1
TEXAS ALL LINES ADJUSTER EXAM, WITH 100% CORRECT
QUESTIONS AND ANSWERS WITH THE BEST GRADE A+
FINAL EXAMS 2025
Preponderance of Evidence - -answer--A preponderance of evidence is enough evidence to
make it more likely that an argument is true than that it is false. In a civil trial, the plaintiff needs
to provide a preponderance of evidence in order to win her case.
Principal - -answer--The principal refers to an agent's employer (usually an insurance company,
but it could also mean anyone who contracts the agent to work on their behalf and gives her
the authority to do so).
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
, 2
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.
, 3
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.
, 4
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.
TEXAS ALL LINES ADJUSTER EXAM, WITH 100% CORRECT
QUESTIONS AND ANSWERS WITH THE BEST GRADE A+
FINAL EXAMS 2025
Preponderance of Evidence - -answer--A preponderance of evidence is enough evidence to
make it more likely that an argument is true than that it is false. In a civil trial, the plaintiff needs
to provide a preponderance of evidence in order to win her case.
Principal - -answer--The principal refers to an agent's employer (usually an insurance company,
but it could also mean anyone who contracts the agent to work on their behalf and gives her
the authority to do so).
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
, 2
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.
, 3
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.
, 4
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.
