Page 1 of 102
NEW VERSION 2 TEXAS ALL-LINES ADJUSTER
COURSE FINAL EXAM QUESTIONS WITH
VERIFIED SOLUTIONS TESTED APPROVED!!
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
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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 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.
, Page 3 of 102
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
, Page 4 of 102
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.
NEW VERSION 2 TEXAS ALL-LINES ADJUSTER
COURSE FINAL EXAM QUESTIONS WITH
VERIFIED SOLUTIONS TESTED APPROVED!!
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
, Page 2 of 102
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 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.
, Page 3 of 102
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
, Page 4 of 102
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.
