Download TEXAS ALL LINES ADJUSTER EXAM 2025/2026 QUESTIONS AND CORRECT ANSWERS and more Exams Insurance law in PDF only on Docsity!
TEXAS ALL LINES ADJUSTER EXAM
2025 /202 6 QUESTIONS AND CORRECT
ANSWERS
QUESTION
The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of for each violation of the Act. Answer: 1,
QUESTION
Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount? Answer: 18, The loss of the truck plus the extra tires and hubcaps would be considered in this claim. These total $19,050 less the deductible of $250 equals $18,800.
QUESTION
Who makes the offer in an insurance contract? Answer: applicant
QUESTION
Underinsured motorist coverage provides first-party protection to an insured after an accident in which of the following situations?
Answer: The other driver has insufficient liability limits and is "at-fault"
QUESTION
Structures connected by a fence or utility line are considered to be "other structures" and would be covered under Answer: Coverage B of the under Homeowners forms.
QUESTION
DP- 1 Basic Form Answer: Perils insured against are fire, lightning, and internal explosion.
QUESTION
Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income? Answer: DP-1, DP-2, DP- 3
QUESTION
DP- 2 Broad Form Answer: This dwelling coverage form covers perils included under the DP- 1 with ECE and optional VMM endorsement attached, plus: burglars; falling objects; weight of snow, ice, sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, or an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water; freezing of a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or of a household appliance; and sudden and accidental damage from artificially generated electrical current.
In case of a loss, how many days notice does the insured have after notification of a claim to submit the claim to the underwriters of the ocean marine coverage? Answer: 180 days
QUESTION
Who is the principal in a bid bond? Answer: The contractor
QUESTION
Which of the following coverages of an Equipment Breakdown policy will pay for the costs necessary to make temporary repairs to covered objects? Answer: The Expediting Expenses coverage will pay for the costs necessary to make temporary repairs to covered equipment (objects).
QUESTION
The standardized Dwelling forms consider all eruptions of a volcano within a period to be a single "occurrence". Answer: 72 hour
QUESTION
When must a Texas insurer notify a claimant of either the acceptance or rejection of a claim after receiving all of the requested items, statements, and forms requested from the claimant? Answer: Not later than the 15th business day
QUESTION
What is the purpose of the "sue and labor clause" in ocean marine insurance? Answer: Pertains to protecting the ship and other property from further damage
QUESTION
Which of the following best describes how the peril of "theft" is covered under the 1943 New York Standard Fire policy? Answer: Theft is a covered peril under the removal coverage.
QUESTION
Linda has received an inquiry from the Texas Commissioner. She realizes that she is required by law to respond to the inquiry, however her response contains information that is confidential and privileged. Which of the following is true of Linda's response to the Commissioner's inquiry? Answer: The information will remain confidential and privileged until it is introduced as evidence in an administrative hearing or in a court of law.
QUESTION
A contractor in need of a bid bond to obtain a contract is an example of a(n): Answer: A principal
QUESTION
When should a non waiver agreement be used Answer: when there are unresolved questions regarding coverage, limits or both. The adjuster would be wise to present such of waiver to the claimant/insured during the initial site visit.
QUESTION
common carriers
QUESTION
Commercial inland marine policies require the insured to submit a signed, sworn statement of loss: Answer: Within 60 days of the insurer requesting it.
QUESTION
Coverage F (Homeowners) Answer: Medical payments to others- regards of fault. Med pay will pay for injury. Will not cover pain and suffering. You will be reimbursed.
- Basic limit is $1000 per injury but can be raised.
- will cover for medical treatments up to 3 years from the date of accident
QUESTION
HO- 4 policy Answer: Renters policy. Personal property covered for broad perils.
QUESTION
Automobile No-Fault Laws Answer: insurance that indemnifies the insured regardless of who was at fault in an accident. No-fault laws also restrict the insured's right to sue the at-fault party.
QUESTION
surplus lines Answer:
Insurance for which there is no readily available, admitted market.
QUESTION
Surplus Lines companies in Texas have to acknowledge the receipt of a claim. Answer: 30 days
QUESTION
Property Removed Answer: Covers property against direct loss from any peril while being removed from a premises endangered by a covered peril and for up to 30 days while removed
QUESTION
The maximum payable to remove this debris of others is: Answer: 5,
QUESTION
To be eligible for a standardized Watercraft policy, the insured watercraft must be used on inland or coastal waters within: Answer: 12 miles of the shore or in the Great Lakes, but only when within the United States and its territories, Puerto Rico, or Canada..
QUESTION
Under a standard Equipment Breakdown policy, the loss settlement is: Answer: On a replacement cost coverage, if the repair or replacement, is made within 24 months of the loss.
QUESTION
The premium Answer: A specific sum of money paid by the insured to the insurance company in exchange for financial protection against loss.
QUESTION
The pre-defined amount of an insurance claim that is paid by the policyholder is known as Answer: The deductible
QUESTION
A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim must be paid not later than the business day after the date notice is made. Answer: 5th
QUESTION
Ocean Marine and/or Aviation insurance are "specialty" policies that cannot be Answer: packages together with other commercial risks into a package policy.
QUESTION
Which of the following types of insurance companies must charge a premium tax to be remitted to the state each time a policy is sold? Answer: Surplus Lines company.
QUESTION
Mitch is covered by a Personal Auto policy. One night a cow breaks through a fence and is standing on the roadway. Mitch does not see the cow until it is too late and he hits it with his vehicle. Coverage for the damage to Mitch's vehicle: Answer: Is provided under Part D - Other Than Collision
QUESTION
Collin suffered a work-related injury on the morning of June 2nd and was off work completely until he returned to work on full duty on June 20th. Collin had worked for his employer for four years and was paid $55,650 per year. Collin's state sets the TTD rate at 70% percent of the average weekly wage. The state sets the maximum compensation rate at $580 per week and the waiting period at 5 days retroactive after 7 days. Collin was not paid for working on February 5th. Collin's average weekly wage is approximately and the amount of compensation benefits he will receive per week while off work is approximately. Answer: $1,070 / $ Collins average weekly wage is $1,070 ($55,650 divided by 52 weeks). Then, we calculate 70% of $1,070 to determine 70% of Collins' AWW would be, which is $749. However, Collin's state sets TTD payment rates to a maximum limit of $580, therefore, Collin's compensation payments will be $580.
QUESTION
What is "express authority" under the law of agency? Answer: The authority given to the agent as specified in the contract.
QUESTION
following factors is the most crucial in distinguishing between an employee-employer relationship and an independent contractor relationship? Answer: Whether the employer controls the manner in which the work is performed
easier while driving than the typical area in the dashboard. The cost of the new system, disregarding any installation costs, was $2,000. One year after installation, Joseph's car was broken into and the stereo was stolen. At this point, the ACV of the system had fallen to $1,700. Disregarding any deductible, how much will Joseph's policy pay on this claim? Answer: Part D of the Personal Auto policy provides for a limit of $1,000 for electronic equipment that reproduces, receives or transmits audio, visual or data signals that is permanently installed in an auto, but not in the location typically used by the auto manufacturer.
QUESTION
Indemnify Insurance has been using a specific ISO Homeowners forms for several years in all the states where they are an admitted insurer. Indemnify Insurance has recently been admitted to an additional state, but the laws of that state contradict a few of the provisions in the ISO form. How is this situation likely to be handled? Answer: A statutory form will be drawn up and attached to each Homeowners policy Indemnify Insurance writes in the state.
QUESTION
The information provided by the insured in a proof of loss form is considered Answer: A representation
QUESTION
representation Answer: statements made by the insured that are assumed to be truthful to the best of the insured's knowledge.
QUESTION
Coverage C of the homeowners policy is extended to all of the following except: property borrowed for use by the insured.
machinery used in maintenance of the premises. pets owned by the insured. clothing of a daughter living at college. property away from the insured's premises. Answer: pets owned by the insured.
QUESTION
Coverage C Exclusions Answer:
- Articles separately described & insured on this or another policies, - animals, birds, fish, - Motor vehicles, - Aircraft, - Property of roomers & boarders. - property in an apartment regulary rented or held for rental, Property rented or held for rental to others off premises. Books f accounts, drawings, other paper records; electronic data procesing tapes, wires, records, disks & software containing business data
QUESTION
Which of the following property would be excluded from coverage for loss under Coverage C of the Homeowners policies? Answer: A valuable baseball card collection owned by the named insured's son that is covered under a separate personal articles floater..
QUESTION
Part D ( auto policy) Answer: coverage for damage to your auto (physical damage)
QUESTION
Nonconcurrency Answer:
liability
QUESTION
A Personal Umbrella policy will cover an insured for an "occurrence" or "offense" that occurs: Answer: Anywhere in the world
QUESTION
The Builders' Risk coverage form includes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is: Answer: $1,000, but $250 for any one tree, shrub, or plant.
QUESTION
principal in a bid bond Answer: Contractor
QUESTION
Hired and non-owned auto policy Answer:
QUESTION
Extended Business Income Answer: This additional coverage pays for the loss of business income, even after operations have been resumed, until the business has been restored, but for no more than 30 days from the date business is resumed.
QUESTION
Extra Expense Coverage Answer: Insurance coverage for extra expenses incurred by the named insured to avoid or minimize the suspension of operations resulting from direct damage caused by a covered cause of loss.
QUESTION
Comparative Negligence Answer: A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence.
QUESTION
general summary of a policy? Answer: Certificate of Insurance.
QUESTION
Coverage Forms Answer: Document that contains insuring agreements, coverages, exclusions and conditions.
QUESTION
Certificate of Insurance Answer: A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided.
QUESTION
Willie's Widgets is eligible to receive an experience rating to bring down their workers' compensation premium rates. Willie's is granted this eligibility on May 1st, 2018. Which of the following best defines the "experience period" the NCCI will use to calculate Willie's experience rating? Answer:
QUESTION
It has been reported to the Insurance Department in a given state that Callie, a licensee in that state, has violated an insurance law. The Insurance Commissioner will hold a hearing to determine the nature of Callie's behavior. After the hearing, the Commissioner is convinced that Callie has engaged in behavior that violates insurance law. Which of the following is the next step the Commissioner will take? Answer: Issuing a cease and desist order
QUESTION
In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past? Answer:
QUESTION
Jim Cress owns an expensive fine arts collection. He has it appraised and covered under a personal articles floater. He takes his collection to England to have it auctioned. While the collection is in his hotel room it is stolen. What coverage would apply? Answer: The loss is not covered The collection has been moved outside the covered territory for fine arts. The coverage is not world-wide and covers them while in the United States, its possessions, Puerto Rico and Canada
QUESTION
An insured has purchased Coverage A and Coverage B of a standard Businessowners policy and the limit of insurance shown in the Declarations is 80% of the replacement cost value, how will losses be settled? Answer: Both Coverage A and Coverage B will be settled on a replacement cost basis
QUESTION
administrator bond Answer: A bond required by the court of the administrator of the estate of the deceased
QUESTION
What does the Small Business Administration (SBA) surety bond program provide? Answer: Reimburses the sureties that provide the bonds a percentage of the losses sustained if the contractor defaults..
QUESTION
The "control of property" condition of the Commercial Property policy: Answer: States that a negligent act of someone beyond the insured's direction or control will not affect the coverage.
QUESTION
The "liberalization clause" of an insurance policy Answer: States that if an insurer decides to broaden its standard policy coverages, then all outstanding policies issued prior to that decision will automatically receive those new coverages at no additional premium
