TEXAS ALL LINES ADJUSTER UPDATED FINAL PAPER
QUESTIONS AND ANSWERS MARKED A+
✔✔Bl - ✔✔(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 - ✔✔The signals we give through posture, behaviour, apparel, etc.,
which are involved in communication.
✔✔Boiler & Machinery - ✔✔Boiler 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 - ✔✔A 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 - ✔✔The failure or falsehood of a stated promise of a
product stipulation.
✔✔Business Personal Property - ✔✔Moveable property used for business
✔✔Catastrophe - ✔✔An occurrence or a sequence of occurrences that causes
enormous property losses. Catastrophes are normally uninsurable by private insurers.
✔✔Cause of Loss - ✔✔A 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 - ✔✔A Commercial General Liability policy protects businesses against
damages and injuries to third parties.
✔✔Civil - ✔✔Civil law observes court cases of one citizen charging another citizen for
damages caused by tort; it differs from criminal law.
✔✔Claim - ✔✔The "offer of settlement" that the policyholder files with an insurer after
she experiences a loss.
✔✔Claims-Made Form - ✔✔A liability policy in which the insurer pays only those claims
arising during the policy period (as opposed to those claims arising after the policy
period is over, regardless of whether the incident took place during the policy period).
,✔✔Claims Management - ✔✔The 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.
✔✔Claimant - ✔✔One who files a claim with an insurer for a loss.
✔✔Claude the Clueless Adjuster - ✔✔In this course, Claude the Clueless Adjuster
represents an incompetent or unprofessional adjuster.
✔✔Coarse Grains - ✔✔In Crop Insurance, a provision that covers reduction in crop
quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
✔✔Coinsurance - ✔✔The Coinsurance Clause applies to policyholders who purchase
an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a
covered claim that the insured is responsible for paying out-of-pocket, after the
deductible has been paid.
✔✔Code of Ethics - ✔✔A set of governing professional standards of conduct, usually
created by regulatory bodies or government regulatory agencies. These standards may
also be formally codified with statutes.
✔✔Coercion - ✔✔The practice of forcing another party to behave in an involuntary
manner (whether through action or inaction) by use of threats or intimidation or some
other form of pressure or force.
✔✔Commerce - ✔✔The exchange or transport of goods or property.
✔✔Commercial - ✔✔Having to do with commerce or business activity in general.
✔✔Commercial Crime Insurance - ✔✔Commercial insurance that covers employee
dishonesty and theft by employees or others.
✔✔Commercial Lines - ✔✔A variety of insurance coverages that protect those involved
in the business of creating, selling, displaying, evaluating, or shipping, etc. Example
include: Business Owner's Policy; Commercial Property; Commercial General Liability;
Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O) and
Employment-Related Practices Liability.
✔✔Commercial Property Floater - ✔✔A means of protecting a business' property that is
not in one fixed location.
, ✔✔Common Crop Insurance Policy - ✔✔A single uniform policy that combines Crop
Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
✔✔Common Law - ✔✔Based on court decisions and customs when statutory law does
not provide an answer; creates precedent.
✔✔Compensatory Damages - ✔✔Money awarded in civil court for tangible and
intangible damages caused by a policyholder.
✔✔Compensatory damages - Special - ✔✔Money awarded for the exact value of the
physical damage caused to the plaintiff up to the trial date. This is an objective value
determined by receipts and medical bills.
✔✔Compensatory damages - General - ✔✔Money awarded for the emotional losses of
the plaintiff that will continue after the trial date. These are a subjective value and are
determined by the court.
✔✔Competence - ✔✔One of the four qualifications of a legally binding contract. All
parties must be competent, with the necessary legal and mental capacity.
✔✔Complaint - ✔✔A complaint initiates a civil lawsuit by a claimant requesting financial
relief from damages caused by a policyholder.
✔✔Concealment - ✔✔The act of withholding relevant material facts from an insurer.
✔✔Conditions - ✔✔The section of a policy that qualifies or limits an insurer's promise to
pay or perform.
✔✔Consideration - ✔✔One of the four qualifications of a legally binding contract. All
parties must bring something of value to the contract.
✔✔Contract - ✔✔An agreement entered into voluntarily by two parties or more with the
intention of creating a legal obligation.
✔✔Coverages - ✔✔The amount and extent of protection provided by an insurance
policy.
✔✔Crime - ✔✔An offense against the State or Federal Government, or a breach of law,
for which the offender shall make satisfaction to the public.
✔✔Criminal - ✔✔Someone who has been convicted of a criminal act in a court of law.
QUESTIONS AND ANSWERS MARKED A+
✔✔Bl - ✔✔(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 - ✔✔The signals we give through posture, behaviour, apparel, etc.,
which are involved in communication.
✔✔Boiler & Machinery - ✔✔Boiler 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 - ✔✔A 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 - ✔✔The failure or falsehood of a stated promise of a
product stipulation.
✔✔Business Personal Property - ✔✔Moveable property used for business
✔✔Catastrophe - ✔✔An occurrence or a sequence of occurrences that causes
enormous property losses. Catastrophes are normally uninsurable by private insurers.
✔✔Cause of Loss - ✔✔A 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 - ✔✔A Commercial General Liability policy protects businesses against
damages and injuries to third parties.
✔✔Civil - ✔✔Civil law observes court cases of one citizen charging another citizen for
damages caused by tort; it differs from criminal law.
✔✔Claim - ✔✔The "offer of settlement" that the policyholder files with an insurer after
she experiences a loss.
✔✔Claims-Made Form - ✔✔A liability policy in which the insurer pays only those claims
arising during the policy period (as opposed to those claims arising after the policy
period is over, regardless of whether the incident took place during the policy period).
,✔✔Claims Management - ✔✔The 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.
✔✔Claimant - ✔✔One who files a claim with an insurer for a loss.
✔✔Claude the Clueless Adjuster - ✔✔In this course, Claude the Clueless Adjuster
represents an incompetent or unprofessional adjuster.
✔✔Coarse Grains - ✔✔In Crop Insurance, a provision that covers reduction in crop
quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
✔✔Coinsurance - ✔✔The Coinsurance Clause applies to policyholders who purchase
an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a
covered claim that the insured is responsible for paying out-of-pocket, after the
deductible has been paid.
✔✔Code of Ethics - ✔✔A set of governing professional standards of conduct, usually
created by regulatory bodies or government regulatory agencies. These standards may
also be formally codified with statutes.
✔✔Coercion - ✔✔The practice of forcing another party to behave in an involuntary
manner (whether through action or inaction) by use of threats or intimidation or some
other form of pressure or force.
✔✔Commerce - ✔✔The exchange or transport of goods or property.
✔✔Commercial - ✔✔Having to do with commerce or business activity in general.
✔✔Commercial Crime Insurance - ✔✔Commercial insurance that covers employee
dishonesty and theft by employees or others.
✔✔Commercial Lines - ✔✔A variety of insurance coverages that protect those involved
in the business of creating, selling, displaying, evaluating, or shipping, etc. Example
include: Business Owner's Policy; Commercial Property; Commercial General Liability;
Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O) and
Employment-Related Practices Liability.
✔✔Commercial Property Floater - ✔✔A means of protecting a business' property that is
not in one fixed location.
, ✔✔Common Crop Insurance Policy - ✔✔A single uniform policy that combines Crop
Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
✔✔Common Law - ✔✔Based on court decisions and customs when statutory law does
not provide an answer; creates precedent.
✔✔Compensatory Damages - ✔✔Money awarded in civil court for tangible and
intangible damages caused by a policyholder.
✔✔Compensatory damages - Special - ✔✔Money awarded for the exact value of the
physical damage caused to the plaintiff up to the trial date. This is an objective value
determined by receipts and medical bills.
✔✔Compensatory damages - General - ✔✔Money awarded for the emotional losses of
the plaintiff that will continue after the trial date. These are a subjective value and are
determined by the court.
✔✔Competence - ✔✔One of the four qualifications of a legally binding contract. All
parties must be competent, with the necessary legal and mental capacity.
✔✔Complaint - ✔✔A complaint initiates a civil lawsuit by a claimant requesting financial
relief from damages caused by a policyholder.
✔✔Concealment - ✔✔The act of withholding relevant material facts from an insurer.
✔✔Conditions - ✔✔The section of a policy that qualifies or limits an insurer's promise to
pay or perform.
✔✔Consideration - ✔✔One of the four qualifications of a legally binding contract. All
parties must bring something of value to the contract.
✔✔Contract - ✔✔An agreement entered into voluntarily by two parties or more with the
intention of creating a legal obligation.
✔✔Coverages - ✔✔The amount and extent of protection provided by an insurance
policy.
✔✔Crime - ✔✔An offense against the State or Federal Government, or a breach of law,
for which the offender shall make satisfaction to the public.
✔✔Criminal - ✔✔Someone who has been convicted of a criminal act in a court of law.
