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Free Adjuster - All Lines Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Adjuster - All Lines practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A fire policy claim involves direct damage from an identified peril. Which peril is within the core fire coverage described by the NAIC?

    1. A. Lightning striking the insured building
    2. B. Floodwater entering the insured building
    3. C. Earth movement beneath the insured building
    4. D. Burglary of contents from the insured building

    Answer: A

    Explanation: "damage caused by the peril of fire or lightning" Fire coverage includes lightning damage to insured real or personal property. The other perils require different coverage analysis.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Fire

  2. 2A loss report mentions faulty wiring, nearby dry brush, absent sprinklers, and the fire that damaged the building. Which item is the peril?

    1. A. The faulty wiring that raised the chance of ignition
    2. B. The dry brush that increased the fire exposure
    3. C. The lack of sprinklers that increased possible damage
    4. D. The fire that directly caused the building damage

    Answer: D

    Explanation: "Peril - the cause of property damage or personal injury" A peril is the damage-causing event; the other facts are circumstances affecting loss probability or severity. "Hazard - circumstance which tends to increase the probability or severity of a loss."

    Reference: NAIC Glossary of Insurance Terms — Glossary, Peril

  3. 3Who must hold a Texas adjuster license before investigating a property claim for an insurer?

    1. A. A person acting as an adjuster
    2. B. The insured's attorney
    3. C. A repair estimator only
    4. D. A fact witness

    Answer: A

    Explanation: TIC §4101.051 states that a person "may not act as or represent that the person is an adjuster" unless licensed; therefore the person acting as the adjuster needs the license.

    Reference: Texas Constitution and Statutes — §4101.051

  4. 4A driver causes a collision while using her personal car. Which loss belongs under her auto liability coverage?

    1. A. Repairs to her own car after the collision
    2. B. Repairs to the other driver's car after the collision
    3. C. Repairs to her own car after a hailstorm
    4. D. Repairs to her own car after a theft

    Answer: B

    Explanation: "Liability insurance pays to repair or replace the other driver’s car" Auto liability pays for the other driver's property after the insured is at fault; first-party vehicle losses call for physical-damage coverage.

    Reference: Texas Department of Insurance Auto insurance guide — Auto insurance guide, Is auto insurance required?

  5. 5A warehouse is destroyed. Which person clearly has an insurable financial interest in that warehouse?

    1. A. A broker hoping to earn a commission on a future sale
    2. B. A lender holding an unpaid mortgage secured by it
    3. C. A contractor who once quoted a repair on the site
    4. D. A former owner who was fully paid at closing

    Answer: B

    Explanation: "Any financial interest a person has in the property or person insured." An unpaid secured mortgage exposes the lender to financial loss if the property is damaged. The other relationships do not establish a current financial stake in the building itself.

    Reference: Texas Department of Insurance Home Insurance Glossary — Home Insurance Glossary, Insurable interest

  6. 6What minimum age applies to an individual seeking a Texas adjuster license?

    1. A. 17
    2. B. 18
    3. C. 19
    4. D. 21

    Answer: B

    Explanation: TIC §4101.053 requires that the applicant "is at least 18 years of age"; 18 is therefore the minimum.

    Reference: Texas Constitution and Statutes — §4101.053

  7. 7A plumbing company uses its van for service calls, and the van causes an accident. Which coverage line addresses liability from that business vehicle?

    1. A. Businessowners property coverage
    2. B. Personal auto liability coverage
    3. C. Commercial auto liability coverage
    4. D. Commercial crime coverage

    Answer: C

    Explanation: "Commercial auto insurance includes liability and property damage protection for cars, trucks and vans that you use for business." The van is used for business, which places its auto liability exposure in commercial auto rather than a personal or property/crime line.

    Reference: Texas Department of Insurance Commercial property insurance guide — Commercial property insurance guide, Auto coverage

  8. 8A covered property loss is $12,000, with a $2,000 deductible and no other applicable limit. What amount is payable by the insurer?

    1. A. $2,000
    2. B. $12,000
    3. C. $10,000
    4. D. $14,000

    Answer: C

    Explanation: "The amount the insured must pay in a loss before any payment is due from the company." The insured bears $2,000 before insurer payment, leaving $10,000 of the $12,000 covered loss.

    Reference: Texas Department of Insurance Home Insurance Glossary — Home Insurance Glossary, Deductible

  9. 9Which personal qualification must a Texas adjuster applicant demonstrate?

    1. A. Two years of claims work
    2. B. Texas property ownership
    3. C. Trustworthiness
    4. D. Carrier appointment

    Answer: C

    Explanation: TIC §4101.053 expressly requires that the applicant "is trustworthy"; trustworthiness is the listed personal qualification.

    Reference: Texas Constitution and Statutes — §4101.053

  10. 10A thief takes a homeowner's sofa and clothing from the residence. Which homeowners coverage part addresses those items?

    1. A. Dwelling coverage for the residence building
    2. B. Other structures coverage for detached buildings
    3. C. Personal liability coverage for third-party injury
    4. D. Personal property coverage for household belongings

    Answer: D

    Explanation: "Personal property coverage pays if your furniture, clothing, and other things you own are stolen, damaged, or destroyed." The stolen sofa and clothing are household belongings; they are not a building or a liability claim.

    Reference: Texas Department of Insurance Home insurance guide — Home insurance guide, Types of home insurance coverages

Topics in this practice bank

These topics describe the available practice for Adjuster - All Lines. Review the examination outline and its sources for scope and allocation details.

  • GENERAL PROPERTY AND CASUALTY INSURANCE PRODUCT KNOWLEDGE PERTINENT TO ADJUSTERS
    • A. Standard Fire Policy
    • 1. Basic coverages, provisions, and clauses
    • 2. Limitations and restrictions
    • 3. Proof of loss
    • 4. Loss requirements and inventories
    • 5. Appraisal
    • 6. Replacement costs
    • B. Auto liability
    • 1. Personal
    • 2. Commercial
    • C. Personal lines Homeowner coverage
    • 1. Dwelling and contents
    • 2. Homeowners forms/coverages
    • a. Policy provisions
    • b. Replacement costs
    • c. Appraisal
    • d. Special limits of liability
    • e. Proof of loss
    • 3. General property forms
    • a. ISO, HO-2, HO-3, HO-4, HO-5, HO-6
    • D. Commercial lines coverage
    • 1. Commercial property forms
    • a. Commercial property and buildings
    • b. Causes of loss
    • 2. Commercial Package Policy (CPP)
    • 3. Boiler and Machinery
    • a. Type of equipment
    • 4. Businessowners policy
    • 5. Cargo
    • 6. Commercial crime
    • E. Inland Marine
    • 1. Definitions
    • 2. Policies
    • a. Personal floaters
    • b. Commercial floaters
    • i. Installation floaters
    • c. Commercial inland marine
    • F. Ocean Marine
    • 1. Protection and Indemnity (P&I) coverage
    • 2. Collision (“running down”) clause
    • 3. Average
    • 4. General average
    • 5. Particular average
    • G. Additional coverages, exclusions, and extensions
    • 1. Business Interruption
    • 2. Time Element
    • 3. Law and Ordinance exclusion
    • 4. Law and Ordinance coverage
    • 5. Valuable Papers and records
    • 6. Garagekeepers liability
    • 7. Aviation
    • 8. Umbrella
    • 9. Yacht/Boatowners
    • H. Bonds and Professional Liability
    • 1. Errors and Omissions
  • INSURANCE TERMS AND RELATED CONCEPTS
    • A. Peril
    • B. Waiver/non-waiver agreement
    • C. Insurance, insurance contracts, and insurable interest
    • D. Estoppel
    • E. Proof of loss
    • F. Depreciation
    • G. Deductible
    • H. Liability/ limits of liability
    • 1. Absolute/Strict
    • 2. Vicarious
    • I. Valued policy
    • J. Appraisal
    • K. Actual cash value, fair market value
    • L. Robbery
    • M. Burglary and theft
    • N. Agreed value
    • O. Replacement cost
    • P. Indemnity
    • Q. Damages
    • R. Subrogation
    • S. Other insurance
    • 1. Primary and Excess
    • 2. Pro Rata
    • T. Arbitration
    • U. Constructive total loss
    • V. Loss
    • W. Warranties and representations
    • X. Salvage
    • Y. Risk
    • Z. Hazard
    • AA. Liberalization
    • BB. Binder
    • CC. Reservation of rights
    • DD. Policy Provisions and contract law
    • 1. Declarations
    • 2. Insuring Agreement
    • 3. Conditions
    • 4. Exclusions
    • 5. Appraisal
    • 6. Definition of the insured
    • 7. Duties of the insured
    • 8. Obligations of the insurance company
    • 9. Mortgagee rights
    • EE. Proximate cause
    • FF. Coinsurance
    • GG. Occurrence
    • HH. Cancellation
    • II. Nonrenewal
    • JJ. Vacancy and unoccupancy
    • KK. Negligence
    • LL. Endorsements
    • MM. Admitted/Nonadmitted
  • TEXAS STATUTES AND RULES PERTINENT TO PROPERTY AND CASUALTY ADJUSTING
    • A. Licensing requirements
    • 1. Adjuster
    • a. Designated Home State Adjuster
    • 2. Exemptions/exceptions
    • 3. Continuing education
    • 4. License denial, renewal, expiration
    • 5. License termination, revocation, suspension
    • 6. Notification to Department of certain information
    • a. Change of address
    • b. Felony convictions
    • c. Administrative action taken against a license holder
    • 7. Commissioner of Insurance
    • a. General powers and duties
    • b. Examination of records
    • c. Investigation/hearing
    • d. Penalties
    • e. Cease and desist orders
    • B. Marketing practices
    • 1. Unfair/Prohibited trade practices
    • a. Claims methods and practices
    • b. Misrepresentation
    • c. Defamation
    • C. Adjuster practices, responsibilities, and duties
    • 1. Functions of an Adjuster
    • 2. Prohibited Conduct
    • D. Workers’ Compensation
    • 1. Definitions
    • a. Workers’ Compensation insurance
    • b. Employer
    • c. Employee
    • d. Disability definitions
    • e. Maximum Medical Improvement
    • 2. Who is covered
    • 3. Obtaining coverage (Employer)
    • 4. Employer election
    • 5. Average weekly wage
    • 6. Waiting period
    • 7. Compensable injuries
    • 8. Benefits
    • a. Medical
    • b. Income
    • c. Temporary income
    • d. Rehabilitation
    • e. Death and burial
    • 9. Subsequent Injury Fund

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