Page 1 of 427
Texas All Lines Adjuster Exam Prep Study Guide with
800 Practice Questions and Detailed Explanations
Latest Update
What is the failure to use that degree of care which n ordinary person of reasonable prudence
would use under similar circumstances? - ANSWER✅✅Negligence
What is a situation involving a person other than an insured? - ANSWER✅✅Third Party Loss
What is the responsibility to another for one's negligence? - ANSWER✅✅Liability
Mary has a homeowner's policy. Her Coverage A limit of liability is $250,000 and her Coverage B
limit of liability is $125,000. Her policy has a 2% deductible. What is her deductible? -
ANSWER✅✅$5,000
The part of the insurance policy that details the rights and duties of the insured and the
insurance company in the policy? - ANSWER✅✅Conditions
What is a partial legal defense that reduces the amount of damages that a person can recover
based upon the amount that this person's own negligence contributed to the loss? -
ANSWER✅✅Comparative Negligence
Value of property based on the current cost to replace it minus depreciation? -
1
,Page 2 of 427
ANSWER✅✅Actual Cash Vale
This type of Auto Coverage pays for your damages if you were involved in a hit and run: -
ANSWER✅✅Uninsured Motorist
What is the cost associated with replacing property at current market prices? -
ANSWER✅✅Replacement Cost
The process when an insurer and insured have a dispute regarding the amount of the damage: -
ANSWER✅✅Appraisal
The intentional misrepresentation of a material fact that may void a contract? -
ANSWER✅✅Fraud
What is the type of negotiation that is also sometimes called positional or hard-bargaining? -
ANSWER✅✅Distributive
An event that results in an insured loss and damages? - ANSWER✅✅Occurrence
What is the period a policy is in force, from the beginning or effective date? -
ANSWER✅✅Policy Period
The amount the insured must pay in a loss before any payment is due? -
2
,Page 3 of 427
ANSWER✅✅Deductible
The insurer must review the claim and accept or reject within how many days? -
ANSWER✅✅15 calendar
Oral or written false statement that is malicious - ANSWER✅✅Defamation
Time requirements does the policy holder have to complete the requirements that the insurer
has requested? - ANSWER✅✅No requirements
Days for insurer to pay the claim - ANSWER✅✅5 business
Insurer must acknowledge the claim begin the investigation, and request all the information
needed in what time frame? - ANSWER✅✅15 Calendar days
What must an insurer provide for the declination, cancellation, or nonrenewal of an insurance
policy? - ANSWER✅✅Written Statement
Established in 1991 to ensure prompt payment of insurance claims? - ANSWER✅✅Article
21.55
An insurer may not consider a _______ as a basis for declination? - ANSWER✅✅Customer
Inquiry
3
, Page 4 of 427
An insurer may refuse to renew a policy if the insurer has mailed notice of nonrenewal to the
insured at least_____ days before the policy's expiration date? - ANSWER✅✅30
If the insurer needs additional time to evaluate and investigate a claim, they can request how
many additional days? - ANSWER✅✅45 Calendar Days
Under the Texas HO-B, the structure is covered for what type of losses? - ANSWER✅✅All risk
of physical loss, unless excluded
Under the Texas HO-B, jewelry, watches, and furs are limited to? - ANSWER✅✅$500 for
losses caused by theft
Under the Texas HO-B policy, the most paid for a tree? - ANSWER✅✅$250
The Special Limit of Liability for Bullion/ Valuable Papers is? - ANSWER✅✅$500
HO-B policy, you would choose the Deductible Clause 1 for losses caused by? -
ANSWER✅✅Windstorm, Hurricane, Hail
Trees, shrubs, plants, and lawns are not covered for losses caused by? -
ANSWER✅✅Windstorm
4
Texas All Lines Adjuster Exam Prep Study Guide with
800 Practice Questions and Detailed Explanations
Latest Update
What is the failure to use that degree of care which n ordinary person of reasonable prudence
would use under similar circumstances? - ANSWER✅✅Negligence
What is a situation involving a person other than an insured? - ANSWER✅✅Third Party Loss
What is the responsibility to another for one's negligence? - ANSWER✅✅Liability
Mary has a homeowner's policy. Her Coverage A limit of liability is $250,000 and her Coverage B
limit of liability is $125,000. Her policy has a 2% deductible. What is her deductible? -
ANSWER✅✅$5,000
The part of the insurance policy that details the rights and duties of the insured and the
insurance company in the policy? - ANSWER✅✅Conditions
What is a partial legal defense that reduces the amount of damages that a person can recover
based upon the amount that this person's own negligence contributed to the loss? -
ANSWER✅✅Comparative Negligence
Value of property based on the current cost to replace it minus depreciation? -
1
,Page 2 of 427
ANSWER✅✅Actual Cash Vale
This type of Auto Coverage pays for your damages if you were involved in a hit and run: -
ANSWER✅✅Uninsured Motorist
What is the cost associated with replacing property at current market prices? -
ANSWER✅✅Replacement Cost
The process when an insurer and insured have a dispute regarding the amount of the damage: -
ANSWER✅✅Appraisal
The intentional misrepresentation of a material fact that may void a contract? -
ANSWER✅✅Fraud
What is the type of negotiation that is also sometimes called positional or hard-bargaining? -
ANSWER✅✅Distributive
An event that results in an insured loss and damages? - ANSWER✅✅Occurrence
What is the period a policy is in force, from the beginning or effective date? -
ANSWER✅✅Policy Period
The amount the insured must pay in a loss before any payment is due? -
2
,Page 3 of 427
ANSWER✅✅Deductible
The insurer must review the claim and accept or reject within how many days? -
ANSWER✅✅15 calendar
Oral or written false statement that is malicious - ANSWER✅✅Defamation
Time requirements does the policy holder have to complete the requirements that the insurer
has requested? - ANSWER✅✅No requirements
Days for insurer to pay the claim - ANSWER✅✅5 business
Insurer must acknowledge the claim begin the investigation, and request all the information
needed in what time frame? - ANSWER✅✅15 Calendar days
What must an insurer provide for the declination, cancellation, or nonrenewal of an insurance
policy? - ANSWER✅✅Written Statement
Established in 1991 to ensure prompt payment of insurance claims? - ANSWER✅✅Article
21.55
An insurer may not consider a _______ as a basis for declination? - ANSWER✅✅Customer
Inquiry
3
, Page 4 of 427
An insurer may refuse to renew a policy if the insurer has mailed notice of nonrenewal to the
insured at least_____ days before the policy's expiration date? - ANSWER✅✅30
If the insurer needs additional time to evaluate and investigate a claim, they can request how
many additional days? - ANSWER✅✅45 Calendar Days
Under the Texas HO-B, the structure is covered for what type of losses? - ANSWER✅✅All risk
of physical loss, unless excluded
Under the Texas HO-B, jewelry, watches, and furs are limited to? - ANSWER✅✅$500 for
losses caused by theft
Under the Texas HO-B policy, the most paid for a tree? - ANSWER✅✅$250
The Special Limit of Liability for Bullion/ Valuable Papers is? - ANSWER✅✅$500
HO-B policy, you would choose the Deductible Clause 1 for losses caused by? -
ANSWER✅✅Windstorm, Hurricane, Hail
Trees, shrubs, plants, and lawns are not covered for losses caused by? -
ANSWER✅✅Windstorm
4
