Texas State Claims Adjuster License
Under a Personal Articles Floater, the total amount that will be paid for loss or damage to an unscheduled coin collection is:
$1,000
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is:
$1,000 per person
The Builders' Risk coverage form includes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is:
$1,000, but $250 for any one tree, shrub, or plant.
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?
$12,000 (20% of coverage A)
Under a standardized DP-2 or DP-3 policy, what is the maximum that would be paid for additional living expenses if Coverage A was $60,000?
$12,000 The form provides 20% for additional living expenses and fair rental value.
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 (answer is an amount per period):
$15,000 coverage for all occurrences within a 12-month period.
Roxanne has her home covered under a DP-2 policy. She regularly works on her laptop computer at the bar in her kitchen. One day she decided to go out for lunch, leaving her laptop plugged in and turned on. While she was out, the electrical cord attached to her laptop began to short out and create sparks. One of the sparks fell on a dish towel Roxanne had left on the bar and it caught fire. This led to a larger fire that caused extensive damage to Roxanne's kitchen. The damage caused to the kitchen came to $15,000. The laptop was destroyed and it's ACV was $1,800. The policy did not have a deductible form attached. How much will be paid on this claim?
$15,000 it excludes coverage for the laptop computer under the "Artificially Generated Electrical Current" peril
The additional coverage on the Building and Personal Property coverage of a Commercial Property policy for electronic data provides _________ for the cost of replacing and restoring electronic data that has been destroyed or corrupted by a covered cause of loss.
$2,500 in the aggregate
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 how much per day?
$250/day
The Homeowners "additional coverages" includes coverage up to __________ for gravemarkers including mausoleums on or away from the residence premises by a peril insured against.
$5,000
The Builders' Risk form provides an extension of coverage for building materials within 100 ft of the building being constructed, up to:
$500
If an insured carries Coverage C under a Dwelling policy, how much coverage applies off the insured premises (world-wide basis)?
10%
The NAIC Model Unfair Claim Settlement Practices Act specifies that the insurance company must provide the proper claim forms with a reasonable explanation of how to use them to the claimant within:
15 calendar days of the request.
A Texas insurer is liable for a claim but is in violation of Texas regulations as to the timely payment of the claim. Texas requires that the insurer must pay, in addition to the settlement amount, interest on the amount of the claim at the rate of _____% per year.
18
Texas insurance licensees must complete _____ hours of continuing education each reporting period.
24
Convenience stores selling gasoline must have a minimum of ______ square feet in total floor area in order to qualify for the BOP?
3,000
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.
30
Adjusters in Texas must complete at least _____ of the continuing education required to renew their license in a classroom or classroom equivalent setting.
50%
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.
5th
The "Business Income" additional coverage of the standard Businessowners policy provides coverage for "ordinary payroll coverage" for how long?
60 days unless the insured selects and schedules a different amount
In order to be eligible for coverage, restaurants must not exceed ______ in total floor area?
7,500 sq ft
Texas issues emergency adjuster licenses in case of an emergency arising out of a disaster. The application must be certified not later than the fifth day after the date on which the person begins works as an adjuster. An emergency license is valid for ______ days.
90
A coverage extension included on the Building and Personal Property coverage form provides coverage for business personal property temporarily stored in a detached trailer within 100 feet of the insured building for:
A limit of $10,000 unless higher limits are purchased.
How long is coverage under the Builders' risk form written for?
A period of one year
How are Inland Marine Policies paid out?
Actual Cash Value basis
Which if the DP-1, DP-2, and DP-3 forms provides loss of rental coverage?
All three of them
What is the definition of "collapse" as defined in the additional coverage of the Homeowners forms?
An abrupt falling down or caving in of the structure or a part of the structure
Policy that covers the goods shipped by the insured on a regular basis throughout the year
Annual Transit Policy
The standardized Personal Automobile policies contain a common conditions page (T/F)
FALSE, the insuring agreements provide such varied coverages that separate conditions sections are necessary
Administrator bond, executor bond, and guardian bond are all types of
Fiduciary bonds
A department store has a large inventory of costume jewelry and watches. No single item is valued for more than $100.00. A customer steals most of the items and flees the scene. What theft coverage would be provided by an unendorsed standardized BOP policy?
Full limit of Coverage B.
The "period of restoration" for the Extra Expense coverage included on the Business Income form is
Immediately following the direct physical damage
Does the fire department service charge coverage have a deductible?
No
Using the modified comparative negligence standard, a plaintiff in a lawsuit who is 60% at fault for her injuries will receive:
No award (Using the modified comparative negligence standard, if the plaintiff is 50% or more at fault for the injury or damage sustained, damages will not be awarded.)
The NAIC Model Unfair Claim Settlement Practices Act specifies that when a violation of the Act is suspected, a hearing must be held:
Not less than 30 days after notice has been provided to those involved
The "Medical Expense" coverage of Section II of the Businessowners policy will pay the reasonable expenses for first aid, medical services, and funeral services, within:
One year from the date of the accident
Direct collision with an animal/bird is covered under what part of the personal auto insurance policy?
Other than collision
The Building & Personal Property coverage form provides (in respect to Outdoor signs) how much $$$:
Outdoor signs, whether attached to the building or not, for up to $2,500 if damaged by a peril insured against.
An "other insurance" clause is included in insurance policies to deal with the problem of:
Overinsurance
An office building is limited in the number of stories it may contain and still be eligible for coverage under a standard Businessowners Policy. This number is:
Six stories
Regulation of the insurance industry in the United States is primarily left to:
State governments.
A surety which provides a Performance Bond to a contractor might also provide another performance bond which guarantees the materials will be provided at the price quoted and the quality and quantity specified. This bond is referred to as a:
Supply Bond
Which of the DP forms provide the most coverage?
The DP-3. It provides coverage on an open peril basis, whereas the other forms provide named peril coverage
Which of the following Commercial Property coverage forms provides coverage when the insured is negligent and causes damage to property that was in their care, custody and control?
The Legal Liability form
The insured has a Homeowners policy with a $5,000 loss deductible. He has purchased some expensive camera equipment, scuba gear, and clothing to take on a 2-week cruise and is concerned about theft of his newly purchased property. What coverage would be recommended?
The Personal Effects Floater. Due to the high deductible under the Homeowner policy, the Personal Effect Floater would be the best choice of those listed.
Who is the surety (in a bond)?
The party that guarantees the principals performance
Who is the obligee (in a bond)?
The party to whom the principal makes a promise to perform or to be honest with
Who is the principal (in a bond)?
The party whose performance is being guaranteed by the surety
Sam's home is located in a rural area and is covered by a standardized DP-2 Dwelling form with a $500 deductible form attached. He experiences a fire at his home and has to call the local volunteer fire department to extinguish the fire. He receives a bill from the fire department in the amount of $800. How much of the bill will Sam's DP-2 form cover?
The policy will provide $500 to pay for fire department charges incurred when the fire department is called to save or protect covered property from a peril insured against. This coverage is additional insurance and no deductible applies.
Policy designed to cover only a single shipment of goods
Trip Transit Policy
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?
Uninsured boater's coverage and hull insurance
Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported?
Within 180 days
The standardized Building and Personal Property Coverage form requires the insured to submit a signed, sworn proof of loss statement:
Within 60 days of the insurance company's request.
used when someone loses in court and is made to pay damages. This type of bond postpones payment pending his/her appeal
appeal bond
The compensation payable for delaying a vessel carrying freight as by failing to load/unload cargo is called
demurrage
If an insurer in Texas notifies a claimant that the insurer will pay a claim or part of a claim, the insurer must pay the claim not later than the ____ business day after the date notice is made.
fifth
The Ocean Marine coverage that insures either prepaid shipping charges, or the income to be earned for moving cargo is known as
freight insurance (cargo form covers damage, and some coverage is included under the protection and indemnity coverage legal liability)
Which of the following is the basis for insuring property under Section I of the Businessowners policy? named peril open peril basic form
open peril. an endorsement can be added to amend coverage to named peril
Risk retention and purchasing groups are used to provide which of the following types of coverage? dwelling and homeowners insurance products liability insurance inland marine insurance
products liability insurance
A Commercial Property policy that includes a Business Income coverage form will cover loss of business income due to the actions of a civil authority for a maximum of
4 weeks
Under the Standard Fire Policy, how many days' notice the insurance company have to give the insured if the insurance company decides to take possession of damaged property after a claim is paid?
30 days' notice
In a bond that has been in place and renewed for several years with the same carrier, under the "loss sustained under previous insurance condition" which would respond to a claim that was just discovered but which actually happened two years ago?
The answer is the current bond as per the policy conditions section of the bond
Which of the following is not a part of the standard BOP coverage territory? Canada US Mexico international waters
Mexico
