Texas All Lines Adjuster Exam Questions With Complete Solution

Texas All Lines Adjuster Exam Questions With Complete Solution Accumulated Depresciation - CORRECT ANSWERS The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) - CORRECT ANSWERS An item's current market value right before being damaged or destroyed. Formula: (Replacement Cost-Accumulated Depreciation) Adhesion - CORRECT ANSWERS One of the characteristics of an insurance contract. One party sets the terms and the other party can "take it or leave". Adjusted Gross Revenue (Crop Insurance) - CORRECT ANSWERS Narrowest (and least expensive) form of Crop Revenue Insurance. Insures farm revenue as a whole instead of individual crops. Guarantees a % of the insured farm's average revenue. Adjuster - CORRECT ANSWERS an agent who, for compensation, processes insurance claims. Emergency Adjuster - CORRECT ANSWERS Adjusters who are temporarily licensed by the insurance commissioner to handle claims during catastrophes or emergencies. Independent Adjuster - CORRECT ANSWERS Self-Employed adjusters who contract with multiple insurers at the same time. Paid on a commission or fee-plus-expenses basis for each claim. Public Adjuster - CORRECT ANSWERS An adjuster who is hired to represent the claimant and help determine a fair indemnification. Paid commission, usually a % of final settlement. Staff Adjuster - CORRECT ANSWERS Salaried employee of one insurance company who can work locally, regionally, or nationally. Advance Payment Settlement - CORRECT ANSWERS A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been fully settled. Agency Authority - CORRECT ANSWERS The agent's authority to act on behalf of someone else (an insurer) Express Agency Authority - CORRECT ANSWERS Authority that is expressly given to the agent in writing. Implied Agency Authority - CORRECT ANSWERS Authority that an agent possesses by implication of his behavior, regardless of whether this authority is expressly granted in writing. Apparent Agency Authority - CORRECT ANSWERS Authority that an agent possesses based on the appearance of representing an insurer. Agent - CORRECT ANSWERS Someone who has received authority from an insurer to sell or service insurance policies. Aggregate Limit - CORRECT ANSWERS It represents the total amount the insurer will pay for all losses. Agreement - CORRECT ANSWERS One of the four requirements of a legally binding contract. All parties involved must agree to the terms of the contract. Agricultural Producer - CORRECT ANSWERS A business that grows, harvests, and sells crops for profit. Aleatory - CORRECT ANSWERS "depending on an unknown future event" An insurance contract will only pay IF and WHEN covered damages occur. Answer - CORRECT ANSWERS the defendants response to a complaint Annual Depreciation - CORRECT ANSWERS item's replacement cost / #of years in its expected lifespan. Appraisal - CORRECT ANSWERS Insurer and insured each choose an appraiser, the two appraisers in turn choose an umpire. Appraisers work toward settlement amount...if they cannot agree...umpire steps in. Agreement by any two (one appraiser and umpire) is binding. Arbitration - CORRECT ANSWERS Each party submit evidence to the third party arbitrator. Arbitrator makes final legal binding decision. Arbitrator - CORRECT ANSWERS Third party negotiator, makes final legal binding decision for two parties.