Texas all lines adjuster exam Questions With 100%Correct
Answers
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - ANSWER 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.
Which of the following statements is NOT TRUE regarding the implied warranties of an
Ocean Marine policy? - ANSWER The implied warranties are attached to the policy as an
endorsement..
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 - ANSWER $200,000
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 - ANSWER Utility Services - Direct Damage endorsement.
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: - ANSWER Suspend coverage immediately by red tagging
the items until they are repaired, cleaned and pass reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not
allow more than boarders to live on the premises. - ANSWER 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
ANSWER Pirates
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: - ANSWER
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss
of rental income - ANSWER The DP-1, DP-2, and DP-3 forms
The "Part B - Medical Payments" coverage of a personal automobile policy
covers injuries for all of the following, EXCEPT: - ANSWER A passenger who is
injured in another vehicle that is struck by the insured's vehicle in an accident
,Which of the following are the Texas Workers' Compensation benefits that are increased
by a cost-of-living adjustment (COLAs) - ANSWER Lifetime Income Benefits (LIBs) only
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: - ANSWER $250 per day.
Surplus Lines companies in Texas have to acknowledge the receipt of a claim. -
ANSWER 30 days.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - ANSWER Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - ANSWER An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine
policy? - ANSWER Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the
loss of the ship? - ANSWER Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
statements is FALSE regarding this power? - ANSWER Only an adjuster's written
statements can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a
period to be a single "occurrence". - ANSWER 72-hour
Whose responsibility is it to complete a "proof of loss"? - ANSWER The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - ANSWER The type and amount of damages that will be
paid to a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - ANSWER The coverage is not additional
insurance and does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? - ANSWER Crew members
of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - ANSWER The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
ANSWER Commercial property coverage can be written as both a monoline policy and as
part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal
,government because it is not ordinarily available from private insurers? - ANSWER
Residual market insurance.
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 statements best describes the
"discovery period" for this optional coverage? - ANSWER The "discovery period" is one
year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? -
ANSWER Failing to deny coverage of a claim within a reasonable amount of time after
concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - ANSWER A fire must be the result of the artificially
generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions
of coverage, but only if: - ANSWER An 80% or higher coinsurance percentage is shown
on the Declarations page, and the property amount of coverage, based on that
percentage, is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - ANSWER 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.
Regulation of the insurance industry in the United States is primarily left to: - ANSWER
State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form
by endorsement for coverage to apply? - ANSWER Collision.
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? - ANSWER It would cover the loss to Chaz's car
because it is the insured automobile, but would not cover the damage to the garage..
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"? - ANSWER 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.
Which of the following would be considered a Part D - Other Than Collision claim under a
Personal Automobile claim? - ANSWER A load of bricks falling from an apartment
, building onto the car.
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? - ANSWER 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
An agent, insured or claimant has intentionally deceived an insurer for financial gain.
Such an act is known as: - ANSWER Fraud
Which of the following losses would be covered under a Commercial Property policy with
the special cause of loss form attached? - ANSWER A fire that breaks out in an office
building and causes damage to two of the offices..
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: - ANSWER The insurer must be notified within 10 days after the breach and any
additional premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance
policy? - ANSWER Owner-occupants of a 5 to 6-family dwelling
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)? -
ANSWER 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..
The additional coverage for debris removal under the standardized Building and Personal
Property coverage form will only be paid if: - ANSWER The insured reports the debris
removal expenses to the insurance company in writing within 180 days of the loss..
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? - ANSWER Only if the insurance company is notified within 10 days of the
emergency use
Which of the following coverage parts would be eligible for inclusion in a Commercial
Package policy? - ANSWER Professional liability coverage.
Answers
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - ANSWER 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.
Which of the following statements is NOT TRUE regarding the implied warranties of an
Ocean Marine policy? - ANSWER The implied warranties are attached to the policy as an
endorsement..
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 - ANSWER $200,000
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 - ANSWER Utility Services - Direct Damage endorsement.
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: - ANSWER Suspend coverage immediately by red tagging
the items until they are repaired, cleaned and pass reinspection
To be eligible for coverage under a standardized Dwelling policy, the insured must not
allow more than boarders to live on the premises. - ANSWER 5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
ANSWER Pirates
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: - ANSWER
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss
of rental income - ANSWER The DP-1, DP-2, and DP-3 forms
The "Part B - Medical Payments" coverage of a personal automobile policy
covers injuries for all of the following, EXCEPT: - ANSWER A passenger who is
injured in another vehicle that is struck by the insured's vehicle in an accident
,Which of the following are the Texas Workers' Compensation benefits that are increased
by a cost-of-living adjustment (COLAs) - ANSWER Lifetime Income Benefits (LIBs) only
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: - ANSWER $250 per day.
Surplus Lines companies in Texas have to acknowledge the receipt of a claim. -
ANSWER 30 days.
All of the following are characteristics of a principal that a surety will scrutinize during
the underwriting process, EXCEPT: - ANSWER Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - ANSWER An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine
policy? - ANSWER Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the
loss of the ship? - ANSWER Hull Insurance.
As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following
statements is FALSE regarding this power? - ANSWER Only an adjuster's written
statements can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a
period to be a single "occurrence". - ANSWER 72-hour
Whose responsibility is it to complete a "proof of loss"? - ANSWER The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - ANSWER The type and amount of damages that will be
paid to a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional
coverage" known as Landlord's Furnishings? - ANSWER The coverage is not additional
insurance and does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? - ANSWER Crew members
of a ship.
All of the following statements are true regarding a Personal Liability Supplement,
EXCEPT: - ANSWER The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
ANSWER Commercial property coverage can be written as both a monoline policy and as
part of a package policy.
What type of insurance is usually provided or subsidized by the state or federal
,government because it is not ordinarily available from private insurers? - ANSWER
Residual market insurance.
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 statements best describes the
"discovery period" for this optional coverage? - ANSWER The "discovery period" is one
year from the end of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? -
ANSWER Failing to deny coverage of a claim within a reasonable amount of time after
concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - ANSWER A fire must be the result of the artificially
generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions
of coverage, but only if: - ANSWER An 80% or higher coinsurance percentage is shown
on the Declarations page, and the property amount of coverage, based on that
percentage, is purchased.
All of the following would be considered "uninsured motorists", EXCEPT: - ANSWER 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.
Regulation of the insurance industry in the United States is primarily left to: - ANSWER
State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form
by endorsement for coverage to apply? - ANSWER Collision.
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? - ANSWER It would cover the loss to Chaz's car
because it is the insured automobile, but would not cover the damage to the garage..
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"? - ANSWER 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.
Which of the following would be considered a Part D - Other Than Collision claim under a
Personal Automobile claim? - ANSWER A load of bricks falling from an apartment
, building onto the car.
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? - ANSWER 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
An agent, insured or claimant has intentionally deceived an insurer for financial gain.
Such an act is known as: - ANSWER Fraud
Which of the following losses would be covered under a Commercial Property policy with
the special cause of loss form attached? - ANSWER A fire that breaks out in an office
building and causes damage to two of the offices..
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: - ANSWER The insurer must be notified within 10 days after the breach and any
additional premium that is due must be paid.
Which of the following is NOT eligible for a coverage under a Homeowners insurance
policy? - ANSWER Owner-occupants of a 5 to 6-family dwelling
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)? -
ANSWER 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..
The additional coverage for debris removal under the standardized Building and Personal
Property coverage form will only be paid if: - ANSWER The insured reports the debris
removal expenses to the insurance company in writing within 180 days of the loss..
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? - ANSWER Only if the insurance company is notified within 10 days of the
emergency use
Which of the following coverage parts would be eligible for inclusion in a Commercial
Package policy? - ANSWER Professional liability coverage.
