TEXAS ALL LINES ADJUSTER TEST QUESTIONS AND ANSWERS

TEXAS ALL LINES ADJUSTER TEST
QUESTIONS AND ANSWERS

AccumulatedgDepreciationg-gans-
Thegtotalgdecreasegingangitem'sgvaluegovergagperiodgofgtime.gFormula:g(Annual
gDepreciationgxgNumbergofgyearsgused)

AcreagegReportinggDateg-gans-
Thegdeadlinegforgprovidinggtheginsurergwithgangacreagegreport,gwhichgisgusedgt
ogdeterminegthegamountgofgcoveragegneededgandgthegpremiumgchargedgforgag
particulargcrop.

ActualgCashgValueg(ACV)g-gans-
Agvaluationgmethodgusedgbyginsurersgtogreflectgangitem'sgcurrentgmarketgvalueg
rightgbeforegbeinggdamagedgorgdestroyed.gFormula:g(Replacementgcostg-
gAccumulatedgDepreciation)

ActualgProductiongHistoryg-gans-
Aghistorygofgagfarmer'sgcropgyieldsgovergagmulti-
yeargperiod,gwhichgisgusedgtogdeterminegthegnormalgproductionglevelgofgagfarm.

Adhesiong-gans-
Characteristicgofganginsurancegcontract.gMeansgthatgonegpartyg(theginsurer)gsets
gthegterms,gandgthegotherg(thegpolicyholder)gcang"takegitgorgleavegit."

AdjustedgGrossgRevenueg(CropgInsurance)g-gans-
Narrowestg(andgleastgexpensive)gformgofgCropgRevenuegInsurance.gInsuresgfarm
grevenuegasgagwholeginsteadgofgindividualgcrops.gGuaranteesgagpercentagegofgt
heginsuredgfarm'sgaveragegrevenue.

Adjusterg-gans-
Angagentgwho,gforgcompensation,gprocessesginsurancegclaims.gCangrepresentgeit
hergtheginsuredgorgtheginsurer.

Adjusterg-gEmergencyg-gans-
Adjustersgwhogaregtemporarilyglicensedgbygtheginsurancegcommissionergtoghandl
egclaimsgduringgcatastrophesgorgemergenciesgthatgproducegangoverwhelminggnu
mbergofgclaimsgingagshortgperiodgofgtime.

Adjusterg-gIndependentg-gans-Self-
employedgadjustersgwhogcontractgwithgmultipleginsurersgatgthegsamegtime.gPaid

,gongagcommissiongorgfee-plus-
expensesgbasisgforgeachgclaim.gAlsogcalled:gFeegAdjuster,gBureaugAdjuster

Adjusterg-gPublicg-gans-
Angadjustergwhogisghiredgtogrepresentgthegclaimantgandghelpgdeterminegagfairgi
ndemnification.gUsuallygspecializesgingappraisalsgandgnegotiation.gPaidgcommissio
n,gusuallygagpercentagegofgfinalgsettlement.

Adjusterg-gStaffg-gans-
Salariedgemployeegofgoneginsurancegcompanygwhogcangworkglocally,gregionally,
gorgnationally.gAlsogcalled:gCompanygAdjuster

AdvancegPaymentgSettlementg-gans-
Agsettlementgoptiongthatgletsgtheginsurergoffergsomegfinancialgreliefgtogthegclaim
antgbeforegthegclaimghasgbeengfullygsettled.gTheginsurergmakesgadvancegpayme
ntsgtogthegclaimant,gwhichgaregthengsubtractedgfromgthegfinalgsettlementgamount
.gOftengusedgwhengagclaimantgsuffersgbodilyginjurygandgisgunablegtogwork.

AgencygAuthorityg-gans-
ThegAgent'sgauthoritygtogactgongbehalfgofgsomeonegelse,gusuallyganginsurer.gTh
isgauthoritygisgderivedgfromgthegagent'sgcontractgwithgtheginsurer.

AgencygAuthorityg-gexpressg-gans-
Authoritygthatgisgexpresslyggivengtogthegagentgingwriting.gAllowsgagentgtogactgo
ngbehalfgofgthegprincipal.

AgencygAuthorityg-gimpliedg-gans-
Authoritygthatgangagentgpossessesgbygimplicationgofghergbehavior,gregardlessgof
gwhethergthisgauthoritygisggrantedgingwriting.

AgencygAuthorityg-gapparentg-gans-
Authoritygthatgangagentgpossessesgbasedgongthegappearancegofgrepresentinggth
eginsurer.

Agentg-gans-
Someonegwhoghasgreceivedgauthoritygfromganginsurergtogsellgorgserviceginsuran
cegpolicies.

AggregategLimitg-gans-
Agtypegofgpolicyglimitgfoundgingsomeghealth,gliability,gandgpropertygdamagegpolic
ies.gItgrepresentsgthegtotalgamountgtheginsurergwillgpaygforgallglossesg(asgoppos
edgtogangoccurrenceglimit,gwhichgdenotesgthegtotalgamountgtheginsurergwillgpay
gpergoccurrence).

Agreementg-gans-
Onegofgthegfourgrequirementsgofgaglegallygbindinggcontract.gAllgpartiesginvolvedg

, mustgagreegtogthegtermsgofgthegcontract.gCangalsogrefergtogagbinder,gwhichgis
gthegpreliminarygsubstancegofgagcontract.

AgriculturalgProducerg-gans-
Agbusinessgthatggrows,gharvests,gandgsellsgcropsgforgprofit.

Aleatoryg-gans-
Agcharacteristicgofganginsurancegcontract.gMeansg"dependinggongangunknowngfu
turegevent."gAnginsurancegcontractgwillgonlygpaygIFgandgWHENgcoveredgdamag
esgoccur.gNeithergpartygknowsghowgmuchgthegcontractgwillgendgupgpayinggwhe
ngtheygentergintogthegcontract.

Answerg-gans-
Ingliabilitygcases,gthegdefendant'sgresponsegtogagcomplaint.gTheregaregthreegpos
sibleganswers:g1)gacceptgcomplaintgandgpaygforgdamages,g2)gdenygthegcomplai
nt,gorg3)gacceptgthegcomplaintgwithgagrightgtoginsertgevidencegintogthegcase.

AnnualgDepreciationg-gans-
Angitem'sgReplacementgcostgdividedgbygthegnumbergofgyearsgingitsgexpectedglif
espan.

Appraisalg-gans-
Agnegotiationgmethodgwhichgallowsgthegclaimantgandgtheginsurergeachgtogselect
gangappraiser.gThegtwogappraisersgingturngselectgangUmpire.gThegappraisersgth
engworkgtogethergtogdeterminegagsettlementgamount.gIfgtheygcannotgagree,gtheg
Umpiregstepsgin.gAgreementgbyganygtwogofgthegthreegisgbinding.

Arbitrationg-gans-
Agnegotiationgmethodgingwhichgthegopposinggpartiesgeachgsubmitgtheirgevidence
gtogagmutually-agreed-
upongandgneutralgthirdgparty,gcalledgangarbitrator.gThegarbitratorgreviewsgthegpo
sitionsgofgeachgopposinggside,gandgmakesgagfinalgandglegallygbindinggdecision.

Arbitratorg-gans-Thegmutually-agreed-
upongandgneutralgthirdgpartygingangarbitrationgwhogreviewsgthegpositionsgofgeac
hgopposinggside,gandgmakesgagfinalgandglegallygbindinggdecision.

ArtificiallygGeneratedgCurrentg-gans-
Alsogcalledg"artificialgcurrent."gAgperilgcoveredgingsomegpropertyginsurancegpolici
es.gItgincludesgsuddengandgaccidentalgdamagegfromganygelectricalgcurrent,gexce
ptgcurrentsgthatgaregnaturallyggenerated,gsuchgasglightninggorgstaticgelectricity.

AutogPolicyg-gans-
Insurancegpolicygdesignedgtogprotectgthegpolicyholdergwhilegowning,goccupying,g
orgoperatinggagvehicle.gUsuallygcombinesgliabilitygcoveragegandgpropertygcoverag
egintogonegpolicy.