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TEXAS ALL LINES ADJUSTER EXAM Questions
and Answers Latest Updates 2025 GRADED
A+
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? - correct answer ✅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"? - correct answer ✅Someone, other than the insured, to whom the insured property is entrusted temporarily. The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the owner. In ocean marine coverage, what is this called? - correct answer ✅Barratry.
Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: - correct answer ✅That owned private passenger autos only are covered.. An applicant fails to disclose known facts when completing an application for insurance. This act is known as: - correct answer ✅Concealment All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT: - correct answer ✅When the Part A limits are exhausted, any limits for Uninsured Motorists coverage can be used to pay the entire claim.. If a covered business is a limited liability company, the standard Businessowners policy provides coverage for all of the following "insureds", EXCEPT: - correct answer ✅Executive director.. The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT: - correct answer ✅Settling.
The importance of an "Insured or Witness Investigation" is that: - correct answer ✅Obtaining their statements is very important in determining who is liable Which of the following basic coverages are provided under a Standard Fire policy? - correct answer ✅Fire, lightning and removal.. All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: - correct answer ✅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? - correct answer ✅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? - correct answer ✅$1, If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue: - correct answer ✅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? - correct answer ✅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? - correct answer ✅It will be denied, due to nonconcurrency.
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? - correct answer ✅A performance bond. Which of the following are NOT required to hold an adjuster license in Texas?
- correct answer ✅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? - correct answer ✅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: - correct answer ✅An unfair claims settlement practice. Which of the following best describes an "insurance producer"? - correct answer ✅Someone who represents an insurance company in the soliciting and negotiation of insurance. When insurance is written on a Dwelling form, each of the following types of property would be insured under Coverage A, EXCEPT: - correct answer ✅A detached garage. The Garage Coverage form can be used to cover dealers that sell all of the following, EXCEPT: - correct answer ✅Jet skis. Ocean marine coverage for losses to the insured vessel caused by bursting boilers, latent defects in the vessel and negligence of the master or crew members are addressed by which of the following? - correct answer ✅The Inchmaree clause.
The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella to extend and broaden her coverage. The Umbrella policy includes a $10,000 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 case likely be settled? - correct answer ✅The insured would pay $10,000 and the Umbrella policy would pay $790,000. Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? - correct answer ✅The principal is bound to the decisions of the adjuster. 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? - correct answer ✅Payment bond. Which of the following is NOT a "duty of the insured" after a loss? - correct answer ✅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: - correct answer ✅Hail What is the minimum limit for Coverage L of the Personal Liability Supplement that can be attached to a Dwelling Property policy? - correct answer ✅$100, Which of the following coverages would NOT be included in the liability section of the Businessowners policy? - correct answer ✅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
Which of the following would be considered an "incidental occupancy" under a Homeowners policy? - correct answer ✅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? - correct answer ✅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: - correct answer ✅Schedule a hearing to dispute the claim, if necessary. Which of the following is NOT a claim settlement option for liability claims? - correct answer ✅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? - correct answer ✅$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? - correct answer ✅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: - correct answer ✅Within 1 year following a covered accident.
Which of the following would be excluded under Part A of the Personal Auto policy? - correct answer ✅A person transports people from the airport to nearby hotels for a fee.. 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. - correct answer ✅5th The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: - correct answer ✅A unibody frame. A contractor in need of a bid bond to obtain a contract is an example of a(n):
- correct answer ✅Principal. When loss settlement under a policy is the "agreed value", which of the following is true? - correct answer ✅The insurer will pay the value that was agreed upon and scheduled in the policy.
The "control of property" condition of the Commercial Property policy: - correct answer ✅States that a negligent act of someone beyond the insured's direction or control will not affect the coverage.. The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella policy to extend and broaden her coverage. The Umbrella policy includes a $10,000 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? - correct answer ✅The insured would pay $10,000 and the Umbrella policy would pay $790,000. The aircraft physical damage (hull) deductible is normally expressed as: - correct answer ✅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? - correct answer ✅Exclusive agency system.
The "Business Income" additional coverage under the standard Businessowners policy includes all of the following in its definition of "ordinary payroll expenses", EXCEPT: - correct answer ✅Executive payroll.. Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority Prohibits Use" for: - correct answer ✅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? - correct answer ✅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? - correct answer ✅Medical expense and lost wages.
A structure made of modified fire resistive materials has a fire resistive rating of: - correct answer ✅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? - correct answer ✅ 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? - correct answer ✅$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? - correct answer ✅Assumption of risk
