TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!! (200+ QUESTIONS AND CORRECT ANSWERS) 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
Which of the following statements is NOT TRUE regarding the implied warranties of an Ocean Marine policy?
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
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:
To be eligible for coverage under a standardized Dwelling policy, the insured must not allow more than boarders to live on the premises.
All of the following are \Perils of the Sea\” under an Ocean Marine policy
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:
Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income
The \Part B – Medical Payments\” coverage of a personal automobile policy covers injuries for all of the following
Which of the following are the Texas Workers’ Compensation benefits that are increased by a cost-of-living adjustment (COLAs)
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:
Surplus Lines companies in Texas have _ to acknowledge the receipt of a claim. All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT: Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: Which of the following is NOT one of the four major coverages of an Ocean Marine policy? A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following statements is FALSE regarding this power? The standardized Dwelling forms consider all eruptions of a volcano within a _ period to be a single \occurrence\”.”
Whose responsibility is it to complete a \proof of loss\”?”
Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action?
Which of the following statements is TRUE regarding the Homeowners \additional coverage\” known as Landlord’s Furnishings?”
Which of the following would be covered under the Jones Act?
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT:
Which of the following statements is TRUE regarding Commercial Property coverage?
What type of insurance is usually provided or subsidized by the state or federal government because it is not ordinarily available from private insurers?
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?”
Which of the following would be considered an Unfair Claim Settlement Practice?
Which of the following is TRUE regarding the DP-2 Broad Form coverage for \artificially generated electrical current\”?”
The Commercial Building and Personal Property coverage form provides five extensions of coverage, but only if:
All of the following would be considered \uninsured motorists\”
Regulation of the insurance industry in the United States is primarily left to:
Which of the following coverages does NOT need to be added to a Garage Coverage form by endorsement for coverage to apply?
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\”?”
Which of the following would be considered a Part D – Other Than Collision claim under a Personal Automobile claim?
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?”
An agent, insured or claimant has intentionally deceived an insurer for financial gain. Such an act is known as:
Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached?
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:
Which of the following is NOT eligible for a coverage under a Homeowners insurance policy?
The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if:
Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy?
When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT:
An insured is covered under a CGL policy. He would like to purchase another policy to increase the limits of insurance for his commercial liability exposures. Which of the following statements is correct regarding the insured’s situation?
Which of the following statements defines a \bailee\”?”
The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the owner. In ocean marine coverage, what is this called?
Symbol 23 is designated on the insured’s Garage Coverage form. This indicates that:
An applicant fails to disclose known facts when completing an application for insurance. This act is known as:
All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT:
If a covered business is a limited liability company, the standard Businessowners policy provides coverage for all of the following \insureds\”
The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT:
All of the following statements are TRUE if Builders’ Risk coverage is written on a completed value basis, EXCEPT
A non-waiver agreement allows the insurer to:
Which of the following sections of an Ocean Marine policy is very similar to the \Duties of the Insured\” in other property policies?”
Coverage under a standard Personal Watercraft policy extends to all of the following, EXCEPT:
Loss to insured property caused by self-propelled missiles is covered under which of the following perils of the Homeowners form?
The importance of an \Insured or Witness Investigation\” is that:”
Which of the following basic coverages are provided under a Standard Fire policy?
All of the following statements regarding the Commercial Package Policy are correct, EXCEPT:
Ellen’s automobile is stolen. The theft is properly reported to the police and the insurance company. She rents a car for two months. Which of the following would apply for the rental car?
If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue:
Which of the following is NOT an \alternative dispute resolution\” (ADR) used to deal with coverage disputes in the claim settlement process?”
Workers’ compensation insurance premium rates are typically affected by each of the following factors, EXCEPT:
An insured’s boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy, what coverages would apply?
Which of the following is NOT TRUE regarding surety bonds?
The insured carries a Personal Auto policy and a Personal Umbrella policy. In case of a loss, how would the policies respond to pay a covered claim?
Which of the following are NOT required to hold an adjuster license in Texas?
Which of the following is NOT covered under aircraft physical damage (hull) insurance?
An insured submits a claim to the insurer and their adjuster acknowledges receipt of the claim. The insured then hears nothing more after making repeated attempts to contact the adjuster. This is considered:
Which of the following best describes an \insurance producer\”?”
When insurance is written on a Dwelling form, each of the following types of property would be insured under Coverage A, EXCEPT:
The Garage Coverage form can be used to cover dealers that sell all of the following, EXCEPT:
Ocean marine coverage for losses to the insured vessel caused by bursting boilers, latent defects in the vessel and negligence of the master or crew members are addressed by which of the following?
The part of a standard workers’ compensation policy that contains the cancellation procedures is:
The 1943 New York Standard Fire policy specifically excludes all of the following, EXCEPT:
The standard Personal Automobile policy provisions state that the insurance company has subrogation rights against any person permitted to use a covered auto, under all coverages, EXCEPT:
Max was injured on the job in Texas. Max has reached MMI but will have a permanent limp while walking that was due to the compensable injury. Which of the following terms as defined by the Texas Workers Compensation code best describes how Max’s injury will be classified?
All of the following is a function of the standard mortgage clause in a property insurance policy, EXCEPT:
Insurance adjusters have the \power to bind\”. Which of the following statements best describes what this means?”
Which of the following types of bonds guarantees that all project materials will be paid in full by the contractor upon completion of the project?
Which of the following is NOT a \duty of the insured\” after a loss?”
All of the following are perils NOT typically covered by property cause of loss forms, EXCEPT:
What is the minimum limit for Coverage L of the Personal Liability Supplement that can be attached to a Dwelling Property policy?
The \Medical Payments\” section of the standard Yacht policy will provide coverage for all of the following
Which of the following coverages would NOT be included in the liability section of the Businessowners policy?
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair or set clause the insurance company will pay a maximum of which of the following amounts?
Economic loss that is the consequence of a direct loss is known as:
Which of the following is NOT TRUE of coverage for Business Personal Property and Personal Property of Others in a Commercial Property policy?
Which of the following would be considered an \incidental occupancy\” under a Homeowners policy?”
Scott lives in Texas and has submitted a claim to his insurance company. He has received notice from the insurer that the claim is covered under the policy and they will be paying the claim. How long does the insurer have to pay Scott’s claim according to Texas law?
All of the following are duties that a Texas insurer must perform within 15 days after receipt of the claim, EXCEPT:
Which of the following is NOT a claim settlement option for liability claims?
Julius has selected the \Maximum Period of Indemnity\” optional coverage of the Business Income form. Which of the following statements is TRUE regarding how a loss will be paid if this option is selected?”
The \Medical Payments\” coverage of the standard Yacht policy covers all medical expenses incurred by an insured
Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be:
An \other insurance\” clause is included in insurance policies to deal with the problem of:”
Under the DP-3 special form, which of the following losses would NOT be covered?
The purpose of the Expediting Expenses coverage of a standard Equipment Breakdown policy is:
Which of the following would be excluded under Part A of the Personal Auto policy?
A Texas insurer has notified a claimant that all or part of a claim will be paid. The claim must be paid not later than the _ business day after the date notice is made. The type of auto body frame that is most often used in today’s automobile and is a single molded unit, is known as: A contractor in need of a bid bond to obtain a contract is an example of a(n): When loss settlement under a policy is the \agreed value\” The \control of property\” condition of the Commercial Property policy:” The aircraft physical damage (hull) deductible is normally expressed as: Ally’s insurance agency has contracted with Indemnify Insurance to sell only those insurance products offered by Indemnify. Ally’s is utilizing which of the following types of insurance marketing and distribution systems? In which of the following situations would trees, shrubs, and other plants be covered by the Homeowners additional coverages? Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? All of the following would be eligible as \your covered auto\” under a standard personal automobile policy All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: Which of the following would be covered under Coverage B of the Business and Personal Property coverage form? The \Business Income\” additional coverage under the standard Businessowners policy includes all of the following in its definition of \”ordinary payroll expenses\” Coverage D – Loss of Use on the Homeowners forms provides coverage for \Civil Authority Prohibits Use\” for:” When a claims representative is collecting information from a third-party claimant, which of the following is the information that should be obtained first? Which of the following would be considered \economic losses\” that could result in compensatory damages being awarded in a negligence case?” A structure made of modified fire resistive materials has a fire resistive rating of: A Commercial Property policy has the \Protective Safeguards endorsement attached indicating that the insured has protective safeguards installed such as a sprinkler system. Should the system become inoperative Under a DP-2 or DP-3 standardized policy what is the maximum that would be paid for one month for additional living expenses if Coverage A was $75,000? The type of claims investigation that looks at the possibility of a third-party being responsible for the loss is known as: The Commercial Property condition known as \Concealment Which of the following Equipment Breakdown coverages applies to direct damage to covered property located at a premises described in the Declarations? Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? The Part B – Medical Payments coverage under a standard Personal Auto policy will cover the insured if he/she is injured while a passenger on a: Garagekeeper’s liability coverage excludes all of the following losses, EXCEPT: All of the following are a \cause of loss\” form For a workers’ compensation claim to be compensable, the injury suffered by the employee must meet all of the following criteria, EXCEPT: Part One of the NCCI standard workers’ compensation policy specifies the: Risk is best defined as: When would the Personal Auto policy respond to a loss with an all-terrain three-wheeled vehicle? Which of the following is a true statement regarding the \law of large numbers\”?” A surety bond is: All of the following would be considered an \insured\” on a Homeowners policy In order to qualify for a surety bond there are times the principal must have another party sign the agreement. This party agrees to reimburse the surety if the principal defaults. This party is known as: Henrietta has purchased a Personal Automobile policy and she sees the following under Part A:$25,000/$50,000/$30,000Which of the following statements is TRUE regarding these numbers? Which of the following statements is NOT TRUE regarding the \period of restoration\” for Business Income and Extra Expense coverage?” Part F of the standard Personal Automobile policy states that the policy can be terminated within the first 60 days for any reason other than non-payment of premium if: An insured’s car is damaged in an auto accident. While it is being repaired, the body shop loans the insured a replacement. From a coverage standpoint, this replacement vehicle is known as: If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)? Part B of the personal automobile policy provides coverage, regardless of fault, for necessary medical and funeral expenses incurred within how many years of the date of the injury? Texas insurance licensees must complete hours of continuing education each reporting period.
A home is insured under an HO-3 policy. One of the \other structures\” on the same property is used by the insured for his business. The building burns in a fire. It would:”
What is the main purpose of government regulation of the insurance industry?
All of the following are duties of the insured after a loss, EXCEPT:
On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT:
Sally’s home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following?
Which of the following would NOT be included in an adjuster’s initial / field / preliminary report?
An insurance company is given a C++ rating by A.M. Best. This means:
Which of the following is one of the duties of the insured as specified in a Commercial Inland Marine policy?
If the insured purchases a new aircraft to replace a scheduled aircraft, there is automatic coverage provided the insurance company is notified within days of the purchase and premium payment is made.
The giving up of a known right is called:
Which of the following is the best definition of \fire\”?”
Which of the following is not an \additional coverage\” under Homeowners Liability — Section II coverage?”
Which coverage of a Homeowners policy would pay for damage to a neighbor’s window caused by the insured?
Which of the following best characterizes the difference between captive agents and independent agents?
The additional coverage of the Commercial Property cause of loss forms known as the \Limited Coverage for Fungus
All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT:
The HO-7 form is a rarely used form that covers:
Which of the following best demonstrates a morale hazard?
Coverage under the Builders’ Risk form is written for:
All of the following items are given a \special limit of liability\” under Coverage C of the Homeowners policies
Lara is moving to Europe for two years in order to take advantage of a promotion at her job. She will not take her 4-seat propeller plane with her. What type of Aviation policy would be best for Lara to purchase for coverage on her plane while it is in storage and she is in Europe?
Which of the following best describes how the peril of \theft\” is covered under the 1943 New York Standard Fire policy?”
Which of the following claims would NOT be covered under Section II — Liability of a Homeowners policy?
The standard Businessowners policy extension of coverage for \Outdoor Property\” provides of coverage for any one tree
Which of the following types of coverages are included in the standardized Businessowners policy?
An adjuster has uncovered some discrepancies in matters pertaining to a claim, and is unable to contact the insured to discuss these matters. What should the adjuster do in this situation?
Which of the following situations would NOT be considered an unfair claim settlement practice according to the NAIC Model Act?
Morton loses control of his car and hits Jordan’s car that was parked legally along the street where Morton was driving. The damage to Jordan’s car is covered by which coverage of Morton’s personal automobile policy?
Which of the following contractors would be eligible for a Businessowners policy?
At which step in the adjusting process does the adjuster determine \who\” or \”what\” is insured by the policy under which the claim was submitted?”
Which of the following statements is TRUE regarding an \examination under oath\”?”
In regards to Workers Compensation insurance, which of the following experience modification factors would indicate that an insured has sustained a relatively high frequency and severity of losses in the recent past?
In insurance terms, the phrase \severability of insurance\” means:”
Which of the garage policy coverages will pay for physical damage to a garage customer’s auto regardless of legal liability?
All of the following statements are true regarding the revocation or modification of a certificate of authority in Texas, EXCEPT:
Each of the following is considered to be an \implied warranty\” in an Ocean Marine insurance policy
All of the following are listed in the common declarations of a Commercial Package policy (CPP), EXCEPT:
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?
A dead tree beside Jerry’s home is best described as which of the following types of hazards?
In Texas, a doctor must certify that an injured employee has reached Maximum Medical Improvement (MMI) and will assign an impairment rating (IR) for the percentage of permanent impairment that the injured worker has experienced by using the rating criteria:
The limit of a bond is known as its:
Which of the following serves as a deterrent for an insured to cancel an insurance policy before its expiration date?
Which of the following would be covered by Section I of the Businessowners policy?
Which of the following protects against legal liability for loss or damage to baggage?
Which of the following coverages is included as \no-fault\” coverage on the standardized Personal Auto policy?”
Which of the following types of insurance companies is a non-profit organization?
In order for a contract to be binding in a court of law, it must be designed for:
Which of the following additional coverages provided by the Building and Personal Property coverage form applies only to buildings to which the replacement cost optional coverage applies?
Which of the following statements is TRUE regarding the DP-2 cause of loss form?
If an insured is covered under an HO-2 policy, damage caused by wind to his/her personal property would be covered if:
Under Ben Green’s personal auto policy, each of the following would qualify as a \family member\” EXCEPT:”
All of the following statements are true regarding the HO-1 form, EXCEPT:
A Texas employer who chooses NOT to provide workers’ compensation coverage:I. Loses civil immunity.II. May be sued for damages when an employee is injured in the of employment.III. Will have to pay a fee of $500.
Which of the following would NOT be excluded under the Commercial Property basic cause of loss form?
Which of the following losses would be covered by Part D of a standard Personal Auto policy providing both \Other Than Collision\” (Comprehensive) and \”Collision\” coverage?”
Which of the following would be covered under Part Two – Employer’s Liability of a standard workers’ compensation policy?
What coverage is provided under the BOP for a steam boiler explosion?
Which of the following is NOT covered on the Commercial Property basic cause of loss form?
Under which circumstances would it be legal for an insurer to charge one insured more than another insured for the same coverage?
Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim is negotiated?
A type of insurance that permits an insured to collect from his/her own insurance company, without proving the negligence of a third-party, is known as:
The insured carries a yacht policy and is pulling a water skier. The skier is a family member and is injured. What coverage might apply to this accident?
Under a standardized Dwelling form, a loss by a covered peril for Improvements, Alterations and Additions is covered for up to:
Which of the following statements is TRUE regarding the peril of theft under the Homeowners policies?
A company that repairs customers’ aircraft may need which of the following coverages to pay for the accidental damage to the customers’ aircraft while it is in the insured’s care, custody, or control?
Personal Automobile policies use which of the following alternative dispute methods when the insured and the insurance company cannot agree on the amount to be paid by the uninsured or underinsured motorist coverage?
Which of the following statements would be a reason for an adjuster to conduct a \claimant investigation\”?”
Which of the following is TRUE regarding coverage for a vegetated roof under the Building & Personal Property coverage form of a Commercial Property policy?
Which of the following is not a true statement regarding the use of non-original equipment manufactured replacement parts for vehicles?
The definition of \occupying\” in the personal auto definitions means all of the following
Which of the following statements is true regarding a stock insurance company?
Texas issues emergency adjuster licenses in case of an emergency arising out of a disaster. The application must be certified not later than the fifth day after the date on which the person begins works as an adjuster. An emergency license is valid for _ days. Homeowners policies provide personal liability coverage that follows an insured anywhere in the world under: The Builders’ Risk form covers all of the following, EXCEPT: A loss reserving method that establishes aggregate reserves for all claims for a single line of insurance is known as: The medical payments coverage of an Aircraft Liability policy provided coverage for bodily injury expenses incurred by accident: Under a standard Equipment Breakdown policy, the loss settlement is: Which Garage Coverage form symbol is used to indicate that the covered automobile(s) is/are subject to a compulsory \no-fault\” law?” All of the following statements are true regarding state Guaranty Associations, EXCEPT: Which of the following types of property can NOT be covered under a Commercial Inland Marine form? Which of the following statements concerning the Earthquake and Volcanic Eruption Endorsement to a Commercial Property policy is NOT TRUE? Loss settlement for personal property that is covered under Coverage C of a standard unendorsed ISO Homeowners policy is on a(n) All the following are covered under Section II of a Homeowners policy, EXCEPT: Adjusters in Texas must complete at least of the continuing education required to renew their license in a classroom or classroom equivalent setting
All of the following are included in the Businessowners policy coverage territory, EXCEPT:
All of the following statements are TRUE regarding Section II – Liability of the Garage Coverage form, EXCEPT:
The \period of restoration\” for the Extra Expense coverage included on the Business Income form is:”
Willie’s Widgets has been earning a large portion of their market share for 10 years. During Willie’s 11th year in business, Wynonna’s Widgets opens and her superior marketing practices leaves Willie unable to continue in business. Which of the following types of risk caused Willie’s loss?
A gas line explodes outside of Mindy’s Mending Shop, ruining her new landscaping. Which coverage extension of Mindy’s Commercial Property policy would cover the cost of replacing the damaged trees and shrubs?
The endorsement used to report the insured’s actual and estimated business income under an Equipment Breakdown policy is called:
Adele Sullivan’s car is hit from the rear by Clarence Brown’s car. Mrs. Sullivan’s insurance company pays her claim under her physical damage coverage and makes a claim against Mr. Brown’s insurance company for the same amount. This process is called:
An insured is covered under a Commercial Property policy with the special cause of loss form attached. The insured suffers a loss to some valuable papers and records pertinent to his business. Which of the following statements is correct about how this loss will be covered?
In order to receive death benefits under workers’ compensation in Texas, when must the beneficiaries file a claim with the Division of Workers Compensation?
A requirement that a plaintiff file a lawsuit within a specific period of time after the cause of the lawsuit has occurred, which is oftentimes when the injury occurred or was discovered is known as:
Under a Personal Articles Floater, a pair of antique salt and pepper shakers is insured for $1,000. When one of the shakers is broken, the remaining shaker is worth only $200. How much will the insured receive for the loss without taking into account the deductible?
Which of the following is eligible to be a named insured under a Homeowners policy?
A Commercial Package Policy (CPP) always includes:I. A single Declarations page common to all coverages.II. A single Conditions section common to all coverages.III. A single Exclusions section common to all coverages.
Which of the following describes a moral hazard?
A claim is being litigated in court by Michael on behalf of Janet who was physically injured by a negligent party. Michael asks Janet to show the court her disfiguring scars. Which of the following types of evidence is Janet presenting to the court?
The four main sections of a Standard Fire Policy are:
For the insured dwelling and other structures, the DP-3 provides:
Which of the following statements is TRUE of Ocean Marine insurance?
All of the following statements are TRUE regarding the \Equipment Breakdown\” coverage extension of the standard Businessowners policy
Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her vehicle be repaired at a repair shop of the insurer’s choice. The insurer:
All of the following are exclusions under the Standard Fire policy, EXCEPT:
One of the Unfair Claim Settlement Practices is \failing to affirm or deny coverage of claims within a reasonable time after having completed its investigation related to such claim or claims\”. How is the length of time that is considered \”reasonable\” decided?”
All of the following are reasons an IME may be requested by a workers’ compensation insurer, EXCEPT:
An insured has reported a claim late that occurred over one year ago and now seeks defense representation and coverage under his automobile policy. What should the adjuster do?
In ocean marine insurance, each of the following is true about the term \general average\”
All of the following statements are TRUE regarding automobile \no-fault\” laws
Paolo has an expensive boat and is purchasing insurance to cover it. He is discussing the deductible and his agent suggests a deductible amount that Paolo could pay if the Hull of his boat was severely damaged. Which of the following types of deductibles would be best for Paolo?
When determining if an injury or illness is compensable under a workers’ compensation policy, which of the following is the criteria used?
Under a Businessowners policy, the \Hired and Nonowned Auto Liability\” endorsement would cover:”
Which of the following would be covered under a Personal Umbrella policy?
All of the following would NOT be covered under any section of the Business and Personal Property coverage form, EXCEPT:
What is the limit for the \Business Income\” additional coverage under a standard Businessowners policy?”
An agent with a surplus/excess lines license, will place insurance business with an unauthorized insurer when:
Which of the following are exempt from Texas workers compensation laws?I. a person employed as a domestic worker or a casual worker engaged in a personal residence;II. a person covered by a federal workers compensation law; orIII. a farm or ranch employee.
The broad evidence rule is used when:
Which of the following is most likely to be uninsurable?
The major difference in Section I of an HO-2 and an HO-4 form is:
A Texas adjuster may be subjected to a criminal penalty for all of the following, EXCEPT:
The maximum amount a liability policy will pay for all occurrences taking place during the policy period, is known as:
Under a surety bond, the \principal\” is the party that:”
The perils most frequently covered by a Difference in Conditions policy are:
To prove negligence, the \proximate\” or \”legal cause\” of an injury or loss
The liberalization clause of a Businessowners policy automatically applies favorable expansions of coverage, for which a premium is not charged if the changes are made during the policy period or within __ prior to the effective date of the policy.
Uninsured Motorist (UM) coverage claims are:
The Coverage C – Uninsured Motorists coverage of a standard, unendorsed Personal Automobile policy applies to all of the following, EXCEPT:
Which of the following statements is TRUE regarding controlled commercial inland marine forms?
An insured does not carry enough insurance to comply with the coinsurance clause of his Homeowners policy. If this insured would have a loss to his covered home, how will the insurer settle the loss?
The Insurance Commissioner/Director/Superintendent of a given state would refer to an insurance company formed under the laws of a different state as:
Fred is an adjuster with Indemnify Insurance, Inc. He is authorized by the company to pay insureds or claimants up to $75,000 on Homeowners claims and up to $40,000 on health insurance claims. This is known as:
Personal Excess Liability policies provide coverage for all of the following, EXCEPT:
Which one of the following situations would be considered an example of absolute (strict) liability?
The \Medical Expense\” coverage of Section II of the Businessowners policy will pay the reasonable expenses for first aid
The BOP has limitations on the square footage in regard to eligible retail and service risks. What is the maximum square footage a building can contain and still be eligible for the policy?
The Commercial Property coverage extension \Business Personal Property Temporarily in Portable Storage Units\” will provide $10
What is the main difference between arbitration and mediation in dealing with coverage disputes in the claims adjusting process
Neil is a worker who has been injured on the job in Texas. He has been receiving temporary income benefits and he has reached MMI. Neil’s treating physician has assigned an IR of 12% on his case. How many weeks of Impairment Income Benefits (IIBs) will Neil receive?
Private, unincorporated mutual insurers that consist of associations that agree to equally share risks among its members are known as:
Under Coverage F – Medical Payments in Section II of the standard Homeowners policies, medical expenses for the injured party will be paid as long as the claim is submitted:
State \financial responsibility\” laws determine the amount of coverage that must be purchased and how insureds must prove coverage under which of the following Personal Automobile insuring agreements?”
The insured carries a standard Yacht policy on his vessel registered in Florida. One of the crew members is injured while performing a work-related task on the yacht while sailing off the coast of Italy. What coverage would respond to the crew member’s injuries?
All of the following sections are included on the Business and Personal Property coverage form, EXCEPT:
The standardized Dwelling forms allow the insured to bring legal action against the insurer if they have complied with all policy provisions and the action is brought within:
An \uninsured motor vehicle\” under a personal auto policy does not include:”
With regard to workers’ compensation coverage, a \competitive\” state is:”
Which of the following is a coverage that may be selected on an Equipment Breakdown form by showing a limit of liability amount next to the coverage?
Which of the following would be covered under any of the Homeowners forms?
Which of the following is a covered basic form peril of the Homeowners policies?
All of the following statements are TRUE regarding the perils of the Homeowners forms, EXCEPT
Requiring a claimant to travel a long distance to have his or her automobile repaired violates which of the following standards for prompt investigations and fair and equitable settlements?
The authority the general public believes an insurance professional possesses based on their actions is known as:
The \Pollution Clean-Up and Removal\” coverage under the Building and Personal Property coverage form of a CPP:”
A contractor’s bid bond is used:
When the Personal Liability Supplement is purchased as a monoline policy, all of the following are required conditions, EXCEPT:
Which of the following statements is TRUE regarding the Personal Effects Floater?
While inspecting a recently insured building, an insurance company representative notices a loose handrail on a stairway. When writing to the agent, the company official would refer to this situation as which of the following?
Under the DP-3 special form, which of the following would be covered?
An insured has taken an inventory of his merchandise and discovers a substantial shortage of valuable stock. He submits a claim to his insurance carrier that provides his coverage under a Businessowners Policy. What coverage is provided by the BOP for the missing inventory?
Driver 1 and Driver 2 are in an accident. Driver 2 has the following damages:Property Damage – $1,000Rental Car Expense – $500Emergency Room Expense – $400Lost Wages – $300
Any corporation organized with a representative form of government operated solely for the mutual benefit of its members is known as a:
A deductible applies to all of the following additional coverages under the standard Homeowners forms, EXCEPT:
Under a surety bond, the party that is guaranteed that the principal will perform is known as:
Which of the following sentence which best describes the term \fiduciary\”.”
Which of the following statements regarding uncontrolled Commercial Inland Marine forms is NOT TRUE?
Nina has the \Preservation of Property\” additional coverage included in her standard Businessowners policy. How long does coverage apply while the property is being stored at another location?”
What does the term \comparative negligence\” refer to?”
Which of the following statements is TRUE regarding how the standard Businessowners policy additional coverage of \Collapse\” becomes payable?”
All of the following are examples of forms used to cover cargo in Ocean Marine insurance, EXCEPT:
If an employee is eligible to receive impairment income benefits, what is payment based on?
What is generally excluded on the Condominium Commercial Unit-Owners form?
Marcus has two Commercial Property policies covering his warehouse. Policy A is the primary policy and has a $200,000 limit, and Policy B is an excess policy with a $100,000 limit. After a fire causes $140,000 damage to his warehouse, how will each of Marcus’ policies respond (disregarding any deductible)?
The penalty for failure to satisfy a coinsurance requirement of a property insurance policy is:
Which of the following is true regarding pure and speculative risks?
Which \conditions\” form in a complete Commercial Property policy specifies how a disagreement on the value of damaged property is handled?”
The Section II – Additional Coverages of Homeowners policies, damage to the property of others (whether or not in the insured’s custody and regardless of fault) is covered up to:
Which of the following statements is TRUE regarding the DP-3 special form?
\Experience rating\” provides employers with the incentive to:”
Which of the following types of insurance companies must charge a premium tax to be remitted to the state each time a policy is sold?
An independent adjuster acts on behalf of his or her principal. Which of the following is the principal for an independent adjuster?
Jerry is fishing from his 22-foot boat on Lake Norman when he is caught in a sudden hail storm. His boat suffers extensive hail damage. When he files a claim against his Homeowners policy, the most likely reason his claim is denied because:
A new home that cost $500,000 to build, would need which of the following coverage amounts under a Homeowners policy for the insured to receive full replacement cost coverage in the event of a $50,000 fire loss?
Coverage for all reasonable expenses incurred by an insured in order to continue as nearly as practicable the normal operation of his/her business after a loss is:
There are several different Commercial Property coverage forms that can be added to a Commercial Package policy. Which of the following is NOT described on a Commercial Property coverage form?
All of the following statements are TRUE regarding the standard Businessowners policy coverage extension for \Business Personal Property Temporarily in Portable Storage Units\”
All of the following statements are true regarding Difference in Conditions insurance (DIC), EXCEPT: