Texas Adjuster Exam with Complete
Solutions
If an automobile policy has split limits of 30/60/25. What is the maximum amount of
liability coverage that would be paid in a covered loss where three people are involved. -
ANS-$30,000
Which of the following statements best describes an inland marine policy? - ANS-
Pertains to Cargo with no fixed location
Alex is traveling through College Station and hits a deer, and the damages are $1500.
He has comprehensive coverage with a $500 deductible. What will you pay? - ANS-
$1000
This department is responsible for making rates and determines the rates charged by
the insurer - ANS-Actuarial department
Johnny has 30/60/25 limits on his auto policy, and he negligently ran into a parked car
driven by Steve Garcia. What is the maximum amount of coverage that can be provided
for the damage to Steve's car? - ANS-25,000
Your customer has HO-B homeowners policy with a Coverage A limit os $300,000. His
mortgage payment is $1,400 per month. He can't stay in his home for 1 month due to a
claim that was caused by smoke. He is staying in a local hotel for 1 month. The cost of
the hotel is $900 for the moth. How much will you pay your policyholder for Additional
Living Expenses - ANS-$900
Insurance for ocean vessels is the ______ type of insurance? - ANS-oldest
Your insured has a homeowners policy with a Coverage A limit of $50,000, His
coverage B limit is $20,000. His deductible is 1%. He has 30 trees that are damaged
during the fire. How much are you going to pay on his claim? - ANS-2500
If you have a covered loss, in excess of a limit, you can apply that excess towards the
deductible. This best describes? - ANS-Absorbing the deductible
What type of contract exists when the insurance policy is valid even though there is an
unequal exchange? - ANS-Aleatory Contract
The party to an insurance whom the insurer agrees to indemnify for losses, provide
benefits for, or render services to? - ANS-loss payee
, ________ is the size of a loss, the extent of damages. - ANS-Severity
Johns property sustained damage from a windstorm. His fence was total blown down.
He wants to know how his fence will be settled. You advise him? - ANS-It will be settled
based on the actual cash value
Angie smith has excess continuing education hours in a reporting period. Which is the
correct answer below - ANS-She cannot carry forward any excess continuing education
hours
Mary Johnson owns a local maid service. She wants to get some form of protection to
protect their company against dishonesty on the part of her employees. What type of
bond does she need to get to protect her company? - ANS-Fidelity bond
When a loss occurs, an individual should be restored to the appropriate financial
condition he or she was in before the loss. This is known as? - ANS-Principle of
indemnity
Mona insurer is going to cancel her insurance policy. In order for the cancellation to be
legal, what must the insured do? - ANS-Notify Mona in writing that her policy is being
canceled with the reason why.
Which of the following is not ground for license denial or revocation? - ANS-never
having lived or never intending to reside in the state of Texas
You are handling a flood claim in Houston Texas. Your policyholder has a flood policy
on his home. The replacement cost of his dwelling is $230,000. The flood related
damages to the dwelling are valued at $220,000. The replacement cost of the damage
contents on his claim is $85,000. The actual cash value of the damage contents is
$63,000. How much will you pay him for his damage contents? Do not considered a
deductible - ANS-$63,000
Your policyholder has a homeowners policy with the following limits on it. Coverage
$140,000, coverage B $70,000 and the deductible is 1%. Her home was burglarized
and she has filed a theft claim for stolen contents. What will be her deductible on this
theft claim - ANS-$700
Millennium vessel company sustained damage to one of their vessels that was
transporting goods across the golf of Mexico. Which policy would they need in order to
get their damaged vessel repaired? - ANS-They would need ocean Marine policy
______________ Is a significant miss statement in an application form - ANS-Material
misrepresentation
Solutions
If an automobile policy has split limits of 30/60/25. What is the maximum amount of
liability coverage that would be paid in a covered loss where three people are involved. -
ANS-$30,000
Which of the following statements best describes an inland marine policy? - ANS-
Pertains to Cargo with no fixed location
Alex is traveling through College Station and hits a deer, and the damages are $1500.
He has comprehensive coverage with a $500 deductible. What will you pay? - ANS-
$1000
This department is responsible for making rates and determines the rates charged by
the insurer - ANS-Actuarial department
Johnny has 30/60/25 limits on his auto policy, and he negligently ran into a parked car
driven by Steve Garcia. What is the maximum amount of coverage that can be provided
for the damage to Steve's car? - ANS-25,000
Your customer has HO-B homeowners policy with a Coverage A limit os $300,000. His
mortgage payment is $1,400 per month. He can't stay in his home for 1 month due to a
claim that was caused by smoke. He is staying in a local hotel for 1 month. The cost of
the hotel is $900 for the moth. How much will you pay your policyholder for Additional
Living Expenses - ANS-$900
Insurance for ocean vessels is the ______ type of insurance? - ANS-oldest
Your insured has a homeowners policy with a Coverage A limit of $50,000, His
coverage B limit is $20,000. His deductible is 1%. He has 30 trees that are damaged
during the fire. How much are you going to pay on his claim? - ANS-2500
If you have a covered loss, in excess of a limit, you can apply that excess towards the
deductible. This best describes? - ANS-Absorbing the deductible
What type of contract exists when the insurance policy is valid even though there is an
unequal exchange? - ANS-Aleatory Contract
The party to an insurance whom the insurer agrees to indemnify for losses, provide
benefits for, or render services to? - ANS-loss payee
, ________ is the size of a loss, the extent of damages. - ANS-Severity
Johns property sustained damage from a windstorm. His fence was total blown down.
He wants to know how his fence will be settled. You advise him? - ANS-It will be settled
based on the actual cash value
Angie smith has excess continuing education hours in a reporting period. Which is the
correct answer below - ANS-She cannot carry forward any excess continuing education
hours
Mary Johnson owns a local maid service. She wants to get some form of protection to
protect their company against dishonesty on the part of her employees. What type of
bond does she need to get to protect her company? - ANS-Fidelity bond
When a loss occurs, an individual should be restored to the appropriate financial
condition he or she was in before the loss. This is known as? - ANS-Principle of
indemnity
Mona insurer is going to cancel her insurance policy. In order for the cancellation to be
legal, what must the insured do? - ANS-Notify Mona in writing that her policy is being
canceled with the reason why.
Which of the following is not ground for license denial or revocation? - ANS-never
having lived or never intending to reside in the state of Texas
You are handling a flood claim in Houston Texas. Your policyholder has a flood policy
on his home. The replacement cost of his dwelling is $230,000. The flood related
damages to the dwelling are valued at $220,000. The replacement cost of the damage
contents on his claim is $85,000. The actual cash value of the damage contents is
$63,000. How much will you pay him for his damage contents? Do not considered a
deductible - ANS-$63,000
Your policyholder has a homeowners policy with the following limits on it. Coverage
$140,000, coverage B $70,000 and the deductible is 1%. Her home was burglarized
and she has filed a theft claim for stolen contents. What will be her deductible on this
theft claim - ANS-$700
Millennium vessel company sustained damage to one of their vessels that was
transporting goods across the golf of Mexico. Which policy would they need in order to
get their damaged vessel repaired? - ANS-They would need ocean Marine policy
______________ Is a significant miss statement in an application form - ANS-Material
misrepresentation
