Texas All-Lines Adjuster Practice Test
TX Adjuster Valuation & Loss Settlement Practice Questions
Valuation & Loss Settlement makes up 7 of every 50 questions on a Tigertest TX Adjuster practice test. Here are 10 of the 28 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the Pearson VUE Texas all-lines adjuster content outline effective September 2026. Original questions; 50 per test, weighted like the real 150-question exam. Not affiliated with TDI or Pearson VUE.
1. A roof costs $18,000 to replace. It has a 20-year expected life and is 12 years old. Its actual cash value is:
- A.$6,000
- B.$7,200
- C.$10,800
- D.$18,000
Answer: B. Depreciation is 12 / 20, or 60 percent, of $18,000, which is $10,800. Actual cash value is $18,000 - $10,800 = $7,200.
2. The price a willing buyer would pay a willing seller, neither being under pressure to act, is:
- A.Replacement cost
- B.Agreed value
- C.Actual cash value
- D.Fair market value
Answer: D. Fair market value is what a willing buyer and willing seller would agree on. Actual cash value is usually replacement cost less depreciation, though courts may consider market value.
3. A building worth $800,000 is insured for $480,000 under an 80 percent coinsurance clause. A fire causes $100,000 of damage, and the deductible is $1,000. The insurer pays:
- A.$74,000
- B.$99,000
- C.$75,000
- D.$59,000
Answer: A. The insured needed $640,000 (80 percent of $800,000). Payment is $480,000 / $640,000 x $100,000 = $75,000, less the $1,000 deductible = $74,000.
4. A building worth $500,000 is insured for $460,000 under a 90 percent coinsurance clause. A $30,000 loss occurs and the deductible is $2,500. The insurer pays:
- A.$25,000
- B.$24,750
- C.$27,500
- D.$30,000
Answer: C. The requirement is $450,000, and the insured carried $460,000, so there is no penalty. The loss less the deductible is $27,500.
5. A building worth $600,000 is insured for $300,000 under an 80 percent coinsurance clause and is totally destroyed. The insurer pays:
- A.$480,000
- B.$240,000
- C.$300,000
- D.$375,000
Answer: C. The coinsurance formula gives $300,000 / $480,000 x $600,000 = $375,000, but the insurer never pays more than the limit of insurance, $300,000.
6. Policy A ($150,000) and Policy B ($250,000) both cover a building with pro rata other insurance clauses. On an $80,000 loss, Policy A pays:
- A.$30,000
- B.$50,000
- C.$80,000
- D.$40,000
Answer: A. Policy A's share is $150,000 / $400,000, or 37.5 percent, of $80,000, which is $30,000. Equal shares would give $40,000.
7. A primary policy with a $100,000 limit and an excess policy cover the same loss of $140,000. The excess policy pays:
- A.$140,000
- B.$70,000
- C.$56,000
- D.$40,000
Answer: D. The primary policy pays first up to its $100,000 limit. The excess policy then pays the remaining $40,000.
8. A home with a $250,000 Coverage A limit has a 2 percent wind and hail deductible. On a $14,000 hail claim, the insurer pays:
- A.$5,000
- B.$9,000
- C.$13,720
- D.$12,000
Answer: B. A percentage deductible is figured on the Coverage A limit, not the loss: 2 percent of $250,000 is $5,000, and $14,000 - $5,000 = $9,000.
9. A classic car insured on an agreed value basis for $60,000 is stolen and never recovered. The insurer pays:
- A.Whatever a dealer quotes
- B.The agreed $60,000
- C.Its market value that day
- D.Its cost new less wear
Answer: B. Agreed value coverage fixes the amount payable on a total loss when the policy is written, so no valuation dispute arises after the loss.
10. A storm-damaged vessel would cost more to recover and repair than it would be worth afterward. This is a:
- A.General average loss
- B.Particular average loss
- C.Partial loss
- D.Constructive total loss
Answer: D. A constructive total loss exists when recovery and repair would cost more than the property's value after repair, so it is settled as a total loss.
Practice all 28 valuation & loss settlement questions, and the rest of the 200-question bank, in the free TX Adjuster training sets. Questions you miss come back until you have mastered them.
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