TX ADJUSTER TEST QUESTIONS AND
ANSWERS ALREADY PASSED
While investigating a claim, you determine that the loss was caused by a defective mechanism in
the dishwasher. You would attempt to_________________________? ✔✔Subrogate
Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss
to the insured. This is done as a means of recovering the amount of the claim paid by the
insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of
damage? ✔✔Appraisal
__________________________________________________is a significant misstatement in an
application form. If a company had access to the correct information at the time of application,
the company might not have agreed to accept the application. ✔✔Material Misrepresentation
As an adjuster, you should base depreciation on these three factors? ✔✔Age, Condition and Life
Expectancy
,An_________________ is a person hired by the property owner to settle the claim with
insurance company on their behalf. ✔✔Umpire
This type of policy provides coverage only for those perils that are listed in the policy? ✔✔HO-
A
_________________________ are extra charges covered by homeowner's policies over and
above the policyholder's customary living expenses. ✔✔Additional Living Expenses
_______________________is an event that results in an insured loss/damages? ✔✔Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation?
✔✔Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________. ✔✔Incurred Expenses
, ________________________________is the part of the written insurance policy that states all
the policy's specific's, including the name of the policyholder, the type of property insured, the
premiums, and the term limits for the coverage. ✔✔Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable prudence
would use under similar circumstances? ✔✔Negligence
______________________________is the amount of money dedicated to a general contractor's
cost of doing a business and earning a profit. ✔✔Overhead and Profit
____________________________is a situation involving a person other than an insurer and the
insured. ✔✔Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover debts
to policyholder? ✔✔Reserves
This loss involves only the insurer and the insured? ✔✔First Party Loss
What is the responsibility to another for one's negligence? ✔✔Liability
ANSWERS ALREADY PASSED
While investigating a claim, you determine that the loss was caused by a defective mechanism in
the dishwasher. You would attempt to_________________________? ✔✔Subrogate
Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss
to the insured. This is done as a means of recovering the amount of the claim paid by the
insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of
damage? ✔✔Appraisal
__________________________________________________is a significant misstatement in an
application form. If a company had access to the correct information at the time of application,
the company might not have agreed to accept the application. ✔✔Material Misrepresentation
As an adjuster, you should base depreciation on these three factors? ✔✔Age, Condition and Life
Expectancy
,An_________________ is a person hired by the property owner to settle the claim with
insurance company on their behalf. ✔✔Umpire
This type of policy provides coverage only for those perils that are listed in the policy? ✔✔HO-
A
_________________________ are extra charges covered by homeowner's policies over and
above the policyholder's customary living expenses. ✔✔Additional Living Expenses
_______________________is an event that results in an insured loss/damages? ✔✔Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation?
✔✔Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________. ✔✔Incurred Expenses
, ________________________________is the part of the written insurance policy that states all
the policy's specific's, including the name of the policyholder, the type of property insured, the
premiums, and the term limits for the coverage. ✔✔Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable prudence
would use under similar circumstances? ✔✔Negligence
______________________________is the amount of money dedicated to a general contractor's
cost of doing a business and earning a profit. ✔✔Overhead and Profit
____________________________is a situation involving a person other than an insurer and the
insured. ✔✔Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover debts
to policyholder? ✔✔Reserves
This loss involves only the insurer and the insured? ✔✔First Party Loss
What is the responsibility to another for one's negligence? ✔✔Liability
