Texas All Lines Adjuster Test
Accumulated Depreciation - ANSThe total decrease in an item's value over a period of time.
Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - ANSThe 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) - ANSA 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 - ANSA 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 - ANSCharacteristic 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) - ANSNarrowest (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 - ANSAn agent who, for compensation, processes insurance claims. Can represent
either the insured or the insurer.
Adjuster - Emergency - ANSAdjusters 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 - ANSSelf-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 - ANSAn 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 - ANSSalaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
,Advance Payment Settlement - ANSA 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 - ANSThe 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 - ANSAuthority that is expressly given to the agent in writing. Allows
agent to act on behalf of the principal.
Agency Authority - implied - ANSAuthority that an agent possesses by implication of her
behavior, regardless of whether this authority is granted in writing.
Agency Authority - apparent - ANSAuthority that an agent possesses based on the appearance
of representing the insurer.
Agent - ANSSomeone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - ANSA 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 - ANSOne 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 - ANSA business that grows, harvests, and sells crops for profit.
Aleatory - ANSA 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 - ANSIn 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 - ANSAn item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - ANSA 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 - ANSA 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 - ANSThe 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 - ANSAlso 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 - ANSInsurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle. Usually combines liability coverage and property coverage
into one policy.
Automobile - ANSIn Insurance policies, Automobile generally means any vehicle designed for
use on public roads.
Automobile No-Fault Laws - ANSLaws 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 - ANSAviation insurance combines hull insurance for the aircraft and liability insurance
for any damage to others' property or to people who are not passengers.
Bailee - ANSAn individual or company that receives the property of someone else for a special
purpose, and returns the product after use.
BAP - ANSThe Business Auto Policy provides property damage and liability insurance for
automobiles used by a business.
Binder - ANSA temporary contract provided by an insurer that ensures coverage until the
complete, permanent policy is issued.
Bl - ANS(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 - ANSThe signals we give through posture, behaviour, apparel, etc., which are
involved in communication.
Accumulated Depreciation - ANSThe total decrease in an item's value over a period of time.
Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - ANSThe 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) - ANSA 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 - ANSA 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 - ANSCharacteristic 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) - ANSNarrowest (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 - ANSAn agent who, for compensation, processes insurance claims. Can represent
either the insured or the insurer.
Adjuster - Emergency - ANSAdjusters 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 - ANSSelf-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 - ANSAn 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 - ANSSalaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
,Advance Payment Settlement - ANSA 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 - ANSThe 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 - ANSAuthority that is expressly given to the agent in writing. Allows
agent to act on behalf of the principal.
Agency Authority - implied - ANSAuthority that an agent possesses by implication of her
behavior, regardless of whether this authority is granted in writing.
Agency Authority - apparent - ANSAuthority that an agent possesses based on the appearance
of representing the insurer.
Agent - ANSSomeone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - ANSA 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 - ANSOne 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 - ANSA business that grows, harvests, and sells crops for profit.
Aleatory - ANSA 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 - ANSIn 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 - ANSAn item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - ANSA 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 - ANSA 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 - ANSThe 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 - ANSAlso 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 - ANSInsurance policy designed to protect the policyholder while owning,
occupying, or operating a vehicle. Usually combines liability coverage and property coverage
into one policy.
Automobile - ANSIn Insurance policies, Automobile generally means any vehicle designed for
use on public roads.
Automobile No-Fault Laws - ANSLaws 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 - ANSAviation insurance combines hull insurance for the aircraft and liability insurance
for any damage to others' property or to people who are not passengers.
Bailee - ANSAn individual or company that receives the property of someone else for a special
purpose, and returns the product after use.
BAP - ANSThe Business Auto Policy provides property damage and liability insurance for
automobiles used by a business.
Binder - ANSA temporary contract provided by an insurer that ensures coverage until the
complete, permanent policy is issued.
Bl - ANS(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 - ANSThe signals we give through posture, behaviour, apparel, etc., which are
involved in communication.
