Texas All Lines Adjuster questions with complete solutions 2024/2025

Texas All Lines AdjusterLaw of Large Numbers - correct answer Describes how the average of a randomly selected large sample of population is likely to be close to the average of the whole population Underwriting - correct answer The process insurance company uses to decide whether to accept or reject application for a policy. Decides how much coverage policy holder should receive, pay, or whether even to accept risk & insure them. Involves measuring risk exposure & determining the premium that needs to be charged to insure risk. Peril - correct answer A cause of property losses. Ex: Fire/ lightning, explosion, windstorm, hurricane, collapse of building, vandalism, accidental discharge, & theft Hazard - correct answer A situation that poses a level of threat to life, health, property, or environment. Most hazards are dormant or potential, with only a theoretical risk of harm; however once becomes "active," it can create emergency situation Direct Loss - correct answer Direct physical loss to property Indirect Loss - correct answer Type of loss that does not result from direct damage of a covered cause of loss or peril but is, instead a consequence of the direct damage loss. Ex: If grocery store burns to ground from fire, that is direct loss. However, the income lost because of store could not operate, is the indirect loss Principle of Indemnity - correct answer An insurance principle stating that an insured may not be compensated by insurance company in an amount exceeding the insured economic loss Property Insurance - correct answer Insurance coverage for real & personal property against loss or damage from perils insured against Insuring Agreement - correct answer This section of insurance policy specifies what the insurance will provide coverage for in exchange for premium payments by their customer