Download Texas all lines adjuster Exam Latest Version 2025-2026| Questions and Accurate Answers | and more Exams Advanced Education in PDF only on Docsity!
Texas all lines adjuster Exam Latest
Version 2025-2026| Questions and
Accurate Answers | Verified Solution
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, 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 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 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. 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 II 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. 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.
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: 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. Regulation of the insurance industry in the United States is primarily left to: State governments. 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. Which of the following would be considered a Part D - Other Than Collision claim under a Personal Automobile claim? A load of bricks falling from an apartment building onto the car. The Section I Additional Coverage of the standard Businessowners policy provides coverage for "Debris Removal". Which of the following statements best describes the limit for this coverage? The total limit may be up to 25% of the policy limit for the loss payable with the deductible included, plus up to an additional $25,000 if the policy limits are exhausted An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an act is known as: Fraud Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? A fire that breaks out in an office building and causes damage to two of the offices..
If the Navigational Limits or Lay-Up period shown on the Declarations page of a standardized Yacht policy is breached because of something out of the control of the insured: The insurer must be notified within 10 days after the breach and any additional premium that is due must be paid. Which of the following is NOT eligible for a coverage under a Homeowners insurance policy? Owner-occupants of a 5 to 6-family dwelling Cameron has his home covered under a Homeowners policy and his limit for bodily injury is $100,000. He also purchased a Personal Umbrella policy with a $1,000,000 limit of liability. Cameron is sued and a judgement was made against him for $500,000. To trigger his Umbrella policy, his Homeowners policy must pay $100,000, but he finds that the insurance company from which he purchased his Homeowners policy has become insolvent. How will the Umbrella insurer pay the claim (disregarding any retention limit)? The Umbrella policy will not become primary when the insurer carrying the underlying insurance becomes insolvent, but will pay the $400,000 as if the underlying insurer had paid its $100,000 limit of liability.. The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if: The insured reports the debris removal expenses to the insurance company in writing within 180 days of the loss.. The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is damaged and sinks. Under what circumstances would coverage apply? Only if the insurance company is notified within 10 days of the emergency use Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy? Professional liability coverage. When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT: Will the insurer become insolvent if they pay the claim as submitted by the insured? An insured is covered under a CGL policy. He would like to purchase another policy to increase the limits of insurance for his commercial liability exposures. Which of the following statements is correct regarding the insured's situation? The insured may purchase either a Commercial Umbrella or an Excess Liability policy to increase his liability insurance limits.. Which of the following statements defines a "bailee"?
The importance of an "Insured or Witness Investigation" is that: Obtaining their statements is very important in determining who is liable Which of the following basic coverages are provided under a Standard Fire policy? Fire, lightning and removal.. All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: Commercial Package Policies can include Ocean Marine and Aviation Insurance coverage.. Ellen's automobile is stolen. The theft is properly reported to the police and the insurance company. She rents a car for two months. Which of the following would apply for the rental car? After a waiting period of 48 hours, her policy will pay $20 per day up to a maximum of $ The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid? $1, If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue: On the 8th day after the disability began Which of the following is NOT an "alternative dispute resolution" (ADR) used to deal with coverage disputes in the claim settlement process? Litigation Mike purchased a policy several years ago to cover him for liability. Last year, Mike determined that the limits of his liability policy were not high enough to cover him adequately should a loss occur, so he purchases an excess liability policy to provide more coverage. Mike experiences a loss, and discovers that his underlying liability policy had expired before the loss, but his excess liability policy is still in effect. How will this loss be paid? It will be denied, due to nonconcurrency. Workers' compensation insurance premium rates are typically affected by each of the following factors, EXCEPT: The company's current profit or loss. An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy, what coverages would apply? Uninsured boater's coverage and hull insurance.
Catherine suffered a covered cause of loss that resulted in water in her basement along with other damage. Alan, an adjuster for Binders Keepers Insurance, tells Catherine to immediately have the water damaged carpeting and wall paneling removed from her basement, so that mold will not cause further damage. Alan then begins the process of identifying coverage under the policy and finds that the water damage is not covered. Which of the following statements is TRUE regarding this claim? Because Alan told Catherine to remove the carpeting and paneling before he checked the coverage, he waived the right of Binders Keepers to deny the claim.. Which of the following is NOT TRUE regarding surety bonds? They are an agreement that in exchange for a premium, the surety will indemnify the obligee.. The insured carries a Personal Auto policy and a Personal Umbrella policy. In case of a loss, how would the policies respond to pay a covered claim? The Personal Auto policy would be the primary and would pay up to the policy limits, then the Umbrella policy would be excess to pay up to its policy limits. George went out for target practice one day with his handgun. He has practiced many times with the same target located in the woods behind his house. Unbeknownst to George, a neighbor was walking in the woods behind the target one day and was shot in the leg by George. Intentional acts are never covered by insurance, however, the claim filed by the injured neighbor may be covered under George's liability coverage. Which of the following is the most likely reason why? Shooting the gun was an intentional act committed by George, but the consequences of act (his neighbor being shot) were not intended. Acme Corp. requested three bids from different contractors for the construction of its new office building. Acme accepted the lowest bid from Corbett's Contracting and entered into a contract to have the office building constructed. After construction was completed, Corbett's presented Acme with a bill for construction costs over and above the amount of the bid that was agreed to in the contract. Which of the following types of bonds would protect Acme from paying the additional costs? A performance bond. Which of the following are NOT required to hold an adjuster license in Texas? A person who works for an insurer and adjusts claims on losses that do not exceed $ Which of the following is NOT covered under aircraft physical damage (hull) insurance? Personal effects. An insured submits a claim to the insurer and their adjuster acknowledges receipt of the claim. The insured then hears nothing more after making repeated attempts to contact the adjuster. This is considered: An unfair claims settlement practice. Which of the following best describes an "insurance producer"?
Which of the following types of bonds guarantees that all project materials will be paid in full by the contractor upon completion of the project? Payment bond. Which of the following is NOT a "duty of the insured" after a loss? To pay damages to any third-party claimant while waiting to be reimbursed by the insurer for the loss. All of the following are perils NOT typically covered by property cause of loss forms, EXCEPT: Hail What is the minimum limit for Coverage L of the Personal Liability Supplement that can be attached to a Dwelling Property policy? $100, The "Medical Payments" section of the standard Yacht policy will provide coverage for all of the following, EXCEPT: A scuba diving accident when diving from the insured boat.. Which of the following coverages would NOT be included in the liability section of the Businessowners policy? Professional liability. An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair or set clause the insurance company will pay a maximum of which of the following amounts? $7, Economic loss that is the consequence of a direct loss is known as: An indirect loss. Which of the following is NOT TRUE of coverage for Business Personal Property and Personal Property of Others in a Commercial Property policy? Coverage is provided while the property is located within a covered vehicle at any location as long as the vehicle is owned by the insured business. As a condition to gain entrance into Louisiana to conduct insurance business, a Texas domestic insurer makes a deposit with the Texas Comptroller. The amount of the deposit is sufficient to satisfy the Louisiana Department that the insurer can cover the claims submitted by the insureds in Louisiana. Who has jurisdiction to collect taxes on the interest earned on this deposit? The county and municipality in Texas where the principal business office of the insurer making the deposit is fixed by the insurer's charter. Which of the following would be considered an "incidental occupancy" under a Homeowners policy?
An art studio located in the named insured's home, where she also holds occasional painting classes. Scott lives in Texas and has submitted a claim to his insurance company. He has received notice from the insurer that the claim is covered under the policy and they will be paying the claim. How long does the insurer have to pay Scott's claim according to Texas law? Not later than the fifth business day after the notice was made. All of the following are duties that a Texas insurer must perform within 15 days after receipt of the claim, EXCEPT: Schedule a hearing to dispute the claim, if necessary. Which of the following is NOT a claim settlement option for liability claims? Excessive amounts claimed. Mason has suffered a $42,000 loss to his commercial building due to fire. The building is covered under the Building & Personal Property coverage form and had been vacant for 74 days. The insurer would have paid the entire loss if the building had been occupied, but what will they pay because the insured building was considered vacant? $35,700. Julius has selected the "Maximum Period of Indemnity" optional coverage of the Business Income form. Which of the following statements is TRUE regarding how a loss will be paid if this option is selected? The most the insurer will pay for the total loss of business income and extra expense is the amount of the loss sustained during the 120 days immediately following the period of restoration or the limit scheduled on the declarations page, whichever is less.. The "Medical Payments" coverage of the standard Yacht policy covers all medical expenses incurred by an insured, family members, invitees, or guests if a claim is submitted: Within 1 year following a covered accident. Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be: Instrumentalities of transportation and communication. A claim is made on an excess liability policy. It is discovered during the claims investigation, that the underlying liability policy and the excess liability policy have different inception and expiration dates. The adjuster finds that the different dates has created a situation where the underlying policy was not in effect at the time of the occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: Nonconcurrency. An "other insurance" clause is included in insurance policies to deal with the problem of:
retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this claim likely be settled? The insured would pay $10,000 and the Umbrella policy would pay $790,000. The aircraft physical damage (hull) deductible is normally expressed as: A percentage of the value of the aircraft. Ally's insurance agency has contracted with Indemnify Insurance to sell only those insurance products offered by Indemnify. Ally's is utilizing which of the following types of insurance marketing and distribution systems? Exclusive agency system. In which of the following situations would trees, shrubs, and other plants be covered by the Homeowners additional coverages? The insured's fruit trees are destroyed when an ember from a nearby brush fire lands on them and burns them. Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? Liability to passengers is treated as a separate exposure. All of the following would be eligible as "your covered auto" under a standard personal automobile policy, EXCEPT: A motorcycle owned by the insured. All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: Goods manufactured in the United States for export to other countries. Which of the following would be covered under Coverage B of the Business and Personal Property coverage form? The stock held for sale by the insured business. The "Business Income" additional coverage under the standard Businessowners policy includes all of the following in its definition of "ordinary payroll expenses", EXCEPT: Executive payroll.. Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority Prohibits Use" for: No more than two weeks.. When a claims representative is collecting information from a third-party claimant, which of the following is the information that should be obtained first?
The nature and extent of the injuries or property damage claimed. Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? Medical expense and lost wages. A structure made of modified fire resistive materials has a fire resistive rating of: At least 1 hour. A Commercial Property policy has the "Protective Safeguards endorsement attached indicating that the insured has protective safeguards installed such as a sprinkler system. Should the system become inoperative, how long does the insured have to report this fact to the insurer? 48 hours. Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000? $1, Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? Assumption of risk The type of claims investigation that looks at the possibility of a third-party being responsible for the loss is known as: A subrogation investigation. The Commercial Property condition known as "Concealment, Misrepresentation, or Fraud" calls for the policy: To be voided??? Which of the following Equipment Breakdown coverages applies to direct damage to covered property located at a premises described in the Declarations? Property damage coverage. Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? Property that has reached obsolescence. The Part B - Medical Payments coverage under a standard Personal Auto policy will cover the insured if he/she is injured while a passenger on a:
In order to qualify for a surety bond there are times the principal must have another party sign the agreement. This party agrees to reimburse the surety if the principal defaults. This party is known as: An indemnitor. Henrietta has purchased a Personal Automobile policy and she sees the following under Part A:$25,000/$50,000/$30,000Which of the following statements is TRUE regarding these numbers? $30,000 represents the limit for property damage liability. Return-to-work coordination services for injured workers in Texas may include which of the following:I. Job analysis to identify the physical demands of a job.II. Job modification and restructuring assessments to match job requirements with the employee's functional capacity.III. Medical or vocational case management to coordinate the efforts of the employer, the treating doctor, and the injured employee to help him/her return to work as soon as possible.IV. Employment search and matching of the injured employee's skills with jobs that have been advertised as open on a nationwide basis. I, II and III only 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 ____. $1,070 / $ Which of the following statements is NOT TRUE regarding the "period of restoration" for Business Income and Extra Expense coverage? The period of restoration ends when the policy period ends. Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if: At least 20-days' notice is provided to the insured.. Hannah is attending college and her family carries an HO-4 policy with $50,000 contents coverage. Hannah has about $15,000 of personal belongings consisting of clothing, musical instruments, electronic equipment, some appliances and other personal items in her dorm room. Which of the following statements is correct regarding coverage for Hannah's belongings? The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal property floater should be purchased. An insured's car is damaged in an auto accident. While it is being repaired, the body shop loans the insured a replacement. From a coverage standpoint, this replacement vehicle is known as:
A temporary substitute??? If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)? 10% of the Coverage C limit. Part B of the personal automobile policy provides coverage, regardless of fault, for necessary medical and funeral expenses incurred within how many years of the date of the injury? 3 Katherine lives in Texas. A third-party claim has been filed against her insurance policy by Joe, for an accident in which Katherine was liable. Joe's attorney contacts Katherine's insurance company and makes an initial offer to settle the claim. The insurance company must notify Katherine of the offer, in writing: Not later than the 10th day after the date the initial offer was made. Texas insurance licensees must complete _____ hours of continuing education each reporting period. 24 A home is insured under an HO-3 policy. One of the "other structures" on the same property is used by the insured for his business. The building burns in a fire. It would: Not be covered because buildings used for business purposes are excluded.. What is the main purpose of government regulation of the insurance industry? To protect the insurance consuming public. All of the following are duties of the insured after a loss, EXCEPT: To provide the insurer with the amount they expect to be paid for the claim submitted. On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT: Computers. Sally's home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following? Anyone who is invited onto Sally's property and is injured while there. James owns a sedan, a truck, and an SUV. He carries Part C -- Uninsured Motorist Coverage on his SUV, but does not carry it on his sedan or truck. James' son is driving the truck one afternoon and accidentally strikes James who is driving the SUV, causing James to sustain bodily injury. How will Part C apply in this situation? No coverage will apply for James' bodily injury.. Which of the following would NOT be included in an adjuster's initial / field / preliminary report?
Brian will receive 20% of the Coverage A limit, for a maximum of 2 weeks. Which of the following best characterizes the difference between captive agents and independent agents? Independent agents can represent more than one insurer, whereas captive agents represent only one insurer. The additional coverage of the Commercial Property cause of loss forms known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria" provides: $15,000 coverage for all occurrences within a 12-month period. All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT: To pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements. The HO-7 form is a rarely used form that covers: Mobile and Manufactured Homes for property damage and liability. Which of the following best demonstrates a morale hazard? A recent purchaser of auto insurance drives less carefully, knowing that the insurer will cover any losses that occur.. Coverage under the Builders' Risk form is written for: A period of one year. All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT: Motorized land vehicles. Lara is moving to Europe for two years in order to take advantage of a promotion at her job. She will not take her 4-seat propeller plane with her. What type of Aviation policy would be best for Lara to purchase for coverage on her plane while it is in storage and she is in Europe? All Risks - Not in Motion. An insured who is covered under a Commercial Property policy with the Building and Personal Property Coverage form attached, suffers a loss to business personal property. The insurance company has paid the claim, but now the property has been recovered. All of the following statements are TRUE regarding how this situation should be handled according to the form, EXCEPT: The insured must incur any expenses to recover the property. Which of the following best describes how the peril of "theft" is covered under the 1943 New York Standard Fire policy? Theft is a covered peril under the removal coverage.
Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer? October 7th. Which of the following claims would NOT be covered under Section II -- Liability of a Homeowners policy? The named insured files a claim for damage to his house caused by his dog. The standard Businessowners policy extension of coverage for "Outdoor Property" provides ________ of coverage for any one tree, shrub, or plant that has been destroyed due to a covered cause of loss. $ Which of the following types of coverages are included in the standardized Businessowners policy? Coverage for business personal property. An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation? Send a reservation of rights letter to the insured's last known address. Which of the following situations would NOT be considered an unfair claim settlement practice according to the NAIC Model Act? Indemnify Insurance pays thousands of claims per year, but on two of those claims they failed to accept or deny the claim within the time frame required by state law. Morton loses control of his car and hits Jordan's car that was parked legally along the street where Morton was driving. The damage to Jordan's car is covered by which coverage of Morton's personal automobile policy? Part A -- Liability Which of the following contractors would be eligible for a Businessowners policy? A carpenter doing all of his own work building kitchen cabinets in people's homes and earns $75,000 per year. An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella liability policy with a $2,000 self-insured retention limit. Later, the insured allowed the required underlying primary policy with a limit of $500,000 to expire. A week after that, the insured became liable for a $100, loss that is not excluded by the provisions of either the primary underlying liability policy or the Umbrella policy. How will this loss likely be settled? The insured will be liable for the full $100,000 loss.
