TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS 2025
Accumulated Depreciation - (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 - (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) - (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 - (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 - (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."
Adjusted Gross Revenue (Crop Insurance) - (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 - (ANSWER)An agent who, for compensation, processes insurance claims. Can represent either
the insured or the insurer.
Adjuster - Emergency - (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 - (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
,TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS 2025
Adjuster - Public - (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 - (ANSWER)Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - (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.
Agency Authority - (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 - (ANSWER)Authority that is expressly given to the agent in writing. Allows
agent to act on behalf of the principal.
Agency Authority - implied - (ANSWER)Authority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agency Authority - apparent - (ANSWER)Authority that an agent possesses based on the appearance of
representing the insurer.
Agent - (ANSWER)Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - (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).
, TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS 2025
Agreement - (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 - (ANSWER)A business that grows, harvests, and sells crops for profit.
Aleatory - (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 - (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 - (ANSWER)An item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - (ANSWER)A negotiation method which allows the claimant and the insurer each to select an
appraiser. The two appraisers in turn select an Umpire. The appraisers then work together to determine
a settlement amount. If they cannot agree, the Umpire steps in. Agreement by any two of the three is
binding.
Arbitration - (ANSWER)A negotiation method in which the opposing parties each submit their evidence
to a mutually-agreed-upon and neutral third party, called an arbitrator. The arbitrator reviews the
positions of each opposing side, and makes a final and legally binding decision.
Arbitrator - (ANSWER)The mutually-agreed-upon and neutral third party in an arbitration who reviews
the positions of each opposing side, and makes a final and legally binding decision.
Artificially Generated Current - (ANSWER)Also called "artificial current." A peril covered in some
property insurance policies. It includes sudden and accidental damage from any electrical current,
except currents that are naturally generated, such as lightning or static electricity.
Accumulated Depreciation - (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 - (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) - (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 - (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 - (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."
Adjusted Gross Revenue (Crop Insurance) - (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 - (ANSWER)An agent who, for compensation, processes insurance claims. Can represent either
the insured or the insurer.
Adjuster - Emergency - (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 - (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
,TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS 2025
Adjuster - Public - (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 - (ANSWER)Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - (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.
Agency Authority - (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 - (ANSWER)Authority that is expressly given to the agent in writing. Allows
agent to act on behalf of the principal.
Agency Authority - implied - (ANSWER)Authority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agency Authority - apparent - (ANSWER)Authority that an agent possesses based on the appearance of
representing the insurer.
Agent - (ANSWER)Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - (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).
, TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS 2025
Agreement - (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 - (ANSWER)A business that grows, harvests, and sells crops for profit.
Aleatory - (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 - (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 - (ANSWER)An item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - (ANSWER)A negotiation method which allows the claimant and the insurer each to select an
appraiser. The two appraisers in turn select an Umpire. The appraisers then work together to determine
a settlement amount. If they cannot agree, the Umpire steps in. Agreement by any two of the three is
binding.
Arbitration - (ANSWER)A negotiation method in which the opposing parties each submit their evidence
to a mutually-agreed-upon and neutral third party, called an arbitrator. The arbitrator reviews the
positions of each opposing side, and makes a final and legally binding decision.
Arbitrator - (ANSWER)The mutually-agreed-upon and neutral third party in an arbitration who reviews
the positions of each opposing side, and makes a final and legally binding decision.
Artificially Generated Current - (ANSWER)Also called "artificial current." A peril covered in some
property insurance policies. It includes sudden and accidental damage from any electrical current,
except currents that are naturally generated, such as lightning or static electricity.
