Texas Adjusters License Exam With Complete Solutions Latest Updated 2024

Texas Adjusters License Exam With Complete Solutions Latest Updated 2024

Milton agrees to steal and wreck Albert's car for $4,000, so that Albert can collect $8,000
under his auto insurance policy. Which of the elements of a valid contract are missing in this
agreement? - Legal Purpose
Any intentional misinformation provided by an applicant for an insurance policy that would
have kept the insurance company from issuing the policy had that information been known
is: - A material misrepresentation
Which of the following best describes the purpose of the "insuring agreement(s)" contained
in an insurance policy? - It contains the insurer's promise to pay in case of a loss..
Which of the following statements best describes "the law of agency"? - A relationship in
which someone is authorized by contract to represent another party..
Margaret is a co-owner of a business. She purchases an insurance policy to cover the
property of the business and lists Charlie, the other co-owner, on the policy. There are
others covered by the policy that are referred to as employees. For the purposes of this
policy, Charlie is considered to be: - A named insured
When can an insured assign his or her insurance policy over to another party? - When the
insurer provides written consent.
All of the following statements are TRUE regarding a proof of loss statement, EXCEPT: - A
proof of loss is also known as a loss notice.
All of the following are part of the "entire contract", EXCEPT: - An agreement made between
the insured and the agent stated verbally, that the agent will personally service the insured's
policy, and it will not be delegated to a staff member is part of the entire contract.
A written modification of an insurance policy is known as a(n): - Endorsement Form
Libby completed an application for a new residential policy to cover her home, stating that
she does not use the dwelling for business purposes. However, Libby has been conducting
business operations from the home and has hired several employees who work out of the
home. She also has several clients per day coming to the home for business purposes. When
Libby's insurer finds out about the additional business exposures, they decide to take action.
Which of the following actions is Libby's insurer most likely going to take? - Void her policy
to inception.
Before an insured can bring a lawsuit against their insurer to provide coverage under their
policy, the insured must: - Fulfill all of their required duties as outlined in the policy.
Which of the following statements best describes the term "fiduciary". - A person who is
entrusted with the assets of another.
Rick has three insurance policies covering his small commercial building for $700,000.
Insurer 1: Carries $400,000 of the coverage.
Insurer 2: Carries $200,000 of the coverage.
Insurer 3: Carries $100,000 of the coverage.
According to the provisions of the policies, the loss will be settled using the contribution by
equal shares method. When Rick's building suffers a $500,000 covered loss, which of the
following statements is correct on the amount each insurer will pay? - Insurers 1 and 2 will
each pay $200,000 and Insurer 3 will pay $100,000.
Where in the insurance contract can an insured find the terms used throughout the policy
and an explanation as to what they mean within the context of the policy? - Definitions
The time period after the policy inception and before the policy expiration is known as: - The
Policy Period
Horatio is a business owner who is part of a business owners group that are buying old
commercial buildings in their small city and refurbishing them. Horatio has bought a
beautiful historical building made mostly of wood. He installs a sprinkler system right away
to prevent a fire. What risk management strategy is Horatio using? - Risk Reduction
A church has had the woodwork in the building refinished and new stain and varnish has
been applied. The workers placed the rags and brushes that were used to apply the varnish
in a small closet and closed the door, creating the possibility of spontaneous combustion.
Which of the following terms best describes this condition? - Hazard
Which of the following is most likely to be uninsurable? - The purchaser of a new home wants
to protect herself from a possible drop in housing prices
Adverse selection occurs when: - Applicants are accepted by the insurer with little or no
attention given to underwriting
A risk where both profit and loss are possible is a ____________ risk. - Speculative
When a person purchases several insurance policies to provide more coverage on a risk
than the value of the possible loss, it is known as: - Over insurance
100-year flood is an example of which of the following types of risk? - Static Risk
Which of the following phrases best describes a "hazard?" - A condition that increases the
chances of a loss..
Willie's Widgets has been earning a large portion of their market share for 10 years. During
Willie's 11th year in business, Wynonna's Widgets opens and her superior marketing practices
leaves Willie unable to continue in business. Which of the following types of risk caused
Willie's loss? - Dynamic Risk