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Adjuster Pro Texas Complete Questions With Verified Solutions
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Adjuster Pro Texas Complete Questions With Verified Solutions
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Adjuster Pro Texas Complete QuestionsWith Verified Solutions
All of the following pieces of information can be found in the conditions section of an
insurance policy EXCEPT: CORRECT ANSWERS Causes of loss that are not covered
Which of the following best defines the principle of indemnity? CORRECT ANSWERS
After a loss, the insured should be restored to his approximate financial condition before
the loss
SureTrust Insurance was founded and operates in Texas. In Texas, Suretrust is
considered CORRECT ANSWERS a domestic insurer
What is a reserve, in insurance terms? CORRECT ANSWERS A pool of collected
premiums that the insurer sets aside to pay claims
Which of the following would you find in the Conditions section of an insurance policy?
CORRECT ANSWERS The insured's duty after a loss
Which of the following is found in the declarations page of an insurance policy?
CORRECT ANSWERS The name of the insured party
Which of the following refers to being restored to the financial condition you were in
before a loss? CORRECT ANSWERS Indemnification
Dr. Nelson routinely schedules her patients for lab tests that they dont need so she can
charge their insurers for more money. Dr. Nelson is: CORRECT ANSWERS committing
health insurance fraud
Six Starts Development Company has just purchased several large properties in Las
Vegas. As a result of this large purchase, they are a little short on money and decide to
save money by not purchasing insurance on their new properties. Six Stars is
practicing: CORRECT ANSWERS Risk retention
Which of the following people committed soft fraud? CORRECT ANSWERS Rafael
accidentally slipped on a wet floor at the supermarket. Although his only injury was a
sprained ankle, he claimed he had back and neck pain when he sued the supermarket
in an effort to get more money in the settlement.
When a car stops short in front of Mike's car, he manages to hit the brakes in time and
avoids a collision. To Mike's surprise, the other driver then throws the car into reverse
and backs into Mike's car! The other drivers actions are an example of: CORRECT
ANSWERS Hard fraud
,When Louise goes online and fills out phony applications with XYZ Auto Insurance in
order to print the temporary insurance cards and sell them for a profit on the black
market, she is: CORRECT ANSWERS Committing hard fraud
Lucy has insurance on an expensive necklace she likes to wear to work every day. After
work, she takes it off and leaves it in her car's cupholder so she can put it back on in the
morning on her way to work. Lucy's behavior would be considered a: CORRECT
ANSWERS Morale hazard
When an insurer issues an insurance policy, the actual item, person, or organization
that is being insured is called the: CORRECT ANSWERS Risk
Which of the following situations does not involve an instance of "pure risk" CORRECT
ANSWERS Loss of money invested in the stock market
Which of the following is an example of how some insurers are fighting back against
insurance fraud? CORRECT ANSWERS Starting fraud busting units staffed with former
detectives and police officers
Which of the following is NOT a form of insurance fraud? CORRECT ANSWERS
Increasing your insurance coverage when you think a loss is likely
Steve has just purchased a wedding ring for his new bride. If something were to happen
to the ring, he'd be out of a lot of money, so he purchases an insurance policy. He is
able to do this because: CORRECT ANSWERS The ring is a pure risk
Haley takes a bottle of water into a store, pours some of it on the floor when no one is
looking, and then pretends to slip and fall. She cries out for help in apparent pain until
someone comes to her aid. She then sues the store for her fake injury in an effort to
collect an insurance settlement. What has Haley committed? CORRECT ANSWERS
Hard fraud
After an earthquake, Jake's home is still standing, but it is a little shaken. The damage is
not extensive but Jake wants to cash in on the situation, so he takes a sledgehammer to
some of his extra belongings and adds them to his claim. Jake has committed:
CORRECT ANSWERS Property insurance fraud
Which of the following is an example of a hazard? CORRECT ANSWERS Sandra's
home is in an area of Los Angeles that is often hit by earthquakes
Risk avoidance is a risk management technique that: CORRECT ANSWERS Eliminates
risk
An "occurrence" is defined as: CORRECT ANSWERS An unexpected event that causes
loss
,When Sally applies for an auto policy, her agent issues her a _______ so that she can
benefit from insurance protection while he underwrites the policy. CORRECT
ANSWERS Binder
Jane's shed burns to the ground during a tornado, when the high winds break a wall of
the shed, knocking over a lantern inside. What is the proximate cause of the loss?
CORRECT ANSWERS Wind
During a storm, lightning strikes a tree in Harry's yard and starts a fire that spreads to
his shed where he keeps all his equipment for his landscaping business. In addition to
the shed, Harry has to purchase all new equipment to stay in business. The cost to
replace the equipment would be considered: CORRECT ANSWERS A direct loss
Clark is filling out an application for an insurance policy. The application asks for his
birth date, and Clark writes 1/24/67. His actual birthday is 1/24/63, but he likes to
appear younger so he uses a different date. This would be called: CORRECT
ANSWERS Misrepresentation
Jason's auto policy states that the insurer may cancel coverage if a premium is more
than 30 days late. However, Jason is currently more than 30 days late, and has been so
five times in the last year, and his insurer has done nothing about it. When Jason gets
into an accident and files a claim, which of the following is most likely to happen?
CORRECT ANSWERS The insurer will pay the claim because of the implied waiver
they have made by not canceling Jason's policy the previous times he was late with his
payments.
What is a binder? CORRECT ANSWERS Temporary coverage for an insurance
applicant until the policy is issued
In order to qualify for an insurance policy, Lydia's Fine Jewels must agree to have a
security guard on the premises 24/7. This is called a: CORRECT ANSWERS Warranty
Which of the following statements about the principle of estoppel is TRUE? CORRECT
ANSWERS Estoppel protects the insured party from an insurer who initially approves
coverage, but then later denies coverage after the insured pays for repairs.
Driving home after a 14-hour shift Sam falls asleep at the wheel and plows into Sandra's
home, causing extensive damage to the East wall and roof. As a result, Sandra and her
family must move into a hotel until the repairs are completed. The cost of staying in a
hotel is: CORRECT ANSWERS An indirect loss
When Jim is involved in an accident, he immediately calls his insurer and files a claim.
When his insurer denies the claim, it is required to provide Jim with: CORRECT
ANSWERS A reason for denying the claim
, Sue decides to get a valued insurance policy on her antique car. She and her insurance
company agree to a value of $85,000. Three years later, the car is destroyed when a
tree falls on it in a parking lot. The car depreciates at $2,000 a year, and its replacement
cost is 100,000. Ignoring any deductible, how much can Sue expect her insurer to
indemnify her? CORRECT ANSWERS $85,000
When Zach purposefully burned down Matt's restaurant, Matt's insurer paid the claim
and then went after Zach for the damages. Matt is furious about what Zach did and
wants to sue him as well. Why is it NOT possible for Matt to sue Zach? CORRECT
ANSWERS Matt has already received indemnification from his insurer
Jesse's home is worth $200,000 and he has a homeowners policy with a $160,000 limit.
After a covered loss, Jesse is left with a total of $10,000 in damages. Assuming the
insurer requires the standard 80% level of insurance for coinsurance purposes, and
ignoring any deductibles, how much will Jesse receive in indemnification? CORRECT
ANSWERS $10,000
While making a right-hand turn from the right lane, Ben is sideswiped by Roxanne,
totaling the car he bought new 12 years ago for $15,000. Roxanne is judged to be at
fault. She has an auto policy with limits of 50/100/25 and a $500 deductible on her
collision coverage. Assuming Ben's car depreciates at a rate of $1,100 a year, how
much will Roxanne have to pay out of pocket when Ben files a claim against her insurer
for the damages? CORRECT ANSWERS 0
Which of the following does not have an insurable interest in Big Ed's Steak House, a
local restaurant? CORRECT ANSWERS Jim, who regularly eats at Big Ed's Steak
House because it's his favorite restaurant.
ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One
day, an accident at a construction site leads to $150,000 in damage to public property.
Assuming the cause of loss is covered under ABC Masonry's liability policy, how will this
claim be paid? CORRECT ANSWERS The insurer pays $100,000; the aggregate limits
is now $200,000; and ABC Masonry must pay $50,000
A few weeks ago Christopher's garage was destroyed by an out of control motorist.
Fortunately, the motorist had sufficient liability insurance to cover the damages.
However, the insurer insists that Christopher's garage is worth far less than the
appraisals he has received from contractors. Christopher and insurer have gone back
and forth in negotiations for weeks, making little headway. Christopher decides it's time
to: CORRECT ANSWERS issue a complaint against the policyholder
Ricky was watching a baseball game at XYZ stadium, when the railing on which he was
leaning gave way and he fell two stories. As a result of his fall, Ricky broke his back and
is now paralyzed from the waist down. Ricky sued the owners of XYZ stadium and was
awarded $150,000 to cover his medical bills and $2.5 million in _______ because of the
permanent nature of his injury. CORRECT ANSWERS General damages
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