TEXAS ALL LINES ADJUSTER EXAM BRAND NEW
2025/2026 QUESTIONS AND CORRECT (VERIFIED
ANSWERS)GRADED A
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
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.
Comp laws?..ANSWER..The comp rate = (AWW - Post Injury Earnings) ×
70%
Justin is a Property adjuster for XYZ Insurance Company. He receives a
claim involving the theft loss of various types of property. Justin's initial
1|Page
,responsibility upon investigating the loss is to first
determine:..ANSWER..If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction
company who pays him a commission of 10% for every referral that Jim
sends their way. Which of the following statements is
correct?..ANSWER..This arrangement reflects a breach of ethical
conduct and a violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C
Personal Property?..ANSWER..Your 10-year old German Shepherd
chokes on a bone and passes away.
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
2|Page
,overworked and the claim involves complex issues you just don't feel
like addressing.
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
3|Page
, 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
A person or entity who guarantees the performance or payment of one
party who is obligated by contract to another is called
a:..ANSWER..Surety
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
4|Page
2025/2026 QUESTIONS AND CORRECT (VERIFIED
ANSWERS)GRADED A
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
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.
Comp laws?..ANSWER..The comp rate = (AWW - Post Injury Earnings) ×
70%
Justin is a Property adjuster for XYZ Insurance Company. He receives a
claim involving the theft loss of various types of property. Justin's initial
1|Page
,responsibility upon investigating the loss is to first
determine:..ANSWER..If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction
company who pays him a commission of 10% for every referral that Jim
sends their way. Which of the following statements is
correct?..ANSWER..This arrangement reflects a breach of ethical
conduct and a violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C
Personal Property?..ANSWER..Your 10-year old German Shepherd
chokes on a bone and passes away.
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
2|Page
,overworked and the claim involves complex issues you just don't feel
like addressing.
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
3|Page
, 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
A person or entity who guarantees the performance or payment of one
party who is obligated by contract to another is called
a:..ANSWER..Surety
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
4|Page
