Texas All-Lines Adjusting Exam Questions & Answers 100% Correct

Accumulated Depresciation - 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) - Answers An item's current market value right before being damaged or destroyed. Formula: (Replacement Cost-Accumulated Depreciation) Adhesion - 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) - 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 - Answers an agent who, for compensation, processes insurance claims. Emergency Adjuster - Answers Adjusters who are temporarily licensed by the insurance commissioner to handle claims during catastrophes or emergencies. Independent Adjuster - 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 - 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 - Answers Salaried employee of one insurance company who can work locally, regionally, or nationally. Advance Payment Settlement - Answers A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been fully settled. Agency Authority - Answers The agent's authority to act on behalf of someone else (an insurer) Express Agency Authority - Answers Authority that is expressly given to the agent in writing. Implied Agency Authority - Answers Authority that an agent possesses by implication of his behavior, regardless of whether this authority is expressly granted in writing. Apparent Agency Authority - Answers Authority that an agent possesses based on the appearance of representing an insurer. Agent - Answers Someone who has received authority from an insurer to sell or service insurance policies. Aggregate Limit - Answers It represents the total amount the insurer will pay for all losses. Agreement - Answers One of the four requirements of a legally binding contract. All parties involved must agree to the terms of the contract. Agricultural Producer - Answers A business that grows, harvests, and sells crops for profit. Aleatory - Answers "depending on an unknown future event" An insurance contract will only pay IF and WHEN covered damages occur. Answer - Answers the defendants response to a complaint Annual Depreciation - Answers item's replacement cost / #of years in its expected lifespan. Appraisal - 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 - Answers Each party submit evidence to the third party arbitrator. Arbitrator makes final legal binding decision. Arbitrator - Answers Third party negotiator, makes final legal binding decision for two parties. Auto Policy - Answers designed to protect the policyholder while owning, occupying, or operating a vehicle. Automobile - Answers any vehicle designed for use on public roads. Auto No-Fault Laws - Answers some states require vehicle owners to purchase no-fault insurance Aviation - Answers haul insurance for aircraft, liability insurance for any others property or people who are not passengers Bailee - Answers individual or company that receives the property of someone else for a special purpose, and returns the product after use. BAP (Business Auto Policy) - Answers provides property damage and liability insurance for auto used by business. Binder - Answers a temporary contract, provided by an insurer, that insures coverage until the complete permanent policy is issued. BI (Bodily Injury) - Answers Physical damage to someone. liability insurance covers bodily injury that the insured might cause to another person through negligence. Body language - Answers the signals we give through posture, behavior, apparel Boiler & Machinery - Answers designed to indemnify a business for damages to, and damages by, boilers, machinery, motors, generators, and others. Bond - Answers a contract, where one party guarantees the performance of a third party. Breach of Product Warranty - Answers the failure or falsehood of a stated promise, of a product stipulation. Catostraphic - Answers occurrence or sequence of occurrences, that causes enormous property losses Cause of Loss - Answers list of Causes of Loss from which the insured property is covered CGL (Commercial General Liability) - Answers protects businesses against damage or injury to third parties. Civil - Answers civil law observes cases of one citizen charging another citizen for damages caused by tort (differs from criminal law). Claim - Answers the offer of settlement that the policyholder files with the insurer after she experiences a loss. Claims-Made Form - Answers liability policy that only pays for claims made during the policy period. Claims Management - Answers the practice of the insurance adjuster, of managing a claim, by processing it, in a prompt and effective manner, from time the claim is filed, until a settlement is reached. Claimant - Answers the one who files a claim with an insurer for a loss Claude the Clueless Adjuster - Answers incompetent or unprofessional adjuster Course Grains - Answers provision that covers reduction in crop quality as well as crop yield losses Co-insurance - Answers clause that applies to policyholders that purchase an inadequate amount of property insurance. must pay a percentage of the claim. Code of Ethics - Answers a set of governing professional standards of conduct Coercion - Answers practice of forcing another party to behave in an unvoluntary manner by use of threats or intimidation Commerce - Answers exchange or transport of goods or property Commercial - Answers having to do with commerce or business activity Commercial Crime Insurance - Answers covers employee dishonesty and theft by employees or others Commercial Lines - Answers a variety of insurance policies that cover those involved in a business of creating, selling, displaying, evaluating or shipping. Commercial Property Floater - Answers a means of protecting a businesses property that is not in one fixed location Common Law - Answers based on court decisions and customs when statutory law does not provide an answer Compensatory Damages - Answers money awarded in civil court for tangible and intangible damages caused by a policyholder. Special Compensatory Damages - Answers money awarded for the exact value of the physical damage caused to the plaintiff up to the trial date General Compensatory Damages - Answers money awarded for the emotional losses of the plaintiff that will continue after the trial date Competence - Answers one of the four qualifications of a legally binding contract. all parties must be competent with the necessary legal and mental capacity Complaint - Answers initiates a civil lawsuit requesting financial relief by damages caused by a policyholder Concealment - Answers act of withholding relevant material facts from an insurer Conditions - Answers qualifies or limits an insurers promise to pay or perform Consideration - Answers one of the four qualifications of a legal binding contract. all parties must bring something of value to the contract Contract - Answers an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation Coverages - Answers the amount and extent of protection provided by an insurance policy Crime - Answers an offense against the state or federal government or a breech of law for which the offender shall make satisfaction to the public Criminal - Answers someone who has been convicted of a criminal act in a court of law Crop Hail Insurance - Answers a form of crop yield insurance that is usually provided by private insurers without government subsidy, it offers named peril protection on an acreage basis Crop Insurance - Answers insurance coverage designed to protect a farmers financial investment in his/her crops, covers losses to a crops profitability Crop Revenue Insurance - Answers crop insurance that combines crop yield insurance and price insurance to protect against losses to crop value