Texas All Lines Adjuster exam with complete solutions

Accumulated Depresciation 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) An item's current market value right before being damaged or destroyed. Formula: (Replacement Cost-Accumulated Depreciation) Adhesion 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) 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 an agent who, for compensation, processes insurance claims. Emergency Adjuster Adjusters who are temporarily licensed by the insurance commissioner to handle claims during catastrophes or emergencies. Independent Adjuster 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 An adjuster who is hired to represent the claimant and help determine a fair indemnification. Paid commission, usually a % of final settlement. Staff Adjuster Salaried employee of one insurance company who can work locally, regionally, or nationally. Advance Payment Settlement A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been fully settled. Agency Authority The agent's authority to act on behalf of someone else (an insurer) Express Agency Authority Authority that is expressly given to the agent in writing. Implied Agency Authority Authority that an agent possesses by implication of his behavior, regardless of whether this authority is expressly granted in writing. Apparent Agency Authority Authority that an agent possesses based on the appearance of representing an insurer.