Tuesday, July 22, 2025 10:40:11 AM
Texas All Lines Adjuster License Final Exam | The
Adjuster School | Full Practice Test with Answer
Explanations and State Law Review 2025-2026
Policies never pay out over the ______ ______.
policy limits
Insurance contracts are modified by ________.
endorsements
Coinsurance clause
A clause added to the policy when covered claims are paid at replacement cost.
If the insured has a coinsurance requirement of 80%, and the replacement cost is $100,000, what
is the minimum coverage amount?
$80,000
A liability policy's main purpose is to?
Cover the legal obligations of the insured.
A person has a claim against a homeowner who is represented by his insurer. The person would
be the _______ to the insurer.
3rd Party.
When does coinsurance cease to operate?
When there is a total loss due to a covered peril.
Hazard
A condition that increases the chance of loss
Occurrence
An accident and a continuous or repeated exposure to the same conditions.
In whose favor is ambiguity interpreted in an insurance contract?
Insured.
If there were a dispute with the insurance company in regard to a settlement, whom would you
contact?
,Tuesday, July 22, 2025 10:40:11 AM
Appraiser.
What information is required when providing proof of loss?
Notification to insurance company of loss.
The proof of loss form contains the following information:
>date and origin of loss
>Who has insurable interest in the property.
>Value of loss
A duty of the Insurance Commissioner is
to review insurance records.
TRUE / FALSE: Reciprocity is only used for licensing.
FALSE
What is the first thing and adjuster does when a claim is received?
Examine the coverage.
An insurance company issues a liability policy:
To cover legal obligations of the insured.
Missy is on company business and injured when the taxi she was riding in hit a pole. Who would
initially pay Missy's medical bills?
Missy's employers Workers' Compensation carrier.
An insured has an automobile policy with a combined single limit of $500,000 for Bodily Injury
and Property Damage. After an accident, a court awards $300,000 and $25,000 property damage
to Claimant A, and $200,000 bodily injury and $25,000 property damage to Claimant B. In this
situation, the insurance company's limit of liability is:
$500,000
A producer adjusts claims for polices he has sold. What additional type of license(s) is/are
required for a producer to adjust his clients?
No additional license is required.
If an personal auto is involved in an accident and vehicle is a total loss. What would be
considered?
, Tuesday, July 22, 2025 10:40:11 AM
>Comparison of replacement cost to repair expense
>ACV of vehicle
>State taxes to be paid on the replacement vehicle
What is required to apply for a license?
>be 18 years of age
>Two years of experience as an adjuster
>competent
Who is required to take an exam to be licensed?
>Solicitor
>Public Adjuster
>Public Appraiser
Professional Liability for producers and adjusters ___________.
Errors and Omissions Insurance.
What is the correct way to deny a claim?
Inform claimant or reason and cite statute.
The theory of indemnity includes:
>Salvage
>Subrogation
>ACV
What is considered a morale hazard?
Excessive speeding tickets.
A claim was filed in which property damage was a total loss. Claimant is seeking total medical
disability. How should the adjuster handle this claim?
Settle the property damage before the bodily injury, if the property damage is ready before the
bodily injury.
The purpose of insurance is to
transfer risk.
The promise to pay if you have a fire is found in which part of the policy?
Insurance agreement.
A stated value will not pay over ...
Texas All Lines Adjuster License Final Exam | The
Adjuster School | Full Practice Test with Answer
Explanations and State Law Review 2025-2026
Policies never pay out over the ______ ______.
policy limits
Insurance contracts are modified by ________.
endorsements
Coinsurance clause
A clause added to the policy when covered claims are paid at replacement cost.
If the insured has a coinsurance requirement of 80%, and the replacement cost is $100,000, what
is the minimum coverage amount?
$80,000
A liability policy's main purpose is to?
Cover the legal obligations of the insured.
A person has a claim against a homeowner who is represented by his insurer. The person would
be the _______ to the insurer.
3rd Party.
When does coinsurance cease to operate?
When there is a total loss due to a covered peril.
Hazard
A condition that increases the chance of loss
Occurrence
An accident and a continuous or repeated exposure to the same conditions.
In whose favor is ambiguity interpreted in an insurance contract?
Insured.
If there were a dispute with the insurance company in regard to a settlement, whom would you
contact?
,Tuesday, July 22, 2025 10:40:11 AM
Appraiser.
What information is required when providing proof of loss?
Notification to insurance company of loss.
The proof of loss form contains the following information:
>date and origin of loss
>Who has insurable interest in the property.
>Value of loss
A duty of the Insurance Commissioner is
to review insurance records.
TRUE / FALSE: Reciprocity is only used for licensing.
FALSE
What is the first thing and adjuster does when a claim is received?
Examine the coverage.
An insurance company issues a liability policy:
To cover legal obligations of the insured.
Missy is on company business and injured when the taxi she was riding in hit a pole. Who would
initially pay Missy's medical bills?
Missy's employers Workers' Compensation carrier.
An insured has an automobile policy with a combined single limit of $500,000 for Bodily Injury
and Property Damage. After an accident, a court awards $300,000 and $25,000 property damage
to Claimant A, and $200,000 bodily injury and $25,000 property damage to Claimant B. In this
situation, the insurance company's limit of liability is:
$500,000
A producer adjusts claims for polices he has sold. What additional type of license(s) is/are
required for a producer to adjust his clients?
No additional license is required.
If an personal auto is involved in an accident and vehicle is a total loss. What would be
considered?
, Tuesday, July 22, 2025 10:40:11 AM
>Comparison of replacement cost to repair expense
>ACV of vehicle
>State taxes to be paid on the replacement vehicle
What is required to apply for a license?
>be 18 years of age
>Two years of experience as an adjuster
>competent
Who is required to take an exam to be licensed?
>Solicitor
>Public Adjuster
>Public Appraiser
Professional Liability for producers and adjusters ___________.
Errors and Omissions Insurance.
What is the correct way to deny a claim?
Inform claimant or reason and cite statute.
The theory of indemnity includes:
>Salvage
>Subrogation
>ACV
What is considered a morale hazard?
Excessive speeding tickets.
A claim was filed in which property damage was a total loss. Claimant is seeking total medical
disability. How should the adjuster handle this claim?
Settle the property damage before the bodily injury, if the property damage is ready before the
bodily injury.
The purpose of insurance is to
transfer risk.
The promise to pay if you have a fire is found in which part of the policy?
Insurance agreement.
A stated value will not pay over ...
