All Lines Pre-License Course for Texas Adjusters
Accident Correct Answer: Sudden, unexpected events that cause property damage or bodily
injury.
Actual Damages Correct Answer: Damages that have a specified cost to repair them
Actual Total Loss Correct Answer: Complete destruction of insured property, so that nothing of
value remains.
ACV (Actual Cash Value) Correct Answer: This is the value of the property after depreciation.
As
ALE (Additional Living Expense) Correct Answer: If a homeowner is temporarily displaced
from their home due to a catastrophe to allow repairs, certain homeowner's policies provide
coverage to help defray this cost.
All Risk Policy Correct Answer: This policy is only in name as there is no policy that actually
covers all perils, though this policy is the most common. Every policy has some condition,
provision, or exclusion, which limits coverage.
Amendment Correct Answer: A document attached to a policy reflecting a change to the policy
language made by the insurance company or the department of insurance
Assumption of Risk Correct Answer: If a person/company knows ahead of time that there is a
possibility of injury, or worse, and agree not to hold anyone else responsible if an accident
occurs, there really isn't negligence and insurance companies will generally not be liable and will
resist paying
Attachment Correct Answer: court order allowing one person to take something of value
belonging to another into custody for a particular purpose.
Bailee Correct Answer: Person(s) who, with permission, take care of another person/company's
property.
Basic Form Correct Answer: The least expensive structural ACV policy covers only three perils
on the structure and contents: fire, lightning, and demolition/removal. You may see the number
"1" or "A" in the form number, such as HO-1 or HO-A.
Barratry Correct Answer: Fraud or gross negligence of a ship's master or crew at the expense of
its owner or users
Blanket Coverage Correct Answer: This is a specific endorsement that provides a preset dollar
amount to a particular category, i.e. $500 for "tree removal", $10,000 for "personal property.
, Bodily Injury Correct Answer: Bodily injuries, legal defense, and compensation to other parties
caused by an insured.
Bond Correct Answer: A secured, long-term IOU with issuer obligations
Broad Form Correct Answer: A bit costlier than the Basic Form, it covers 16 named perils on
structure and content. It only pays (ACV), not (RCV). Often, you may see the number "2" or "B"
in the form number, such as HO2, HO-B.
Cause & Origin (C&O) Investigation Correct Answer: Investigations often used to determine
how, when, and why, specific damage occurred.
Cancellation Correct Answer: An insurance company or the insured can cancel a policy with 60
days' notice for various reasons, such as a change in the coverage, criminal felony conviction,
misrepresentation in the policy application, etc.
Cargo Correct Answer: Goods transported by truck, train, ship, or aircraft. Also known as
Freight.
Claimant Correct Answer: "First Party" files a claim against his own insurance company, aka
"Second Party." A "Third Party" is someone who files a claim against someone else's insurance
company.
Collision Coverage Correct Answer: Auto coverage for impact damage.
Comprehensive Coverage Correct Answer: Auto coverage for non-collision damage, such as
fire, vandalism, theft, flood, etc.
Conditions Correct Answer: This is one of four basic parts of an insurance policy. This section
has two main parts, "Your Duties After Loss" and "Settlement Provisions."
Constructive Total Loss Correct Answer: The cost to repair an insured item exceeds the cost to
replace the item, regardless of RCV or ACV policy
Contents Correct Answer: Personal property such as clothing, furniture, televisions, computers,
etc.
CE Correct Answer: 24 Continuing Education hours are required every two years. 50% (12)
hours must be in a classroom or classroom equivalent. Two hours must be ethics/consumer
protection.
Contract Correct Answer: A written agreement (i.e. insurance policy) between two competent
parties.
Date Of Discovery Correct Answer: The date when the damages were noticed which is often
different from, and not to be confused with, the date of loss.
Accident Correct Answer: Sudden, unexpected events that cause property damage or bodily
injury.
Actual Damages Correct Answer: Damages that have a specified cost to repair them
Actual Total Loss Correct Answer: Complete destruction of insured property, so that nothing of
value remains.
ACV (Actual Cash Value) Correct Answer: This is the value of the property after depreciation.
As
ALE (Additional Living Expense) Correct Answer: If a homeowner is temporarily displaced
from their home due to a catastrophe to allow repairs, certain homeowner's policies provide
coverage to help defray this cost.
All Risk Policy Correct Answer: This policy is only in name as there is no policy that actually
covers all perils, though this policy is the most common. Every policy has some condition,
provision, or exclusion, which limits coverage.
Amendment Correct Answer: A document attached to a policy reflecting a change to the policy
language made by the insurance company or the department of insurance
Assumption of Risk Correct Answer: If a person/company knows ahead of time that there is a
possibility of injury, or worse, and agree not to hold anyone else responsible if an accident
occurs, there really isn't negligence and insurance companies will generally not be liable and will
resist paying
Attachment Correct Answer: court order allowing one person to take something of value
belonging to another into custody for a particular purpose.
Bailee Correct Answer: Person(s) who, with permission, take care of another person/company's
property.
Basic Form Correct Answer: The least expensive structural ACV policy covers only three perils
on the structure and contents: fire, lightning, and demolition/removal. You may see the number
"1" or "A" in the form number, such as HO-1 or HO-A.
Barratry Correct Answer: Fraud or gross negligence of a ship's master or crew at the expense of
its owner or users
Blanket Coverage Correct Answer: This is a specific endorsement that provides a preset dollar
amount to a particular category, i.e. $500 for "tree removal", $10,000 for "personal property.
, Bodily Injury Correct Answer: Bodily injuries, legal defense, and compensation to other parties
caused by an insured.
Bond Correct Answer: A secured, long-term IOU with issuer obligations
Broad Form Correct Answer: A bit costlier than the Basic Form, it covers 16 named perils on
structure and content. It only pays (ACV), not (RCV). Often, you may see the number "2" or "B"
in the form number, such as HO2, HO-B.
Cause & Origin (C&O) Investigation Correct Answer: Investigations often used to determine
how, when, and why, specific damage occurred.
Cancellation Correct Answer: An insurance company or the insured can cancel a policy with 60
days' notice for various reasons, such as a change in the coverage, criminal felony conviction,
misrepresentation in the policy application, etc.
Cargo Correct Answer: Goods transported by truck, train, ship, or aircraft. Also known as
Freight.
Claimant Correct Answer: "First Party" files a claim against his own insurance company, aka
"Second Party." A "Third Party" is someone who files a claim against someone else's insurance
company.
Collision Coverage Correct Answer: Auto coverage for impact damage.
Comprehensive Coverage Correct Answer: Auto coverage for non-collision damage, such as
fire, vandalism, theft, flood, etc.
Conditions Correct Answer: This is one of four basic parts of an insurance policy. This section
has two main parts, "Your Duties After Loss" and "Settlement Provisions."
Constructive Total Loss Correct Answer: The cost to repair an insured item exceeds the cost to
replace the item, regardless of RCV or ACV policy
Contents Correct Answer: Personal property such as clothing, furniture, televisions, computers,
etc.
CE Correct Answer: 24 Continuing Education hours are required every two years. 50% (12)
hours must be in a classroom or classroom equivalent. Two hours must be ethics/consumer
protection.
Contract Correct Answer: A written agreement (i.e. insurance policy) between two competent
parties.
Date Of Discovery Correct Answer: The date when the damages were noticed which is often
different from, and not to be confused with, the date of loss.
