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Texas All Lines Adjuster Exam (

Questions And Answers).

All of the following are criteria for an accident to have occurred "in the course of" the employment under a workers' compensation policy, EXCEPT: - Correct Answers 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 Answers 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 Answers $200, 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 Answers 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 Answers 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 Answers 5 All of the following are "Perils of the Sea" under an Ocean Marine policy, EXCEPT: - Correct Answers 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 Answers Controlled business Which of the following standardized Dwelling insurance forms provides coverage for loss of rental income - Correct Answers 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 Answers 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 Answers 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 Answers $250 per day. Surplus Lines companies in Texas have _____ to acknowledge the receipt of a claim. - Correct Answers 30 days. All of the following are characteristics of a principal that a surety will scrutinize during the underwriting process, EXCEPT: - Correct Answers Consideration. Under Section II of a Homeowners policy, a cemetery plot owned by the insured is considered to be: - Correct Answers An insured location. Which of the following is NOT one of the four major coverages of an Ocean Marine policy? - Correct Answers Seaworthiness. A ship has suffered damage and sunk. Which of the following would respond to cover the loss of the ship? - Correct Answers 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 Answers 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 Answers 72- hour Whose responsibility is it to complete a "proof of loss"? - Correct Answers The claimant. Which of the following would NOT be determined by a court when an insurer has filed a declaratory judgment action? - Correct Answers 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 Answers 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 Answers Crew members of a ship. All of the following statements are true regarding a Personal Liability Supplement, EXCEPT: - Correct Answers The policy will cover watercraft liability. Which of the following statements is TRUE regarding Commercial Property coverage? - Correct Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers Fraud Which of the following losses would be covered under a Commercial Property policy with the special cause of loss form attached? - Correct Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers Barratry. Symbol 23 is designated on the insured's Garage Coverage form. This indicates that: - Correct Answers 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 Answers Concealment All of the following are correct statements regarding the limits of liability under Part A of a Personal Auto policy, EXCEPT: - Correct Answers 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 Answers 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 Answers Settling. All of the following statements are TRUE if Builders' Risk coverage is written on a completed value basis, EXCEPT - Correct Answers All premiums must be paid up front before construction can begin.. A non-waiver agreement allows the insurer to: - Correct Answers 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 Answers The Sue and Labor clause Coverage under a standard Personal Watercraft policy extends to all of the following, EXCEPT: - Correct Answers 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 Answers Aircraft. The importance of an "Insured or Witness Investigation" is that: - Correct Answers 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 Answers Fire, lightning and removal.. All of the following statements regarding the Commercial Package Policy are correct, EXCEPT: - Correct Answers 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 Answers After a waiting period of 48 hours, her policy will pay $20 per day up to a maximum of $ 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 Answers $1, If the disability for a worker in Texas continues for more than one week, weekly income benefits begin to accrue: - Correct Answers 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 Answers 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 Answers It will be denied, due to nonconcurrency. Workers' compensation insurance premium rates are typically affected by each of the following factors, EXCEPT: - Correct Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers 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 Answers A performance bond. Which of the following are NOT required to hold an adjuster license in Texas? - Correct Answers A person who works for an insurer and adjusts claims on losses that do not exceed $ Which of the following is NOT covered under aircraft physical damage (hull) insurance? - Correct Answers 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 Answers An unfair claims settlement practice. Which of the following best describes an "insurance producer"? - Correct Answers Someone who represents an insurance company in the soliciting and negotiation of insurance. When insurance is written on a Dwelling form, each of the following types of property would be insured under Coverage A, EXCEPT: - Correct Answers A detached garage. The Garage Coverage form can be used to cover dealers that sell all of the following, EXCEPT: - Correct Answers Jet skis. 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? - Correct Answers The Inchmaree clause. The part of a standard workers' compensation policy that contains the cancellation procedures is: - Correct Answers Part Six - Conditions The 1943 New York Standard Fire policy specifically excludes all of the following, EXCEPT: - Correct Answers Manuscripts. 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: - Correct Answers Part D. 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? - Correct Answers Max's injury is now classified as an "impairment". All of the following is a function of the standard mortgage clause in a property insurance policy, EXCEPT: - Correct Answers Guarantees that the mortgage payments will be made by an insurance policy, if the insured does not make the payments.. The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this case likely be settled? - Correct Answers The insured would pay $10,000 and the Umbrella policy would pay $790,000. Insurance adjusters have the "power to bind". Which of the following statements best describes what this means? - Correct Answers The principal is bound to the decisions of the adjuster. 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? - Correct Answers Payment bond.

Which of the following is NOT a "duty of the insured" after a loss? - Correct Answers To pay damages to any third-party claimant while waiting to be reimbursed by the insurer for the loss. All of the following are perils NOT typically covered by property cause of loss forms, EXCEPT: - Correct Answers Hail What is the minimum limit for Coverage L of the Personal Liability Supplement that can be attached to a Dwelling Property policy? - Correct Answers $100, The "Medical Payments" section of the standard Yacht policy will provide coverage for all of the following, EXCEPT: - Correct Answers A scuba diving accident when diving from the insured boat.. Which of the following coverages would NOT be included in the liability section of the Businessowners policy? - Correct Answers Professional liability. 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?

• Correct Answers $7, Economic loss that is the consequence of a direct loss is known as: - Correct Answers An indirect loss. Which of the following is NOT TRUE of coverage for Business Personal Property and Personal Property of Others in a Commercial Property policy?
• Correct Answers Coverage is provided while the property is located within a covered vehicle at any location as long as the vehicle is owned by the insured business. As a condition to gain entrance into Louisiana to conduct insurance business, a Texas domestic insurer makes a deposit with the Texas Comptroller. The amount of the deposit is sufficient to satisfy the Louisiana Department that the insurer can cover the claims submitted by the insureds in Louisiana. Who has jurisdiction to collect taxes on the interest earned on

this deposit? - Correct Answers The county and municipality in Texas where the principal business office of the insurer making the deposit is fixed by the insurer's charter. Which of the following would be considered an "incidental occupancy" under a Homeowners policy? - Correct Answers An art studio located in the named insured's home, where she also holds occasional painting classes. 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? - Correct Answers Not later than the fifth business day after the notice was made. All of the following are duties that a Texas insurer must perform within 15 days after receipt of the claim, EXCEPT: - Correct Answers Schedule a hearing to dispute the claim, if necessary. Which of the following is NOT a claim settlement option for liability claims?

• Correct Answers Excessive amounts claimed. Mason has suffered a $42,000 loss to his commercial building due to fire. The building is covered under the Building & Personal Property coverage form and had been vacant for 74 days. The insurer would have paid the entire loss if the building had been occupied, but what will they pay because the insured building was considered vacant? - Correct Answers $35,700. 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? - Correct Answers The most the insurer will pay for the total loss of business income and extra expense is the amount of the loss sustained during the 120 days immediately following the period of restoration or the limit scheduled on the declarations page, whichever is less.. The "Medical Payments" coverage of the standard Yacht policy covers all medical expenses incurred by an insured, family members, invitees, or

guests if a claim is submitted: - Correct Answers Within 1 year following a covered accident. Many stationary objects, such as bridges, tunnels and power lines fall within the nationwide marine definition because they are considered to be: - Correct Answers Instrumentalities of transportation and communication. A claim is made on an excess liability policy. It is discovered during the claims investigation, that the underlying liability policy and the excess liability policy have different inception and expiration dates. The adjuster finds that the different dates has created a situation where the underlying policy was not in effect at the time of the occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: - Correct Answers Nonconcurrency. An "other insurance" clause is included in insurance policies to deal with the problem of: - Correct Answers Overinsurance. Under the DP-3 special form, which of the following losses would NOT be covered? - Correct Answers Damage to the dwelling that is caused by an infestation of mice.. Ellie's Engineering, Inc. has several warehouses and it is necessary for employees to transport different items between the warehouses, depending on what products are being manufactured at any given time. One day Bill, Karen, and Josh were required to load several containers of an explosive chemical onto a truck to transport it across town to another warehouse. Karen knew that the chemical must be handled carefully to prevent it from exploding, but she did not refuse to move the containers nor did she indicate to Bill and Josh that the chemical was dangerous. After loading the containers, Josh is moving the truck out of the loading zone and negligently backs it into a brick wall, causing an explosion, injuring all three workers. Bill died from the injuries several days after the accident. Which of the following statements most accurately describes the common law defense(s) that Ellie's Engineering might use to defend - Correct Answers The assumption of risk and the fellow worker doctrine only.. The purpose of the Expediting Expenses coverage of a standard Equipment Breakdown policy is: - Correct Answers To pay for the extra

expense of having equipment repairs performed faster to get the insured back in business quickly. Which of the following would be excluded under Part A of the Personal Auto policy? - Correct Answers A person transports people from the airport to nearby hotels for a fee.. 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. - Correct Answers 5th The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: - Correct Answers A unibody frame. A contractor in need of a bid bond to obtain a contract is an example of a(n): - Correct Answers Principal. When loss settlement under a policy is the "agreed value", which of the following is true? - Correct Answers The insurer will pay the value that was agreed upon and scheduled in the policy. The "control of property" condition of the Commercial Property policy: - Correct Answers States that a negligent act of someone beyond the insured's direction or control will not affect the coverage.. The insured has liability coverage with a limit of $300,000 per occurrence. She purchases a $1 million Personal Umbrella policy to extend and broaden her coverage. The Umbrella policy includes a $10,000 retained limit. The insured becomes liable for $800,000 in damages that are excluded by the underlying liability policy, but is covered by the Umbrella policy. How would this claim likely be settled? - Correct Answers The insured would pay $10,000 and the Umbrella policy would pay $790,000. The aircraft physical damage (hull) deductible is normally expressed as: - Correct Answers A percentage of the value of the aircraft. 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? - Correct Answers Exclusive agency system. In which of the following situations would trees, shrubs, and other plants be covered by the Homeowners additional coverages? - Correct Answers The insured's fruit trees are destroyed when an ember from a nearby brush fire lands on them and burns them. Aircraft liability coverage is very similar to auto insurance coverage with which of following exceptions? - Correct Answers Liability to passengers is treated as a separate exposure. All of the following would be eligible as "your covered auto" under a standard personal automobile policy, EXCEPT: - Correct Answers A motorcycle owned by the insured. All of the following are eligible risks for Commercial Inland Marine insurance, EXCEPT: - Correct Answers Goods manufactured in the United States for export to other countries. Which of the following would be covered under Coverage B of the Business and Personal Property coverage form? - Correct Answers The stock held for sale by the insured business. The "Business Income" additional coverage under the standard Businessowners policy includes all of the following in its definition of "ordinary payroll expenses", EXCEPT: - Correct Answers Executive payroll.. Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority Prohibits Use" for: - Correct Answers No more than two weeks.. When a claims representative is collecting information from a third-party claimant, which of the following is the information that should be obtained first? - Correct Answers The nature and extent of the injuries or property damage claimed.

Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? - Correct Answers Medical expense and lost wages. A structure made of modified fire resistive materials has a fire resistive rating of: - Correct Answers At least 1 hour. 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, how long does the insured have to report this fact to the insurer? - Correct Answers 48 hours. 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? - Correct Answers $1, Alec goes to an amusement park and rides a roller coaster that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? - Correct Answers Assumption of risk The type of claims investigation that looks at the possibility of a third-party being responsible for the loss is known as: - Correct Answers A subrogation investigation. The Commercial Property condition known as "Concealment, Misrepresentation, or Fraud" calls for the policy: - Correct Answers To be voided??? Which of the following Equipment Breakdown coverages applies to direct damage to covered property located at a premises described in the Declarations? - Correct Answers Property damage coverage. Which of the following lost or damaged property is NOT covered when the Actual Cash Value endorsement is attached to an Equipment Breakdown policy? - Correct Answers Property that has reached obsolescence.

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: - Correct Answers Bus. Garagekeeper's liability coverage excludes all of the following losses, EXCEPT: - Correct Answers Loss to a high-value audio system permanently installed in a covered auto. Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will: - Correct Answers Proceed with subrogation against John Doe and will not honor the waiver.. All of the following are a "cause of loss" form, EXCEPT: - Correct Answers Comprehensive. For a workers' compensation claim to be compensable, the injury suffered by the employee must meet all of the following criteria, EXCEPT: - Correct Answers Must have occurred on the employer's premises. Part One of the NCCI standard workers' compensation policy specifies the:

• Correct Answers Statutory provisions of the policy. Risk is best defined as: - Correct Answers An uncertainty of loss. The insured has his home insured on a HO-2 policy. Lightning has struck the home and causes a fire. The insured takes as much personal property out of the house as possible while waiting for the fire department to arrive and extinguish the fire. The insured and some of his neighbors damage some of the property while moving it to safety in the back of a pickup truck not owned by the insured. What additional coverage would cover this damage to the insured's personal property? - Correct Answers Property Removed. When would the Personal Auto policy respond to a loss with an all-terrain three-wheeled vehicle? - Correct Answers When used in an emergency situation.

Which of the following is a true statement regarding the "law of large numbers"? - Correct Answers As the number of insured units increases, the ability to predict losses increases. A surety bond is: - Correct Answers A form of credit. All of the following would be considered an "insured" on a Homeowners policy, EXCEPT: - Correct Answers A non-related tenant living in the insured residence.. 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: - Correct Answers An indemnitor. 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? - Correct Answers $30,000 represents the limit for property damage liability. Return-to-work coordination services for injured workers in Texas may include which of the following:I. Job analysis to identify the physical demands of a job.II. Job modification and restructuring assessments to match job requirements with the employee's functional capacity.III. Medical or vocational case management to coordinate the efforts of the employer, the treating doctor, and the injured employee to help him/her return to work as soon as possible.IV. Employment search and matching of the injured employee's skills with jobs that have been advertised as open on a nationwide basis. - Correct Answers I, II and III only Collin suffered a work-related injury on the morning of June 2nd and was off work completely until he returned to work on full duty on June 20th. Collin had worked for his employer for four years and was paid $55,650 per year. Collin's state sets the TTD rate at 70% percent of the average weekly wage. The state sets the maximum compensation rate at $580 per week and the waiting period at 5 days retroactive after 7 days. Collin was not paid for working on February 5th. Collin's average weekly wage is approximately ____ and the amount of compensation benefits he will

receive per week while off work is approximately ____. - Correct Answers $1,070 / $ Which of the following statements is NOT TRUE regarding the "period of restoration" for Business Income and Extra Expense coverage? - Correct Answers The period of restoration ends when the policy period ends. 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: - Correct Answers At least 20-days' notice is provided to the insured.. Hannah is attending college and her family carries an HO-4 policy with $50,000 contents coverage. Hannah has about $15,000 of personal belongings consisting of clothing, musical instruments, electronic equipment, some appliances and other personal items in her dorm room. Which of the following statements is correct regarding coverage for Hannah's belongings? - Correct Answers The HO-4 form carried by Hannah's family would not provide enough coverage for Hannah's property, therefore a personal property floater should be purchased. 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: - Correct Answers A temporary substitute??? If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)? - Correct Answers 10% of the Coverage C limit. 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? - Correct Answers 3 Katherine lives in Texas. A third-party claim has been filed against her insurance policy by Joe, for an accident in which Katherine was liable. Joe's attorney contacts Katherine's insurance company and makes an initial offer to settle the claim. The insurance company must notify Katherine of the offer, in writing: - Correct Answers Not later than the 10th day after the date the initial offer was made.

Texas insurance licensees must complete _____ hours of continuing education each reporting period. - Correct Answers 24 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: - Correct Answers Not be covered because buildings used for business purposes are excluded.. What is the main purpose of government regulation of the insurance industry? - Correct Answers To protect the insurance consuming public. All of the following are duties of the insured after a loss, EXCEPT: - Correct Answers To provide the insurer with the amount they expect to be paid for the claim submitted. 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: - Correct Answers Computers. Sally's home is covered under an HO-3 policy. Coverage F of that policy will pay medical expenses for which of the following? - Correct Answers Anyone who is invited onto Sally's property and is injured while there. James owns a sedan, a truck, and an SUV. He carries Part C -- Uninsured Motorist Coverage on his SUV, but does not carry it on his sedan or truck. James' son is driving the truck one afternoon and accidentally strikes James who is driving the SUV, causing James to sustain bodily injury. How will Part C apply in this situation? - Correct Answers No coverage will apply for James' bodily injury.. Which of the following would NOT be included in an adjuster's initial / field / preliminary report? - Correct Answers The results of mediation. An insurance company is given a C++ rating by A.M. Best. This means: - Correct Answers The financial health of the insurance company is good.. Which of the following is one of the duties of the insured as specified in a Commercial Inland Marine policy? - Correct Answers Submit to an examination under oath if the insurer requests it.

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. - Correct Answers 30 The giving up of a known right is called: - Correct Answers waiver Which of the following is the best definition of "fire"? - Correct Answers Combustion, accompanied by visible light. Which of the following is not an "additional coverage" under Homeowners Liability -- Section II coverage? - Correct Answers Damage to "property owned by the insured".. Which coverage of a Homeowners policy would pay for damage to a neighbor's window caused by the insured? - Correct Answers Coverage E On the way to Europe, heavy seas place a cargo ship in danger of sinking. The crew decides that if they dispose of the heavy equipment they are hauling the ship will not sink. They toss overboard 10 tractors owned by John Deere. The cartons of tissues owned by Kleenex Corporation are safe as is the whipped marshmallow cream being shipped for Kraft Foods. When they get to Europe, Kleenex and Kraft are asked to share in the loss that John Deere sustained. This is an example of: - Correct Answers General Average Clause. Brian owns a home that is covered by a DP-3 form. He rents this home to Taylor. Joe, the neighbor who lives next door to Brian's rental home, has been cooking methamphetamine for quite some time and selling it out of his house. One afternoon, Joe's "meth lab" exploded, spreading dangerous chemical to the houses around his. It also caused a fire that rendered the house unstable until it can be demolished. The civil authorities in the area have required that Taylor vacate her rental home, until the area next door can be cleaned up. Which of the following statements is true regarding how Brian will be compensated under his Dwelling policy for the loss of Taylor's rent during the time she must live elsewhere? - Correct Answers Brian will receive 20% of the Coverage A limit, for a maximum of 2 weeks.

Which of the following best characterizes the difference between captive agents and independent agents? - Correct Answers Independent agents can represent more than one insurer, whereas captive agents represent only one insurer. The additional coverage of the Commercial Property cause of loss forms known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and Bacteria" provides: - Correct Answers $15,000 coverage for all occurrences within a 12-month period. All of the following are duties of the insurer in case of a loss as specified by insurance policies, EXCEPT: - Correct Answers To pay amounts to the insured or a third-party claimant that are at least as high as the national average of similar claim settlements. The HO-7 form is a rarely used form that covers: - Correct Answers Mobile and Manufactured Homes for property damage and liability. Which of the following best demonstrates a morale hazard? - Correct Answers A recent purchaser of auto insurance drives less carefully, knowing that the insurer will cover any losses that occur.. Coverage under the Builders' Risk form is written for: - Correct Answers A period of one year. All of the following items are given a "special limit of liability" under Coverage C of the Homeowners policies, EXCEPT: - Correct Answers Motorized land vehicles. 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? - Correct Answers All Risks - Not in Motion. An insured who is covered under a Commercial Property policy with the Building and Personal Property Coverage form attached, suffers a loss to business personal property. The insurance company has paid the claim, but now the property has been recovered. All of the following statements are TRUE regarding how this situation should be handled according to the

form, EXCEPT: - Correct Answers The insured must incur any expenses to recover the property. Which of the following best describes how the peril of "theft" is covered under the 1943 New York Standard Fire policy? - Correct Answers Theft is a covered peril under the removal coverage. Spencer is covered under a standard Personal Automobile policy with a policy inception date of October 15th. Additionally, the policy will expire on October 15th of the current year. Spencer contacts his agent on October 7th and asks to have an new endorsement added to his policy. The agent agrees, adds the coverage the same day, and informs Spencer that there will be an additional premium of $20 per month charged. When will the adjustment of premium be effective for Spencer? - Correct Answers October 7th. Which of the following claims would NOT be covered under Section II -- Liability of a Homeowners policy? - Correct Answers The named insured files a claim for damage to his house caused by his dog. The standard Businessowners policy extension of coverage for "Outdoor Property" provides ________ of coverage for any one tree, shrub, or plant that has been destroyed due to a covered cause of loss. - Correct Answers $1000 Which of the following types of coverages are included in the standardized Businessowners policy? - Correct Answers Coverage for business personal property. 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? - Correct Answers Send a reservation of rights letter to the insured's last known address. Which of the following situations would NOT be considered an unfair claim settlement practice according to the NAIC Model Act? - Correct Answers Indemnify Insurance pays thousands of claims per year, but on two of those claims they failed to accept or deny the claim within the time frame required by state law.

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? - Correct Answers Part A -- Liability Which of the following contractors would be eligible for a Businessowners policy? - Correct Answers A carpenter doing all of his own work building kitchen cabinets in people's homes and earns $75,000 per year. An insured who had a $500,000 primary liability policy purchased a $1 million Umbrella liability policy with a $2,000 self-insured retention limit. Later, the insured allowed the required underlying primary policy with a limit of $500,000 to expire. A week after that, the insured became liable for a $100,000 loss that is not excluded by the provisions of either the primary underlying liability policy or the Umbrella policy. How will this loss likely be settled? - Correct Answers The insured will be liable for the full $100,000 loss. An insured has a $2 million limit of insurance under a Personal Umbrella policy with a $2,000 self-insured retention limit. The insured is sued for $1 million in personal injury damages and $1.5 million in property damages arising from the same occurrence. The insured's underlying liability policies exclude coverage in this case, but the claim is covered under the Umbrella policy. In this case, the umbrella policy will pay: - Correct Answers $1,998,000 of the damages. 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? - Correct Answers Verification of coverage. Which of the following statements is TRUE regarding an "examination under oath"? - Correct Answers An EUO will only be requested by an insurer if they have reason to believe an insured has not been truthful in their account of the circumstances of the loss. 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? - Correct Answers 1.25