Texas All Lines Adjuster Exam (378 Questions) With
Verified Answers
All of the following are criteria for an accident to have occurred "in the course of"
the employment under a workers' compensation policy, EXCEPT: - 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? - 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 - $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 - 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: - 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. - 5
All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT: - 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: -
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage
for loss of rental income - 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: - A passenger who is injured in another
vehicle that is struck by the insured's vehicle in an accident
Which of the following are the Texas Workers' Compensation benefits that are
increased by a cost-of-living adjustment (COLAs) - 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: - $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim. - 30 days.
All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT: - Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - An insured location.
Which of the following is NOT one of the four major coverages of an Ocean
Marine policy? - Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship? - 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? - 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". - 72-hour
Whose responsibility is it to complete a "proof of loss"? - The claimant.
Which of the following would NOT be determined by a court when an insurer has
filed a declaratory judgment action? - 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? - 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? - Crew members of
a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage? - 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? - 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? - 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?
- 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"? - 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: - 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: - 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: - State
governments.
Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply? - 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 headlight of Chaz's car.
How would Part D of Chaz's Personal Automobile respond to this loss? - 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"? - Coverage will not apply if the storage unit has been
Verified Answers
All of the following are criteria for an accident to have occurred "in the course of"
the employment under a workers' compensation policy, EXCEPT: - 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? - 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 - $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 - 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: - 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. - 5
All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT: - 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: -
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage
for loss of rental income - 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: - A passenger who is injured in another
vehicle that is struck by the insured's vehicle in an accident
Which of the following are the Texas Workers' Compensation benefits that are
increased by a cost-of-living adjustment (COLAs) - 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: - $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim. - 30 days.
All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT: - Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - An insured location.
Which of the following is NOT one of the four major coverages of an Ocean
Marine policy? - Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship? - 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? - 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". - 72-hour
Whose responsibility is it to complete a "proof of loss"? - The claimant.
Which of the following would NOT be determined by a court when an insurer has
filed a declaratory judgment action? - 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? - 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? - Crew members of
a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage? - 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? - 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? - 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?
- 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"? - 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: - 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: - 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: - State
governments.
Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply? - 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 headlight of Chaz's car.
How would Part D of Chaz's Personal Automobile respond to this loss? - 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"? - Coverage will not apply if the storage unit has been
