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TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! (200+ QUESTIONS AND CORRECT ANSWERS) VERIFIED, Exams of Nursing

Chapman UniversityNursing

TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! (200+ QUESTIONS AND CORRECT ANSWERS) VERIFIED ANSWERS

Typology: Exams

2024/2025

Available from 07/01/2025

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TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
### 20 New Practice Questions for Texas All Lines Adjuster Exam
1. **Question**: What is the minimum bodily injury liability coverage per accident required for
an auto policy in Texas?
- A. $25,000
- B. $30,000
- C. $60,000
- D. $100,000
- **Answer**: C. $60,000
- **Rationale**: Texas requires minimum auto liability coverage of 30/60/25, meaning
$30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property
damage.
2. **Question**: Under a homeowners HO-3 policy, which coverage pays for damage to the
insured’s dwelling?
- A. Coverage A
- B. Coverage B
- C. Coverage C
- D. Coverage D
- **Answer**: A. Coverage A
- **Rationale**: Coverage A covers the dwelling itself, including the structure of the home, in
an HO-3 policy.
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Download TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! (200+ QUESTIONS AND CORRECT ANSWERS) VERIFIED and more Exams Nursing in PDF only on Docsity!

TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!

(200+ QUESTIONS AND CORRECT ANSWERS)

VERIFIED ANSWERS

20 New Practice Questions for Texas All Lines Adjuster Exam

  1. Question: What is the minimum bodily injury liability coverage per accident required for an auto policy in Texas?
    • A. $25,
    • B. $30,
    • C. $60,
    • D. $100,
    • Answer: C. $60,
    • Rationale: Texas requires minimum auto liability coverage of 30/60/25, meaning $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage.
  2. Question: Under a homeowners HO-3 policy, which coverage pays for damage to the insured’s dwelling?
    • A. Coverage A
    • B. Coverage B
    • C. Coverage C
    • D. Coverage D
    • Answer: A. Coverage A
    • Rationale: Coverage A covers the dwelling itself, including the structure of the home, in an HO-3 policy.
  1. Question: In Texas, how many days does an insurer have to pay a claim after approving it?
    • A. 5 business days
    • B. 10 calendar days
    • C. 15 business days
    • D. 30 calendar days
    • Answer: A. 5 business days
    • Rationale: Per Texas Insurance Code, insurers must pay approved claims within 5 business days.
  2. Question: A claimant’s car is totaled with an actual cash value (ACV) of $20,000. Their auto policy has a $1,000 deductible. What is the insurer’s payment?
    • A. $19,
    • B. $20,
    • C. $21,
    • D. $
    • Answer: A. $19,
    • Rationale: For a total loss, the insurer pays the ACV minus the deductible: $20,000 - $1,000 = $19,000.
  3. Question: Which peril is typically covered under a DP-1 dwelling policy?
    • A. Flood
    • B. Earthquake
    • C. Fire
    • D. Theft
    • Answer: C. Fire
  • Answer: B. Passing a state-approved exam
  • Rationale: Texas requires passing the Pearson VUE exam and completing a 40-hour pre- licensing course or equivalent for an adjuster license.
  1. Question: Under a workers’ compensation policy, which benefit covers funeral expenses for a deceased employee?
  • A. Medical benefits
  • B. Income benefits
  • C. Death benefits
  • D. Rehabilitation benefits
  • Answer: C. Death benefits
  • Rationale: Death benefits cover funeral costs and provide payments to dependents of an employee killed on the job.
  1. Question: What is an “endorsement” in an insurance policy?
  • A. A document replacing the entire policy
  • B. A modification to the policy’s terms or coverage
  • C. A claim denial notice
  • D. A premium payment schedule
  • Answer: B. A modification to the policy’s terms or coverage
  • Rationale: An endorsement amends a policy to add, remove, or modify coverage.
  1. Question: A claimant’s home sustains $10,000 in windstorm damage under an HO- 3 policy with a $2,000 deductible. What is the insurer’s payment?
  • A. $8,
  • B. $10,
  • C. $12,

- D. $

  • Answer: A. $8,
  • Rationale: The insurer pays the loss minus the deductible: $10,000 - $2,000 = $8,000.
  1. Question: Which of the following is NOT covered under a standard commercial general liability (CGL) policy?
  • A. Bodily injury to a customer
  • B. Damage to the insured’s own property
  • C. Advertising injury
  • D. Property damage to a third party
  • Answer: B. Damage to the insured’s own property
  • Rationale: CGL covers liability for third-party injuries or damages, not the insured’s own property, which requires a separate property policy.
  1. Question: In Texas, failing to provide a claimant with a written denial explanation within how many days is an unfair practice?
  • A. 15 days
  • B. 30 days
  • C. 45 days
  • D. 60 days
  • Answer: B. 30 days
  • Rationale: Texas requires written denial explanations within 30 days of receiving all claim information.
  1. Question: What type of policy covers goods in transit over water?
  • A. Inland marine
  • B. Ocean marine
  • B. 20 hours
  • C. 30 hours
  • D. 40 hours
  • Answer: C. 30 hours
  • Rationale: Texas adjusters must complete 30 hours of CE, including 2 hours of ethics, every two years.
  1. Question: Which of the following is a characteristic of an “open peril” policy?
  • A. Covers only named perils
  • B. Covers all perils unless excluded
  • C. Excludes all property damage
  • D. Applies only to liability claims
  • Answer: B. Covers all perils unless excluded
  • Rationale: Open peril (or “all-risk”) policies, like HO-3 for dwellings, cover all losses unless specifically excluded.
  1. Question: A claimant’s vehicle sustains $8,000 in damage from hitting a deer, covered under comprehensive coverage with a $500 deductible. What is the insurer’s payment?
  • A. $7,
  • B. $8,
  • C. $8,
  • D. $
  • Answer: A. $7,
  • Rationale: Comprehensive coverage pays for animal collisions, minus the deductible: $8,000 - $500 = $7,500.
  1. Question: Which of the following is a duty of an insured after a loss?
  • A. Increase their policy limits
  • B. Mitigate further damage
  • C. Deny liability to third parties
  • D. Pay the adjuster’s fees
  • Answer: B. Mitigate further damage
  • Rationale: Insureds must take reasonable steps to prevent additional damage, like covering a broken window, after a loss.
  1. Question: What is the primary purpose of a binder in an insurance contract?
  • A. To provide permanent coverage
  • B. To serve as a temporary agreement until the policy is issued
  • C. To outline the claims settlement process
  • D. To cancel an existing policy
  • Answer: B. To serve as a temporary agreement until the policy is issued
  • Rationale: A binder provides temporary coverage until the full policy is issued, ensuring the insured is protected during underwriting.
  1. Question: Under a DP-3 dwelling policy, which of the following perils is NOT typically covered?
  • A. Fire
  • B. Flood
  • C. Vandalism
  • D. Lightning
  • Answer: B. Flood
  • Rationale: DP-3 policies cover named perils like fire, vandalism, and lightning, but flood damage requires a separate flood insurance policy.
  • Rationale: Inland marine insurance covers movable property, like contractor equipment, at various locations.
  1. Question: In a workers’ compensation claim, which benefit covers an employee’s lost wages?
  • A. Medical benefits
  • B. Income benefits
  • C. Rehabilitation benefits
  • D. Death benefits
  • Answer: B. Income benefits
  • Rationale: Income benefits compensate for lost wages due to a work-related injury.
  1. Question: A homeowner’s HO-3 policy has a $200,000 limit for Coverage A. What is the typical limit for Coverage C (personal property)?
  • A. $20,
  • B. $100,
  • C. $200,
  • D. $400,
  • Answer: B. $100,
  • Rationale: Coverage C is typically 50% of Coverage A in an HO-3 policy, so $200,000 × 0. = $100,000.
  1. Question: Which of the following is an unfair claim settlement practice in Texas?
  • A. Requesting a medical exam for a claimant
  • B. Failing to settle a claim promptly when liability is clear
  • C. Providing a policyholder with a claim form
  • D. Conducting a claim investigation
  • Answer: B. Failing to settle a claim promptly when liability is clear
  • Rationale: Texas law considers delaying a clear liability claim an unfair practice.
  1. Question: What does “subrogation” mean in the context of insurance claims?
  • A. The insured cancels their policy
  • B. The insurer seeks recovery from another party responsible for the loss
  • C. The insured pays a higher premium
  • D. The claim is denied due to fraud
  • Answer: B. The insurer seeks recovery from another party responsible for the loss
  • Rationale: Subrogation allows the insurer to pursue reimbursement from a third party at fault.
  1. Question: A commercial property policy has a coinsurance clause of 80%. If the property is valued at $500,000 but insured for $300,000, what is the payout for a $100,000 loss (no deductible)?
  • A. $75,
  • B. $80,
  • C. $100,
  • D. $300,
  • Answer: A. $75,
  • Rationale: Coinsurance formula: (Amount insured ÷ [Value × Coinsurance %]) × Loss = ($300,000 ÷ [$500,000 × 0.8]) × $100,000 = ($300,000 ÷ $400,000) × $100,000 = 0.75 × $100,000 = $75,000.
  1. Question: Which policy covers liability for a business’s defective products?
  • A. Workers’ compensation
  • B. Commercial general liability
  • D. To set policy limits
  • Answer: B. To resolve disputes over the amount of a loss
  • Rationale: Appraisal clauses allow an impartial appraiser to settle disagreements on loss valuation.
  1. Question: Which of the following is covered under a standard auto policy’s comprehensive coverage?
  • A. Collision with another vehicle
  • B. Theft of the vehicle
  • C. Damage from hitting a pothole
  • D. Bodily injury to a pedestrian
  • Answer: B. Theft of the vehicle
  • Rationale: Comprehensive coverage handles non-collision losses like theft, vandalism, or weather damage.
  1. Question: In Texas, what is the minimum liability coverage for property damage per accident in an auto policy?
  • A. $15,
  • B. $25,
  • C. $30,
  • D. $50,
  • Answer: B. $25,
  • Rationale: Texas requires minimum auto liability of 30/60/25, with $25,000 for property damage per accident.
  1. Question: Which document outlines the specific perils covered in a policy?
  • A. Declarations page
  • B. Endorsement
  • C. Insuring agreement
  • D. Conditions
  • Answer: C. Insuring agreement
  • Rationale: The insuring agreement details the perils and risks covered by the policy.
  1. Question: A claimant files a workers’ compensation claim for a back injury. Which benefit covers physical therapy?
  • A. Income benefits
  • B. Medical benefits
  • C. Death benefits
  • D. Supplemental benefits
  • Answer: B. Medical benefits
  • Rationale: Medical benefits cover treatments like physical therapy for work-related injuries.
  1. Question: What is the role of an adjuster during a claim investigation?
  • A. Sell insurance policies
  • B. Determine policy premiums
  • C. Assess the validity and value of a claim
  • D. Represent the claimant in court
  • Answer: C. Assess the validity and value of a claim
  • Rationale: Adjusters investigate claims to determine coverage and loss amounts.
  1. Question: In Texas, failing to notify a claimant of a claim decision within how many days after receiving all required information is considered an unfair practice?
  • A. 15 days

- A. $13,

- B. $15,

- C. $16,

- D. $

  • Answer: A. $13,
  • Rationale: The insurer pays the loss minus the deductible: $15,000 - $1,500 = $13,500.
  1. Question: In Texas, how many days does an adjuster have to request additional claim information from a claimant?
  • A. 7 days
  • B. 15 days
  • C. 30 days
  • D. 45 days
  • Answer: B. 15 days
  • Rationale: Texas Insurance Code requires adjusters to request necessary claim information within 15 calendar days.
  1. Question: Which of the following is covered under a standard auto policy’s collision coverage?
  • A. Theft of the vehicle
  • B. Damage from hitting a tree
  • C. Vandalism to the vehicle
  • D. Damage from a hailstorm
  • Answer: B. Damage from hitting a tree
  • Rationale: Collision coverage handles damage from impacts with objects like trees, while theft, vandalism, and hail fall under comprehensive coverage.
  1. Question: What type of insurance covers a business’s liability for injuries caused by its operations?
    • A. Commercial property
    • B. Inland marine
    • C. Commercial general liability
    • D. Workers’ compensation
    • Answer: C. Commercial general liability
    • Rationale: CGL covers third-party injuries or damages from business operations, unlike workers’ compensation, which covers employees.
  2. Question: Under a workers’ compensation policy, which benefit covers vocational training for an injured employee?
    • A. Medical benefits
    • B. Income benefits
    • C. Rehabilitation benefits
    • D. Death benefits
    • Answer: C. Rehabilitation benefits
    • Rationale: Rehabilitation benefits cover services like vocational training to help injured employees return to work.
  3. Question: A commercial property valued at $600,000 is insured for $450,000 with an 80% coinsurance clause. What is the payout for a $120,000 loss (no deductible)?
    • A. $90,
    • B. $100,
    • C. $112,
    • D. $120,
    • Answer: C. $112,
  • Answer: C. 4 years
  • Rationale: Texas requires adjusters to retain CE records for 4 years for compliance verification.
  1. Question: A claimant’s vehicle sustains $12,000 in damage from vandalism under a comprehensive auto policy with a $1,000 deductible. What is the insurer’s payment?
  • A. $11,
  • B. $12,
  • C. $13,
  • D. $
  • Answer: A. $11,
  • Rationale: Comprehensive coverage pays for vandalism, minus the deductible: $12,
  • $1,000 = $11,000.
  1. Question: Which policy covers damage to a contractor’s tools stored at a temporary job site?
  • A. Homeowners
  • B. Commercial general liability
  • C. Inland marine
  • D. Ocean marine
  • Answer: C. Inland marine
  • Rationale: Inland marine covers movable property like contractor tools at various locations.
  1. Question: What is the purpose of a “proof of loss” form in a claim?
  • A. To cancel a policy
  • B. To document the extent and details of a loss
  • C. To increase policy limits
  • D. To waive the deductible
  • Answer: B. To document the extent and details of a loss
  • Rationale: A proof of loss form provides the insurer with detailed information about the claim.
  1. Question: Under an HO-3 policy, which coverage pays for temporary housing after a covered loss?
  • A. Coverage A
  • B. Coverage B
  • C. Coverage C
  • D. Coverage D
  • Answer: D. Coverage D
  • Rationale: Coverage D (loss of use) covers additional living expenses, like temporary housing, after a covered loss.
  1. Question: In Texas, failing to respond to a claimant’s inquiry within how many days is considered an unfair practice?
  • A. 7 days
  • B. 10 business days
  • C. 15 business days
  • D. 30 days
  • Answer: C. 15 business days
  • Rationale: Texas law requires insurers to respond to claimant inquiries within 15 business days.
  1. Question: Which of the following is typically excluded from a standard homeowners policy?