TEXAS ALL LINES ADJUSTER TEST EXPERT VERIFIED ACTUAL
QUESTIONS & ANSWERS FOR GUARANTEED PASS NEWEST
UPDATE
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x
Number of years used) -ANSWER-Accumulated Depreciation
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. -ANSWER-
Acreage Reporting Date
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) -
ANSWER-Actual Cash Value (ACV)
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. -ANSWER-Actual Production History
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." -ANSWER-Adhesion
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. -ANSWER-Adjusted Gross Revenue (Crop Insurance)
An agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer. -ANSWER-Adjuster
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. -ANSWER-Adjuster - Emergency
,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 -ANSWER-Adjuster - Independent
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. -ANSWER-Adjuster - Public
Salaried employee of one insurance company who can work locally, regionally, or nationally.
Also called: Company Adjuster -ANSWER-Adjuster - Staff
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. -ANSWER-Advance Payment Settlement
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. -ANSWER-Agency Authority
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the
principal. -ANSWER-Agency Authority - express
Authority that an agent possesses by implication of her behavior, regardless of whether this
authority is granted in writing. -ANSWER-Agency Authority - implied
Authority that an agent possesses based on the appearance of representing the insurer. -
ANSWER-Agency Authority - apparent
Someone who has received authority from an insurer to sell or service insurance policies. -
ANSWER-Agent
, 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). -ANSWER-
Aggregate Limit
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. -ANSWER-Agreement
A business that grows, harvests, and sells crops for profit. -ANSWER-Agricultural Producer
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-Aleatory
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. -ANSWER-Answer
An item's Replacement cost divided by the number of years in its expected lifespan. -
ANSWER-Annual Depreciation
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. -ANSWER-Appraisal
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. -
ANSWER-Arbitration
QUESTIONS & ANSWERS FOR GUARANTEED PASS NEWEST
UPDATE
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x
Number of years used) -ANSWER-Accumulated Depreciation
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. -ANSWER-
Acreage Reporting Date
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) -
ANSWER-Actual Cash Value (ACV)
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. -ANSWER-Actual Production History
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." -ANSWER-Adhesion
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. -ANSWER-Adjusted Gross Revenue (Crop Insurance)
An agent who, for compensation, processes insurance claims. Can represent either the
insured or the insurer. -ANSWER-Adjuster
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. -ANSWER-Adjuster - Emergency
,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 -ANSWER-Adjuster - Independent
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. -ANSWER-Adjuster - Public
Salaried employee of one insurance company who can work locally, regionally, or nationally.
Also called: Company Adjuster -ANSWER-Adjuster - Staff
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. -ANSWER-Advance Payment Settlement
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. -ANSWER-Agency Authority
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the
principal. -ANSWER-Agency Authority - express
Authority that an agent possesses by implication of her behavior, regardless of whether this
authority is granted in writing. -ANSWER-Agency Authority - implied
Authority that an agent possesses based on the appearance of representing the insurer. -
ANSWER-Agency Authority - apparent
Someone who has received authority from an insurer to sell or service insurance policies. -
ANSWER-Agent
, 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). -ANSWER-
Aggregate Limit
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. -ANSWER-Agreement
A business that grows, harvests, and sells crops for profit. -ANSWER-Agricultural Producer
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-Aleatory
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. -ANSWER-Answer
An item's Replacement cost divided by the number of years in its expected lifespan. -
ANSWER-Annual Depreciation
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. -ANSWER-Appraisal
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. -
ANSWER-Arbitration
