Texas All Lines Adjuster Test with Verified
Answers Updated 2024
The insured has filed a claim under the "Business Income Department Properties - Broad Form"
because the primary buyer of products and services from the business has filed for bankruptcy under
this form the primary buyers business would be known as
A recipient location
recipient location
Businesses who support insured by being the primary buyer for their products
HO-3 (special form)
covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical
losses are covered except those losses specifically excluded. Personal property is covered on a named
perils basis
HO-5 Comprehensive Form
provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal
property.
HO-2 (broad form)
covers the dwelling, other structures, and personal property on a named perils basis
HO-4 (contents broad form)
Only covers a tenant's personal property on a named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the
barn?
Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned
by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________.
Temporary Substitute Auto
The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse.
Answer: A
An additional auto acquired during the policy period is considered a covered auto. However, some
restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on
the declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars,
the insured does not need to add it during that policy period.
,Coverage F on homeowners policy provides
Medical payments to others; pays all necessary medical expenses for up to three years after an
accident.
Coverage F: Medical Payments to Others
Does not apply to the insured or members of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable
stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners
Policy. What coverage is provided by the BOP?
No coverage would apply, there is no coverage for missing property when there is no physical
evidence to show cause of loss
Arbitration (ADR)
Neutral third party hears a dispute and makes a decision both parties have agreed to follow.
Mediation
A method of settling disputes outside of court by using the services of a neutral third party, called a
mediator. The mediator acts as a communicating agent between the parties and suggests ways in
which the parties can resolve their dispute. Not binding.
Difference between Arbitration and Meditation?
Mediation is not binding, Arbitration is.
Mediation-Arbitration
If the parties cannot reach a settlement through mediation, an arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs
Whether attached to the building or not for up to 2,500 if damaged by a peril insured against.
Building and Personal Property Coverage Form
Commercial Property coverage form that covers buildings, the insured's business personal property,
and the personal property of others located at the business premises
Foreseeability Test
To determine if the defendant's conduct was the proximate cause of the plaintiff's injury, the court
applies
Foreseeability
excludes liability for harms that were sufficiently unforeseeable at the time of the defendant's
tortious conduct.
Purpose of freight insurance
Covers shipper fees
, Freight Insurance
indemnifies the ship owner for the loss of earnings if the goods are damaged or lost and are not
delivered. Shipper Fees.
Freight Insurance
insures that shipowner will receive payment for transportation charges.
What perils are covered on the basic form peril of the Homeowners Policy
fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and
civil commotion, theft, and premises liability.
What perils are covered under the broad from Homeowners Policy
include basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some
coverage for sudden and accidental water discharge.
Exclusions to Homeowners policy
earthquakes;
termites, rats;
freezing pipes while your house is unoccupied;
losses if your house is vacant for the number of days specified by your policy;
wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except necessary costs
to repair or replace property damage caused by a covered water loss;
and water damage resulting from continuous and repeated leakage or seepage.
Landlord's furnishing
Is not additional coverage and doesn't insurance the limits of the policy
Power to bind means
The principal is bound to the decisions of the adjuster
RVC (replacement cost value)
The cost to replace the property on the same premises with other property of comparable material
and quality used for the same purpose
DP-3 Special Form
Under this Dwelling coverage form: dwelling and other structures are covered for all direct physical
damage (open peril), except for perils specifically excluded..
In a surety bonding third-party contract, who is the principal?
the party whose performance is guaranteed by the obligor. in a contract between the surety and the
constructor [construction company], the principal is the constructor. in a contract between the surety
and a subcontractor, the principal is the subcontractor (#6, 16)
.
Surety bond guarantees fulfillment of certain obligations such as
payment of debt, performance and certain duties, meeting contractual commitments
Answers Updated 2024
The insured has filed a claim under the "Business Income Department Properties - Broad Form"
because the primary buyer of products and services from the business has filed for bankruptcy under
this form the primary buyers business would be known as
A recipient location
recipient location
Businesses who support insured by being the primary buyer for their products
HO-3 (special form)
covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical
losses are covered except those losses specifically excluded. Personal property is covered on a named
perils basis
HO-5 Comprehensive Form
provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal
property.
HO-2 (broad form)
covers the dwelling, other structures, and personal property on a named perils basis
HO-4 (contents broad form)
Only covers a tenant's personal property on a named perils basis
The dwelling is insured for 200,000 under DP-2 dwelling policy how much coverage applies to the
barn?
Nothing farm property are not eligible under the dwelling policy.
A Covered Auto includes those vehicle(s) listed on the Declarations, plus any trailers or wagons owned
by the Named Insured, any newly acquired vehicles, and any vehicle used as a _________.
Temporary Substitute Auto
The covered auto is defined in the policy as all of the following EXCEPT:
A) any additional auto acquired in the past 30 days.
B) any auto shown in the declarations.
C) any auto used as a temporary substitute while an insured auto is being repaired.
D) any trailer owned by the insured or spouse.
Answer: A
An additional auto acquired during the policy period is considered a covered auto. However, some
restrictions do apply. For example, if the newly acquired auto is in addition to any vehicle shown on
the declarations, it must be insured within 14 days of the purchase date. If it replaces one of the cars,
the insured does not need to add it during that policy period.
,Coverage F on homeowners policy provides
Medical payments to others; pays all necessary medical expenses for up to three years after an
accident.
Coverage F: Medical Payments to Others
Does not apply to the insured or members of the insured's household
Not liability coverage and is not base on fault
An insured has taken inventory of his merchandise and discovers a substantial shortage of valuable
stock. He submits a claim to his insurance carrier that provides his coverage under a Business Owners
Policy. What coverage is provided by the BOP?
No coverage would apply, there is no coverage for missing property when there is no physical
evidence to show cause of loss
Arbitration (ADR)
Neutral third party hears a dispute and makes a decision both parties have agreed to follow.
Mediation
A method of settling disputes outside of court by using the services of a neutral third party, called a
mediator. The mediator acts as a communicating agent between the parties and suggests ways in
which the parties can resolve their dispute. Not binding.
Difference between Arbitration and Meditation?
Mediation is not binding, Arbitration is.
Mediation-Arbitration
If the parties cannot reach a settlement through mediation, an arbitrator will resolve the dispute.
The building and personal property coverage form provides coverage for outdoor signs
Whether attached to the building or not for up to 2,500 if damaged by a peril insured against.
Building and Personal Property Coverage Form
Commercial Property coverage form that covers buildings, the insured's business personal property,
and the personal property of others located at the business premises
Foreseeability Test
To determine if the defendant's conduct was the proximate cause of the plaintiff's injury, the court
applies
Foreseeability
excludes liability for harms that were sufficiently unforeseeable at the time of the defendant's
tortious conduct.
Purpose of freight insurance
Covers shipper fees
, Freight Insurance
indemnifies the ship owner for the loss of earnings if the goods are damaged or lost and are not
delivered. Shipper Fees.
Freight Insurance
insures that shipowner will receive payment for transportation charges.
What perils are covered on the basic form peril of the Homeowners Policy
fire, lightning, smoke, windstorm, hurricane, hail, explosion, aircraft and vehicles, vandalism, riot and
civil commotion, theft, and premises liability.
What perils are covered under the broad from Homeowners Policy
include basic perils plus falling objects; weight of ice, sleet, or snow; freezing pipes; and some
coverage for sudden and accidental water discharge.
Exclusions to Homeowners policy
earthquakes;
termites, rats;
freezing pipes while your house is unoccupied;
losses if your house is vacant for the number of days specified by your policy;
wear and tear or maintenance; wind or hail damage to trees and shrubs; mold, except necessary costs
to repair or replace property damage caused by a covered water loss;
and water damage resulting from continuous and repeated leakage or seepage.
Landlord's furnishing
Is not additional coverage and doesn't insurance the limits of the policy
Power to bind means
The principal is bound to the decisions of the adjuster
RVC (replacement cost value)
The cost to replace the property on the same premises with other property of comparable material
and quality used for the same purpose
DP-3 Special Form
Under this Dwelling coverage form: dwelling and other structures are covered for all direct physical
damage (open peril), except for perils specifically excluded..
In a surety bonding third-party contract, who is the principal?
the party whose performance is guaranteed by the obligor. in a contract between the surety and the
constructor [construction company], the principal is the constructor. in a contract between the surety
and a subcontractor, the principal is the subcontractor (#6, 16)
.
Surety bond guarantees fulfillment of certain obligations such as
payment of debt, performance and certain duties, meeting contractual commitments
