Texas All-Lines Adjuster Practice Test

Answer choices

1. A. Wait for a commissioner payment order in every case.
2. B. Use the employer’s preferred lump-sum liability settlement.
3. C. Pay medical benefits but not statutory income benefits.
4. D. Pay due statutory income benefits timely and accurately.

Wrong-answer review

• A. Wait for a commissioner payment order in every case.: Not the best answer here. Labor Code §408.081 states income benefits generally are paid as they accrue without an order.
• B. Use the employer’s preferred lump-sum liability settlement.: Not the best answer here. Statutory benefits are not determined solely by the employer’s preferred settlement.
• C. Pay medical benefits but not statutory income benefits.: Not the best answer here. Chapter 408 expressly provides income-benefit categories when statutory requirements are met.

Answer choices

1. A. A peril.
2. B. A deductible.
3. C. An endorsement.
4. D. A declaration.

Answer choices

1. A. Discard the new photographs.
2. B. Add and evaluate the new evidence, document how it affects the analysis, and avoid leaving a stale conclusion unsupported by the current record.
3. C. Change the outcome without documenting why, so internal notes do not create discoverable inconsistencies.
4. D. Ask the policyholder to select whichever version of events produces the highest payment.

Answer choices

1. A. Confirm the covered fire loss and apply the insurance contract provisions before calculating the payable valuation and limits.
2. B. Pay replacement cost immediately.
3. C. Handle smoke damage as an extended-insurance coverage peril that cannot arise from the covered fire.
4. D. Deny the claim until the policyholder buys an extended-insurance coverage endorsement for smoke.

Answer choices

1. A. The licensed agency whose obligation the surety guarantees.
2. B. The surety company that guarantees performance if the bonded party defaults.
3. C. The party protected by the bond and entitled to enforce the obligation.
4. D. The adjuster assigned to investigate any later claim on the bond.

Answer choices

1. A. The regular all-lines exam is always required before emergency work can begin.
2. B. Only the workers’ compensation exam is required for all catastrophe assignments.
3. C. No exam is required for the emergency adjuster license.
4. D. An exam is waived only after the applicant has held a temporary all-lines license.

Answer choices

1. A. Require the at-fault insurer to exceed its liability limit.
2. B. Deny any first-party claim.
3. C. Evaluate the insured’s collision or uninsured/underinsured motorist coverage for the shortfall.
4. D. Use personal injury protection to pay the remaining vehicle repair costs.

Answer choices

1. A. Within five business days after the claim is filed.
2. B. Within 45 days after all information is received.
3. C. Within 15 days after the claim is filed.
4. D. Only after the insured submits a final contractor invoice.

Answer choices

1. A. Garagekeepers liability coverage for damage to a customer’s auto in the shop’s care, custody, or control.
2. B. Business interruption coverage.
3. C. Personal inland marine coverage.
4. D. Ordinance or law coverage.

Answer choices

1. A. Automatically pay each customer from the insured’s building limit.
2. B. Automatically deny.
3. C. Review the insurance contract’s property-held-for-others provisions and any applicable limits before treating customers’ property as covered business property.
4. D. Handle the customers’ clothing as business income.