-occupants of a 5-6
family dwelling. A HO policy will not cover any dwelling that houses
more than 4 families in a household
◉ Which of the following statements is TRUE re nonwaiver
agreements and reservation of rights letters? Answer: They are used
only w first party claimants to protect the rights of insureds and
insurers.
, ◉ Which of the following is TRUE re nuclear energy loss coverage
under a Personal Auto policy? Answer: The personal auto policy will
NOT provide coverage for bodily injury or property damage caused
by the insured's nuclear energy losses. They will be covered under a
specialized nuclear energy liability policy.
◉ The Commercial Building & Personal Property coverage form
includes an Additional Coverage for property removed from the
premises bc of being endangered by an insured peril. The coverage
applies for Answer: 30 days after the property is first moved.
◉ Maci has $500 cash destroyed by fire in her covered home. She
files a claim under her standard Homeowners policy. How much will
the policy pay on this claim? Answer: $200 the standard HO policies
cover money, but money is subject to a special limit of liability of
$200.
◉ All of the following statements are TRUE re the coverage of mobile
or trailer homes under a Dwelling insurance policy, EXC Answer:
Mobile or trailer homes can NOT be owner or tenant occupied. Only
applies to owner occupied.
◉ Many stationary objects, such as bridges, tunnels, and powerlines
fall within the nationwide marine definition bc they are considered
