TX ADJUSTER TEST Exam (145 Questions & Answers) Latest
Update 2023-2024 with Correct Solutions
1. While investigating a claim, you determine that the loss was caused by a defective
mechanism in the dishwasher. You would attempt to_________________________? -
correct answer ✅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.
2. What is the process when an insurer and an insured have a dispute regarding the
amount of damage? - correct answer ✅Appraisal
3. __________________________________________________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. - correct answer ✅Material Misrepresentation
DO NOT COPY
4. As an adjuster, you should base depreciation on these three factors? - correct answer
✅Age, Condition and Life Expectancy
5. An_________________ is a person hired by the property owner to settle the claim with
insurance company on their behalf. - correct answer ✅Umpire
6. This type of policy provides coverage only for those perils that are listed in the policy? -
correct answer ✅HO-A
7. _________________________ are extra charges covered by homeowner's policies over
and above the policyholder's customary living expenses. - correct answer ✅Additional
Living Expenses
8. _______________________is an event that results in an insured loss/damages? -
correct answer ✅Occurrence
9. What is value of your property, based on the current cost to replace it, minus
depreciation? - correct answer ✅Actual Cash Value
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, 10. Expenses that have already sustained and that have not yet been paid are known as
____________________________________. - correct answer ✅Incurred Expenses
11. ________________________________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. - correct answer
✅Declarations Page
12. What is the failure to use that degree of care which an ordinary person of reasonable
prudence would use under similar circumstances? - correct answer ✅Negligence
13. ______________________________is the amount of money dedicated to a general
contractor's cost of doing a business and earning a profit. - correct answer ✅Overhead
and Profit
14. ____________________________is a situation involving a person other than an insurer
and the insured. - correct answer ✅Third Party Loss
15. What is the amount representing actual or potential liabilities kept by and insurer to
cover debts to policyholder? - correct answer ✅Reserves
16. This loss involves only the insurer and the insured? - correct answer ✅First Party Loss
17. What is the responsibility to another for one's negligence? - correct answer ✅Liability
18. _____________________ is the size of a loss, the extent of damages. - correct answer
✅Severity
19. ___________________________ is the amount paid by an insured to an insurance
company to obtain or maintain an insurance policy - correct answer ✅Premium
20. __________________________________is the cost associated with replacing property
at the current market price. - correct answer ✅Replacement Cost
P a g e 2 | 12
Update 2023-2024 with Correct Solutions
1. While investigating a claim, you determine that the loss was caused by a defective
mechanism in the dishwasher. You would attempt to_________________________? -
correct answer ✅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.
2. What is the process when an insurer and an insured have a dispute regarding the
amount of damage? - correct answer ✅Appraisal
3. __________________________________________________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. - correct answer ✅Material Misrepresentation
DO NOT COPY
4. As an adjuster, you should base depreciation on these three factors? - correct answer
✅Age, Condition and Life Expectancy
5. An_________________ is a person hired by the property owner to settle the claim with
insurance company on their behalf. - correct answer ✅Umpire
6. This type of policy provides coverage only for those perils that are listed in the policy? -
correct answer ✅HO-A
7. _________________________ are extra charges covered by homeowner's policies over
and above the policyholder's customary living expenses. - correct answer ✅Additional
Living Expenses
8. _______________________is an event that results in an insured loss/damages? -
correct answer ✅Occurrence
9. What is value of your property, based on the current cost to replace it, minus
depreciation? - correct answer ✅Actual Cash Value
P a g e 1 | 12
, 10. Expenses that have already sustained and that have not yet been paid are known as
____________________________________. - correct answer ✅Incurred Expenses
11. ________________________________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. - correct answer
✅Declarations Page
12. What is the failure to use that degree of care which an ordinary person of reasonable
prudence would use under similar circumstances? - correct answer ✅Negligence
13. ______________________________is the amount of money dedicated to a general
contractor's cost of doing a business and earning a profit. - correct answer ✅Overhead
and Profit
14. ____________________________is a situation involving a person other than an insurer
and the insured. - correct answer ✅Third Party Loss
15. What is the amount representing actual or potential liabilities kept by and insurer to
cover debts to policyholder? - correct answer ✅Reserves
16. This loss involves only the insurer and the insured? - correct answer ✅First Party Loss
17. What is the responsibility to another for one's negligence? - correct answer ✅Liability
18. _____________________ is the size of a loss, the extent of damages. - correct answer
✅Severity
19. ___________________________ is the amount paid by an insured to an insurance
company to obtain or maintain an insurance policy - correct answer ✅Premium
20. __________________________________is the cost associated with replacing property
at the current market price. - correct answer ✅Replacement Cost
P a g e 2 | 12
