Texas All-Lines Adjuster course Final Exam [QUESTIONS
AND CORRECT ANSWERS) VERIFIED ANSWERS
2024/2025
A severe thunderstorm damaged a policyholder's residence. He
called and asked how long it would be before he receives
payment for his claim. Which of the following would NOT be an
appropriate response? - CORRECT ANSWER We have 6
months to reach a final settlement with you.
Which of the following is a TRUE statement concerning auto
physical damage coverage under a Personal or Business Auto
policy? - CORRECT ANSWER In Florida, there is no deductible
applied to windshield damage claims as long as the policy carries
comprehensive coverage.
David has an automobile policy with 50/100/50 policy limits, hits a
car with three occupants, and all are hurt. They all sue. The first
sues and collects $20,000; the second sues and collects $70,000;
and the third sues and collects $35,000. The car David hit has
$14,500 in damage. The insurance company spends $10,000 on
a law firm defending the suit. Ignoring PIP, Med Pay or UM
issues, how much is the maximum amount that the company
would pay for the loss? - CORRECT ANSWER $124,500.
One who guarantees the performance or payment of one party
who is obligated by contract to another is called a: - CORRECT
ANSWER surety
Your insured runs a red light and hits another vehicle. Damage to
the insured car is $7.600 and your policy has a $500 collision
,deductible. Damage to the other vehicle is $6,550 and is
undriveable. Repair takes 3 weeks and the claimant incurs
$757.00 in rental car charges. Fortunately the claimant was not
injured seriously and has not seen a doctor. You think that if you
handle the PD claim promptly and fairly, no injury claim will be
made. How much will you pay for the property damage claim? -
CORRECT ANSWER $7,307.
(Simply add damage and rental car charge)
Temporary total disability benefits are calculated by taking: -
CORRECT ANSWER .6667 of the employee's pre-injury
Average Weekly Wage (AWW).
Which of the following is NOT one of the supplementary
payments provided by the CGL? - CORRECT ANSWER Bail
bond costs arising out of an automobile accident while on
company business
A lost time case is defined as: - CORRECT ANSWER An injury
that results in more than seven (7) days off work, or for which
indemnity benefits would otherwise be due, such as a medical
only claim that results in a permanent impairment.
A shopper hits her head on a low hanging shelf in a grocery store.
You've been asked to handle the claim. After talking to both her
and your insured on the telephone, you really don't think there is
any liability, but you think the best way to handle the case is to
pay her medical bills without admitting liability and try a walk-away
settlement. How would you do it? - CORRECT ANSWER Tell
her you'll pay her bills and wish her well. Ask her to call you if she
has any questions. When they arrive, pay the bills
under the CGL's Medical Payments coverage.
,Dwelling coverages are intended for: - CORRECT ANSWER
Individuals and companies seeking only to protect their financial
interest in the property
How are adjustments under commercial property coverages
initially valued? - CORRECT ANSWER Actual Cash Value
Business Auto Policies "Covered Autos" - CORRECT ANSWER
01. Any Auto
02. Owned Autos Only
07. Specifically Described Autos
09. Non-Owned Autos Only
Garage Policy "Covered Autos" - CORRECT ANSWER 21. Any
Auto
22. Owned Autos Only
27. Specifically Described Autos
29. Non-Owned Autos Only
which of the following is not true when comparing the standard
ISO policy forms and the Texas Homeowners policy forms? -
CORRECT ANSWER Loss of Use is addressed by Coverage C
in the Texas homeowners policies.
Texas Homeowners Policy Forms - CORRECT ANSWER HO-A
HO-1
HO-A+ HO-2
HO-B HO-3
HO-C HO-5
Property Insurance Coverages - CORRECT ANSWER Coverage
A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Loss of Use
, The Texas Policy Coverages - CORRECT ANSWER Coverage
A - Dwelling & Other Structures
Coverage B - Personal Property
Extensions of Coverage - Loss of Use, Debris removal,
Reasonable repairs, trees shrubs plants & lawns.
What did the legislature create to provide consumers with
availability and affordability of insurance coverages that are no
longer available through normal channels? - CORRECT
ANSWER The Residual Marketplace
Which of the following was created to address the issue of
insolvent insurance carriers? - CORRECT ANSWER Insurance
Guaranty Associations
What is the residual market choice for consumers unable to
secure residential property coverage in the voluntary insurance
market? - CORRECT ANSWER Texas Windstorm Association
Which of the following is NOT a current member of the Texas
Residual Insurance Market? - CORRECT ANSWER Texas
Workers' Compensation Insurance Fund
Which of the following statements are not true of Texas' residual
markets? - CORRECT ANSWER The residual market is the
preferred market for consumers who are looking for rates that are
more competitive than carriers in the voluntary market.
Janelle has just graduated college and is interested in becoming
an adjuster. she would like to be able to handle any type of claim.
The most comprehensive type of license would be: - CORRECT
ANSWER All-Lines
AND CORRECT ANSWERS) VERIFIED ANSWERS
2024/2025
A severe thunderstorm damaged a policyholder's residence. He
called and asked how long it would be before he receives
payment for his claim. Which of the following would NOT be an
appropriate response? - CORRECT ANSWER We have 6
months to reach a final settlement with you.
Which of the following is a TRUE statement concerning auto
physical damage coverage under a Personal or Business Auto
policy? - CORRECT ANSWER In Florida, there is no deductible
applied to windshield damage claims as long as the policy carries
comprehensive coverage.
David has an automobile policy with 50/100/50 policy limits, hits a
car with three occupants, and all are hurt. They all sue. The first
sues and collects $20,000; the second sues and collects $70,000;
and the third sues and collects $35,000. The car David hit has
$14,500 in damage. The insurance company spends $10,000 on
a law firm defending the suit. Ignoring PIP, Med Pay or UM
issues, how much is the maximum amount that the company
would pay for the loss? - CORRECT ANSWER $124,500.
One who guarantees the performance or payment of one party
who is obligated by contract to another is called a: - CORRECT
ANSWER surety
Your insured runs a red light and hits another vehicle. Damage to
the insured car is $7.600 and your policy has a $500 collision
,deductible. Damage to the other vehicle is $6,550 and is
undriveable. Repair takes 3 weeks and the claimant incurs
$757.00 in rental car charges. Fortunately the claimant was not
injured seriously and has not seen a doctor. You think that if you
handle the PD claim promptly and fairly, no injury claim will be
made. How much will you pay for the property damage claim? -
CORRECT ANSWER $7,307.
(Simply add damage and rental car charge)
Temporary total disability benefits are calculated by taking: -
CORRECT ANSWER .6667 of the employee's pre-injury
Average Weekly Wage (AWW).
Which of the following is NOT one of the supplementary
payments provided by the CGL? - CORRECT ANSWER Bail
bond costs arising out of an automobile accident while on
company business
A lost time case is defined as: - CORRECT ANSWER An injury
that results in more than seven (7) days off work, or for which
indemnity benefits would otherwise be due, such as a medical
only claim that results in a permanent impairment.
A shopper hits her head on a low hanging shelf in a grocery store.
You've been asked to handle the claim. After talking to both her
and your insured on the telephone, you really don't think there is
any liability, but you think the best way to handle the case is to
pay her medical bills without admitting liability and try a walk-away
settlement. How would you do it? - CORRECT ANSWER Tell
her you'll pay her bills and wish her well. Ask her to call you if she
has any questions. When they arrive, pay the bills
under the CGL's Medical Payments coverage.
,Dwelling coverages are intended for: - CORRECT ANSWER
Individuals and companies seeking only to protect their financial
interest in the property
How are adjustments under commercial property coverages
initially valued? - CORRECT ANSWER Actual Cash Value
Business Auto Policies "Covered Autos" - CORRECT ANSWER
01. Any Auto
02. Owned Autos Only
07. Specifically Described Autos
09. Non-Owned Autos Only
Garage Policy "Covered Autos" - CORRECT ANSWER 21. Any
Auto
22. Owned Autos Only
27. Specifically Described Autos
29. Non-Owned Autos Only
which of the following is not true when comparing the standard
ISO policy forms and the Texas Homeowners policy forms? -
CORRECT ANSWER Loss of Use is addressed by Coverage C
in the Texas homeowners policies.
Texas Homeowners Policy Forms - CORRECT ANSWER HO-A
HO-1
HO-A+ HO-2
HO-B HO-3
HO-C HO-5
Property Insurance Coverages - CORRECT ANSWER Coverage
A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property
Coverage D - Loss of Use
, The Texas Policy Coverages - CORRECT ANSWER Coverage
A - Dwelling & Other Structures
Coverage B - Personal Property
Extensions of Coverage - Loss of Use, Debris removal,
Reasonable repairs, trees shrubs plants & lawns.
What did the legislature create to provide consumers with
availability and affordability of insurance coverages that are no
longer available through normal channels? - CORRECT
ANSWER The Residual Marketplace
Which of the following was created to address the issue of
insolvent insurance carriers? - CORRECT ANSWER Insurance
Guaranty Associations
What is the residual market choice for consumers unable to
secure residential property coverage in the voluntary insurance
market? - CORRECT ANSWER Texas Windstorm Association
Which of the following is NOT a current member of the Texas
Residual Insurance Market? - CORRECT ANSWER Texas
Workers' Compensation Insurance Fund
Which of the following statements are not true of Texas' residual
markets? - CORRECT ANSWER The residual market is the
preferred market for consumers who are looking for rates that are
more competitive than carriers in the voluntary market.
Janelle has just graduated college and is interested in becoming
an adjuster. she would like to be able to handle any type of claim.
The most comprehensive type of license would be: - CORRECT
ANSWER All-Lines
