TEXAS ALL ADJUSTER FINAL EXAM/PRACTICE EXAM QUESTIONS AND ANSWERS
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
The total decrease in an item's value
Accumulated Depreciation over a period of time. Formula: (Annual
Depreciation x Number of years used)
The deadline for providing the insurer
with an acreage report, which is used to
Acreage Reporting Date determine the amount of coverage need-
ed and the premium charged for a partic-
ular crop.
A valuation method used by insurers
to reflect an item's current market val-
Actual Cash Value (ACV) ue right before being damaged or de-
stroyed. Formula: (Replacement cost -
Accumulated Depreciation)
A history of a farmer's crop yields over
a multi-year period, which is used to de-
Actual Production History
termine the normal production level of a
farm.
Characteristic of an insurance contract.
Means that one party (the insurer) sets
Adhesion
the terms, and the other (the policyhold-
er) can "take it or leave it."
Narrowest (and least expensive) form of
Crop Revenue Insurance. Insures farm
Adjusted Gross Revenue (Crop Insur-
revenue as a whole instead of individual
ance)
crops. Guarantees a percentage of the
insured farm's average revenue.
An agent who, for compensation,
Adjuster processes insurance claims. Can repre-
sent either the insured or the insurer.
Adjusters who are temporarily licensed
by the insurance commissioner to handle
Adjuster - Emergency claims during catastrophes or emergen-
cies that produce an overwhelming num-
ber of claims in a short period of time.
Self-employed adjusters who contract
with multiple insurers at the same time.
,TEXAS ALL ADJUSTER FINAL EXAM/PRACTICE EXAM QUESTIONS AND ANSWERS
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
Paid on a commission or fee-plus-ex-
Adjuster - Independent penses basis for each claim. Also called:
Fee Adjuster, Bureau Adjuster
An adjuster who is hired to represent the
claimant and help determine a fair in-
demnification. Usually specializes in ap-
Adjuster - Public
praisals and negotiation. Paid commis-
sion, usually a percentage of final settle-
ment.
Salaried employee of one insurance
company who can work locally, region-
Adjuster - Staff
ally, or nationally. Also called: Company
Adjuster
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
Advance Payment Settlement
the claimant, which are then subtracted
from the final settlement amount. Often
used when a claimant suffers bodily in-
jury and is unable to work.
The Agent's authority to act on behalf of
someone else, usually an insurer. This
Agency Authority
authority is derived from the agent's con-
tract with the insurer.
Authority that is expressly given to the
Agency Authority - express agent in writing. Allows agent to act on
behalf of the principal.
Authority that an agent possesses by im-
plication of her behavior, regardless of
Agency Authority - implied whether this authority is granted in writ-
ing.
Authority that an agent possesses based
Agency Authority - apparent on the appearance of representing the
insurer.
,TEXAS ALL ADJUSTER FINAL EXAM/PRACTICE EXAM QUESTIONS AND ANSWERS
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
Someone who has received authority
Agent from an insurer to sell or service insur-
ance policies.
A type of policy limit found in some
health, liability, and property damage
policies. It represents the total amount
Aggregate Limit the insurer will pay for all losses (as op-
posed to an occurrence limit, which de-
notes the total amount the insurer will
pay per occurrence).
One of the four requirements of a legal-
ly binding contract. All parties involved
Agreement must agree to the terms of the contract.
Can also refer to a binder, which is the
preliminary substance of a contract.
A business that grows, harvests, and
Agricultural Producer
sells crops for profit.
A characteristic of an insurance contract.
Means "depending on an unknown future
event." An insurance contract will only
Aleatory pay IF and WHEN covered damages oc-
cur. Neither party knows how much the
contract will end up paying when they
enter into the contract.
In liability cases, the defendant's re-
sponse to a complaint. There are three
possible answers: 1) accept complaint
Answer
and pay for damages, 2) deny the com-
plaint, or 3) accept the complaint with a
right to insert evidence into the case.
An item's Replacement cost divided by
Annual Depreciation the number of years in its expected lifes-
pan.
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
Appraisal amount. If they cannot agree, the Umpire
steps in. Agreement by any two of the
three is binding.
A negotiation method in which the op-
posing parties each submit their evi-
dence to a mutually-agreed-upon and
Arbitration neutral third party, called an arbitrator.
The arbitrator reviews the positions of
each opposing side, and makes a final
and legally binding decision.
The mutually-agreed-upon and neutral
third party in an arbitration who reviews
Arbitrator the positions of each opposing side, and
makes a final and legally binding deci-
sion.
Also called "artificial current." A peril cov-
ered in some property insurance poli-
cies. It includes sudden and accidental
Artificially Generated Current
damage from any electrical current, ex-
cept currents that are naturally generat-
ed, such as lightning or static electricity.
Insurance policy designed to protect the
policyholder while owning, occupying, or
Auto Policy operating a vehicle. Usually combines li-
ability coverage and property coverage
into one policy.
In Insurance policies, Automobile gener-
Automobile ally means any vehicle designed for use
on public roads.
Laws in effect in some states that re-
quire any owner of a vehicle to pur-
Automobile No-Fault Laws chase no-fault insurance; that is, insur-
ance that indemnifies the insured regard-
less of who was at fault in an accident.
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
The total decrease in an item's value
Accumulated Depreciation over a period of time. Formula: (Annual
Depreciation x Number of years used)
The deadline for providing the insurer
with an acreage report, which is used to
Acreage Reporting Date determine the amount of coverage need-
ed and the premium charged for a partic-
ular crop.
A valuation method used by insurers
to reflect an item's current market val-
Actual Cash Value (ACV) ue right before being damaged or de-
stroyed. Formula: (Replacement cost -
Accumulated Depreciation)
A history of a farmer's crop yields over
a multi-year period, which is used to de-
Actual Production History
termine the normal production level of a
farm.
Characteristic of an insurance contract.
Means that one party (the insurer) sets
Adhesion
the terms, and the other (the policyhold-
er) can "take it or leave it."
Narrowest (and least expensive) form of
Crop Revenue Insurance. Insures farm
Adjusted Gross Revenue (Crop Insur-
revenue as a whole instead of individual
ance)
crops. Guarantees a percentage of the
insured farm's average revenue.
An agent who, for compensation,
Adjuster processes insurance claims. Can repre-
sent either the insured or the insurer.
Adjusters who are temporarily licensed
by the insurance commissioner to handle
Adjuster - Emergency claims during catastrophes or emergen-
cies that produce an overwhelming num-
ber of claims in a short period of time.
Self-employed adjusters who contract
with multiple insurers at the same time.
,TEXAS ALL ADJUSTER FINAL EXAM/PRACTICE EXAM QUESTIONS AND ANSWERS
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
Paid on a commission or fee-plus-ex-
Adjuster - Independent penses basis for each claim. Also called:
Fee Adjuster, Bureau Adjuster
An adjuster who is hired to represent the
claimant and help determine a fair in-
demnification. Usually specializes in ap-
Adjuster - Public
praisals and negotiation. Paid commis-
sion, usually a percentage of final settle-
ment.
Salaried employee of one insurance
company who can work locally, region-
Adjuster - Staff
ally, or nationally. Also called: Company
Adjuster
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
Advance Payment Settlement
the claimant, which are then subtracted
from the final settlement amount. Often
used when a claimant suffers bodily in-
jury and is unable to work.
The Agent's authority to act on behalf of
someone else, usually an insurer. This
Agency Authority
authority is derived from the agent's con-
tract with the insurer.
Authority that is expressly given to the
Agency Authority - express agent in writing. Allows agent to act on
behalf of the principal.
Authority that an agent possesses by im-
plication of her behavior, regardless of
Agency Authority - implied whether this authority is granted in writ-
ing.
Authority that an agent possesses based
Agency Authority - apparent on the appearance of representing the
insurer.
,TEXAS ALL ADJUSTER FINAL EXAM/PRACTICE EXAM QUESTIONS AND ANSWERS
2025|WELL STRUCTURED|100% PASS
QUESTIONS ANSWERS
Someone who has received authority
Agent from an insurer to sell or service insur-
ance policies.
A type of policy limit found in some
health, liability, and property damage
policies. It represents the total amount
Aggregate Limit the insurer will pay for all losses (as op-
posed to an occurrence limit, which de-
notes the total amount the insurer will
pay per occurrence).
One of the four requirements of a legal-
ly binding contract. All parties involved
Agreement must agree to the terms of the contract.
Can also refer to a binder, which is the
preliminary substance of a contract.
A business that grows, harvests, and
Agricultural Producer
sells crops for profit.
A characteristic of an insurance contract.
Means "depending on an unknown future
event." An insurance contract will only
Aleatory pay IF and WHEN covered damages oc-
cur. Neither party knows how much the
contract will end up paying when they
enter into the contract.
In liability cases, the defendant's re-
sponse to a complaint. There are three
possible answers: 1) accept complaint
Answer
and pay for damages, 2) deny the com-
plaint, or 3) accept the complaint with a
right to insert evidence into the case.
An item's Replacement cost divided by
Annual Depreciation the number of years in its expected lifes-
pan.
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
Appraisal amount. If they cannot agree, the Umpire
steps in. Agreement by any two of the
three is binding.
A negotiation method in which the op-
posing parties each submit their evi-
dence to a mutually-agreed-upon and
Arbitration neutral third party, called an arbitrator.
The arbitrator reviews the positions of
each opposing side, and makes a final
and legally binding decision.
The mutually-agreed-upon and neutral
third party in an arbitration who reviews
Arbitrator the positions of each opposing side, and
makes a final and legally binding deci-
sion.
Also called "artificial current." A peril cov-
ered in some property insurance poli-
cies. It includes sudden and accidental
Artificially Generated Current
damage from any electrical current, ex-
cept currents that are naturally generat-
ed, such as lightning or static electricity.
Insurance policy designed to protect the
policyholder while owning, occupying, or
Auto Policy operating a vehicle. Usually combines li-
ability coverage and property coverage
into one policy.
In Insurance policies, Automobile gener-
Automobile ally means any vehicle designed for use
on public roads.
Laws in effect in some states that re-
quire any owner of a vehicle to pur-
Automobile No-Fault Laws chase no-fault insurance; that is, insur-
ance that indemnifies the insured regard-
less of who was at fault in an accident.
