TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Accumulated Depreciation - ansThe total decrease in an item's value over a period of time. Formula:
(Annual Depreciation x Number of years used)
Acreage Reporting Date - ansThe 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) - ansA 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 - ansA 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 - ansCharacteristic 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) - ansNarrowest (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 - ansAn agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer.
Adjuster - Emergency - ansAdjusters 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 - ansSelf-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 - ansAn 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 - ansSalaried employee of one insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster
Advance Payment Settlement - ansA 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 - ansThe 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 - apparent - ansAuthority that an agent possesses based on the appearance of
representing the insurer.
Agency Authority - express - ansAuthority that is expressly given to the agent in writing. Allows agent to
act on behalf of the principal.
,TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Agency Authority - implied - ansAuthority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agent - ansSomeone who has received authority from an insurer to sell or service insurance policies.
Aggregate Limit - ansA 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).
Agreement - ansOne 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 - ansA business that grows, harvests, and sells crops for profit.
Aleatory - ansA 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.
Annual Depreciation - ansAn item's Replacement cost divided by the number of years in its expected
lifespan.
Answer - ansIn 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.
Appraisal - ansA 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 - ansA 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 - ansThe 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 - ansAlso 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.
Auto Policy - ansInsurance policy designed to protect the policyholder while owning, occupying, or
operating a vehicle. Usually combines liability coverage and property coverage into one policy.
Automobile - ansIn Insurance policies, Automobile generally means any vehicle designed for use on
public roads.
Automobile No-Fault Laws - ansLaws in effect in some states that require any owner of a vehicle to
purchase no-fault insurance; that is, insurance that indemnifies the insured regardless of who was at fault
in an accident. No-fault laws also restrict the insured's right to sue the at-fault party.
, TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Aviation - ansAviation insurance combines hull insurance for the aircraft and liability insurance for any
damage to others' property or to people who are not passengers.
Bailee - ansAn individual or company that receives the property of someone else for a special purpose,
and returns the product after use.
BAP - ansThe Business Auto Policy provides property damage and liability insurance for automobiles
used by a business.
Binder - ansA temporary contract provided by an insurer that ensures coverage until the complete,
permanent policy is issued.
Bl - ans(Bodily Injury): Physical damage to someone's person. Liability insurance covers bodily injury that
the insured might cause to another person through negligence.
Body Language - ansThe signals we give through posture, behaviour, apparel, etc., which are involved in
communication.
Boiler & Machinery - ansBoiler and machinery insurance is designed to indemnify a business for damages
to, and damages by, boilers, machinery, motors, generators and a variety of other electrical devices and
appliances.
Bond - ansA contract wherein one party guarantees the performance of a third party. Bonds involve three
parties: (1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal,
neglects to carry out an obligation it has to the obligee.
Breach of Product Warranty - ansThe failure or falsehood of a stated promise of a product stipulation.
Business Personal Property - ansMoveable property used for business
Catastrophe - ansAn occurrence or a sequence of occurrences that causes enormous property losses.
Catastrophes are normally uninsurable by private insurers.
Cause of Loss - ansA form included in a Commercial Package Policy or a Commercial Property Policy
that lists the causes of loss from which the insured property is covered.
CGL - ansA Commercial General Liability policy protects businesses against damages and injuries to
third parties.
Civil - ansCivil law observes court cases of one citizen charging another citizen for damages caused by
tort; it differs from criminal law.
Claim - ansThe "offer of settlement" that the policyholder files with an insurer after she experiences a
loss.
Claimant - ansOne who files a claim with an insurer for a loss.
Claims Management - ansThe practice of the insurance adjuster of managing a claim by processing it in a
prompt and effective manner from the time the claim is filed until a settlement is reached, while adhering
to all local and federal laws.
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Accumulated Depreciation - ansThe total decrease in an item's value over a period of time. Formula:
(Annual Depreciation x Number of years used)
Acreage Reporting Date - ansThe 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) - ansA 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 - ansA 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 - ansCharacteristic 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) - ansNarrowest (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 - ansAn agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer.
Adjuster - Emergency - ansAdjusters 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 - ansSelf-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 - ansAn 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 - ansSalaried employee of one insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster
Advance Payment Settlement - ansA 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 - ansThe 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 - apparent - ansAuthority that an agent possesses based on the appearance of
representing the insurer.
Agency Authority - express - ansAuthority that is expressly given to the agent in writing. Allows agent to
act on behalf of the principal.
,TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Agency Authority - implied - ansAuthority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agent - ansSomeone who has received authority from an insurer to sell or service insurance policies.
Aggregate Limit - ansA 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).
Agreement - ansOne 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 - ansA business that grows, harvests, and sells crops for profit.
Aleatory - ansA 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.
Annual Depreciation - ansAn item's Replacement cost divided by the number of years in its expected
lifespan.
Answer - ansIn 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.
Appraisal - ansA 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 - ansA 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 - ansThe 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 - ansAlso 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.
Auto Policy - ansInsurance policy designed to protect the policyholder while owning, occupying, or
operating a vehicle. Usually combines liability coverage and property coverage into one policy.
Automobile - ansIn Insurance policies, Automobile generally means any vehicle designed for use on
public roads.
Automobile No-Fault Laws - ansLaws in effect in some states that require any owner of a vehicle to
purchase no-fault insurance; that is, insurance that indemnifies the insured regardless of who was at fault
in an accident. No-fault laws also restrict the insured's right to sue the at-fault party.
, TEXAS ALL LINES ADJUSTER EXAM BRAND NEW!!
(200+ QUESTIONS AND CORRECT ANSWERS)
VERIFIED ANSWERS
Aviation - ansAviation insurance combines hull insurance for the aircraft and liability insurance for any
damage to others' property or to people who are not passengers.
Bailee - ansAn individual or company that receives the property of someone else for a special purpose,
and returns the product after use.
BAP - ansThe Business Auto Policy provides property damage and liability insurance for automobiles
used by a business.
Binder - ansA temporary contract provided by an insurer that ensures coverage until the complete,
permanent policy is issued.
Bl - ans(Bodily Injury): Physical damage to someone's person. Liability insurance covers bodily injury that
the insured might cause to another person through negligence.
Body Language - ansThe signals we give through posture, behaviour, apparel, etc., which are involved in
communication.
Boiler & Machinery - ansBoiler and machinery insurance is designed to indemnify a business for damages
to, and damages by, boilers, machinery, motors, generators and a variety of other electrical devices and
appliances.
Bond - ansA contract wherein one party guarantees the performance of a third party. Bonds involve three
parties: (1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal,
neglects to carry out an obligation it has to the obligee.
Breach of Product Warranty - ansThe failure or falsehood of a stated promise of a product stipulation.
Business Personal Property - ansMoveable property used for business
Catastrophe - ansAn occurrence or a sequence of occurrences that causes enormous property losses.
Catastrophes are normally uninsurable by private insurers.
Cause of Loss - ansA form included in a Commercial Package Policy or a Commercial Property Policy
that lists the causes of loss from which the insured property is covered.
CGL - ansA Commercial General Liability policy protects businesses against damages and injuries to
third parties.
Civil - ansCivil law observes court cases of one citizen charging another citizen for damages caused by
tort; it differs from criminal law.
Claim - ansThe "offer of settlement" that the policyholder files with an insurer after she experiences a
loss.
Claimant - ansOne who files a claim with an insurer for a loss.
Claims Management - ansThe practice of the insurance adjuster of managing a claim by processing it in a
prompt and effective manner from the time the claim is filed until a settlement is reached, while adhering
to all local and federal laws.
