Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
Texas All Lines Adjuster Exam Test Bank. Latest 2024-
2025
1. 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.
2. 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..
3. 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
4. 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.
5. 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
6. To be eligible for coverage under a standardized Dwelling policy, the insured
must not allow more than _______ boarders to live on the premises.: 5
7. All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT:: Pirates
8. 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
9. Which of the following standardized Dwelling insurance forms provides
coverage for loss of rental income: The DP-1, DP-2, and DP-3 forms
10. 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
11. 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
12. 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.
13. Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim.: 30 days.
14. All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT:: Consideration.
15. Under Section II of a Homeowners policy, a cemetery plot owned by the insured
is considered to be:: An insured location.
16. Which of the following is NOT one of the four major coverages of an Ocean
Marine policy?: Seaworthiness.
17. A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship?: Hull Insurance.
18. 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.
19. The standardized Dwelling forms consider all eruptions of a volcano within a
__________ period to be a single "occurrence".: 72-hour
20. Whose responsibility is it to complete a "proof of loss"?: The claimant.
21. 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.
22. 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.
23. Which of the following would be covered under the Jones Act?: Crew members
of a ship.
24. All of the following statements are true regarding a Personal Liability
Supplement, EXCEPT:: The policy will cover watercraft liability.
25. 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.
26. 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.
27. 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
statements best describes the "discovery period" for this optional coverage?:
The "discovery period" is one year from the end of the policy period.
28. 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
29. 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..
30. 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.
31. 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.
32. Regulation of the insurance industry in the United States is primarily left to::
State governments.
33. Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply?: Collision.
34. 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..
35. 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 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.
36. Which of the following would be considered a Part D - Other Than Collision
claim under a Personal Automobile claim?: A load of bricks falling from an
apartment building onto the car.
37. 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?: 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
38. An agent, insured or claimant has intentionally deceived an insurer for
financial gain. Such an act is known as:: Fraud
39. Which of the following losses would be covered under a Commercial Property
policy with the special cause of loss form attached?: A fire that breaks out in an
office building and causes damage to two of the offices..
40. 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:: The insurer must be notified within 10 days after the breach and
any additional premium that is due must be paid.
41. Which of the following is NOT eligible for a coverage under a Homeowners
insurance policy?: Owner-occupants of a 5 to 6-family dwelling
42. 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)?: The
Umbrella policy will not become primary when the insurer carrying the underlying
insurance becomes insolvent, but will pay the $400,000 as if the underlying insurer
had paid its $100,000 limit of liability..
43. The additional coverage for debris removal under the standardized Building
and Personal Property coverage form will only be paid if:: The insured reports
the debris removal expenses to the insurance company in writing within 180 days of
the loss..
44. The insured is covered under a Watercraft policy and asks the agent about a
lay-up period credit to get a reduction in the premium. The dates of the lay-up
period are specified in the policy. There is an emergency and the insured must
use his boat in a life saving event. The boat is damaged and sinks. Under what
circumstances would coverage apply?: Only if the insurance company is notified
within 10 days of the emergency use
45. Which of the following coverage parts would be eligible for inclusion in a
Commercial Package policy?: Professional liability coverage.
46. When an insurer files a declaratory judgement action with a court of law, all of
the following questions will be resolved by the court, EXCEPT:: Will the insurer
become insolvent if they pay the claim as submitted by the insured?
47. An insured is covered under a CGL policy. He would like to purchase another
policy to increase the limits of insurance for his commercial liability exposures.
Which of the following statements is correct regarding the insured's situation?:
Study online at https://quizlet.com/_f0011k
Texas All Lines Adjuster Exam Test Bank. Latest 2024-
2025
1. 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.
2. 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..
3. 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
4. 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.
5. 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
6. To be eligible for coverage under a standardized Dwelling policy, the insured
must not allow more than _______ boarders to live on the premises.: 5
7. All of the following are "Perils of the Sea" under an Ocean Marine policy,
EXCEPT:: Pirates
8. 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
9. Which of the following standardized Dwelling insurance forms provides
coverage for loss of rental income: The DP-1, DP-2, and DP-3 forms
10. 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
11. 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
12. 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.
13. Surplus Lines companies in Texas have _____ to acknowledge the receipt of a
claim.: 30 days.
14. All of the following are characteristics of a principal that a surety will scrutinize
during the underwriting process, EXCEPT:: Consideration.
15. Under Section II of a Homeowners policy, a cemetery plot owned by the insured
is considered to be:: An insured location.
16. Which of the following is NOT one of the four major coverages of an Ocean
Marine policy?: Seaworthiness.
17. A ship has suffered damage and sunk. Which of the following would respond to
cover the loss of the ship?: Hull Insurance.
18. 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.
19. The standardized Dwelling forms consider all eruptions of a volcano within a
__________ period to be a single "occurrence".: 72-hour
20. Whose responsibility is it to complete a "proof of loss"?: The claimant.
21. 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.
22. 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.
23. Which of the following would be covered under the Jones Act?: Crew members
of a ship.
24. All of the following statements are true regarding a Personal Liability
Supplement, EXCEPT:: The policy will cover watercraft liability.
25. 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.
26. 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.
27. 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
statements best describes the "discovery period" for this optional coverage?:
The "discovery period" is one year from the end of the policy period.
28. 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
29. 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..
30. 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.
31. 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.
32. Regulation of the insurance industry in the United States is primarily left to::
State governments.
33. Which of the following coverages does NOT need to be added to a Garage
Coverage form by endorsement for coverage to apply?: Collision.
34. 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..
35. 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 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.
36. Which of the following would be considered a Part D - Other Than Collision
claim under a Personal Automobile claim?: A load of bricks falling from an
apartment building onto the car.
37. 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?: 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
, Texas all lines adjuster exam
Study online at https://quizlet.com/_f0011k
38. An agent, insured or claimant has intentionally deceived an insurer for
financial gain. Such an act is known as:: Fraud
39. Which of the following losses would be covered under a Commercial Property
policy with the special cause of loss form attached?: A fire that breaks out in an
office building and causes damage to two of the offices..
40. 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:: The insurer must be notified within 10 days after the breach and
any additional premium that is due must be paid.
41. Which of the following is NOT eligible for a coverage under a Homeowners
insurance policy?: Owner-occupants of a 5 to 6-family dwelling
42. 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)?: The
Umbrella policy will not become primary when the insurer carrying the underlying
insurance becomes insolvent, but will pay the $400,000 as if the underlying insurer
had paid its $100,000 limit of liability..
43. The additional coverage for debris removal under the standardized Building
and Personal Property coverage form will only be paid if:: The insured reports
the debris removal expenses to the insurance company in writing within 180 days of
the loss..
44. The insured is covered under a Watercraft policy and asks the agent about a
lay-up period credit to get a reduction in the premium. The dates of the lay-up
period are specified in the policy. There is an emergency and the insured must
use his boat in a life saving event. The boat is damaged and sinks. Under what
circumstances would coverage apply?: Only if the insurance company is notified
within 10 days of the emergency use
45. Which of the following coverage parts would be eligible for inclusion in a
Commercial Package policy?: Professional liability coverage.
46. When an insurer files a declaratory judgement action with a court of law, all of
the following questions will be resolved by the court, EXCEPT:: Will the insurer
become insolvent if they pay the claim as submitted by the insured?
47. An insured is covered under a CGL policy. He would like to purchase another
policy to increase the limits of insurance for his commercial liability exposures.
Which of the following statements is correct regarding the insured's situation?:
