TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS) VERIFIED
ANSWERS 2024
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: -
CORRECT ANS - Controlled business
All of the following are criteria for an accident to have occurred "in the course of"
the employment under a workers' compensation policy, EXCEPT: - CORRECT
ANS - 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? - CORRECT ANS - 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 - CORRECT ANS - $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 - CORRECT ANS - 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: - CORRECT ANS -
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. - CORRECT ANS -
5
All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT: - CORRECT ANS - Pirates
,Which of the following standardized Dwelling insurance forms provides coverage
for loss of rental income - CORRECT ANS - 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: - CORRECT ANS - 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) - CORRECT ANS - 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: - CORRECT ANS - $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim. - CORRECT ANS - 30 days.
All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT: - CORRECT ANS - Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - CORRECT ANS - An insured location.
Which of the following is NOT one of the four major coverages of an Ocean
Marine policy? - CORRECT ANS - Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship? - CORRECT ANS - 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? - CORRECT ANS - 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". - CORRECT ANS - 72-hour
Whose responsibility is it to complete a "proof of loss"? - CORRECT ANS -
The claimant.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - CORRECT ANS - The coverage
is not additional insurance and does not increase the limits of the policy.
Which of the following would NOT be determined by a court when an insurer has
filed a declaratory judgment action? - CORRECT ANS - The type and amount
of damages that will be paid to a plaintiff for the claim that is being disputed.
Which of the following would be covered under the Jones Act? - CORRECT ANS
- Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - CORRECT ANS - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage? - CORRECT ANS - 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? -
CORRECT ANS - 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? - CORRECT
ANS - 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?
- CORRECT ANS - 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"? - CORRECT ANS - 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: - CORRECT ANS - 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: -
CORRECT ANS - 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: -
CORRECT ANS - State governments.
Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply? - CORRECT ANS -
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? -
CORRECT ANS - 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"? - CORRECT ANS - 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? - CORRECT ANS - A load of bricks
falling from an apartment building onto the car.
(200+ QUESTIONS AND CORRECT ANSWERS) VERIFIED
ANSWERS 2024
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: -
CORRECT ANS - Controlled business
All of the following are criteria for an accident to have occurred "in the course of"
the employment under a workers' compensation policy, EXCEPT: - CORRECT
ANS - 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? - CORRECT ANS - 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 - CORRECT ANS - $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 - CORRECT ANS - 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: - CORRECT ANS -
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. - CORRECT ANS -
5
All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT: - CORRECT ANS - Pirates
,Which of the following standardized Dwelling insurance forms provides coverage
for loss of rental income - CORRECT ANS - 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: - CORRECT ANS - 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) - CORRECT ANS - 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: - CORRECT ANS - $250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim. - CORRECT ANS - 30 days.
All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT: - CORRECT ANS - Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - CORRECT ANS - An insured location.
Which of the following is NOT one of the four major coverages of an Ocean
Marine policy? - CORRECT ANS - Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship? - CORRECT ANS - 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? - CORRECT ANS - 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". - CORRECT ANS - 72-hour
Whose responsibility is it to complete a "proof of loss"? - CORRECT ANS -
The claimant.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - CORRECT ANS - The coverage
is not additional insurance and does not increase the limits of the policy.
Which of the following would NOT be determined by a court when an insurer has
filed a declaratory judgment action? - CORRECT ANS - The type and amount
of damages that will be paid to a plaintiff for the claim that is being disputed.
Which of the following would be covered under the Jones Act? - CORRECT ANS
- Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - CORRECT ANS - The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property
coverage? - CORRECT ANS - 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? -
CORRECT ANS - 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? - CORRECT
ANS - 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?
- CORRECT ANS - 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"? - CORRECT ANS - 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: - CORRECT ANS - 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: -
CORRECT ANS - 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: -
CORRECT ANS - State governments.
Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply? - CORRECT ANS -
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? -
CORRECT ANS - 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"? - CORRECT ANS - 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? - CORRECT ANS - A load of bricks
falling from an apartment building onto the car.
