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Texas all lines adjuster Exam Questions With
Verified Answers.
All of the following are criteria for an accident to have occurred "in the course of" the
employment under a workers' compensation policy, EXCEPT: - 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? - 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 - 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
- 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: - 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. - answer✔5
All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: -
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: - answer✔Controlled
business
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Which of the following standardized Dwelling insurance forms provides coverage for loss of
rental income - 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: - 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) - 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: -
answer✔$250 per day.
Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. -
answer✔30 days.
All of the following are characteristics of a principal that a surety will scrutinize during the
underwriting process, EXCEPT: - answer✔Consideration.
Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to
be: - answer✔An insured location.
Which of the following is NOT one of the four major coverages of an Ocean Marine policy? -
answer✔Seaworthiness.
A ship has suffered damage and sunk. Which of the following would respond to cover the loss of
the ship? - 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? - 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". - answer✔72-hour
Whose responsibility is it to complete a "proof of loss"? - answer✔The claimant.
Which of the following would NOT be determined by a court when an insurer has filed a
declaratory judgment action? - 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? - answer✔The coverage is not additional insurance and does
not increase the limits of the policy.
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Which of the following would be covered under the Jones Act? - answer✔Crew members of a
ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: -
answer✔The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? -
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? - 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? - 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? -
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"? - 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: - 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: - 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: - 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? - 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? -
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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"?
- 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? - 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?
- 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: - answer✔Fraud
Which of the following losses would be covered under a Commercial Property policy with the
special cause of loss form attached? - 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: - 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? -
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)? - 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..
