I85PREP
⌘ K
TX Public Adjuster study materials
TX Public Adjuster study resources

TX Public Adjuster practice questions

One question at a time. Build your TX Public Adjuster understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Texas Insurance Law, Rules, and Licensing Requirements

Public insurance adjusters in Texas are primarily governed by which chapter of the Texas Insurance Code?

  1. Chapter 4102 Correct answer.
  2. Chapter 541
  3. Chapter 542
  4. Chapter 462

Explanation

Chapter 4102 of the Texas Insurance Code is the Public Insurance Adjusters Act and contains the licensing, contracting, and conduct rules for public adjusters in Texas. Chapter 542 addresses prompt payment of claims and Chapter 541 addresses unfair or deceptive practices, but neither governs adjuster licensing.

Question 2Texas Insurance Law, Rules, and Licensing Requirements

Which entity issues and renews public insurance adjuster licenses in Texas?

  1. The Texas Department of Licensing and Regulation
  2. The Texas Attorney General
  3. The State Office of Administrative Hearings
  4. The Texas Department of Insurance Correct answer.

Explanation

The Texas Department of Insurance administers adjuster licensing under Insurance Code Chapter 4102, including applications, examinations, renewals, and discipline. Other state agencies perform different functions and do not issue adjuster licenses.

Question 3Texas Insurance Law, Rules, and Licensing Requirements

In a first-party property claim, a public insurance adjuster represents the interests of which party?

  1. The mortgagee
  2. The insured Correct answer.
  3. The reinsurer
  4. The insurer

Explanation

A public insurance adjuster is retained and paid by the insured to prepare, present, and negotiate the insured's claim. The insurer is represented by its own company or independent adjusters.

Question 4Texas Insurance Law, Rules, and Licensing Requirements

Which is a basic eligibility requirement for a Texas public insurance adjuster license?

  1. A four-year college degree
  2. Five years of claims experience
  3. Being at least 18 years of age Correct answer.
  4. A Texas real estate license

Explanation

Texas requires a public adjuster applicant to be an adult of at least 18 years of age, meet good-faith and character standards, pass the licensing examination, and submit the required application and background information. A degree, prior claims experience, or a real estate license is not a licensing prerequisite.

Question 5Texas Insurance Law, Rules, and Licensing Requirements

A person who, for compensation, negotiates a property claim on behalf of an insured in Texas must do which of the following?

  1. Hold a public insurance adjuster license Correct answer.
  2. Post a cash deposit with TDI
  3. Register with the county clerk
  4. Join a licensed trade association

Explanation

Insurance Code Chapter 4102 requires a license before a person may act as a public insurance adjuster for compensation. Acting without the license exposes the person to administrative penalties and possible criminal liability.

Question 6Texas Insurance Law, Rules, and Licensing Requirements

How long is a Texas public insurance adjuster license valid before it must be renewed?

  1. One year
  2. Two years Correct answer.
  3. Three years
  4. Four years

Explanation

Texas public adjuster licenses are issued on a two-year cycle, and renewal requires completion of the required continuing education and payment of the renewal fee. Failure to renew by the expiration date means the person may no longer act as a public adjuster.

Question 7Texas Insurance Law, Rules, and Licensing Requirements

Which statement by a public insurance adjuster to a prospective client is prohibited?

  1. Preparing an inventory of damaged property
  2. Claiming to be an employee of the State of Texas Correct answer.
  3. Explaining how the deductible applies to the loss
  4. Attending the insurer's inspection of the damage

Explanation

A public adjuster may not misrepresent the adjuster's status, including implying an affiliation with a state agency or the insurer. Explaining coverage, building inventories, and attending inspections are ordinary parts of the adjuster's role.

Question 8Texas Insurance Law, Rules, and Licensing Requirements

Before a Texas public insurance adjuster license is issued, the applicant must satisfy which requirement?

  1. Submit a notarized character reference
  2. Obtain a property appraisal certification
  3. Pass the Texas adjuster licensing examination Correct answer.
  4. Complete an oral interview with the commissioner

Explanation

Applicants for a Texas public adjuster license must pass the required licensing examination administered for TDI, in addition to filing an application and meeting character and background standards. No oral interview with the commissioner or appraisal certification is required.

Question 9Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster and an insured agree on a contingency fee to handle a fire loss. What must the adjuster do to comply with Texas law?

  1. Put the agreement in a written contract signed by the insured Correct answer.
  2. File the agreement with TDI before beginning work
  3. Obtain the insurer's written approval of the fee
  4. Have the agreement notarized by a notary public

Explanation

Texas requires a public adjuster to have a written contract with the insured that is signed by the insured and that states the compensation to be paid. The insurer does not approve adjuster fees, and the contract need not be filed with TDI or notarized.

Question 10Texas Insurance Law, Rules, and Licensing Requirements

An insured signs a contract with a public adjuster on Monday. Under Texas law, through when may the insured rescind that contract without penalty or obligation?

  1. Midnight of the same day the contract is signed
  2. The end of the 30th day after signing
  3. Only after the insurer formally denies the claim
  4. The end of the third business day after signing Correct answer.

Explanation

Texas gives the insured a limited right to rescind a public adjuster contract without penalty, ending on the third business day after the contract is signed. The contract should inform the insured of this right, and a timely rescission ends the adjuster's authority to act on that claim.

Question 11Texas Insurance Law, Rules, and Licensing Requirements

A Texas public adjuster holds a license that renews every two years. How many hours of continuing education must the adjuster complete for each renewal period?

  1. 40 hours
  2. 8 hours
  3. 24 hours Correct answer.
  4. 16 hours

Explanation

Texas requires adjusters to complete 24 hours of approved continuing education during each two-year license period, and the total must include required ethics hours. Education must be completed before the license expires for the renewal to be granted.

Question 12Texas Insurance Law, Rules, and Licensing Requirements

Under Insurance Code Chapter 542, an insurer must acknowledge receipt of a claim not later than how many days after receiving it?

  1. 30 days
  2. 5 days
  3. 10 days
  4. 15 days Correct answer.

Explanation

Chapter 542 requires the insurer to acknowledge receipt of a claim within 15 days and to begin its investigation within 30 days. These deadlines run from the date the insurer receives notice of the claim.

Question 13Texas Insurance Law, Rules, and Licensing Requirements

After receiving all items it reasonably requires to decide a claim, an insurer must accept or reject the claim within how many business days under Chapter 542?

  1. 15 business days Correct answer.
  2. 60 business days
  3. 45 business days
  4. 30 business days

Explanation

Once the insurer has the information needed to evaluate the claim, Chapter 542 gives it 15 business days to notify the claimant that the claim is accepted or rejected. The insurer must also state the reasons if it rejects the claim.

Question 14Texas Insurance Law, Rules, and Licensing Requirements

Once an insurer notifies a claimant that a claim has been accepted, Chapter 542 requires payment within how many business days?

  1. Five business days Correct answer.
  2. Fifteen business days
  3. Two business days
  4. Ten business days

Explanation

Chapter 542 requires the insurer to pay an accepted claim not later than the fifth business day after the insurer notifies the claimant of acceptance. Failure to meet that deadline can trigger statutory interest and fee liability.

Question 15Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster tells a homeowner that a policy clearly covers a loss when the adjuster knows the policy excludes it, hoping to pressure the insurer into paying. How is this conduct best characterized?

  1. A prohibited deceptive practice under Chapter 541 Correct answer.
  2. A routine negotiating tactic
  3. Permissible claim advocacy
  4. An appraisal issue outside the scope of the Insurance Code

Explanation

Chapter 541 prohibits misrepresenting the terms or benefits of an insurance policy, and those prohibitions apply to persons engaged in the business of insurance, including adjusters acting for insureds. Advocacy for the insured is proper, but knowingly misstating coverage is not.

Question 16Texas Insurance Law, Rules, and Licensing Requirements

A nonresident who holds a public adjuster license in good standing in another state wants to handle Texas claims. What does Texas law generally provide for such a person?

  1. A temporary 30-day permit issued on request
  2. Authority to practice only after a disaster declaration
  3. Nothing; only Texas residents may hold a Texas license
  4. A Texas license issued on the basis of the home-state license Correct answer.

Explanation

Texas provides a nonresident licensing path under which an applicant licensed in good standing in another state may obtain a Texas public adjuster license based on the home-state license, subject to Texas requirements. A person may not simply practice on the out-of-state license alone.

Question 17Texas Insurance Law, Rules, and Licensing Requirements

As part of the licensing process, Texas requires public adjuster applicants to provide what for a criminal history check?

  1. A urine specimen
  2. Two passport photographs
  3. Fingerprints Correct answer.
  4. A credit score report

Explanation

TDI requires applicants to submit fingerprints so a criminal history record check can be performed before a license is issued. Applicants are also asked about criminal history and disciplinary actions on the application itself.

Question 18Texas Insurance Law, Rules, and Licensing Requirements

What is the maximum administrative penalty the Texas commissioner may assess for a single violation of the Insurance Code by a license holder?

  1. $100,000
  2. $1,000
  3. $500,000
  4. $25,000 Correct answer.

Explanation

The Texas Insurance Code authorizes the commissioner to impose an administrative penalty of up to $25,000 for each violation of the code or a rule or order adopted under it. The commissioner may also suspend or revoke the license for the same conduct.

Question 19Texas Insurance Law, Rules, and Licensing Requirements

What minimum score must an applicant achieve to pass the Texas public adjuster licensing examination?

  1. 80
  2. 70 Correct answer.
  3. 60
  4. 65

Explanation

The Texas licensing exams are scored on a 100-point scale, and a score of 70 is required to pass. An applicant who does not pass must retake the examination before a license can be issued.

Question 20Texas Insurance Law, Rules, and Licensing Requirements

An insured signs a public adjuster contract and then rescinds it on the second business day, before any work has been performed. What must the adjuster do?

  1. Keep half the fee as an administrative charge
  2. Return any money the insured has paid under the contract Correct answer.
  3. Require the insured to pay a cancellation penalty
  4. Bill for the time already spent on the file

Explanation

A timely rescission relieves the insured of further obligation under the contract and entitles the insured to a refund of amounts paid. The adjuster may not impose a cancellation penalty for exercising the statutory right to rescind.

Question 21Texas Insurance Law, Rules, and Licensing Requirements

Under Insurance Code Chapter 542A, a claimant suing on a first-party property claim must give the insurer written pre-suit notice at least how many days before filing suit?

  1. 90 days
  2. 45 days
  3. 30 days
  4. 61 days Correct answer.

Explanation

Chapter 542A requires the claimant to provide written notice of the claim and the specific acts giving rise to the action not later than the 61st day before filing suit, with narrow exceptions. The notice gives the insurer an opportunity to inspect and to cure the alleged deficiency.

Question 22Texas Insurance Law, Rules, and Licensing Requirements

If an insurer delays payment of a claim in violation of Chapter 542 and the claimant prevails, what interest rate applies to the amount owed, in addition to reasonable attorney's fees?

  1. Prime rate plus 2 percent
  2. 18 percent a year Correct answer.
  3. 5 percent a year
  4. 10 percent a year

Explanation

Chapter 542 provides that a liable insurer owes the claim amount plus interest at 18 percent a year, along with reasonable attorney's fees, when it delays payment in violation of the statute. The high rate is intended to deter delayed claim handling.

Question 23Texas Insurance Law, Rules, and Licensing Requirements

An action for damages under Insurance Code Chapter 541 for unfair or deceptive acts or practices must be brought within what period?

  1. One year after the claim is filed
  2. Four years after the policy was issued
  3. Six months after the policy expires
  4. Two years after the claimant knew or should have known of the conduct Correct answer.

Explanation

Chapter 541 imposes a two-year limitations period that begins when the claimant knew, or in the exercise of reasonable diligence should have known, of the conduct giving rise to the action. Neither the policy expiration date nor the claim filing date starts the clock.

Question 24Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster's license expires on March 1 while the adjuster is still negotiating a large claim. In April the adjuster continues meeting with the insured and discussing the claim with the insurer. How is this best characterized?

  1. Acceptable if the insurer consents in writing
  2. Unlicensed adjusting activity in violation of Texas law Correct answer.
  3. Acceptable because the claim began before the license expired
  4. Acceptable if the adjuster renews within the same calendar year

Explanation

Adjusting authority ends when the license expires, and continuing to negotiate claims for compensation after expiration is unlicensed activity subject to penalties. The adjuster must renew the license, including completing required continuing education, before resuming work.

Question 25Texas Insurance Law, Rules, and Licensing Requirements

An unlicensed assistant works in a licensed public adjuster's office. Which task may the assistant lawfully perform?

  1. Answering the phone and scheduling appointments Correct answer.
  2. Advising the insured on the value of the claim
  3. Negotiating the settlement amount with the insurer
  4. Signing the adjuster's contract with the insured

Explanation

Unlicensed staff may perform clerical and administrative duties, but the licensed adjuster must personally handle the activities that require a license, such as negotiating the claim and advising the insured. Contracting with the insured and negotiating settlement are reserved to the license holder.

Question 26Texas Insurance Law, Rules, and Licensing Requirements

Under Texas law, what is the maximum fee a public adjuster may charge for handling an insured's claim?

  1. Fifteen percent of the amount of the claim
  2. Twenty percent of the amount of the claim
  3. Ten percent of the amount of the claim Correct answer.
  4. Twenty-five percent of the amount of the claim

Explanation

Texas caps public adjuster compensation at 10 percent of the amount of the claim. A contract term or charge above that limit is unenforceable and violates the public adjuster licensing rules.

Question 27Texas Insurance Law, Rules, and Licensing Requirements

A licensed public adjuster wants to pay part of a fee to an unlicensed person who referred an insured. How does Texas law treat that payment?

  1. It is prohibited as fee sharing with an unlicensed person Correct answer.
  2. It is allowed if the unlicensed person does not negotiate
  3. It is allowed if the referral is disclosed in writing
  4. It is allowed up to five percent of the fee

Explanation

Only licensed adjusters may be compensated for adjusting or soliciting claims. Sharing a public adjuster fee with an unlicensed person is prohibited, even if the person only made a referral.

Question 28Texas Insurance Law, Rules, and Licensing Requirements

How long must a Texas public adjuster keep records of transactions with insureds?

  1. Two years
  2. Three years
  3. Five years Correct answer.
  4. Ten years

Explanation

Texas requires public adjusters to maintain records of transactions with insureds for at least five years. These records must be available for examination by the Texas Department of Insurance.

Question 29Texas Insurance Law, Rules, and Licensing Requirements

What information must a Texas public adjuster include in advertisements for the adjuster's services?

  1. The adjuster's Social Security number
  2. The adjuster's license number Correct answer.
  3. The adjuster's home address
  4. The name of the adjuster's insurer

Explanation

Public adjuster advertisements must include the adjuster's Texas license number. This lets consumers verify that the advertiser is properly licensed.

Question 30Texas Insurance Law, Rules, and Licensing Requirements

In a first-party insurance claim, a Texas public adjuster may represent which party?

  1. Either the insured or the insurer
  2. The insurer only
  3. Both the insured and the insurer with consent
  4. The insured only Correct answer.

Explanation

A public adjuster is licensed to represent the insured in negotiating a claim. Representing the insurer in the same claim would create a prohibited conflict and is outside the public adjuster's role.

Question 31Texas Insurance Law, Rules, and Licensing Requirements

An insured and a public adjuster orally agree on a fee and the adjuster begins work. To comply with Texas contract requirements, what must the adjuster do?

  1. Publish the fee in a newspaper of general circulation
  2. Obtain the insurer's written approval of the fee
  3. Put the agreement in a written contract signed by the insured Correct answer.
  4. File the agreement with TDI before work begins

Explanation

A public adjuster contract must be in writing and signed by the insured. An oral fee agreement does not satisfy the Texas contract requirements.

Question 32Texas Insurance Law, Rules, and Licensing Requirements

What cancellation information must a Texas public adjuster contract give the insured?

  1. That the contract cannot be canceled by either party
  2. That TDI may cancel the contract without cause
  3. That the insured has a right to rescind the contract Correct answer.
  4. That the insurer may cancel the policy at any time

Explanation

The public adjuster contract must disclose the insured's right to rescind the contract. The contract must also explain how and when the insured may exercise that right.

Question 33Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster receives a settlement check that includes funds belonging to the insured. How must the adjuster handle those funds?

  1. Deposit them in the adjuster's personal account
  2. Hold them in a trust account and disburse them as agreed Correct answer.
  3. Cash the check and hold the currency in the office
  4. Apply them to the adjuster's fee before any disbursement

Explanation

Client funds must be held in trust and may not be commingled with the adjuster's personal or business operating funds. The adjuster must disburse the insured's funds according to the contract and applicable law.

Question 34Texas Insurance Law, Rules, and Licensing Requirements

Within how many days must a licensed Texas public adjuster notify TDI of a change of address?

  1. 60 days
  2. 90 days
  3. 10 days
  4. 30 days Correct answer.

Explanation

A licensed public adjuster must notify the Texas Department of Insurance of a change of address within 30 days. Keeping contact information current is part of maintaining the license.

Question 35Texas Insurance Law, Rules, and Licensing Requirements

An unlicensed person who is not exempt uses the title 'public adjuster' while negotiating claims for a fee in Texas. This conduct is:

  1. Lawful if the person is supervised by a licensed adjuster
  2. Unlawful because the title may be used only by a licensed adjuster Correct answer.
  3. Lawful if the insured consents in writing
  4. Lawful if the person charges no fee

Explanation

A person must hold a Texas public adjuster license to use the title and act as a public adjuster. Supervision or client consent does not authorize unlicensed adjusting activity.

Question 36Texas Insurance Law, Rules, and Licensing Requirements

An insured asks a public adjuster to interpret a policy exclusion and to draft a legal demand letter. What is the adjuster's most compliant response?

  1. Refer the insured to a contractor for a coverage opinion
  2. Decline to give legal advice and recommend the insured consult an attorney Correct answer.
  3. Draft the letter but avoid explaining the exclusion
  4. Interpret the exclusion and draft the letter as requested

Explanation

Public adjusters may discuss claim matters, but they may not engage in the practice of law. Interpreting policy language as legal advice and drafting legal demands should be handled by an attorney.

Question 37Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster learns that the insured has retained an attorney to handle the claim. May the adjuster contact the insured directly to discuss settlement?

  1. Yes, if the adjuster has a signed contract
  2. Yes, if the insured initiated the contact
  3. Yes, after waiting three business days
  4. No, the adjuster should communicate through the attorney Correct answer.

Explanation

Once the insured is represented by an attorney, the public adjuster should direct communications through that attorney. Direct contact with a represented party about the claim is improper.

Question 38Texas Insurance Law, Rules, and Licensing Requirements

At the time a public adjuster contract is signed, what must the adjuster give the insured?

  1. A written estimate of the loss
  2. A copy of the signed contract Correct answer.
  3. A copy of the insured's policy
  4. A TDI complaint form

Explanation

The insured must receive a copy of the signed public adjuster contract at signing. This ensures the insured has the fee terms and rescission information in hand.

Question 39Texas Insurance Law, Rules, and Licensing Requirements

Which person is exempt from Texas public adjuster licensing when negotiating an insured's claim?

  1. A roofing contractor paid a percentage of the claim
  2. A claim consultant who advertises to the public
  3. A licensed attorney representing the insured Correct answer.
  4. A friend helping for a flat fee

Explanation

A licensed attorney representing an insured in a claim is exempt from public adjuster licensing. Other persons who negotiate claims for compensation generally must be licensed unless a specific exemption applies.

Question 40Texas Insurance Law, Rules, and Licensing Requirements

A public adjuster discovers that the insured has inflated the reported loss. What should the adjuster do?

  1. Refuse to present the false information and withdraw from the claim if necessary Correct answer.
  2. Submit the claim as presented because the insured is the client
  3. Ask the insurer to overlook the discrepancy
  4. Adjust the estimate upward to match the insured's figure

Explanation

A public adjuster may not knowingly present false or inflated claim information. The adjuster should refuse to participate in the misrepresentation and may withdraw from the engagement.

Question 41Insurance Principles and Policy Contract Provisions

Insurable interest in property requires that the insured:

  1. has a close family relationship with the property owner
  2. would suffer a financial loss if the property were damaged Correct answer.
  3. holds legal title to the property at the time of the loss
  4. has paid premiums for at least one full policy term without a lapse

Explanation

Insurable interest requires a financial stake: the insured must stand to lose money if the property is damaged. Legal title is one way to have that stake, but leaseholds, mortgages, and other interests can also create it. A family relationship or a premium payment history alone does not create an insurable interest.

Question 42Insurance Principles and Policy Contract Provisions

The principle of indemnity means that an insured should:

  1. be restored to about the same financial position as before Correct answer.
  2. recover from both the insurer and the negligent party
  3. be reimbursed for all consequential and indirect losses
  4. receive a payment equal to the full policy limit for any loss

Explanation

Indemnity seeks to restore the insured to roughly the pre-loss financial position, not to create a profit. Policy limits cap recovery but are not automatically paid for every loss. Double recovery from both the insurer and a tortfeasor is barred.

Question 43Insurance Principles and Policy Contract Provisions

Which information appears on the declarations page of a property policy?

  1. the named insured, policy period, limits, and deductible Correct answer.
  2. the names of the insurer's reinsurers
  3. the insurer's loss ratio for the prior calendar year
  4. the full text of each exclusion and condition

Explanation

The declarations page personalizes the policy by naming the insured and stating the policy term, limits, and deductible. The body of the policy and its endorsements contain exclusions and conditions.

Question 44Insurance Principles and Policy Contract Provisions

A binder provides:

  1. permanent coverage for a full one-year term
  2. temporary evidence of coverage until the policy is issued Correct answer.
  3. a guarantee that the policy will not be cancelled
  4. an endorsement that changes the policy limits

Explanation

A binder is a temporary contract of insurance that provides evidence of coverage until the permanent policy is issued. It is subject to the terms of the policy to be issued and is not a permanent guarantee against cancellation.

Question 45Insurance Principles and Policy Contract Provisions

In a property policy, the deductible is best described as:

  1. the amount of loss the insured retains before payment Correct answer.
  2. an extra charge added to the premium for high-risk property
  3. the maximum amount the insurer will pay for any one loss
  4. a percentage of premium returned at policy expiration

Explanation

The deductible is the retained portion of a loss; the insurer pays covered amounts above it, up to the limit. It is not a premium adjustment or a cap on coverage.

Question 46Insurance Principles and Policy Contract Provisions

The purpose of a coinsurance clause in a commercial property policy is to:

  1. limit recovery to the actual cash value of the property
  2. require the insurer to share losses with a reinsurer
  3. divide the premium between the insured and the insurer
  4. encourage the insured to carry insurance close to the property's value Correct answer.

Explanation

A coinsurance clause requires the insured to carry a limit that is a specified percentage of the property's value. If the insured carries less, recovery is reduced proportionally. This discourages underinsurance.

Question 47Insurance Principles and Policy Contract Provisions

After paying a covered loss caused by a negligent third party, the insurer's right of subrogation allows it to:

  1. deny coverage if the insured also sues the third party
  2. increase the insured's deductible for the next claim
  3. cancel the policy without notice to the insured
  4. pursue recovery from the third party up to its payment Correct answer.

Explanation

Subrogation lets the insurer step into the insured's shoes and recover from the responsible third party after paying the claim. This prevents the insured from collecting twice and helps hold the wrongdoer accountable. The insured must not impair the insurer's subrogation rights.

Question 48Insurance Principles and Policy Contract Provisions

Policy exclusions serve to:

  1. identify perils, property, or losses the policy does not cover Correct answer.
  2. describe the insured's duties after a loss
  3. set the premium rate for the policy term
  4. expand coverage beyond the insuring agreement

Explanation

Exclusions define the boundaries of coverage by listing perils, property, or losses that are not insured. They do not expand coverage or set premium rates.

Question 49Insurance Principles and Policy Contract Provisions

Actual cash value is generally calculated as:

  1. replacement cost plus sales tax
  2. the policy limit divided by the number of scheduled items
  3. replacement cost minus depreciation Correct answer.
  4. the original purchase price of the property

Explanation

ACV reflects the depreciated value of the damaged property, commonly replacement cost less depreciation. It is not the original price or a simple division of the policy limit.

Question 50Insurance Principles and Policy Contract Provisions

Under a replacement cost settlement, the insurer pays:

  1. the original purchase price shown on the declarations
  2. the depreciated value of the damaged property
  3. the market value of the property at the time of loss
  4. the cost to replace with new property of like kind Correct answer.

Explanation

Replacement cost coverage pays to rebuild or replace with new property of like kind and quality, without deducting depreciation, subject to the policy limit. It differs from ACV.