Final Exam Quiz Questions

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Question 1 of 150

1. Question
Which of the following terms best describes premises liabilty?
- Errors & Omissions Insurance or Malpractice
- Product that caused injury was defective
- Property owner's responsibility to maintain a reasonably safe environment
- Liquor liability exclusion to an underlying wrongful death
Correct

Incorrect
Question 2 of 150

2. Question
A Miscellaneous bond is most likely used for ______________.
- A financial certificate
- Financial Institution Bond
- Construction Project
- A company that issues stock
Correct

Incorrect
Question 3 of 150

3. Question
Which below is an example of a hazard?
- An Accident
- A Loss
- A cause of loss
- Explosives in a home basement
Correct

Incorrect
Question 4 of 150

4. Question
Which answer best descibes when an insurance company will pay the costs to repair or replace damaged property by a covered cause of loss without a deduction for depreciation?
- Estimating the reserves
- Creating hold-backs
- Settle claim at replacement cost
- Estimating the salvage
Correct

Incorrect
Question 5 of 150

5. Question
Charging _____________ has become a common practice of contractors in hail storm claims?
- Material and Labor
- Taxes and Labor
- Profit and Taxes
- Overhead and Profit
Correct

Incorrect
Question 6 of 150

6. Question
Which statement below is best practice for insured to handle a claim?
- Don’t report it to your insurance company
- It must be reported to be investigated and resolved
- Settle claim at replacement cost
- Being overly apologetic & admitting fault
Correct

Incorrect
Question 7 of 150

7. Question
A drunken driver runs into the side of an insured dwelling, the insurance company pays the homeowner and subsequently seeks financial recovery from the legally liable party. This process is called______________?
- Salvage
- Subrogation
- Mediation
- Premium
Correct

Incorrect
Question 8 of 150

8. Question
Which is a Fidelity Bond in a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specific individuals?
- Commercial Blanket Bond
- Blanket Position Bond
- Name Schedule Bond
- Surety Bond
Correct

Incorrect

Question 9 of 150

9. Question

A fire has occurred in Mr. Wong’s garage. The date of the loss is February 17, 2017. After filing the claim, Mr. Wong discovered a small problem; his policy covers the period from February 1, 2016 through February 1, 2017. The date February 1, 2017 would be considered his policy’s ________?

Policy Date
Premium Date
Expired Date
Coverage Date

Correct

Incorrect

Question 10 of 150

10. Question

How would you resolve? A hailstorm caused major damage to the named insured’s wooden fence at the insured location. The fence was estimated to be about 10 years old. How will the adjuster determine the settlement of this claim per the Homeowners Form — B policy without an added endorsement?

Replacement Cost
Actual Cash Value
Cannot exceed special limit for wooden fences
No coverage for wooden fences

Correct

Incorrect

Question 11 of 150

11. Question
A large fire destroyed all of the insured’s living room furniture. Under what coverage in the Homeowners B policy would this loss be applied?
- Dwelling
- Personal Property
- Loss of Use
- Conditions
Correct

Incorrect

Question 12 of 150

12. Question

How would you resolve? A large hailstone broke the front window of an insured’s dwelling, Mr. Policyholder went to the lumberyard and purchased a sheet of wood to cover the broken window. The insurance company will reimburse the policyholder at a later date. What is this example called?

Loss Ratio
Depreciation
Settlement
Incurred Expense

Correct

Incorrect

Question 13 of 150

13. Question
A large amount of debris fell into an insured’s yard, in which section of the Homeowner’s policy would the Debris Removal clause be found?
- Section I — Conditions
- Section I — Losses Not Insured
- Section I — Property- Additional Coverage
- Section I — Losses Insured
Correct

Incorrect
Question 14 of 150

14. Question
Which representative of the insurer (insurance company) seeks to determine the extent of the insurer’s liability for loss when a claim is submitted?
- Underwriter
- Agent
- Adjuster
- Appraiser
Correct

Incorrect
Question 15 of 150

15. Question
Choosing to maintain your license, what example below would apply?
- you must meet your continuing education requirements
- you must work at least one claim every two years
- you must score a minimum 70% on the renewal exam
- you must take a course over in 90 days
Correct

Incorrect

Question 16 of 150

16. Question

A supermarket had an accident, a customer purchased a carton of milk that had a small leak in it which caused the tile flooring to become slippery. When several customers lost their footing as a result of the slippery floor they filed a claim for injuries. Under what type of Commercial General Liability policy would this claim be filed?

Professional Liability
Product Liability
Premises Liability
General Operations

Correct

Incorrect

Question 17 of 150

17. Question
A Texas claims adjuster received his adjuster’s license from the Texas Department of Insurance on March 16, 2015. During what month and year will he need to renew his license?
- 16-Mar-16
- 16-Mar-17
- 16-Apr-16
- 16-Apr-17
Correct

Incorrect
Question 18 of 150

18. Question
What would result if a policy condition eliminated coverage for a type of risk?
- Policy exclusion
- Contract between the insured and the insurer
- Third party loss
- Auto liability
Correct

Incorrect

Question 19 of 150

19. Question

John Smith is a California resident and has applied for a Texas adjuster’s license after passing the adjuster pre-licensing exam. His residential status will be considered ____________________ by the Texas Department of Insurance?

Non-resident of Texas
Resident, because he passed the exam in Texas
Non-resident of California
Exempt from any status

Correct

Incorrect

Question 20 of 150

20. Question

If an insurer has a reasonable basis to believe that a loss resulted from arson; the insurer shall notify the claimant in writing of the acceptance or rejection of the claim not later than ___________________.

30 days
45 days
60 days
90 days

Correct

Incorrect

Question 21 of 150

21. Question
Which is the correct name for the oldest type of insurance that covers ocean vessels?
- Inland Marine
- Ocean Marine
- Personal Boat Policy
- Protection and Indemnity
Correct

Incorrect

Question 22 of 150

22. Question

Adjuster Johnson completes a thorough inspection on a flood-damaged dwelling. Adjuster Johnson makes a payment under the Flood policy. The settlement will afford the insured to repair their home to a safe, secure, and sanitary condition. The __________ would oversee the repair standards.

(TDI) Texas Department of Insurance
(FEMA) Federal Emergency Management Agency
(TDPS) Texas Department of Public Safety
(TWIA) Texas Windstorm Insurance Association

Correct

Incorrect

Question 23 of 150

23. Question

After a hailstorm Mrs. Martinez files a claim. When the adjuster arrives to inspect her home she decides to show the adjuster some other damage not related to the recent hailstorm. After reviewing the damages, the adjuster realizes that some of the damage will not be covered under the claim related to the hailstorm. As a result there will be full or partial denials of coverage by the adjuster, how must this be resolved?

Over the telephone
In writing
Given by the agent
Hidden from the insured

Correct

Incorrect

Question 24 of 150

24. Question

After a major hurricane all of the homes on the coast were coded by the insurance company as priority losses. Insurance companies categorize the size of a loss and the extent of damages by _____________.

Indemnity
Incurred Expense
Severity
Loss Ratio

Correct

Incorrect

Question 25 of 150

25. Question
Which answer best describes when an insurance company will cover an insured’s lodging bill while damage to their home is being repaired or until the insured moves to a permanent residence?
- Building Damage
- Contents Damage
- Additional Living Expense
- Debris Removal
Correct

Incorrect
Question 26 of 150

26. Question
___________________________ is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.
- Disability Insurance
- Worker's Compensation
- Un-employment Insurance
- Medical Insurance
Correct

Incorrect
Question 27 of 150

27. Question
All of these are examples of an insurance company except_____________.
- State Farm
- Allstate
- American Insurance Group (AIG)
- (TDI) Texas Department of Insurance
Correct

Incorrect
Question 28 of 150

28. Question
Which answer best describes an unfair claim settlement practice?
- Investigate the claim timely
- Permitted to promote
- Failure to act promptly upon notification of a claim arising under a policy
- Allowed to investigate the claim
Correct

Incorrect

Question 29 of 150

29. Question

If in an investigation, after receipt of a properly executed proof of loss, the insurer needs more time to determine whether a first party claim should be accepted or denied, it shall so notify the first party claimant within ______________ days after receipt of the proof of loss; given the reason is more time is needed.

Correct

Incorrect

Question 30 of 150

30. Question
Which is an example as a possible Act of God?
- A hurricane or tornado
- A car accident
- Plane crash
- Bodily Injury
Correct

Incorrect
Question 31 of 150

31. Question
Name an instance when a person can adjust a claim without an Adjuster’s license, within the law.
- A local state license
- In the event that your home state does not require an adjuster's license
- An expired claims license
- Revolved license
Correct

Incorrect
Question 32 of 150

32. Question
Which one of the following definitions describes the term contract?
- The action of canceling something that has been arranged
- The absence of incompatibility between two things
- An insurance policy between the insurance company and the policyholder
- Moneys owed; debts or pecuniary obligations
Correct

Incorrect
Question 33 of 150

33. Question
An insured files a claim that is not a covered loss by the general insurance contract. Non-coverage of a loss would be found in what section of an insurance policy?
- Declarations
- Special Limits of Liability
- Exclusions
- Conditions
Correct

Incorrect

Question 34 of 150

34. Question

Anticipating a major hurricane, Mr. Smith relocated about $50,000 worth of furniture, clothing, and electronics from the loss location. He rented a storage unit from ABC Rent-A-Space. Mr. Smith went to retrieve his personal property from ABC Rent-A-Space and discovered the items had been stolen. Mr. Smith has submitted a theft claim under the Texas Homeowners Policy. He has a limit of liability of $80,000 for contents. How much settlement do you show Mr. Smith receiving?

$50,000.00
$25,000.00
$8,000.00
$0

Correct

Incorrect

Question 35 of 150

35. Question

Assuming Mr. Insured has a Flood Policy with no coverage issues, he suffers a total loss flood to a non-residential building in the amount of $500,000. What is the maximum amount payable to the insured?

$500,000.00
$250,000.00
$100,000.00
$50,000

Correct

Incorrect

Question 36 of 150

36. Question
As a policyholder, there are several duties that are listed in the Homeowners policy that are required after a claim has been made, which section of the policy would you find these duties?
- Conditions
- Loss Settlement
- Losses Not Insured
- Extensions of Coverage
Correct

Incorrect
Question 37 of 150

37. Question
As a result of a large structural fire, a grocery store was unable to conduct regular business. This loss would be an example of_____________.
- Additional Living Expense
- Fair Rental Value
- Prohibited Use
- Business Interruption
Correct

Incorrect
Question 38 of 150

38. Question
As a result of a total loss fire at the insured’s location, the insured has an extra expense for food and hotel costs. This is an example of_____________.
- Fair Rental Value
- Additional Living Expenses (ALE)
- Business Interruption
- Prohibited Use
Correct

Incorrect

Question 39 of 150

39. Question

Assuming Mr. Insured has a Flood Policy with no coverage issues, he suffered a total loss flood to the main dwelling in the amount of $500,000. What is the maximum amount you show payable to the insured?

$500,000.00
$250,000.00
$100,000.00
$0

Correct

Incorrect

Question 40 of 150

40. Question

What is the law that says that each party is legally entitled to the best representations of the other, and each party should have a reasonable expectation that the other is acting without attempts to conceal or deceive?

Utmost Good Faith
Warranties
Concealment
Fraud

Correct

Incorrect

Question 41 of 150

41. Question
Claims Adjuster Box received a claim on January 2, 2017, she reviewed and attempted to reduce the size of the claim without cause. What is this action?
- Unfair Consumer Act
- Prompt Payment of Claims
- Unfair Settlement Practices
- Marketing Practices
Correct

Incorrect
Question 42 of 150

42. Question
All of the following are conditions commonly found in the insurance policy, EXCEPT____________________.
- Insuring agreement
- Cancellation and non-renewal
- Subrogation
- Appraisal
Correct

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Question 43 of 150

43. Question

Claims Adjuster Smith receives a notice for a fire claim. He meets with the homeowner at the loss location, evaluates the claim and makes a payment to the homeowner for all the damages. What is the name associated with the person who receives payment for the loss?

Insured
Insurer
Plaintiff
Mediator

Correct

Incorrect

Question 44 of 150

44. Question

Claims Adjuster Williams meets with an insured on March 15, 2017. The insured is very angry with Claims Adjuster Williams because the appointment was scheduled for March 10, 2017. As a result of the missed appointment by the adjuster, he back dates the claim notes to March 10, 2017 and provides coverage when coverage doesn’t exist. This is an example of a violation under the following ______________________.

Unfair Consumer Act
Marketing Practices
Texas State Laws
Unfair Settlement Practices

Correct

Incorrect

Question 45 of 150

45. Question

Claims Representative Jones estimated damage to the loss location. The initial amount of the loss did not exceed the policy deductible of $500. In order to provide a payment to the insured, the adjuster added an extra $800 to her estimate. This is an example of___________________.

Felony
Hazard
Peril
Fraud

Correct

Incorrect

Question 46 of 150

46. Question
____________ insurance covers the loss of shipping costs if cargo is damaged. Replacement cargo must be shipped, causing a second payment of shipping costs.
- Hull
- Cargo
- Freight
- Inland Marine
Correct

Incorrect

Question 47 of 150

47. Question

Driver A is traveling Westbound on Spring Oaks Street, Driver B is traveling Southbound on McMiller street, they collide at a busy intersection. This is an example of_____________________________.

A Casualty
An Accident
An Exclusion
A Hazard

Correct

Incorrect

Question 48 of 150

48. Question
What insures that an insurance company or a bank will guarantee satisfactory completion of a project.
- Contract performance bonds
- Companies
- Accidents
- Policy schedules
Correct

Incorrect
Question 49 of 150

49. Question
Which of the following is MOST closely related to a misleading Advertisement?
- Advertising services with intent not to sell them as advertised
- Meet with the Insured and witnesses
- Obtain a recorded statement
- Obtain the Proof of Loss
Correct

Incorrect
Question 50 of 150

50. Question
___________________ prevents an insurance company from asserting something contrary to what was implied by a previous action or statement that was presented as a material fact.
- Estoppel
- Fraud
- Denial
- Unfair claims settlement practice
Correct

Incorrect
Question 51 of 150

51. Question
Courts award _________________ damages to create disincentives; this discourages behavior that is deemed highly undesirable by society.
- General
- Compensatory
- Specific
- Punitive
Correct

Incorrect
Question 52 of 150

52. Question
Which method of loss valuation is conflicting to the basic principle of indemnity?
- Market value
- Agreed value
- Replacement cost
- Functional replacement cost
Correct

Incorrect
Question 53 of 150

53. Question
A _______________________ is someone who is pursuing their claim directly against the at-fault person or the at-fault person’s insurance company.
- Third party claimant
- Residence employee
- Insurer
- Named Insured
Correct

Incorrect
Question 54 of 150

54. Question
Which of the following is an example of a Public Adjuster?
- Someone who helps clients choose insurance policies
- Insurance Agent
- Independent adjusters who work for the insurance companies
- An adjuster who works exclusively for the policyholder
Correct

Incorrect
Question 55 of 150

55. Question
__________________ imposes certain deadlines on insurers for responding to, investigating, and accepting or rejecting claims.
- Unfair Consumer Act
- Prompt Payment of Claims
- Marketing Practices
- Unfair Settlement Practices
Correct

Incorrect
Question 56 of 150

56. Question
If a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will company A pay on a $24,000 loss?
- $8,000
- $0
- $20,000
- $12,000
Correct

Incorrect

Question 57 of 150

57. Question

Evan’s house is located 1 mile from the county’s new landfill and across the road from the entrance of a rock quarry. To rebuild the house if something happened to it, it would cost $150,000. But when Evan tried to sell it, the best offer he received was $80,000. His insurance company will insure the house for only $80,000. What is the correct answer?

Replacement cost
Functional replacement cost
Market value
Actual cost value

Correct

Incorrect

Question 58 of 150

58. Question
If the limit of insurance is $100,000 and the deductible amount is $500 when a $115,000 loss occurs, the insurance company will pay ______________.
- $115,000.00
- $100,000.00
- $99,500.00
- $95,000.00
Correct

Incorrect
Question 59 of 150

59. Question
All of the following are found in the declarations section of a policy EXCEPT:
- Exclusions
- Policy premiums
- Names of the insured
- Limits of liability
Correct

Incorrect
Question 60 of 150

60. Question
Which below is an example of policy conditions?
- How parties to the contract must act following a loss
- The basic underwriting information
- The excluded perils
- The amount of coverage
Correct

Incorrect
Question 61 of 150

61. Question
Jerry is an adjuster for an insurance company, he receives a salary and he is entitled to benefits for himself and his family. Jerry would be considered what type of adjuster?
- Independent Agent
- Independent Adjuster
- Public Adjuster
- Staff Adjuster
Correct

Incorrect
Question 62 of 150

62. Question
Bonds of various types guarantee a payment or reimbursement for financial losses resulting from all of the following, except:
- Dishonesty
- Failure to perform
- Bad Weather
- Other Acts
Correct

Incorrect

Question 63 of 150

63. Question

Encouraging a policyholder to submit a claim to recover an amount that is less than the dollar amount due in the practice of Good Faith under the auspices of the policy – this is a violation of the_______________________.

Prompt Payment of Claims
Unfair Consumer Act
Unfair Claims Settlement Practices
Marketing Practices

Correct

Incorrect

Question 64 of 150

64. Question

In the event of a weather-related catastrophe or major natural disaster, as defined by the commissioner, the claim handling deadlines are extended for an additional amount of time. How many additional days are added to the deadline?

Correct

Incorrect

Question 65 of 150

65. Question
Which of the following definitions best describes the part of the insurance contract that promises to pay if a loss occurs and meets the conditions of the contract?
- Consideration, Consideration
- Consideration, Component
- Consideration, Requirement
- Consideration, Duty
Correct

Incorrect
Question 66 of 150

66. Question
Insured Billy Bob owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should Billy Bob insure the property for?
- 80% of the property's ACV or more
- 100% of market value
- $400,000.00
- $32,000.00
Correct

Incorrect
Question 67 of 150

67. Question
Terrance routinely fails to disclose known facts in an attempt to defraud his prospective clients. These act are termed ____________________.
- Expurgation
- Censorship
- Concealment
- Containment
Correct

Incorrect

Question 68 of 150

68. Question

Adjuster Jack has been assigned to work a house fire claim. Jack suspects arson, but continues to investigate the claim leaving the impression that there are no problems with the claim because he doesn’t like confrontational situations, he believes that the claim may not be covered. The carrier may be______________________________ from denying coverage for the loss at a future date.

Suspended
Waived
Excluded
Estopped

Correct

Incorrect

Question 69 of 150

69. Question
Select the best example below that describes the term competent, in regards to a contract
- Old enough
- US Citizen
- For a valid contract, a person must be legally capable
- 18 years old
Correct

Incorrect

Question 70 of 150

70. Question

You are assigned a hail claim, you’re insured, Linda has a satellite dish owned by Satellite TV that was damaged along with her roof in a hail storm. Ms. Linda is insisting that you pay for the dish; however, you do not recommend replacement, because Ms. Linda does not have ________________the property.

An insurable concern
An insurable interest
Indemnity
An exculpatory interest

Correct

Incorrect

Question 71 of 150

71. Question

You are adjusting a hail claim on insured Mr. Don’s Home. ___________________________requires that you make sure that Mr. Don receives a payment equal to that of his covered loss (minus the deductible) so that he will be restored to the same position after the loss as before the loss.

Coinsurance
Theory of large numbers
Pythagorean theorem
Indemnification

Correct

Incorrect

Question 72 of 150

72. Question

You are assigned a wind claim. Insured Tom Davis had a Windstorm rip 30% of the shingles off the roof of his two story house. Mr. Davis has a ______________________ to secure a tarp on his roof. (mitigate)

Exculpatory duty
Contractual duty
Statutory duty
Felonious duty

Correct

Incorrect

Question 73 of 150

73. Question

Adjuster Bill has been assigned to adjust a slip and fall claim for a grocery store. The insured is not only insisting that the carrier pay for any losses as a result of their own possible negligence, but even pay to defend them against a lawsuit in court, per their liability coverage. This is called _______________________.

A liability claim
No coverage afforded
A subordinate loss
A vicarious loss

Correct

Incorrect

Question 74 of 150

74. Question
Which term describes, interviewing claimants and witnesses, consulting police and hospital records?
- Write an estimate
- Harass the insured
- Investigating
- Deny the claim
Correct

Incorrect
Question 75 of 150

75. Question
Which term is used to describe best practices in claim handling that must be utilized in the same spirit in which the policy states?
- Good Faith
- Fraud
- Estoppel
- Misrepresentation
Correct

Incorrect
Question 76 of 150

76. Question
Which answer is the best example in describing, “mitigate damages”?
- Ask his/her agent for their declarations page
- Call his/her attorney
- Contact a contractor to repair
- A legal rule that a plaintiff is entitled to recover damages from a defendant
Correct

Incorrect
Question 77 of 150

77. Question
Which occurrence best describes when an insurance company requests an insured’s tax returns?
- Hurricane
- Fire loss
- Tornado
- Earthquake
Correct

Incorrect

Question 78 of 150

78. Question

An Adjuster is assigned a residential property claim. Insured Carl James’ house has sustained damage, a lightning strike caught his house on fire – minimal damage. Mr. James’ Coverage A ____________ insurance provides coverage for risks such as fire, lightning, and storm damage.

All loss of use
Contents
Dwelling
Other structures

Correct

Incorrect

Question 79 of 150

79. Question

Stanley has been assigned a claim. His insured, Brenda, has sustained an extensive fire to her home. Once Stanley has done a thorough inspection and investigated the claim, Stanley made an offer to settle. Brenda is shocked at Stanley’s recommended dollar amount and thinks the settlement should be higher. How should Stanley proceed?

Inspect the contractor’s estimate, double check himself and attempt to negotiate
Call his supervisor and let him take over from this point
Let the insured know that the adjustment is a take it or leave it settlement
Have Ms. Brenda sign a Non-Waiver Agreement and continue with the investigation

Correct

Incorrect

Question 80 of 150

80. Question

Adjuster John is assigned a fire claim. The insured, Susan has an HO-B policy with no endorsements. Her very old bed in flawless condition, was destroyed by the fire. She provided recent photos establishing the condition and value of the bed. John should value the bed as a__________________________.

Heirloom
Antique
Standard bed
No coverage afforded

Correct

Incorrect

Question 81 of 150

81. Question
Which is a feature in a Standard Fire Policy?
- Preexisting Damages
- An act of Terrorism
- Loss or damage of property due to nuclear perils
- War and nuclear accident
Correct

Incorrect
Question 82 of 150

82. Question
In the process of inspecting a roof, Adjuster Stone watched his insured’s pet dog bite a neighbor in his neighbor’s yard next door. The ______________coverage would pay the medical bills.
- Medical payment
- APS
- UPP
- Contents
Correct

Incorrect

Question 83 of 150

83. Question

The insured has damage to the roof of his home as a result of a hailstorm. Adjuster Peter correctly chooses to apply the roof damage to the _______________ coverage of John Doe’s HO-B policy.

Dwelling
Habitation
Occupancy
Residence

Correct

Incorrect

Question 84 of 150

84. Question

Insured George moved out of his old house and into his new home 61 days ago. He is trying to sell his vacant home. George has current HO-B policies on both properties. The vacant home had the hot water heater burst and water damage was noted throughout the dwelling. This would be handled as ______________.

A liability claim
A covered loss
No coverage afforded
A casualty loss

Correct

Incorrect

Question 85 of 150

85. Question

Insured Tammy Faye has an HO-B policy with the following coverage: Coverage A:$100,000; Coverage B: $40,000; Coverage C: $60,000; with a deductible of $500. Ms. Faye had a grease fire in her kitchen frying bacon because she was distracted by a telephone call. Ms. Faye has $1,025 damage to the building. What is the correct amount that the carrier should pay Ms. Faye?

$525
$1,025
$1,500
No payment due – insured's negligence

Correct

Incorrect

Question 86 of 150

86. Question
_________________________ is Texas’s primary consumer protection statute. The statute prohibits a list of deceptive trade practices deemed to be false, misleading or deceptive.
- Deceptive Trade Practices Act (DTPA)
- Unfair Settlement Practices
- Unfair Consumer Act
- Consumer Protection Agency CFPB
Correct

Incorrect

Question 87 of 150

87. Question

Adjuster Joe is assigned a claim for wind damage. Insured Stormy Bell’s house had severe damage on 70% of the roof. Ms. Bell tarped her entire roof immediately after the storm. Due to continuing heavy rains after the main storm, Ms. Bell has interior water damage in her home. Based on this information alone, Ms. Bell has met the conditions in her policy regarding __________________________.

Subrogation
Mitigation
Alleviation
Improvements and betterments

Correct

Incorrect

Question 88 of 150

88. Question
You are assigned to work an automobile accident where your insured T -boned another automobile. Your insured in this claim, JR was arrested for DWI. Which answers are correct?
- Liability, legal responsibility
- Conscientiousness, accountability
- Accountability, conscientiousness
- Legal responsibility, accountability
Correct

Incorrect

Question 89 of 150

89. Question

Barbara Smith was driving a rental car that rolled over and collided with another vehicle, she had declined coverage from the rental car company; her personal auto policy has the Texas state minimum liability coverage only, what is the conclusion?

Other damaged vehicle in the collision with the insured is covered
The rental company vehicle is covered
Only Ms. Smith's vehicle is covered
No coverage afforded

Correct

Incorrect

Question 90 of 150

90. Question

Adjuster Drew Jacobs is assigned to adjust an auto accident. During the course of his investigation, his insured, Alex is curling her hair driving to work. Alex is not ambiguous in the least about the fact that she never looked up from her mirror while proceeding through the intersection where the collision occurred. Drew may recommend that Alex’s carrier __________________ the liability claim.

Subrogate
Deny
Delay
Pay

Correct

Incorrect

Question 91 of 150

91. Question
A Texas personal auto policy without endorsements has how many parts?
- 10
- 15
- 5
- 12
Correct

Incorrect

Question 92 of 150

92. Question

You are adjusting a commercial claim with an insured, Richard Chopp, who owns a butcher shop. An employee of the company got his hand caught in a meat grinder due to his own carelessness. ____________________ are provided to this employee through worker’s compensation benefits, with no time or monetary limits.

Fractional medical benefits
No medical benefits
Full medical benefits
Partial medical benefits

Correct

Incorrect

Question 93 of 150

93. Question

You are adjusting a commercial claim with an insured business owner, Ms Jones, who owns a Harley Davidson motorcycle shop. She has an employee roofing her company’s building, the employee falls 35 feet to the ground and dies. This is a ____________________ under workers comp insurance.

Not a covered loss
A casualty loss
A covered loss
A personal injury protection claim

Correct

Incorrect

Question 94 of 150

94. Question

Adjuster Johnson is assigned to adjust a Workers Comp claim. Insured Cal Poly was injured while working on her car at home and has filed the claim. Ms. Poly’s lost wages were not job related. Workers comp insurance ______________ pay this claim.

Will not
Will
May have to
May

Correct

Incorrect

Question 95 of 150

95. Question

You have an insured business owner, Justin Case that owns a tattoo shop. Mr. Case had an employee injure herself with Mr. Case’s chainsaw as a result of horseplay off premises at the employee’s home. Mr. Case’s wife Hardy, insisted that the employee file a workers comp claim. This is ________________ under workers comp insurance.

A casualty loss
A personal injury protection claim
A covered loss
Not a covered loss

Correct

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Question 96 of 150

96. Question

You have a performance bond that stipulates if your completion date is before the target finish date you will be awarded an additional .25% of your $25,000 projected gross earnings. You have finished the job 10 days early. What would your performance bonus be?

$6,250.00
$625,000.00
$2,500.00
$250,000.00

Correct

Incorrect

Question 97 of 150

97. Question

You are requesting a bond on your contractor in the amount of 10% of the agreed completion price for the project. The projected figures are $2,500,000. How much should the bond be that the contractor has to supply?

$300,000.00
$2,500.00
$25,000.00
$250,000.00

Correct

Incorrect

Question 98 of 150

98. Question

You have a performance bond in place and every day that you are late with your job completion, you are required to pay a 1 % penalty based on your gross revenue. Your projected gross revenue is $2.5 million and you are 8 days late. How much penalty do you owe?

$200,000.00
$100,000.00
$20,000.00
$80,000.00

Correct

Incorrect

Question 99 of 150

99. Question
An insured’s building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?
- $0
- $30,000
- $32,000
- $40,000
Correct

Incorrect
Question 100 of 150

100. Question
Adjuster Craig is assigned to adjust a tractor manufacturing plant that was destroyed by fire. Craig’s responsibilities would not likely include ________________________.
- Documenting the loss
- Negotiating the loss
- Investigating the loss
- Paying the loss
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Question 101 of 150

101. Question

Adjuster Rusty is assigned to adjust a hurricane claim. His insured, JR James owns a hamburger joint. The storm knocked out power in the entire neighborhood for over two weeks. JR’s Burgers was not able to conduct business during this time. Mr. James files a business income (interruption) claim. Adjuster Rusty will need to request current and past _______________________ as well as other documents to process the claim.

IRS filings
Employee vacation records
Raw food purchase orders
Average number of customers per month

Correct

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Question 102 of 150

102. Question

Adjuster Dean is a brand new adjuster. He has an insured, Bubba James that has a barbeque joint. A car smashed into the front of Bubba’s BBQ causing extensive damage. Bubba has coverage for $500,000 to his BBQ joint for any peril. If his deductible is $25,000 what percentage of his limit of liability would this be?

Correct

Incorrect

Question 103 of 150

103. Question

Adjuster Brent has a hurricane claim as well. His insured, Henry Ford, owns an auto parts store. Mr. Ford does not own the building, rather he is a tenant who has a commercial property policy. The building that Ford’s Auto Parts is in has extensive wind damage to the exterior with minimal interior damage. Mr. Fords’ coverage will only pay for building damage that_________________________.

Is improvements and betterments
Is damaged before the policy was in effect
Is newly remodeled by landlord
Is wind related only

Correct

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Question 104 of 150

104. Question
When a parent is required to pay for damages caused by his or her children, this is called ______________________.
- Vicarious liability
- Strict liability
- Intervening cause
- Assumption of risk
Correct

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Question 105 of 150

105. Question
You have an insured, Joey Thibodeaux, with an inland marine (boat) policy. Joey collided with another boat in the Gulf of Mexico. There is ____________________.
- A casualty loss
- No coverage afforded
- A covered loss
- A liability claim
Correct

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Question 106 of 150

106. Question

You have an insured, David Greason that has a yacht policy. David owns several liquor stores and was throwing a company party on his yacht in Key West. His boat, named Blew By You, was hit by lightning during the party. This is ____________________.

No coverage afforded
A liability claim
A covered loss
A statutory loss

Correct

Incorrect

Question 107 of 150

107. Question

The _________________________ form affords “all-risk” insurance; it covers the cost of re-establishing records of accounts receivable and actual losses due to the inability to collect sums due, as a result of a covered loss. Coverage applies while the accounts receivable records are at the named insured’s premises, someone else’s premises, or in transit within the coverage territory. However, records in storage away from the named insured’s premises are not covered.

Accounts Receivable Coverage
Dealers Coverage
Commercial Articles Coverage
Equipment Dealers Coverage

Correct

Incorrect

Question 108 of 150

108. Question
Please choose the four major classes of ocean marine insurance that provide coverage against four types of losses.
- Hull Insurance, Cargo Insurance, Freight Insurance, Marine Insurance
- Cargo Insurance, Protection and Indemnity (P&I) Insurance, Hull Insurance, Pirate Insurance
- Hull Insurance, Cargo Insurance, Freight Insurance, Protection and Indemnity(P&I) Insurance
- Hull Insurance, Cargo Insurance, Protection and Indemnity (P&I) Insurance, Boat Insurance
Correct

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Question 109 of 150

109. Question
Under an Ocean Marine Hull policy, which of the following is included?
- Physical damage to the vessel
- Cargo
- Attached equipment
- All of the above
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Question 110 of 150

110. Question

What form covers the perils of the seas, such as, the hostile actions of Men-of-War (fighting ships), pirates, rovers and thieves, fire, lightning, earthquakes, enemies, jettison, barratry and other like perils.

Freight Insurance
Cargo Insurance
Marine Hull Insurance
Insuring Agreement

Correct

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Question 111 of 150

111. Question
You have an insured, Al Capone that has a Marine Cargo Policy. Al’s cargo was thrown overboard during a riot on the docks in the port. This is an example of ________________________.
- An exculpatory loss
- A liability claim
- Not a covered loss
- A casualty loss
Correct

Incorrect
Question 112 of 150

112. Question
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the _____________.
- Declarations
- Conditions
- Exclusions
- Insured clause
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Question 113 of 150

113. Question
Which is an example of an insurance policy which pays some or all of your medical bills and lost earnings if you get into a car accident?
- Regardless of fault
- Modified Pure Comparative Negligence
- Pure Comparative Negligence
- Pure Contributory Negligence
Correct

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Question 114 of 150

114. Question

An umbrella policy is a ____________________ liability contract that provides high limits of coverage, usually with broader coverage than underlying policies, for insured’s subject to liability claims of excess proportions.

Marine
Airplane
Catastrophic
Cargo

Correct

Incorrect

Question 115 of 150

115. Question
When underwriting and aircraft policy, the underwriter may want to know which of the following?
- Marital status
- Religion
- Age of pilot
- Race
Correct

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Question 116 of 150

116. Question
Identify the type insurance classified by peril?
- Health insurance
- Life insurance
- Liability insurance
- Property insurance
Correct

Incorrect
Question 117 of 150

117. Question
What is the meaning of, the limit of indemnity?
- Amount covered
- Deductible amount
- Maximum amount the insurer will pay
- Policy limit
Correct

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Question 118 of 150

118. Question
Which below guarantees payment for specific losses as provided under the terms of the policy?
- Coverage
- Deductible
- Litigation
- Fraud
Correct

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Question 119 of 150

119. Question
Which one of the following terms best describes expert witness?
- Contesting a legal action in court
- Defined as area of expertise
- A wrongful act
- Property lines dispute
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Question 120 of 150

120. Question
Name the part of an existing policy that provides coverage on a classification of property that has not been itemized. This floater usually provides coverage against damage, theft or loss.
- Additional Living Expense (ALE)
- Dwelling -A
- Liability
- Unscheduled Personal Property (UPP)
Correct

Incorrect
Question 121 of 150

121. Question
What is considered a false or misleading statement that, if intentional and material, can allow the insurer to void the insurance contract?
- Misrepresentation
- Misstatement
- Fraud
- Litigation
Correct

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Question 122 of 150

122. Question
What is the part of an insurance policy or bond referring to hazards, circumstances, or property not covered by the policy?
- Coverage
- An exclusion
- Benefits
- A claim
Correct

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Question 123 of 150

123. Question
What example below is a particular, separate article, stipulation, or provision in a treaty, bill, or contract?
- Coverage
- Exclusion
- Premium
- Clause
Correct

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Question 124 of 150

124. Question
What is a demand to recover money under an insurance policy for a loss?
- Claim
- Deductible
- Exclusion
- Premium
Correct

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Question 125 of 150

125. Question
How would you identify the part of a loss that the insured pays? It is taken out of the initial payment from the insurance company.
- Claim
- Premium
- Benefit
- Deductible
Correct

Incorrect
Question 126 of 150

126. Question
Which is an example of an individual who has special training, skill, experiences and knowledge that makes her qualified to give dependable testimony in her area of professional expertise?
- Witness
- Expert
- Claimant
- Insurance claims adjuster
Correct

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Question 127 of 150

127. Question
Which example describes the misstatement of facts made on an application for insurance or an insurance agent who misstates coverage?
- Fraud
- Litigation
- Misrepresentation
- Case law
Correct

Incorrect
Question 128 of 150

128. Question
Which of the following is NOT classified as personal property for insurance purposes?
- Furniture
- House
- Car
- Mobile Home
Correct

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Question 129 of 150

129. Question
Where on the policy is the stated period of the policy?
- On the definitions page of the policy
- On an endorsement attached to the policy
- On the declarations page of the policy
- On the conditions page of the policy
Correct

Incorrect
Question 130 of 150

130. Question
Adjuster Bill wants to make a career out of insurance adjusting. How many hours of continuing education must Bill complete every 2 years?
- 40 + 2/ethics
- 15 + 2/ethics
- 20 + 2/ethics
- 24 + 2/ethics
Correct

Incorrect
Question 131 of 150

131. Question
In order to successfully apply for your Texas All Lines Adjuster License you must:
- Submit a fingerprint card to the State
- Take a course offered by a Texas Land Grant university
- Pass a urine test
- Meet your continuing education requirements
Correct

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Question 132 of 150

132. Question
There are three different licenses for insurance adjusters. Which of the following is not one of them?
- Property and Casualty Adjuster
- Broad Coverage Adjuster
- Workers Compensation Adjuster
- All-lines Adjuster
Correct

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Question 133 of 150

133. Question
What would result if a Texas adjuster’s license expired MORE than 90 days but LESS than 1 year.
- Retake the written exams
- Pay license fee and complete CE
- License expired
- License revoked by the state
Correct

Incorrect
Question 134 of 150

134. Question
In an insurance contract, where would you find information stating the scope of protection provided to the insured?
- Coverage
- Policy
- Insurance
- Agreement
Correct

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Question 135 of 150

135. Question
Which describes an insurance claims adjuster’s role?
- Gather evidence such as photographs
- Prepare cases for trial
- File charges against at-fault parties
- Provide attorneys with information needed for negotiation
Correct

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Question 136 of 150

136. Question
Which approach would a claims adjuster use to investigate a claim?
- Leave the scene
- Reading Police reports
- Reviewing photographs and reading hospital records
- Taking photographs and interviewing witnesses
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Question 137 of 150

137. Question
An adjuster might use which of the following pieces of equipment?
- His own automobile and a laptop computer
- A desktop calculator
- A laptop computer
- A laptop computer, desktop calculator and his own automobile
Correct

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Question 138 of 150

138. Question
Under which section of most policies would you find the Limits of Liability?
- Exclusions
- Conditions
- Declarations
- Definition
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Question 139 of 150

139. Question
Under a commercial policy what is the maximum amount available for pollutant clean up?
- $1,000
- $5,000
- $10,000
- $50,000
Correct

Incorrect
Question 140 of 150

140. Question
What does an Ocean Marine Hull policy cover?
- Transportation of goods and/or merchandise by vessels crossing both foreign and domestic waters
- It protects the insured against loss of shipping costs
- It covers theft of stock from a showroom window when the window is cut or smashed
- It covers dealers of mobile equipment and construction equipment
Correct

Incorrect

Question 141 of 150

141. Question

Which below, is a standard insurance policy issued to businesses and organizations to protect them from liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.

Commercial general liability
Inland coverage
Standard fire policy
Auto Liability

Correct

Incorrect

Question 142 of 150

142. Question
A claims adjuster has a liaise role to ______________________.
- The Insurance policy
- The TDI Insurance
- The Insurance company
- The insurance agent
Correct

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Question 143 of 150

143. Question
In the example below. How would you use Inland Insurance?
- Covers physical damage or loss of merchandise transported by sea
- Covers property and goods while they are on a vessel on the water
- Tools and equipment belonging to tradespersons or repair persons
- Covers any damage to any vehicle in the parking lot
Correct

Incorrect
Question 144 of 150

144. Question
When a friendly fire is intentionally set and remains within its intended limits it is __________________.
- Covered by fire insurance
- Not covered
- Hostile fire
- The definition of a fire
Correct

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Question 145 of 150

145. Question
What is the definition of ‘tortfeasor’ as given in the workbook?
- Person who brings a case against another in a court of law
- Someone accused in a court of law
- A person or group of people who are charged
- A wrongdoer; an individual who commits a wrongful act that injures another
Correct

Incorrect
Question 146 of 150

146. Question
Under an Inland Marine policy, which of the following is excluded?
- Bridges
- Ocean Vessels
- Piers
- Roads
Correct

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Question 147 of 150

147. Question
________________________________ is the portion of an insurance policy that contains information about risk. It identifies the parties in the contract and the subject of coverage.
- Declaration page
- Endorsement
- Clause
- Policy
Correct

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Question 148 of 150

148. Question
What is the definition of a Flood Insurance policy?
- A temporary condition that protects from wind and hail
- A policy that protects personal content
- A financial instrument that protects real property owners from water damage
- A policy that protects building coverage
Correct

Incorrect
Question 149 of 150

149. Question
Which of the following is a method of claim settlement used when the insured and insurer cannot agree on how to settle a claim?
- Proof of loss
- Restoration
- Appraisal
- Arbitration
Correct

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Question 150 of 150

150. Question
Which of the following is considered a Catastrophe?
- A harmless event
- A sudden, disaster or ending
- A successful oil spill clean-up
- An abandoned cargo
Correct

Incorrect