10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The TXALA exam has 150 questions and runs 2 hours 30 minutes.
These 10 free TXALA questions are organized by exam domain, so you can see how each part of the Texas All-Lines Adjuster Exam blueprint is tested. Reveal the answer and explanation under each question.
An adjuster is comparing standard homeowners forms for an owner-occupied dwelling. A television was damaged by an accidental cause that is not one of the broad named perils, and no exclusion applies. Which policy form supplies that cause-of-loss design?
Correct answer: C - HO-5
A Texas insured with 30/60/25 auto liability limits causes one accident. One claimant has $40,000 in covered bodily injury damages and a second claimant has $25,000. There are no other bodily injury claims. Ignoring defense costs, what is the largest amount the policy can pay for bodily injury?
Correct answer: B - $55,000
For 75 consecutive days before a covered fire, an owner-operated commercial building had only 25% of its total square footage in customary operations. The standard ISO vacancy condition applies, and no deductible or limit changes the result. What settlement adjustment follows from the vacancy condition?
Correct answer: C - The otherwise payable fire loss is reduced by 15%
A food processor's electrical transformer arcs internally, damaging the transformer and shutting down refrigeration so that perishable stock spoils. The commercial property form excludes electrical or mechanical breakdown, but the insured purchased coverage that includes spoilage. Where should the adjuster look for the transformer damage and resulting spoilage coverage?
Correct answer: D - Equipment Breakdown coverage
During a severe maritime peril, the vessel's master intentionally jettisons part of the cargo to save the ship and the remaining cargo. The sacrifice succeeds, and all preserved interests must contribute proportionally. This is an example of which marine loss doctrine?
Correct answer: D - General average
A mechanical contractor buys rooftop HVAC units that will become permanent parts of a new building. The units are damaged while being transported from the supplier to the job site. The transit loss belongs under which inland marine form?
Correct answer: C - Installation Floater coverage
A covered fire damages 60% of a building. The building code requires demolition of the undamaged 40%, and the insured carries Ordinance or Law Coverages A, B, and C. Which Ordinance or Law component pays that demolition expense?
Correct answer: A - Coverage B
A commercial crime form defines Computer Fraud as using a computer to fraudulently cause a transfer, and Funds Transfer Fraud as sending a fraudulent instruction directly to a financial institution. A hacker remotely controls the insured's accounting computer and initiates a transfer to an outside account. Which commercial crime insuring agreement matches the hacker's method?
Correct answer: D - Computer Fraud
A replacement-cost property claim has a covered repair estimate of $50,000. The insurer initially pays $35,000 on an actual-cash-value basis. The form releases withheld depreciation after completed repairs, subject to the amount actually spent. The insured completes comparable repairs for $47,000. Ignoring deductibles and limits, how much recoverable depreciation remains payable?
Correct answer: A - $12,000
An insurer agrees that a roof's hail damage is covered but estimates the repair cost at $28,000. The insured's contractor estimates $46,000. The policy contains a standard appraisal condition, and there is no fraud or unresolved coverage issue. What dispute mechanism should the parties invoke?
Correct answer: A - An appraisal of the amount of loss
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