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? - ANSWER>>We have 6 months to reach a final settlement with you.
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: -
ANSWER>>All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under an
HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their house
burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection and some
fishing equipment stolen. How would their HO-3 policy respond to this loss? - ANSWER>>The
entire theft loss would be covered under Coverage C. subject the policy limits and to certain
limitations.
The oldest form of insurance known to exist is: - ANSWER>>Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
Comp laws? - ANSWER>>The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANSWER>>personal injury or death
by "accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the theft
loss of various types of property. Justin's initial responsibility upon investigating the loss is to
first determine: - ANSWER>>If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction company who pays him
a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANSWER>>This arrangement reflects a breach of ethical conduct and a
violation that could jeopardize Jim's licensure.
,Which of the following would NOT be covered under Coverage C Personal Property? -
ANSWER>>Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the following
would NOT be covered by the Dwelling policy? - ANSWER>>Damage to another duplex right
next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer
goods they transport EXCEPT for damages resulting from: - ANSWER>>Acts of God
You have just started your career handling Texas workers' compensation claims. Which one of
the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Practices
Act? - ANSWER>>Not responding to an employee's calls because you're overworked and the
claim involves complex issues you just don't feel like addressing.
Which type of bond would be used to cover the exposure to employee theft? -
ANSWER>>Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be
necessary for Garrett to secure such a license? - ANSWER>>Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an
approved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANSWER>>All risks of direct
physical loss are covered unless they are excluded
Assume your home caught fire due to a faulty electrical device. and one month after the fire
you receive a bill from the fire department for $450.00 for responding to the fire. Would this be
paid under your homeowner's policy? - ANSWER>>Yes. It is called Fire Department Service
Charge and is an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANSWER>>Gives up the right to sue the employer for personal injury and
pain and suffering. The employee can only make claim for workers' compensation benefits.
,Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4
occupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under Janelle's
bodily injury liability coverage, what is the total amount that the company would pay for the
injuries to these plaintiffs? - ANSWER>>$60,000
A person or entity who guarantees the performance or payment of one party who is obligated
by contract to another is called a: - ANSWER>>Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after
a fire loss while the property is being repaired. what would you tell him? - ANSWER>>Yes, and
it's called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the
pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all over
the parking lot and into the storm drain. Fred files a claim under his commercial property
policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was pumped
out before anyone noticed and stopped the pump. The local HazMat team was called out by the
authorities to clean up the parking lot and the storm drain. Fred received a bill from the County
for $12.850.00 for the clean up. He sends the bill to you to pay. What kind of coverage is
available to Fred as a commercial property extension of coverage needed to pay this loss? -
ANSWER>>Pollution Clean Up and Removal
A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan,
encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANSWER>>Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is
untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANSWER>>Coverage D: Loss of Use
Dwelling policies: - ANSWER>>provide basic property protection for individuals who want to
protect their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against? -
ANSWER>>Embezzlement
, To be compensable under workers' compensation laws, most jurisdictions require that an
injury: - ANSWER>>arise out of and in the course of employment.
A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store. The
claim was assigned to you for handling. After contacting the claimant and taking a statement,
you learn that the injury was minor and, at most, an inconvenience. Medical expenses were
only $525.00 and there were no complications. You think the best way to handle the case Is to
offer to pay her medical bills without admitting liability and try backing away without
committing to any kind of settlement. How would you do it? - ANSWER>>Tell her you'll pay her
bills and ask her to call you if she has any questions. You would then wish her well and, when
the bills arrive, pay them under the business's Medical Payments coverage.
You just started working as an adjuster with handling Texas 1st and 3rd party property damage
claims. Which one of the following would NOT be an example of an unfair claim settlement
practice? - ANSWER>>Deciding not to take a statement from an insured under oath in the
investigation of a 1st party property claim.
Joe is a property adjuster employed by State Farm. He receives a loss assignment to handle a
grease fire claim for an insured. Upon contacting the insured, she advises that she has hired her
own adjuster (Pete) to represent her in this matter.
Pete will be providing Joe with the estimates of repair and has the insured's authority to
negotiate the final settlement of the loss. Pete's fee will be paid out of the final settlement
amount. Based upon this information, joe and Pete are which of the following types of
adjusters? - ANSWER>>Joe is a Company Adjuster and Pete is a Public Adjuster
You have, just received a new property claim from an insured homeowner who suffered
damage from a fire that burned down 30% of the property. During the initial contact, what is
the most important thing you should tell the insured to do while waiting for you or your
appraiser to arrive? - ANSWER>>"Take any and all reasonable steps to protect your property
from further damage. These costs are included as part of your coverage and I will reimburse
you as part of your claim.'
Which of the following would NoT be included in the definition of the term "Building" under a
typical Commercial Building and Personal Property policy? - ANSWER>>Desks and personal
business computers for each of the business' employees.
[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? - ANSWER>>We have 6 months to reach a final settlement with you.
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: -
ANSWER>>All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under an
HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their house
burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection and some
fishing equipment stolen. How would their HO-3 policy respond to this loss? - ANSWER>>The
entire theft loss would be covered under Coverage C. subject the policy limits and to certain
limitations.
The oldest form of insurance known to exist is: - ANSWER>>Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits (TIBS)
calculated under Texas Work
Comp laws? - ANSWER>>The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - ANSWER>>personal injury or death
by "accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the theft
loss of various types of property. Justin's initial responsibility upon investigating the loss is to
first determine: - ANSWER>>If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction company who pays him
a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - ANSWER>>This arrangement reflects a breach of ethical conduct and a
violation that could jeopardize Jim's licensure.
,Which of the following would NOT be covered under Coverage C Personal Property? -
ANSWER>>Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the following
would NOT be covered by the Dwelling policy? - ANSWER>>Damage to another duplex right
next door, also owned by the landlord.
Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to customer
goods they transport EXCEPT for damages resulting from: - ANSWER>>Acts of God
You have just started your career handling Texas workers' compensation claims. Which one of
the following WOULD BE considered a violation of the Texas Unfair Claim Settlement Practices
Act? - ANSWER>>Not responding to an employee's calls because you're overworked and the
claim involves complex issues you just don't feel like addressing.
Which type of bond would be used to cover the exposure to employee theft? -
ANSWER>>Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be
necessary for Garrett to secure such a license? - ANSWER>>Pass a state qualifying exam or pre-
licensing course that is certified by the Texas Department of Insurance that includes an
approved, comprehensive final examination of 150 questions, and attach the Certificate of
Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - ANSWER>>All risks of direct
physical loss are covered unless they are excluded
Assume your home caught fire due to a faulty electrical device. and one month after the fire
you receive a bill from the fire department for $450.00 for responding to the fire. Would this be
paid under your homeowner's policy? - ANSWER>>Yes. It is called Fire Department Service
Charge and is an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - ANSWER>>Gives up the right to sue the employer for personal injury and
pain and suffering. The employee can only make claim for workers' compensation benefits.
,Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4
occupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under Janelle's
bodily injury liability coverage, what is the total amount that the company would pay for the
injuries to these plaintiffs? - ANSWER>>$60,000
A person or entity who guarantees the performance or payment of one party who is obligated
by contract to another is called a: - ANSWER>>Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income after
a fire loss while the property is being repaired. what would you tell him? - ANSWER>>Yes, and
it's called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the
pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all over
the parking lot and into the storm drain. Fred files a claim under his commercial property
policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline was pumped
out before anyone noticed and stopped the pump. The local HazMat team was called out by the
authorities to clean up the parking lot and the storm drain. Fred received a bill from the County
for $12.850.00 for the clean up. He sends the bill to you to pay. What kind of coverage is
available to Fred as a commercial property extension of coverage needed to pay this loss? -
ANSWER>>Pollution Clean Up and Removal
A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan,
encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - ANSWER>>Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is
untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - ANSWER>>Coverage D: Loss of Use
Dwelling policies: - ANSWER>>provide basic property protection for individuals who want to
protect their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure against? -
ANSWER>>Embezzlement
, To be compensable under workers' compensation laws, most jurisdictions require that an
injury: - ANSWER>>arise out of and in the course of employment.
A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store. The
claim was assigned to you for handling. After contacting the claimant and taking a statement,
you learn that the injury was minor and, at most, an inconvenience. Medical expenses were
only $525.00 and there were no complications. You think the best way to handle the case Is to
offer to pay her medical bills without admitting liability and try backing away without
committing to any kind of settlement. How would you do it? - ANSWER>>Tell her you'll pay her
bills and ask her to call you if she has any questions. You would then wish her well and, when
the bills arrive, pay them under the business's Medical Payments coverage.
You just started working as an adjuster with handling Texas 1st and 3rd party property damage
claims. Which one of the following would NOT be an example of an unfair claim settlement
practice? - ANSWER>>Deciding not to take a statement from an insured under oath in the
investigation of a 1st party property claim.
Joe is a property adjuster employed by State Farm. He receives a loss assignment to handle a
grease fire claim for an insured. Upon contacting the insured, she advises that she has hired her
own adjuster (Pete) to represent her in this matter.
Pete will be providing Joe with the estimates of repair and has the insured's authority to
negotiate the final settlement of the loss. Pete's fee will be paid out of the final settlement
amount. Based upon this information, joe and Pete are which of the following types of
adjusters? - ANSWER>>Joe is a Company Adjuster and Pete is a Public Adjuster
You have, just received a new property claim from an insured homeowner who suffered
damage from a fire that burned down 30% of the property. During the initial contact, what is
the most important thing you should tell the insured to do while waiting for you or your
appraiser to arrive? - ANSWER>>"Take any and all reasonable steps to protect your property
from further damage. These costs are included as part of your coverage and I will reimburse
you as part of your claim.'
Which of the following would NoT be included in the definition of the term "Building" under a
typical Commercial Building and Personal Property policy? - ANSWER>>Desks and personal
business computers for each of the business' employees.
