TEXAS ALL LINES ADJUSTER EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS| GRADED A+
Adjusted Gross Revenue (Crop Insurance) - CORRECT ANSWER-Narrowest (and
least expensive) form of Crop Revenue Insurance. Insures farm revenue as a
whole instead of individual crops. Guarantees a percentage of the insured farm's
average revenue.
Adjuster - CORRECT ANSWER-An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer.
Adjuster - Emergency - CORRECT ANSWER-Adjusters who are temporarily
licensed by the insurance commissioner to handle claims during catastrophes or
emergencies that produce an overwhelming number of claims in a short period of
time.
Adjuster - Independent - CORRECT ANSWER-Self-employed adjusters who
contract with multiple insurers at the same time. Paid on a commission or fee-
plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster
Adjuster - Public - CORRECT ANSWER-An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Usually specializes in
,appraisals and negotiation. Paid commission, usually a percentage of final
settlement.
Adjuster - Staff - CORRECT ANSWER-Salaried employee of one insurance
company who can work locally, regionally, or nationally. Also called: Company
Adjuster
Advance Payment Settlement - CORRECT ANSWER-A settlement option that lets
the insurer offer some financial relief to the claimant before the claim has been
fully settled. The insurer makes advance payments to the claimant, which are
then subtracted from the final settlement amount. Often used when a claimant
suffers bodily injury and is unable to work.
Accumulated Depreciation - CORRECT ANSWER-The total decrease in an item's
value over a period of time. Formula: (Annual Depreciation x Number of years
used)
Acreage Reporting Date - CORRECT ANSWER-The deadline for providing the
insurer with an acreage report, which is used to determine the amount of
coverage needed and the premium charged for a particular crop.
Actual Cash Value (ACV) - CORRECT ANSWER-A valuation method used by
insurers to reflect an item's current market value right before being damaged or
destroyed. Formula: (Replacement cost - Accumulated Depreciation)
,Actual Production History - CORRECT ANSWER-A history of a farmer's crop
yields over a multi-year period, which is used to determine the normal production
level of a farm.
Adhesion - CORRECT ANSWER-Characteristic of an insurance contract. Means
that one party (the insurer) sets the terms, and the other (the policyholder) can
"take it or leave it."
Agency Authority - CORRECT ANSWER-The Agent's authority to act on behalf of
someone else, usually an insurer. This authority is derived from the agent's
contract with the insurer.
Agency Authority - express - CORRECT ANSWER-Authority that is expressly
given to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - CORRECT ANSWER-Authority that an agent
possesses by implication of her behavior, regardless of whether this authority is
granted in writing.
Agency Authority - apparent - CORRECT ANSWER-Authority that an agent
possesses based on the appearance of representing the insurer.
Agent - CORRECT ANSWER-Someone who has received authority from an
insurer to sell or service insurance policies.
, Aggregate Limit - CORRECT ANSWER-A type of policy limit found in some health,
liability, and property damage policies. It represents the total amount the insurer
will pay for all losses (as opposed to an occurrence limit, which denotes the total
amount the insurer will pay per occurrence).
Agreement - CORRECT ANSWER-One of the four requirements of a legally
binding contract. All parties involved must agree to the terms of the contract. Can
also refer to a binder, which is the preliminary substance of a contract.
Agricultural Producer - CORRECT ANSWER-A business that grows, harvests, and
sells crops for profit.
Aleatory - CORRECT ANSWER-A characteristic of an insurance contract. Means
"depending on an unknown future event." An insurance contract will only pay IF
and WHEN covered damages occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
Answer - CORRECT ANSWER-In liability cases, the defendant's response to a
complaint. There are three possible answers: 1) accept complaint and pay for
damages, 2) deny the complaint, or 3) accept the complaint with a right to insert
evidence into the case.
Annual Depreciation - CORRECT ANSWER-An item's Replacement cost divided
by the number of years in its expected lifespan.
VERIFIED ANSWERS| GRADED A+
Adjusted Gross Revenue (Crop Insurance) - CORRECT ANSWER-Narrowest (and
least expensive) form of Crop Revenue Insurance. Insures farm revenue as a
whole instead of individual crops. Guarantees a percentage of the insured farm's
average revenue.
Adjuster - CORRECT ANSWER-An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer.
Adjuster - Emergency - CORRECT ANSWER-Adjusters who are temporarily
licensed by the insurance commissioner to handle claims during catastrophes or
emergencies that produce an overwhelming number of claims in a short period of
time.
Adjuster - Independent - CORRECT ANSWER-Self-employed adjusters who
contract with multiple insurers at the same time. Paid on a commission or fee-
plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster
Adjuster - Public - CORRECT ANSWER-An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Usually specializes in
,appraisals and negotiation. Paid commission, usually a percentage of final
settlement.
Adjuster - Staff - CORRECT ANSWER-Salaried employee of one insurance
company who can work locally, regionally, or nationally. Also called: Company
Adjuster
Advance Payment Settlement - CORRECT ANSWER-A settlement option that lets
the insurer offer some financial relief to the claimant before the claim has been
fully settled. The insurer makes advance payments to the claimant, which are
then subtracted from the final settlement amount. Often used when a claimant
suffers bodily injury and is unable to work.
Accumulated Depreciation - CORRECT ANSWER-The total decrease in an item's
value over a period of time. Formula: (Annual Depreciation x Number of years
used)
Acreage Reporting Date - CORRECT ANSWER-The deadline for providing the
insurer with an acreage report, which is used to determine the amount of
coverage needed and the premium charged for a particular crop.
Actual Cash Value (ACV) - CORRECT ANSWER-A valuation method used by
insurers to reflect an item's current market value right before being damaged or
destroyed. Formula: (Replacement cost - Accumulated Depreciation)
,Actual Production History - CORRECT ANSWER-A history of a farmer's crop
yields over a multi-year period, which is used to determine the normal production
level of a farm.
Adhesion - CORRECT ANSWER-Characteristic of an insurance contract. Means
that one party (the insurer) sets the terms, and the other (the policyholder) can
"take it or leave it."
Agency Authority - CORRECT ANSWER-The Agent's authority to act on behalf of
someone else, usually an insurer. This authority is derived from the agent's
contract with the insurer.
Agency Authority - express - CORRECT ANSWER-Authority that is expressly
given to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - CORRECT ANSWER-Authority that an agent
possesses by implication of her behavior, regardless of whether this authority is
granted in writing.
Agency Authority - apparent - CORRECT ANSWER-Authority that an agent
possesses based on the appearance of representing the insurer.
Agent - CORRECT ANSWER-Someone who has received authority from an
insurer to sell or service insurance policies.
, Aggregate Limit - CORRECT ANSWER-A type of policy limit found in some health,
liability, and property damage policies. It represents the total amount the insurer
will pay for all losses (as opposed to an occurrence limit, which denotes the total
amount the insurer will pay per occurrence).
Agreement - CORRECT ANSWER-One of the four requirements of a legally
binding contract. All parties involved must agree to the terms of the contract. Can
also refer to a binder, which is the preliminary substance of a contract.
Agricultural Producer - CORRECT ANSWER-A business that grows, harvests, and
sells crops for profit.
Aleatory - CORRECT ANSWER-A characteristic of an insurance contract. Means
"depending on an unknown future event." An insurance contract will only pay IF
and WHEN covered damages occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
Answer - CORRECT ANSWER-In liability cases, the defendant's response to a
complaint. There are three possible answers: 1) accept complaint and pay for
damages, 2) deny the complaint, or 3) accept the complaint with a right to insert
evidence into the case.
Annual Depreciation - CORRECT ANSWER-An item's Replacement cost divided
by the number of years in its expected lifespan.
