Texas all lines adjuster exam | 378 Questions with 100% Correct Answers | 36 Pages
All of the following are criteria for an accident to have occurred
... [Show More] "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.
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
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.
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.
Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? Correct 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? Correct Answer: The coverage is not additional insurance and does not increase the limits of the policy.
Which of the following would be covered under the Jones Act? Correct Answer: Crew members of a ship.
All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: Correct Answer: The policy will cover watercraft liability.
Which of the following statements is TRUE regarding Commercial Property coverage? Correct 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? Correct 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? Correct 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? Correct 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"? Correct 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: Correct 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: Correct 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: Correct 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? Correct 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? Correct 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"? Correct 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? Correct 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? Correct 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: Correct Answer: Fraud
Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? Correct 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: Correct 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? Correct 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)? Correct 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..
The additional coverage for debris removal under the standardized Building and Personal Property coverage form will only be paid if: Correct Answer: The insured reports the debris removal expenses to the insurance company in writing within 180 days of the loss..
The insured is covered under a Watercraft policy and asks the agent about a lay-up period credit to get a reduction in the premium. The dates of the lay-up period are specified in the policy. There is an emergency and the insured must use his boat in a life saving event. The boat is damaged and sinks. Under what circumstances would coverage apply? Correct Answer: Only if the insurance company is notified within 10 days of the emergency use
Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy? Correct Answer: Professional liability coverage.
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: Correct Answer: Will the insurer become insolvent if they pay the claim as submitted by the insured?
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? Correct Answer: The insured may purchase either a Commercial Umbrella or an Excess Liability policy to increase his liability insurance limits..
Which of the following statements defines a "bailee"? Correct Answer: Someone, other than the insured, to whom the insured property is entrusted temporarily.
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? Correct Answer: Barratry.
Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: Correct Answer: That owned private passenger autos only are covered..
An applicant fails to disclose known facts when completing an application for insurance. This act is known as: Correct Answer: Concealment
All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT: Correct Answer: When the Part A limits are exhausted, any limits for Uninsured Motorists coverage can be used to pay the entire claim..
If a covered business is a limited liability company, the standard Businessowners policy provides coverage for all of the following "insureds", EXCEPT: Correct Answer: Executive director..
The HO-3 form insures for direct physical loss to covered property involving collapse of a building caused by all of the following, EXCEPT: Correct Answer: Settling.
All of the following statements are TRUE if Builders' Risk coverage is written on a completed value basis, EXCEPT Correct Answer: All premiums must be paid up front before construction can begin..
A non-waiver agreement allows the insurer to: Correct Answer: Investigate a loss without implying that it is covered
Which of the following sections of an Ocean Marine policy is very similar to the "Duties of the Insured" in other property policies? Correct Answer: The Sue and Labor clause
Coverage under a standard Personal Watercraft policy extends to all of the following, EXCEPT: Correct Answer: The crew of the boat for medical payments
Loss to insured property caused by self-propelled missiles is covered under which of the following perils of the Homeowners form? Correct Answer: Aircraft.
The importance of an "Insured or Witness Investigation" is that: Correct Answer: Obtaining their statements is very important in determining who is liable
Which of the following basic coverages are provided under a Standard Fire policy? Correct Answer: Fire, lightning and removal..
All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: Correct Answer: Commercial Package Policies can include Ocean Marine and Aviation Insurance coverage. .
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? Correct Answer: After a waiting period of 48 hours, her policy will pay $20 per day up to a maximum of $600
The insured carries an unendorsed DP-3 dwelling policy on his home and personal contents. While traveling abroad someone broke into the home and stole $200 in cash, a shotgun valued at $1,000, and other household items valued at $2,000. Damage caused by the burglars is $1,500. Assuming no deductible applies to their coverage how much would be paid? Correct Answer: $1,500
If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue: Correct Answer: On the 8th day after the disability began
Which of the following is NOT an "alternative dispute resolution" (ADR) used to deal with coverage disputes in the claim settlement process? Correct Answer: Litigation
Mike purchased a policy several years ago to cover him for liability. Last year, Mike determined that the limits of his liability policy were not high enough to cover him adequately should a loss occur, so he purchases an excess liability policy to provide more coverage. Mike experiences a loss, and discovers that his underlying liability policy had expired before the loss, but his excess liability policy is still in effect. How will this loss be paid? Correct Answer: It will be denied, due to nonconcurrency.
Workers' compensation insurance premium rates are typically affected by each of the following factors, EXCEPT: Correct Answer: The company's current profit or loss.
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? Correct Answer: Uninsured boater's coverage and hull insurance.
Catherine suffered a covered cause of loss that resulted in water in her basement along with other damage. Alan, an adjuster for Binders Keepers Insurance, tells Catherine to immediately have the water damaged carpeting and wall paneling removed from her basement, so that mold will not cause further damage. Alan then begins the process of identifying coverage under the policy and finds that the water damage is not covered. Which of the following statements is TRUE regarding this claim? Correct Answer: Because Alan told Catherine to remove the carpeting and paneling before he checked the coverage, he waived the right of Binders Keepers to deny the claim..
Which of the following is NOT TRUE regarding surety bonds? Correct Answer: They are an agreement that in exchange for a premium, the surety will indemnify the obligee..
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? Correct Answer: The Personal Auto policy would be the primary and would pay up to the policy limits, then the Umbrella policy would be excess to pay up to its policy limits.
George went out for target practice one day with his handgun. He has practiced many times with the same target located in the woods behind his house. Unbeknownst to George, a neighbor was walking in the woods behind the target one day and was shot in the leg by George. Intentional acts are never covered by insurance, however, the claim filed by the injured neighbor may be covered under George's liability coverage. Which of the following is the most likely reason why? Correct Answer: Shooting the gun was an intentional act committed by George, but the consequences of act (his neighbor being shot) were not intended.
Acme Corp. requested three bids from different contractors for the construction of its new office building. Acme accepted the lowest bid from Corbett's Contracting and entered into a contract to have the office building constructed. After construction was completed, Corbett's presented Acme with a bill for construction costs over and above the amount of the bid that was agreed to in the contract. Which of the following types of bonds would protect Acme from paying the additional costs? Correct Answer: A performance bond.
Which of the following are NOT required to hold an adjuster license in Texas? Correct Answer: A person who works for an insurer and adjusts claims on losses that do not exceed $500
Which of the following is NOT covered under aircraft physical damage (hull) insurance? Correct Answer: Personal effects.
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: Correct Answer: An unfair claims settlement practice.
Which of the following best describes an "insurance producer"? Correct Answer: Someone who represents an insurance company in the soliciting and negotiation of insurance. [Show Less]