Texas All-Lines Adjuster course Final
Exam
A severe thunderstorm damaged a policyholder's residence. He called and asked how long it
would be before he received payment for his claim. Which of the following would NOT be an
appropriate response? - correct answer-We have 6 months to reach a final settlement with
you.
Janelle has just graduated college and is interested in becoming an adjuster. she would like
to be able to handle any type of claim. The most comprehensive type of license would be: -
correct answer-All-Lines
Jack and Rebecca own a vacation home on Galveston Island which they have insured under
an HO-3 policy. After a week long winter ski trip to Aspen, they return home to find their
house burglarized and their 50" TV, computer equipment, jewelry, a valuable gun collection
and some fishing equipment stolen. How would their HO-3 policy respond to this loss? -
correct answer-The entire theft loss would be covered under Coverage C. subject the policy
limits and to certain limitations.
The oldest form of insurance known to exist is: - correct answer-Ocean Marine Insurance
How is an injured employee's weekly compensation rate for Temporary Income Benefits
(TIBS) calculated under Texas Work
Comp laws? - correct answer-The comp rate = (AWW - Post Injury Earnings) × 70%
In workers compensation, an "injury is defined to mean: - correct answer-personal injury or
death by "accident", arising out of work performed in the course of employment.
Justin is a Property adjuster for XYZ Insurance Company. He receives a claim involving the
theft loss of various types of property. Justin's initial responsibility upon investigating the loss
is to first determine: - correct answer-If coverage exists
Jim is a public adjuster. He has an arrangement with a water extraction company who pays
him a commission of 10% for every referral that Jim sends their way. Which of the following
statements is correct? - correct answer-This arrangement reflects a breach of ethical
conduct and a violation that could jeopardize Jim's licensure.
Which of the following would NOT be covered under Coverage C Personal Property? -
correct answer-Your 10-year old German Shepherd chokes on a bone and passes away.
A tornado strikes a duplex that is insured under a Dwelling (DP-3) policy. Which of the
following would NOT be covered by the Dwelling policy? - correct answer-Damage to
another duplex right next door, also owned by the landlord.
,Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage to
customer goods they transport EXCEPT for damages resulting from: - correct answer-Acts
of God
You have just started your career handling Texas workers' compensation claims. Which one
of the following WOULD BE considered a violation of the Texas Unfair Claim Settlement
Practices Act? - correct answer-Not responding to an employee's calls because you're
overworked and the claim involves complex issues you just don't feel like addressing.
Which type of bond would be used to cover the exposure to employee theft? - correct
answer-Fidelity bond
Garrett wants a Texas All Lines Adjuster's license. Which of the following actions will be
necessary for Garrett to secure such a license? - correct answer-Pass a state qualifying
exam or pre-licensing course that is certified by the Texas Department of Insurance that
includes an approved, comprehensive final examination of 150 questions, and attach the
Certificate of Completion to an application for licensure.
The DP.3 Dwelling form is an "Open Risk" policy. This means that: - correct answer-All risks
of direct physical loss are covered unless they are excluded
Assume your home caught fire due to a faulty electrical device. and one month after the fire
you receive a bill from the fire department for $450.00 for responding to the fire. Would this
be paid under your homeowner's policy? - correct answer-Yes. It is called Fire Department
Service Charge and is an Additional Coverage provided under the policy, limited to $500.
Generally, if an employee suffers an occupational injury and accepts workers' compensation
benefits, he or she: - correct answer-Gives up the right to sue the employer for personal
injury and pain and suffering. The employee can only make claim for workers' compensation
benefits.
Janelle has a Texas Personal Auto Policy with 30/60/25 policy limits. She hits a car with 4
occupants, all of whom are hurt.
They all sue. Each of the injured parties receives identical verdicts of $40,000. Under
Janelle's bodily injury liability coverage, what is the total amount that the company would pay
for the injuries to these plaintiffs? - correct answer-$60,000
A person or entity who guarantees the performance or payment of one party who is
obligated by contract to another is called a: - correct answer-Surety
If your insured were to ask you if a Dwelling policy would pay for his loss of rental income
after a fire loss while the property is being repaired. what would you tell him? - correct
answer-Yes, and it's called Fair Rental Value coverage and is available under Coverage D.
Fred runs a convenience store that sells gasoline. One day a customer pulls away from the
pump while the gas is still pumping, breaks the pump line and causes gasoline to escape all
over the parking lot and into the storm drain. Fred files a claim under his commercial
property policy. Damage to repair the pump totals $545.00 and $257.00 worth of gasoline
, was pumped out before anyone noticed and stopped the pump. The local HazMat team was
called out by the authorities to clean up the parking lot and the storm drain. Fred received a
bill from the County for $12.850.00 for the clean up. He sends the bill to you to pay. What
kind of coverage is available to Fred as a commercial property extension of coverage
needed to pay this loss? - correct answer-Pollution Clean Up and Removal
A cargo ship loaded with lumber and sailing from Seattle, Washington to Tokyo, Japan,
encountered "the perfect storm" during its trip across the Pacific Ocean. Some of the lumber
was thrown overboard to save the ship. This action is called: - correct answer-Jettison
Roberto owns a house on Lake Conroe. The house is insured with an HO-3 policy. During a
storm, a tornado touches down and severely damages the house. Because the house is
untenable and it will take 2 months to complete repairs, Roberto moves Into a local Marriott
Residence Inn. Under which of the following coverages would Roberto be able to recover the
additional expense of the Marriott and other costs? - correct answer-Coverage D: Loss of
Use
Dwelling policies: - correct answer-provide basic property protection for individuals who want
to protect their financial interest in a property
Which of the following perils or exposure are Fidelity bonds generally used to insure
against? - correct answer-Embezzlement
To be compensable under workers' compensation laws, most jurisdictions require that an
injury: - correct answer-arise out of and in the course of employment.
A customer of the Sunshine Grocery Store hit her leg on a low shelf in the isle of the store.
The claim was assigned to you for handling. After contacting the claimant and taking a
statement, you learn that the injury was minor and, at most, an inconvenience. Medical
expenses were only $525.00 and there were no complications. You think the best way to
handle the case Is to offer to pay her medical bills without admitting liability and try backing
away without committing to any kind of settlement. How would you do it? - correct
answer-Tell her you'll pay her bills and ask her to call you if she has any questions. You
would then wish her well and, when the bills arrive, pay them under the business's Medical
Payments coverage.
You just started working as an adjuster with handling Texas 1st and 3rd party property
damage claims. Which one of the following would NOT be an example of an unfair claim
settlement practice? - correct answer-Deciding not to take a statement from an insured
under oath in the investigation of a 1st party property claim.
Joe is a property adjuster employed by State Farm. He receives a loss assignment to handle
a grease fire claim for an insured. Upon contacting the insured, she advises that she has
hired her own adjuster (Pete) to represent her in this matter.
Pete will be providing Joe with the estimates of repair and has the insured's authority to
negotiate the final settlement of the loss. Pete's fee will be paid out of the final settlement
amount. Based upon this information, joe and Pete are which of the following types of
adjusters? - correct answer-Joe is a Company Adjuster and Pete is a Public Adjuster
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