TEXAS ALL-LINES ADJUSTER COURSE FINAL EXAM

PDF Download

TEXAS ALL-LINES ADJUSTER COURSE FINAL EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A grocery store employee accidentally runs into a customer with a pallet of canned goods, injuring the customer's leg. What kind of claim would most likely be filed under the store's General Liability policy?

Answer:

A Premises Liability claim Question 2: A severe thunderstorm damaged a policyholder's residence. He called and asked how long it would be before he receives payment for his claim. Which of the following would NOT be an appropriate response?

Answer:

We have 6 months to reach a final settlement with you.Question 3: One of the elements of an insurance contract is that it is "conditional" in nature.

This means that:

Answer:

A policyholder has certain conditions, duties and responsibilities that he or she must meet if a covered loss occurs before a carrier must comply with the terms of the insurance contract.Question 4: Identify the part of the policy that stipulates what is NOT covered:

Answer:

Exclusions

Question 5: Albert is involved in an automobile accident. Fault is attributed to both Albert and the other driver. The method of determining damages due to Albert and the other driver by assigning percentages of negligence to each of them based on their relative contribution to the

accident would be known as:

Answer:

Comparative negligence Question 6: A claims adjuster's primary mission in today's insurance industry is:

Answer:

Help people while also minimizing loss for the insured party and/or carrier.Question 7: The best definition for Replacement Cost is:

Answer:

The cost to replace a damaged or destroyed item of property with one of like kind and quality at today's prices.Question 8: Which of the following perils or exposure are Fidelity bonds generally used to insure against?

Answer:

Embezzlement Question 9: Which of the following would NOT be covered under Coverage C Personal Property?

Answer:

Your 10-year old German Shepherd chokes on a bone and passes away.Question 10: cameron owns a home in west Texas and a severe hail storm recently caused substantial damage to his roof. Cameron filed a claim with his homeowner's carrier. While on the phone reporting the claim, he asked how long it would be before he might expect payment.Which of the following would NOT be an appropriate response?

Answer:

"We have 6 months to reach a final settlement with you." Question 11: Continental Claims Adjusting Services is an independent adjusting company that has just opened an office in Houston to prepare for the upcoming hurricane season. They are researching Texas regulations regarding "poor or inappropriate claims practice behaviors" and

find that, in Texas, these behaviors are regulated by:

Answer:

The Texas Unfair Claim Settlement Practices Act Question 12: 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?

Answer:

Coverage D: Loss of Use

Question 13: Common carriers (i.e. 18-wheelers, trains, planes, etc.) are responsible for damage

to customer goods they transport EXCEPT for damages resulting from:

Answer:

Acts of God Question 14: A "waiver" is defined as:

Answer:

The intentional or voluntary relinquishment of, or "giving up", a known right.Question 15: Whether it is done by a carrier or its adjuster, a breach of contract is taken very seriously. This could be done through non-payment, or even non compliance with policy requirements. Which of the following consequences would a carrier face due to a breach of contract?

Answer:

If found gullty of a breach of contract, the carrier could be punished with a "bad faith" verdict that would cost it millions of dollars.Question 16: Sarai owns a 3-story home left to her by her grandmother. It's located in an older part of the business district. An engineering inspection finds that a significant portion of the roof is decaying due to old water leaks and wood rot. Which of the following statements best describes the insurability of this risk?

Answer:

The roof presents a significant physical hazard that increases the likelihood of loss from roof collapse, water leakage, or third party liability.

Question 17: A grocery store has endorsed its Commercial Property Policy with Crime and Employee Dishonesty Coverage. If, over a period of time, one of the store's cashiers were to steal over $1,500 from cash purchases not processed through the register which of the following coverages would reimburse the insured for such a loss?

Answer:

Employee theft or dishonesty Question 18: The Texas Homeowners' policy that most closely resembles the ISO HO-5, providing all-risk coverage for both the building rand personal property is the:

Answer:

HO-C Question 19: 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?

Answer:

Damage to another duplex right next door, also owned by the landlord.Question 20: 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?

Answer:

The entire theft loss would be covered under Coverage

• subject the policy limits and to certain limitations.

Question 21: 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?

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.