Texas all lines adjuster Exam 2023
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - ANSWER While performing a
task that a fellow worker requested, that was unusual to the employee's job description, but
occurred on the employer's premises during working hours.
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean
Marine policy? - ANSWER The implied warranties are attached to the policy as an
endorsement..
Parmelia is covered under two separate standardized Personal Automobile policies, with Part
C limits under both policies set at $200,000. Parmelia is involved in an accident with an
uninsured motorist and she sustains bodily injury damages for $262,320. How much will
Parmelia receive when she submits a claim for these damages - ANSWER $200,000
Which of the following endorsements must be attached to a standard Businessowners policy
for coverage to apply to a businesses freezer that was damaged by the interruption of a power
source - ANSWER Utility Services - Direct Damage endorsement.
After completing an inspection of an insured's pressure equipment and fire suppression
systems, the inspector determines that the pressure equipment needs to be repaired and the
suppression systems have not been cleaned and inspected in the time frame required by the
policy. The insurer will: - ANSWER Suspend coverage immediately by red tagging the items
until they are repaired, cleaned and pass reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
more than _______ boarders to live on the premises. - ANSWER 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - ANSWER
Pirates
The amount of insurance countersigned, issued, or sold by an agent or producer to cover
immediate family members, an employer, or employees is known as: - ANSWER Controlled
business
Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income - ANSWER The DP-1, DP-2, and DP-3 forms
The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for
all of the following, EXCEPT: - ANSWER A passenger who is injured in another vehicle that is
struck by the insured's vehicle in an accident
, Texas all lines adjuster Exam 2023
Which of the following are the Texas Workers' Compensation benefits that are increased by a
cost-of-living adjustment (COLAs) - ANSWER Lifetime Income Benefits (LIBs) only
Hannah must take time away from work to help assist in the investigation of a claim that was
made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to: -
ANSWER $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. - ANSWER
30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT: - ANSWER Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered
to be: - ANSWER An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? -
ANSWER Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss
of the ship? - ANSWER Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
statements is FALSE regarding this power? - ANSWER Only an adjuster's written statements
can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a __________
period to be a single "occurrence". - ANSWER 72-hour
Whose responsibility is it to complete a "proof of loss"? - ANSWER The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - ANSWER The type and amount of damages that will be paid to
a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional coverage"
known as Landlord's Furnishings? - ANSWER The coverage is not additional insurance and
does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? - ANSWER Crew members of a
ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: -
ANSWER The policy will cover watercraft liability.
, Texas all lines adjuster Exam 2023
Which of the following statements is TRUE regarding Commercial Property coverage? -
ANSWER Commercial property coverage can be written as both a monoline policy and as part
of a package policy.
What type of insurance is usually provided or subsidized by the state or federal government
because it is not ordinarily available from private insurers? - ANSWER Residual market
insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy
provides a "discovery period" for the insured to discover the dishonest act and have coverage
still apply. Which of the following statements best describes the "discovery period" for this
optional coverage? - ANSWER The "discovery period" is one year from the end of the policy
period.
Which of the following would be considered an Unfair Claim Settlement Practice? - ANSWER
Failing to deny coverage of a claim within a reasonable amount of time after concluding the
investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - ANSWER A fire must be the result of the artificially generated
electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions of
coverage, but only if: - ANSWER An 80% or higher coinsurance percentage is shown on the
Declarations page, and the property amount of coverage, based on that percentage, is
purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - ANSWER A
motorist driving with coverage up to the required state financial responsibility limits for
liability, but not high enough to pay the claims for an at-fault accident.
Regulation of the insurance industry in the United States is primarily left to: - ANSWER State
governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form by
endorsement for coverage to apply? - ANSWER Collision.
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he
decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving
the car into the restaurant's parking garage, when he clips the side of the garage entrance with
the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and
, Texas all lines adjuster Exam 2023
headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss?
- ANSWER It would cover the loss to Chaz's car because it is the insured automobile, but
would not cover the damage to the garage..
Which of the following statements is TRUE regarding the coverage extension of the standard
Businessowners policy for "Business Personal Property Temporarily in Portable Storage
Units"? - ANSWER Coverage will not apply if the storage unit has been on the insured
premises for longer than 90 days, even if the business personal property has only been stored
there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under a
Personal Automobile claim? - ANSWER A load of bricks falling from an apartment building
onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides coverage for
"Debris Removal". Which of the following statements best describes the limit for this
coverage? - ANSWER The total limit may be up to 25% of the policy limit for the loss payable
with the deductible included, plus up to an additional $25,000 if the policy limits are
exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an
act is known as: - ANSWER Fraud
Which of the following losses would be covered under a Commercial Property policy with the
special cause of loss form attached? - ANSWER A fire that breaks out in an office building and
causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized
Yacht policy is breached because of something out of the control of the insured: - ANSWER
The insurer must be notified within 10 days after the breach and any additional premium that
is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? -
ANSWER Owner-occupants of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is
$100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability.
Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella
policy, his Homeowners policy must pay $100,000, but he finds that the insurance company
from which he purchased his Homeowners policy has become insolvent. How will the
Umbrella insurer pay the claim (disregarding any retention limit)? - ANSWER The Umbrella
policy will not become primary when the insurer carrying the underlying insurance becomes
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - ANSWER While performing a
task that a fellow worker requested, that was unusual to the employee's job description, but
occurred on the employer's premises during working hours.
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean
Marine policy? - ANSWER The implied warranties are attached to the policy as an
endorsement..
Parmelia is covered under two separate standardized Personal Automobile policies, with Part
C limits under both policies set at $200,000. Parmelia is involved in an accident with an
uninsured motorist and she sustains bodily injury damages for $262,320. How much will
Parmelia receive when she submits a claim for these damages - ANSWER $200,000
Which of the following endorsements must be attached to a standard Businessowners policy
for coverage to apply to a businesses freezer that was damaged by the interruption of a power
source - ANSWER Utility Services - Direct Damage endorsement.
After completing an inspection of an insured's pressure equipment and fire suppression
systems, the inspector determines that the pressure equipment needs to be repaired and the
suppression systems have not been cleaned and inspected in the time frame required by the
policy. The insurer will: - ANSWER Suspend coverage immediately by red tagging the items
until they are repaired, cleaned and pass reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
more than _______ boarders to live on the premises. - ANSWER 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - ANSWER
Pirates
The amount of insurance countersigned, issued, or sold by an agent or producer to cover
immediate family members, an employer, or employees is known as: - ANSWER Controlled
business
Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income - ANSWER The DP-1, DP-2, and DP-3 forms
The "Part B - Medical Payments" coverage of a personal automobile policy covers injuries for
all of the following, EXCEPT: - ANSWER A passenger who is injured in another vehicle that is
struck by the insured's vehicle in an accident
, Texas all lines adjuster Exam 2023
Which of the following are the Texas Workers' Compensation benefits that are increased by a
cost-of-living adjustment (COLAs) - ANSWER Lifetime Income Benefits (LIBs) only
Hannah must take time away from work to help assist in the investigation of a claim that was
made against her BOP policy. The policy will pay for Hannah's actual loss of earnings up to: -
ANSWER $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. - ANSWER
30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT: - ANSWER Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered
to be: - ANSWER An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? -
ANSWER Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss
of the ship? - ANSWER Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
statements is FALSE regarding this power? - ANSWER Only an adjuster's written statements
can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a __________
period to be a single "occurrence". - ANSWER 72-hour
Whose responsibility is it to complete a "proof of loss"? - ANSWER The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - ANSWER The type and amount of damages that will be paid to
a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional coverage"
known as Landlord's Furnishings? - ANSWER The coverage is not additional insurance and
does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? - ANSWER Crew members of a
ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: -
ANSWER The policy will cover watercraft liability.
, Texas all lines adjuster Exam 2023
Which of the following statements is TRUE regarding Commercial Property coverage? -
ANSWER Commercial property coverage can be written as both a monoline policy and as part
of a package policy.
What type of insurance is usually provided or subsidized by the state or federal government
because it is not ordinarily available from private insurers? - ANSWER Residual market
insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy
provides a "discovery period" for the insured to discover the dishonest act and have coverage
still apply. Which of the following statements best describes the "discovery period" for this
optional coverage? - ANSWER The "discovery period" is one year from the end of the policy
period.
Which of the following would be considered an Unfair Claim Settlement Practice? - ANSWER
Failing to deny coverage of a claim within a reasonable amount of time after concluding the
investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - ANSWER A fire must be the result of the artificially generated
electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions of
coverage, but only if: - ANSWER An 80% or higher coinsurance percentage is shown on the
Declarations page, and the property amount of coverage, based on that percentage, is
purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - ANSWER A
motorist driving with coverage up to the required state financial responsibility limits for
liability, but not high enough to pay the claims for an at-fault accident.
Regulation of the insurance industry in the United States is primarily left to: - ANSWER State
governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form by
endorsement for coverage to apply? - ANSWER Collision.
Chaz takes his girlfriend to an expensive restaurant for Valentine's Day. It is raining, so he
decides to have the valet park his car, saving his girlfriend from getting wet. The valet is driving
the car into the restaurant's parking garage, when he clips the side of the garage entrance with
the front fender of Chaz's car. The garage wall needs to be repaired as well as the fender and
, Texas all lines adjuster Exam 2023
headlight of Chaz's car. How would Part D of Chaz's Personal Automobile respond to this loss?
- ANSWER It would cover the loss to Chaz's car because it is the insured automobile, but
would not cover the damage to the garage..
Which of the following statements is TRUE regarding the coverage extension of the standard
Businessowners policy for "Business Personal Property Temporarily in Portable Storage
Units"? - ANSWER Coverage will not apply if the storage unit has been on the insured
premises for longer than 90 days, even if the business personal property has only been stored
there for less than 90 days.
Which of the following would be considered a Part D - Other Than Collision claim under a
Personal Automobile claim? - ANSWER A load of bricks falling from an apartment building
onto the car.
The Section I Additional Coverage of the standard Businessowners policy provides coverage for
"Debris Removal". Which of the following statements best describes the limit for this
coverage? - ANSWER The total limit may be up to 25% of the policy limit for the loss payable
with the deductible included, plus up to an additional $25,000 if the policy limits are
exhausted
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an
act is known as: - ANSWER Fraud
Which of the following losses would be covered under a Commercial Property policy with the
special cause of loss form attached? - ANSWER A fire that breaks out in an office building and
causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized
Yacht policy is breached because of something out of the control of the insured: - ANSWER
The insurer must be notified within 10 days after the breach and any additional premium that
is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? -
ANSWER Owner-occupants of a 5 to 6-family dwelling
Cameron has his home covered under a Homeowners policy and his limit for bodily injury is
$100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability.
Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella
policy, his Homeowners policy must pay $100,000, but he finds that the insurance company
from which he purchased his Homeowners policy has become insolvent. How will the
Umbrella insurer pay the claim (disregarding any retention limit)? - ANSWER The Umbrella
policy will not become primary when the insurer carrying the underlying insurance becomes
