Texas All Lines Adjuster Test Exam Q&A
100% Solved | Graded A+
Accumulated Depreciation - ✔✔The total decrease in an item's value over
a period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - ✔✔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) - ✔✔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 - ✔✔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 - ✔✔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."
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,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 percentage of the insured
farm's average revenue.
Adjuster - ✔✔An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
Adjuster - Emergency - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Advance Payment Settlement - ✔✔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.
Agency Authority - ✔✔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 - ✔✔Authority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - ✔✔Authority that an agent possesses by
implication of her behavior, regardless of whether this authority is granted
in writing.
Agency Authority - apparent - ✔✔Authority that an agent possesses based
on the appearance of representing the insurer.
Agent - ✔✔Someone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit - ✔✔A type of policy limit found in some health, liability,
and property damage policies. It represents the total amount the insurer will
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, pay for all losses (as opposed to an occurrence limit, which denotes the
total amount the insurer will pay per occurrence).
Agreement - ✔✔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 - ✔✔A business that grows, harvests, and sells crops
for profit.
Aleatory - ✔✔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 - ✔✔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 - ✔✔An item's Replacement cost divided by the
number of years in its expected lifespan.
Appraisal - ✔✔A negotiation method which allows the claimant and the
insurer each to select an appraiser. The two appraisers in turn select an
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
100% Solved | Graded A+
Accumulated Depreciation - ✔✔The total decrease in an item's value over
a period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - ✔✔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) - ✔✔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 - ✔✔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 - ✔✔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."
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,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 percentage of the insured
farm's average revenue.
Adjuster - ✔✔An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
Adjuster - Emergency - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,Advance Payment Settlement - ✔✔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.
Agency Authority - ✔✔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 - ✔✔Authority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - ✔✔Authority that an agent possesses by
implication of her behavior, regardless of whether this authority is granted
in writing.
Agency Authority - apparent - ✔✔Authority that an agent possesses based
on the appearance of representing the insurer.
Agent - ✔✔Someone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit - ✔✔A type of policy limit found in some health, liability,
and property damage policies. It represents the total amount the insurer will
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, pay for all losses (as opposed to an occurrence limit, which denotes the
total amount the insurer will pay per occurrence).
Agreement - ✔✔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 - ✔✔A business that grows, harvests, and sells crops
for profit.
Aleatory - ✔✔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 - ✔✔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 - ✔✔An item's Replacement cost divided by the
number of years in its expected lifespan.
Appraisal - ✔✔A negotiation method which allows the claimant and the
insurer each to select an appraiser. The two appraisers in turn select an
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
