Texas Adjuster Exam

Jake has a homeowners policy with the following coverages. Coverage a $80,000, coverage be $60,000, plus one the doctor is $300, close to deductible $200. His son John, who resides with him back Jake's car out of the driveway and ran over his oak tree. The old tree is valued at $400. How much are you going to pay on this claim?

$0

Alex is traveling through College Station and hits a deer, and the damages are $1500. He has comprehensive coverage with a $500 deductible. What will you pay?

$1000

You were handling a flood claim in Rockport Texas. Your policyholder has a flood policy on his duplex, that is a multi dwelling family. The replacement cost of his dwelling is $240,000. The dwelling is insured for $238,000. The flood related damages are valued at $170,000. The actual cash value of these damages is $110. How much will you pay him on his claim? Do not consider a deductible

$240,000

You're handling a flood came in Galveston Texas. Your policyholder has a flood policy on his home. The replacement cost of the darling it's $290,000. The flood related damages are better at $270,000. He is insured for the maximum coverage available of $250,000. How much will you pay him and his claim

$250,000

If an automobile policy has split limits of 30/60/25. What is the maximum amount of liability coverage that would be paid in a covered loss where three people are involved.

$30,000

Increase cost of compliance (ICC) provides coverage up to?

$30,000

You have concluded your claim investigation and called your policyholder to discuss the settlement of their claim. How long do you have to make payment to your policyholder?

5 Calendar days

The leftover value of a claim when an insurance company recovers and sells property to reduce its financial loss?

Salvage

Is the size of a loss, the extent of damages

Severity

________ is the size of a loss, the extent of damages.

Severity

Joan has a workers compensation claim . She feels as though she is not being adequately compensated. The Texas department for Worker's Compensation has reviewed her claim. What are her remedies

She can hire an attorney and take her matter to court

Angie smith has excess continuing education hours in a reporting period. Which is the correct answer below

She cannot carry forward any excess continuing education hours

Blake Nelson's license expired two years ago. He would like to obtain his adjusters license so that he can resume his adjusting career. What does he do to obtain his license?

Start over by taking the pre-licensing course and exam and resubmitting application

Which of the following statements is true?

Bullion/valuable papers is limited to $500 for all cause of loss

Dante Harris's license expires in two weeks. What should he do?

Complete the required continuing education and complete the renewal form

Joseph ross owns a 2014 Toyota Avalon. while at the mall shopping, someone hit his car and left a big dent on the right side of his car. He does not know who hit his car, and there are no witnesses to this accident. What type of insurance protection does he need to protect him from financial loss in this situation

Comprehensive

The type of contract includes a number of conditions in which cost the insured and ensurer must comply

Conditional contract

The Texas Department of insurance specifically requires the adjuster applicants complete at least two hours of continuing education in

Consumer protection and adjuster ethics

What is the intentional relinquishment of a known right by the insurance company or agent upon which the insured relies

Wavier

Insurance for ocean vessels is the ______ type of insurance?

oldest

John has a homeowners policy with the following coverages. Coverage a $90,000, coverage be $50,000, plus one deductible 1%, close to the doctor thousand dollars. His cloth awning was damaged during the fire. His cloth awning is valued at $4000. How much are you going to pay on his claim

$3500

Karen has a Texas HOB homeowners policy. She had $900 worth of stolen contents from her home. Her policy has contents limits of $20000 and a $500 deductible. How much would you pay for her stolen contents

$400

You are handling a flood claim in Houston Texas. Your policyholder has a flood policy on his home. The replacement cost of his dwelling is $230,000. The flood related damages to the dwelling are valued at $220,000. The replacement cost of the damage contents on his claim is $85,000. The actual cash value of the damage contents is $63,000. How much will you pay him for his damage contents? Do not considered a deductible

$63,000

Your policyholder has a homeowners policy with the following limits on it. Coverage $140,000, coverage B $70,000 and the deductible is 1%. Her home was burglarized and she has filed a theft claim for stolen contents. What will be her deductible on this theft claim

$700

Your policyholder has a homeowners policy with the following limits on it. Coverage a $140,000 coverage be $70,000 what is the maximum that they can receive for his contents they were stolen out of the hotel room while on vacation? Do not consider that deductible

$7000

Donovan has a homeowners policy in Austin Texas with the following coverages. Coverage a is $20,000 coverage be it's $9000 and deductible $200. His contents were stolen from his hotel room in New York while he was on vacation. The total value of his conscience is $1000. How much are you going to pay on his claim

$800

Your customer has HO-B homeowners policy with a Coverage A limit os $300,000. His mortgage payment is $1,400 per month. He can't stay in his home for 1 month due to a claim that was caused by smoke. He is staying in a local hotel for 1 month. The cost of the hotel is $900 for the moth. How much will you pay your policyholder for Additional Living Expenses

$900

The insured as how long to comply with request made by the adjuster

15 calendar days

Vince Applewhite has provided you with all of the documentation that you requested from him to handle his theft claim. How long do you have to accept or reject his claim

15 calendar days

You have been assigned Mary Johnson's theft claim. In order for you to do a thorough investigation, you need for her to provide documentation to you. How long do you have to request required items from Mary?

15 calendar days

Johnny has 30/60/25 limits on his auto policy, and he negligently ran into a parked car driven by Steve Garcia. What is the maximum amount of coverage that can be provided for the damage to Steve's car?

25,000

Your insured has a homeowners policy with a Coverage A limit of $50,000, His coverage B limit is $20,000. His deductible is 1%. He has 30 trees that are damaged during the fire. How much are you going to pay on his claim?

2500

Janet thompson works for universal insurance company of Texas. She is involved in a work related accident in the supply room. She immediately notifies her supervisor about the accident. Universal insurance company must report the injuries within how many days of being notified of the injury?

8 days

An adjuster bond is required for all license public adjusters in Texas for this very important reason

A contract between the adjuster and the homeowner in which the adjuster agrees to carry out they're adjusting duties in a responsible and honest manner

Pam's home has been burglarized. The total value of the stolen contents is $7,000. You advise her that she needs to file a police report. Which of the following statements is correct?

A police report is needed per section 1 conditions

If you have a covered loss, in excess of a limit, you can apply that excess towards the deductible. This best describes?

Absorbing the deductible

This department is responsible for making rates and determines the rates charged by the insurer

Actuarial department

The type of insurance contract that must be excepted by the insured as written by the insurance company

Adhesion contract

You are handling the claim, and your policyholder has hired a public adjuster, which of the following is not an appropriate response

Advise the policyholder you can't work with his or her public adjuster

What type of contract exists when the insurance policy is valid even though there is an unequal exchange?

Aleatory Contract

What are the types of adjuster licenses approved for issuance in Texas?

All Lines, Property, Property and Casualty, Surety, Workers Compensation

Method of dispute resolution that occurs when there is a dispute regarding whether or not something is covered under the policy

Arbitration

What was established in 1991 to ensure the prompt payment of insurance claims?

Article 21.55

A temporary contract pending issue of the policy that is subject to the terms of the contract to be written later.

Binder

Failure to comply with terms or conditions of an insurance policy that may result in restricted coverage or void the policy?

Breach of contract

The defense which bars a person from recovery against a negligent party if it can be proven that this person knew of the risk associated with the person who is participating in?

Contributory negligence

Documents attached to an insurance policy the change or modify the policy in someway? In some instances, they broaden coverage

Endorsements

Larry is an Insurance Agent with Texas Capital insurance company. One of his customers called his office and requested a change in coverage on his policy. Larry advised the customer he would make the change on the policy, but failed to change it in the system. His customer's claim is denied 6 months later for not having the proper coverage. The claim department paid the customers claim and filed what type of claim on Larry's commercial property.

Errors and Omissions

What is the intentional or unintentional impression by the insurance company that a certain fact exists when it does not?

Estoppel

What is the provision in an insurance policy that indicates what is denied coverage

Exclusion

Provisions in an insurance policy that indicates what is not covered?

Exclusions

Mary Johnson owns a local maid service. She wants to get some form of protection to protect their company against dishonesty on the part of her employees. What type of bond does she need to get to protect her company?

Fidelity bond

This type of loss involves only the insurer and the

First party loss

What is any intentional lying or misrepresentation by policyholders in order to inflate a claims payment or receive a claims payment that would otherwise not be paid

Fraud

Samantha purchased a brand new SUV two years ago. She bought the new SUV for $45,000. The Kelley blue book value of her SUV today is $28,000. Samantha still owes $36,000 on her SUV. She's involved in a total loss accident. What type of insurance protects her for financial loss in the situation?

GAP

The insured as an auto repair shop, and they normally have several customers cars on premises. In the event of a fire the damages the vehicles, what coverage with the garage need to carry to be property protected?

Garage keepers legal liability

Steve's Worker's compensation claim has been rejected. Steve reported his claim 43 days after the incident occurred. What is a possible reason why?

He did not report his injury to his employer within 30 days

Morris has a Texas Dwelling policy on his property. His property burns down in a fire. He claims that he has also sustained a financial loss because he is not able to rent the property to his tenants. What can you tell him?

He has coverage for loss of fair Rental Value

Brandon Jones has that his adjuster license expire. Under what circumstances can he still renew his license?

If the license has not been expired for more than 90 days

A _________ is a person hired to handle a claim on behalf of the insured

Independent adjuster

The type of adjuster that works for the insurance company on a contractual basis?

Independent adjuster

The type of loss that does not result from direct damage of covered cause of loss or peril but is, instead, a consequence of the direct damage loss

Indirect loss

As a public administrator you want to get insurance for your county's bridges and tunnels. What kind of policy would you look for?

Inland Marine

You have an inland marine policy with no endorsements. Your truck has been damaged by a tornado while on a delivery route. The goods that were being transferred it would be covered under what type of policy?

Inland marine policy

An interest by the insured person in the value of the subject of insurance including any legal or financial relationship

Insurable interest

The transfer of Pure risk from one party to another for a price through a legal contract that spells out the terms, perils covered, and property/perils excluded.

Insurance

Meredith was attending the Christmas party that was held at the Riverstone country club. While walking to the restroom, she tripped and fell on one of the steps that was broken. The broken step had been covered up by a new rug. Meredith's status in this situation is that of an

Invitee

Johns property sustained damage from a windstorm. His fence was total blown down. He wants to know how his fence will be settled. You advise him?

It will be settled based on the actual cash value

A customer claims he tripped on a stair in John's Art Gallery and broke his leg. The only way the customer will have a successful claim against John's insurance is?

John must be found legally liable for the incident

______________ Is a significant miss statement in an application form

Material misrepresentation

The method of dispute resolution that occurs when there is a dispute regarding whether or not some thing is covered under the policy.

Mediation

Jacob Livingston is a doctor in Houston Texas. What type of professional liability insurance would he need to protect him from claims against his wrongdoings

Medical malpractice

Mona insurer is going to cancel her insurance policy. In order for the cancellation to be legal, what must the insured do?

Notify Mona in writing that her policy is being canceled with the reason why.

You make initial contact with your insured. During this conversation, you should?

Obtain the loss facts and set an appointment to inspect the damages

An event that results in an insured loss / damages.

Occurrence

Which of the following statements best describes an inland marine policy?

Pertains to Cargo with no fixed location

_____ Establishes the major responsibilities of the insured in the policy

Policy conditions

while derrick is taking inventory he accidentally drops a crate of milk on a customer foot. what is the stores liability?

Premises Liability

When a loss occurs, an individual should be restored to the appropriate financial condition he or she was in before the loss. This is known as?

Principle of indemnity

Little toys company sells a toy meant to be used by a three-year-old. What type of liability with little toys face if the choice of distracted and caused injury to a three year old

Product liability

Texas Spring company produced 100 defective springs last month. What type of claim can be brought against him in this situation?

Product liability

Dr. Phillips completed a surgical procedure on his patient. It was later determined his method was completed incorrectly and has cost more damages. What type of liability is this?

Professional liability

The cost having the most significant impact in bringing about the loss under a first-party insurance policy

Proximate Cause

This is defined as the uncertainty of financial loss

Risk

Lewis has a Texas dwelling policy on his property in Lewisville Texas. His tenant called him to tell him that the property was broke into and all of his contents were stolen. Lewis files a claim for his tenant's stolen contents. What do you tell Lewis about his claim?

The contents are covered up to 10% of the Coverage B limit of liability.

Loss of business income is insurable which of the following is not used in determining such a loss

The projected income of similar businesses in the area

If the bonded individual does not perform as promised, who needs to perform the application or pay for any damages

The surety

Millennium vessel company sustained damage to one of their vessels that was transporting goods across the golf of Mexico. Which policy would they need in order to get their damaged vessel repaired?

They would need ocean Marine policy

The process an insurance company uses to decide whether to accept or reject an application for a policy

Underwriting

You have received a new claim for damages caused by a leaking pipe. You should call and make contact with your policyholder within what time frame?

Within 48 hours

Steve Garcia is exempted from taking the State Adjuster License Exam. Which of the following is a reason for his exemption?

Within the past 12 months he completed a certified adjuster pre-licenseing education program and pass the required exam.

You have just completed the handling of John Woods roof claim. Mr. Wood disagrees with your courage and determination to deny his claim. What must you provide to Mr. Wood?

Written explanation of full or partial rejection of the claim

Marcia sustained a loss to her property as a result of vandalism. All of her damages will be settled at replacement cost except

damage to the fence

What is the responsibility to another for ones negligence?

liability

The party to an insurance whom the insurer agrees to indemnify for losses, provide benefits for, or render services to?

loss payee

Which of the following is not ground for license denial or revocation?

never having lived or never intending to reside in the state of Texas

This insurance term means a legal wrong

tort

he insured's pets dog "Lucky" caused damage to the front screen door. How much are you going to pay on this claim? The damage to the door is $1,000. Coverage: Covg. A $80,000; CovgB $40,000 (Ded 1%)

zero