Texas all lines adjuster exam Questions and Answers
Explained (Latest 2023)
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.
Texas all lines adjuster exam Questions and Answers
Explained (Latest 2023)
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
Texas all lines adjuster exam Questions and Answers
Explained (Latest 2023)
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.
Texas all lines adjuster exam Questions and Answers
Explained (Latest 2023)
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.
Texas All Lines Adjuster Test Questions and Answers
Latest Update 2023
The total decrease in an item’s value over a period of time. Formula: (Annual
Depreciation x Number of years used) – correct answer ✅Accumulated
Depreciation
The deadline for providing the insurer with an acreage report, which is used
to determine the amount of coverage needed and the premium charged for
a particular crop. – correct answer ✅Acreage Reporting Date
A valuation method used by insurers to reflect an item’s current market
value right before being damaged or destroyed. Formula: (Replacement cost
- Accumulated Depreciation) – correct answer ✅Actual Cash Value (ACV)
A history of a farmer’s crop yields over a multi-year period, which is used to
determine the normal production level of a farm. – correct answer ✅Actual
Production History
Characteristic of an insurance contract. Means that one party (the insurer)
sets the terms, and the other (the policyholder) can “take it or leave it.” –
correct answer ✅Adhesion
Texas All Lines Adjuster Test Questions and Answers
Latest Update 2023
Narrowest (and least expensive) form of Crop Revenue Insurance. Insures
farm revenue as a whole instead of individual crops. Guarantees a
percentage of the insured farm’s average revenue. – correct answer
✅Adjusted Gross Revenue (Crop Insurance)
An agent who, for compensation, processes insurance claims. Can represent
either the insured or the insurer. – correct answer ✅Adjuster
Adjusters who are temporarily licensed by the insurance commissioner to
handle claims during catastrophes or emergencies that produce an
overwhelming number of claims in a short period of time. – correct answer
✅Adjuster – Emergency
Self-employed adjusters who contract with multiple insurers at the same
time. Paid on a commission or fee-plus-expenses basis for each claim. Also
called: Fee Adjuster, Bureau Adjuster – correct answer ✅Adjuster –
Independent
An adjuster who is hired to represent the claimant and help determine a fair
indemnification. Usually specializes in appraisals and negotiation. Paid
Texas All Lines Adjuster Test Questions and Answers
Latest Update 2023
commission, usually a percentage of final settlement. – correct answer
✅Adjuster – Public
Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster – correct answer
✅Adjuster – Staff
A settlement option that lets the insurer offer some financial relief to the
claimant before the claim has been fully settled. The insurer makes advance
payments to the claimant, which are then subtracted from the final
settlement amount. Often used when a claimant suffers bodily injury and is
unable to work. – correct answer ✅Advance Payment Settlement
The Agent’s authority to act on behalf of someone else, usually an insurer.
This authority is derived from the agent’s contract with the insurer. – correct
answer ✅Agency Authority
Authority that is expressly given to the agent in writing. Allows agent to act
on behalf of the principal. – correct answer ✅Agency Authority – express
Texas All Lines Adjuster Test Questions and Answers
Latest Update 2023
Authority that an agent possesses by implication of her behavior, regardless
of whether this authority is granted in writing. – correct answer ✅Agency
Authority – implied
Authority that an agent possesses based on the appearance of representing
the insurer. – correct answer ✅Agency Authority – apparent
Someone who has received authority from an insurer to sell or service
insurance policies. – correct answer ✅Agent
A type of policy limit found in some health, liability, and property damage
policies. It represents the total amount the insurer will pay for all losses (as
opposed to an occurrence limit, which denotes the total amount the insurer
will pay per occurrence). – correct answer ✅Aggregate Limit
One of the four requirements of a legally binding contract. All parties
involved must agree to the terms of the contract. Can also refer to a binder,
which is the preliminary substance of a contract. – correct answer
✅Agreement