Texas all lines adjuster exam
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - correct answer-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? - correct answer-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 - correct answer-$200,000
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 - correct answer-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: - correct answer-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. - correct answer-5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - correct
answer-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: - correct
answer-Controlled business
Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income - correct answer-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: - correct answer-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) - correct answer-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:
- correct answer-$250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. -
correct answer-30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT: - correct answer-Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is
considered to be: - correct answer-An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? -
correct answer-Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the
loss of the ship? - correct answer-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? - correct answer-Only an adjuster's written
statements can legally bind an insurer.
The standardized Dwelling forms consider all eruptions of a volcano within a __________
period to be a single "occurrence". - correct answer-72-hour
Whose responsibility is it to complete a "proof of loss"? - correct answer-The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - correct answer-The type and amount of damages that will be
paid to a plaintiff for the claim that is being disputed.
Which of the following statements is TRUE regarding the Homeowners "additional coverage"
known as Landlord's Furnishings? - correct answer-The coverage is not additional insurance
and does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? - correct answer-Crew
members of a ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
- correct answer-The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
correct answer-Commercial property coverage can be written as both a monoline policy and
as part of a package policy.
,What type of insurance is usually provided or subsidized by the state or federal government
because it is not ordinarily available from private insurers? - correct answer-Residual market
insurance.
The optional coverage for "Employee Dishonesty" under a standard Businessowners policy
provides a "discovery period" for the insured to discover the dishonest act and have
coverage still apply. Which of the following statements best describes the "discovery period"
for this optional coverage? - correct answer-The "discovery period" is one year from the end
of the policy period.
Which of the following would be considered an Unfair Claim Settlement Practice? - correct
answer-Failing to deny coverage of a claim within a reasonable amount of time after
concluding the investigation
Which of the following is TRUE regarding the DP-2 Broad Form coverage for "artificially
generated electrical current"? - correct answer-A fire must be the result of the artificially
generated electrical current for coverage to apply..
The Commercial Building and Personal Property coverage form provides five extensions of
coverage, but only if: - correct answer-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: - correct answer-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: - correct
answer-State governments.
Which of the following coverages does NOT need to be added to a Garage Coverage form
by endorsement for coverage to apply? - correct answer-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? - correct answer-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"? - correct answer-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? - correct answer-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? - correct answer-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: - correct answer-Fraud
Which of the following losses would be covered under a Commercial Property policy with the
special cause of loss form attached? - correct answer-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: - correct answer-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?
- correct answer-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)? - correct answer-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: - correct answer-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? - correct
answer-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? - correct answer-Professional liability coverage.
