Texas All Lines Adjuster Test questions and
answers 2025\2026 A+ Grade
Accumulated Depreciation
- correct 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
- correct 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)
- correct 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
- correct 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
- correct 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)
- correct 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
- correct answer An agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer.
,Adjuster - Emergency
- correct 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
- correct 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
Adjuster - Public
- correct 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
- correct answer Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster
Advance Payment Settlement
- correct 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
- correct 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
- correct answer Authority that is expressly given to the agent in writing. Allows agent to act on behalf of
the principal.
Agency Authority - implied
- correct answer Authority that an agent possesses by implication of her behavior, regardless of whether
this authority is granted in writing.
,Agency Authority - apparent
- correct answer Authority that an agent possesses based on the appearance of representing the insurer.
Agent
- correct answer Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit
- correct 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).
Agreement
- correct 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
- correct answer A business that grows, harvests, and sells crops for profit.
Aleatory
- correct 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
- correct 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
- correct answer An item's Replacement cost divided by the number of years in its expected lifespan.
Appraisal
- correct 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
- correct 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
- correct 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
- correct 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.
Auto Policy
- correct answer Insurance policy designed to protect the policyholder while owning, occupying, or
operating a vehicle. Usually combines liability coverage and property coverage into one policy.
Automobile
- correct answer In Insurance policies, Automobile generally means any vehicle designed for use on
public roads.
Automobile No-Fault Laws
- correct answer Laws 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.
Aviation
- correct answer Aviation insurance combines hull insurance for the aircraft and liability insurance for
any damage to others' property or to people who are not passengers.
answers 2025\2026 A+ Grade
Accumulated Depreciation
- correct 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
- correct 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)
- correct 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
- correct 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
- correct 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)
- correct 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
- correct answer An agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer.
,Adjuster - Emergency
- correct 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
- correct 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
Adjuster - Public
- correct 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
- correct answer Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster
Advance Payment Settlement
- correct 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
- correct 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
- correct answer Authority that is expressly given to the agent in writing. Allows agent to act on behalf of
the principal.
Agency Authority - implied
- correct answer Authority that an agent possesses by implication of her behavior, regardless of whether
this authority is granted in writing.
,Agency Authority - apparent
- correct answer Authority that an agent possesses based on the appearance of representing the insurer.
Agent
- correct answer Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit
- correct 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).
Agreement
- correct 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
- correct answer A business that grows, harvests, and sells crops for profit.
Aleatory
- correct 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
- correct 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
- correct answer An item's Replacement cost divided by the number of years in its expected lifespan.
Appraisal
- correct 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
- correct 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
- correct 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
- correct 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.
Auto Policy
- correct answer Insurance policy designed to protect the policyholder while owning, occupying, or
operating a vehicle. Usually combines liability coverage and property coverage into one policy.
Automobile
- correct answer In Insurance policies, Automobile generally means any vehicle designed for use on
public roads.
Automobile No-Fault Laws
- correct answer Laws 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.
Aviation
- correct answer Aviation insurance combines hull insurance for the aircraft and liability insurance for
any damage to others' property or to people who are not passengers.
