Texas All-Lines Adjuster Licensing Exam –
Real Exam Questions and Answers with
Complete Test 2025 - 2026
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
Surplus Lines companies in Texas have to acknowledge the receipt of a claim.
30 Days
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT:
Consideration.
Under Section Il of a Homeowners policy, a cemetery plot owned by the insured is considered to
be:
An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy?
Seaworthiness.
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.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of
the ship?
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?
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".
72 Hours
,Whose responsibility is it to complete a "proof of loss"?
The claimant
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.
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.
Which of the following would be covered under the Jones Act?
Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
The policy will cover watercraft liability.
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.
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
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?
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?
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"?
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:
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 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.
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..
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
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.
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
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
more than_
boarders to live on the premises.
5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT:
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:
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income
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:
A passenger who is injured in another vehicle that is struck by the insured's vehicle in an
accident
Regulation of the insurance industry in the United States is primarily left to:
state governments
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.
Which of the following coverages does NOT need to be added to a Garage Coverage form by
endorsement for coverage to apply?
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? -
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"?
-
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.
Real Exam Questions and Answers with
Complete Test 2025 - 2026
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
Surplus Lines companies in Texas have to acknowledge the receipt of a claim.
30 Days
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT:
Consideration.
Under Section Il of a Homeowners policy, a cemetery plot owned by the insured is considered to
be:
An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy?
Seaworthiness.
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.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of
the ship?
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?
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".
72 Hours
,Whose responsibility is it to complete a "proof of loss"?
The claimant
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.
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.
Which of the following would be covered under the Jones Act?
Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
The policy will cover watercraft liability.
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.
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
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?
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?
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"?
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:
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 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.
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..
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
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.
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
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow
more than_
boarders to live on the premises.
5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT:
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:
Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income
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:
A passenger who is injured in another vehicle that is struck by the insured's vehicle in an
accident
Regulation of the insurance industry in the United States is primarily left to:
state governments
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.
Which of the following coverages does NOT need to be added to a Garage Coverage form by
endorsement for coverage to apply?
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? -
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"?
-
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.
