ne
tz
sh
ne
Texas All Lines Adjuster Test 2023
la
tz
sh
Sp
ne
la
Accumulated Depreciation - ANSWER The total decrease in an item's value over a
tz
sh
period of time. Formula: (Annual Depreciation x Number of years used)
Sp
ne
Acreage Reporting Date - ANSWER The deadline for providing the insurer with an
la
acreage report, which is used to determine the amount of coverage needed and the
tz
sh
premium charged for a particular crop.
Sp
ne
Actual Cash Value (ACV) - ANSWER A valuation method used by insurers to reflect an
la
item's current market value right before being damaged or destroyed. Formula:
tz
sh
Sp
(Replacement cost - Accumulated Depreciation)
ne
Actual Production History - ANSWER A history of a farmer's crop yields over a
la
tz
multi-year period, which is used to determine the normal production level of a farm.
sh
Sp
ne
Adhesion - ANSWER Characteristic of an insurance contract. Means that one party
la
(the insurer) sets the terms, and the other (the policyholder) can "take it or leave
tz
it."
sh
Sp
ne
Adjusted Gross Revenue (Crop Insurance) - ANSWER Narrowest (and least
la
expensive) form of Crop Revenue Insurance. Insures farm revenue as a whole instead
tz
of individual crops.
sh
Sp
Guarantees a percentage of the insured farm's average revenue.
ne
la
Adjuster - ANSWER An agent who, for compensation, processes insurance
tz
sh
claims. Can represent either the insured or the insurer.
Sp
ne
Adjuster - Emergency - ANSWER Adjusters who are temporarily licensed by
la
the insurance commissioner to handle claims during catastrophes or emergencies
tz
sh
that produce an overwhelming number of claims in a short period of time.
Sp
ne
Adjuster - Independent - ANSWER Self-employed adjusters who contract with
la
tz
multiple insurers at the same time. Paid on a commission or fee-plus-expenses
sh
Sp
basis for each claim. Also called: Fee Adjuster, Bureau Adjuster
ne
Adjuster - Public - ANSWER An adjuster who is hired to represent the claimant
la
tz
and help determine a fair indemnification. Usually specializes in appraisals and
sh
Sp
negotiation. Paid commission, usually a percentage of final settlement.
ne
la
Adjuster - Staff - ANSWER Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
sh
Sp
Advance Payment Settlement - ANSWER A settlement option that lets the insurer offer
la
Sp
, ne
tz
sh
ne
some financial relief to the claimant before the claim has been fully settled. The
la
insurer makes advance payments to the claimant, which are then subtracted from the
tz
final settlement amount. Often used when a claimant suffers bodily injury and is
sh
Sp
unable to work.
ne
la
Agency Authority - ANSWERThe Agent's authority to act on behalf of someone else,
tz
sh
usually an insurer. This authority is derived from the agent's contract with the insurer.
Sp
ne
Agency Authority - express - ANSWER Authority that is expressly given to the
la
agent in writing. Allows agent to act on behalf of the principal.
tz
sh
Sp
Agency Authority - implied - ANSWER Authority that an agent possesses by
ne
implication of her behavior, regardless of whether this authority is granted in writing.
la
tz
sh
Agency Authority - apparent - ANSWER Authority that an agent possesses
Sp
based on the appearance of representing the insurer.
ne
la
Agent - ANSWER Someone who has received authority from an insurer to sell or
tz
sh
service insurance policies.
Sp
ne
Aggregate Limit - ANSWER A type of policy limit found in some health, liability, and
la
property damage policies. It represents the total amount the insurer will pay for all
tz
sh
Sp
losses (as opposed to an occurrence limit, which denotes the total amount the insurer
ne
will pay per occurrence).
la
tz
Agreement - ANSWER One of the four requirements of a legally binding contract. All
sh
Sp
parties involved must agree to the terms of the contract. Can also refer to a binder,
ne
which is the preliminary substance of a contract.
la
tz
sh
Sp
ne
Agricultural Producer - ANSWER A business that grows, harvests, and sells crops
la
for profit.
tz
sh
Sp
Aleatory - ANSWER A characteristic of an insurance contract. Means "depending on
ne
an unknown future event." An insurance contract will only pay IF and WHEN covered
la
damages occur. Neither party knows how much the contract will end up paying when
tz
sh
they enter into the contract.
Sp
ne
Answer - ANSWER In liability cases, the defendant's response to a complaint. There are
la
three possible answers: 1) accept complaint and pay for damages, 2) deny the
tz
sh
complaint, or 3) accept the complaint with a right to insert evidence into the case.
Sp
ne
Annual Depreciation - ANSWER An item's Replacement cost divided by the number of
la
years in its expected lifespan.
sh
Sp
Appraisal - ANSWER A negotiation method which allows the claimant and the insurer
each
la
Sp
, ne
tz
sh
ne
to select an appraiser. The two appraisers in turn select an Umpire. The appraisers
la
then work together to determine a settlement amount. If they cannot agree, the Umpire
tz
steps in.
sh
Sp
Agreement by any two of the three is binding.
ne
la
Arbitration - ANSWER A negotiation method in which the opposing parties each
tz
sh
submit their evidence to a mutually-agreed-upon and neutral third party, called an
Sp
ne
arbitrator. The arbitrator reviews the positions of each opposing side, and makes a
final and legally binding decision.
la
tz
sh
Arbitrator - ANSWER The mutually-agreed-upon and neutral third party in an
Sp
ne
arbitration who reviews the positions of each opposing side, and makes a final and
la
legally binding decision.
tz
sh
Sp
Artificially Generated Current - ANSWER Also called "artificial current." A peril
ne
covered in some property insurance policies. It includes sudden and accidental
la
damage from any electrical current, except currents that are naturally generated,
tz
sh
such as lightning or static electricity.
Sp
ne
Auto Policy - ANSWER Insurance policy designed to protect the policyholder while
la
owning, occupying, or operating a vehicle. Usually combines liability coverage and
tz
sh
property coverage into one policy.
Sp
ne
Automobile - ANSWER In Insurance policies, Automobile generally means any
la
vehicle designed for use on public roads.
tz
sh
Sp
Automobile No-Fault Laws - ANSWER Laws in effect in some states that require any
ne
owner of a vehicle to purchase no-fault insurance; that is, insurance that indemnifies
la
tz
the insured regardless of who was at fault in an accident. No-fault laws also restrict
sh
Sp
the insured's right to sue the at-fault party.
ne
la
Aviation - ANSWER Aviation insurance combines hull insurance for the aircraft and
tz
liability insurance for any damage to others' property or to people who are not
sh
Sp
passengers.
ne
la
Bailee - ANSWER An individual or company that receives the property of someone else
tz
sh
for a special purpose, and returns the product after use.
Sp
ne
BAP - ANSWER The Business Auto Policy provides property damage and liability
la
insurance for automobiles used by a business.
tz
sh
Sp
Binder - ANSWER A temporary contract provided by an insurer that ensures
ne
coverage until the complete, permanent policy is issued.
la
Bl - ANSWER (Bodily Injury): Physical damage to someone's person. Liability
sh
Sp
insurance covers bodily injury that the insured might cause to another person
through negligence.
la
Sp
, ne
tz
sh
ne
Body Language - ANSWERla The signals we give through posture, behaviour,
apparel, etc., which are involved in communication.
tz
sh
Sp
Boiler & Machinery - ANSWER Boiler and machinery insurance is designed to
ne
indemnify a business for damages to, and damages by, boilers, machinery, motors,
la
generators and a variety of other electrical devices and appliances.
tz
sh
Sp
Bond - ANSWER A contract wherein one party guarantees the performance of a third
ne
party. Bonds involve three parties: (1) the surety agrees to pay the second party, (2)
la
the obligee, if the third party, (3) the principal, neglects to carry out an obligation it has
tz
sh
to the obligee.
Sp
ne
Breach of Product Warranty - ANSWER The failure or falsehood of a stated
la
promise of a product stipulation.
tz
sh
Sp
Business Personal Property - ANSWER Moveable property used for business
ne
la
Catastrophe - ANSWER An occurrence or a sequence of occurrences that causes
tz
sh
enormous property losses. Catastrophes are normally uninsurable by private
Sp
ne
insurers.
la
Cause of Loss - ANSWER A form included in a Commercial Package Policy or a
tz
sh
Sp
Commercial Property Policy that lists the causes of loss from which the insured
ne
property is covered.
la
tz
CGL - ANSWER A Commercial General Liability policy protects businesses against
sh
Sp
damages and injuries to third parties.
ne
la
Civil - ANSWER Civil law observes court cases of one citizen charging another
citizen for damages caused by tort; it differs from criminal law.
tz
sh
Sp
ne
Claim - ANSWER The "offer of settlement" that the policyholder files with an insurer
la
after she experiences a loss.
tz
sh
Sp
Claims-Made Form - ANSWER A liability policy in which the insurer pays only those
ne
claims arising during the policy period (as opposed to those claims arising after the
la
policy period is over, regardless of whether the incident took place during the policy
tz
sh
period).
Sp
ne
Claims Management - ANSWER The practice of the insurance adjuster of managing a
la
claim by processing it in a prompt and effective manner from the time the claim is
tz
sh
Sp
filed until a settlement is reached, while adhering to all local and federal laws.
ne
Claimant - ANSWER One who files a claim with an insurer for a loss.
la
sh
Claude the Clueless Adjuster - ANSWER In this course, Claude the
Sp
Clueless Adjuster represents an incompetent or unprofessional adjuster.
la
Sp
tz
sh
ne
Texas All Lines Adjuster Test 2023
la
tz
sh
Sp
ne
la
Accumulated Depreciation - ANSWER The total decrease in an item's value over a
tz
sh
period of time. Formula: (Annual Depreciation x Number of years used)
Sp
ne
Acreage Reporting Date - ANSWER The deadline for providing the insurer with an
la
acreage report, which is used to determine the amount of coverage needed and the
tz
sh
premium charged for a particular crop.
Sp
ne
Actual Cash Value (ACV) - ANSWER A valuation method used by insurers to reflect an
la
item's current market value right before being damaged or destroyed. Formula:
tz
sh
Sp
(Replacement cost - Accumulated Depreciation)
ne
Actual Production History - ANSWER A history of a farmer's crop yields over a
la
tz
multi-year period, which is used to determine the normal production level of a farm.
sh
Sp
ne
Adhesion - ANSWER Characteristic of an insurance contract. Means that one party
la
(the insurer) sets the terms, and the other (the policyholder) can "take it or leave
tz
it."
sh
Sp
ne
Adjusted Gross Revenue (Crop Insurance) - ANSWER Narrowest (and least
la
expensive) form of Crop Revenue Insurance. Insures farm revenue as a whole instead
tz
of individual crops.
sh
Sp
Guarantees a percentage of the insured farm's average revenue.
ne
la
Adjuster - ANSWER An agent who, for compensation, processes insurance
tz
sh
claims. Can represent either the insured or the insurer.
Sp
ne
Adjuster - Emergency - ANSWER Adjusters who are temporarily licensed by
la
the insurance commissioner to handle claims during catastrophes or emergencies
tz
sh
that produce an overwhelming number of claims in a short period of time.
Sp
ne
Adjuster - Independent - ANSWER Self-employed adjusters who contract with
la
tz
multiple insurers at the same time. Paid on a commission or fee-plus-expenses
sh
Sp
basis for each claim. Also called: Fee Adjuster, Bureau Adjuster
ne
Adjuster - Public - ANSWER An adjuster who is hired to represent the claimant
la
tz
and help determine a fair indemnification. Usually specializes in appraisals and
sh
Sp
negotiation. Paid commission, usually a percentage of final settlement.
ne
la
Adjuster - Staff - ANSWER Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
sh
Sp
Advance Payment Settlement - ANSWER A settlement option that lets the insurer offer
la
Sp
, ne
tz
sh
ne
some financial relief to the claimant before the claim has been fully settled. The
la
insurer makes advance payments to the claimant, which are then subtracted from the
tz
final settlement amount. Often used when a claimant suffers bodily injury and is
sh
Sp
unable to work.
ne
la
Agency Authority - ANSWERThe Agent's authority to act on behalf of someone else,
tz
sh
usually an insurer. This authority is derived from the agent's contract with the insurer.
Sp
ne
Agency Authority - express - ANSWER Authority that is expressly given to the
la
agent in writing. Allows agent to act on behalf of the principal.
tz
sh
Sp
Agency Authority - implied - ANSWER Authority that an agent possesses by
ne
implication of her behavior, regardless of whether this authority is granted in writing.
la
tz
sh
Agency Authority - apparent - ANSWER Authority that an agent possesses
Sp
based on the appearance of representing the insurer.
ne
la
Agent - ANSWER Someone who has received authority from an insurer to sell or
tz
sh
service insurance policies.
Sp
ne
Aggregate Limit - ANSWER A type of policy limit found in some health, liability, and
la
property damage policies. It represents the total amount the insurer will pay for all
tz
sh
Sp
losses (as opposed to an occurrence limit, which denotes the total amount the insurer
ne
will pay per occurrence).
la
tz
Agreement - ANSWER One of the four requirements of a legally binding contract. All
sh
Sp
parties involved must agree to the terms of the contract. Can also refer to a binder,
ne
which is the preliminary substance of a contract.
la
tz
sh
Sp
ne
Agricultural Producer - ANSWER A business that grows, harvests, and sells crops
la
for profit.
tz
sh
Sp
Aleatory - ANSWER A characteristic of an insurance contract. Means "depending on
ne
an unknown future event." An insurance contract will only pay IF and WHEN covered
la
damages occur. Neither party knows how much the contract will end up paying when
tz
sh
they enter into the contract.
Sp
ne
Answer - ANSWER In liability cases, the defendant's response to a complaint. There are
la
three possible answers: 1) accept complaint and pay for damages, 2) deny the
tz
sh
complaint, or 3) accept the complaint with a right to insert evidence into the case.
Sp
ne
Annual Depreciation - ANSWER An item's Replacement cost divided by the number of
la
years in its expected lifespan.
sh
Sp
Appraisal - ANSWER A negotiation method which allows the claimant and the insurer
each
la
Sp
, ne
tz
sh
ne
to select an appraiser. The two appraisers in turn select an Umpire. The appraisers
la
then work together to determine a settlement amount. If they cannot agree, the Umpire
tz
steps in.
sh
Sp
Agreement by any two of the three is binding.
ne
la
Arbitration - ANSWER A negotiation method in which the opposing parties each
tz
sh
submit their evidence to a mutually-agreed-upon and neutral third party, called an
Sp
ne
arbitrator. The arbitrator reviews the positions of each opposing side, and makes a
final and legally binding decision.
la
tz
sh
Arbitrator - ANSWER The mutually-agreed-upon and neutral third party in an
Sp
ne
arbitration who reviews the positions of each opposing side, and makes a final and
la
legally binding decision.
tz
sh
Sp
Artificially Generated Current - ANSWER Also called "artificial current." A peril
ne
covered in some property insurance policies. It includes sudden and accidental
la
damage from any electrical current, except currents that are naturally generated,
tz
sh
such as lightning or static electricity.
Sp
ne
Auto Policy - ANSWER Insurance policy designed to protect the policyholder while
la
owning, occupying, or operating a vehicle. Usually combines liability coverage and
tz
sh
property coverage into one policy.
Sp
ne
Automobile - ANSWER In Insurance policies, Automobile generally means any
la
vehicle designed for use on public roads.
tz
sh
Sp
Automobile No-Fault Laws - ANSWER Laws in effect in some states that require any
ne
owner of a vehicle to purchase no-fault insurance; that is, insurance that indemnifies
la
tz
the insured regardless of who was at fault in an accident. No-fault laws also restrict
sh
Sp
the insured's right to sue the at-fault party.
ne
la
Aviation - ANSWER Aviation insurance combines hull insurance for the aircraft and
tz
liability insurance for any damage to others' property or to people who are not
sh
Sp
passengers.
ne
la
Bailee - ANSWER An individual or company that receives the property of someone else
tz
sh
for a special purpose, and returns the product after use.
Sp
ne
BAP - ANSWER The Business Auto Policy provides property damage and liability
la
insurance for automobiles used by a business.
tz
sh
Sp
Binder - ANSWER A temporary contract provided by an insurer that ensures
ne
coverage until the complete, permanent policy is issued.
la
Bl - ANSWER (Bodily Injury): Physical damage to someone's person. Liability
sh
Sp
insurance covers bodily injury that the insured might cause to another person
through negligence.
la
Sp
, ne
tz
sh
ne
Body Language - ANSWERla The signals we give through posture, behaviour,
apparel, etc., which are involved in communication.
tz
sh
Sp
Boiler & Machinery - ANSWER Boiler and machinery insurance is designed to
ne
indemnify a business for damages to, and damages by, boilers, machinery, motors,
la
generators and a variety of other electrical devices and appliances.
tz
sh
Sp
Bond - ANSWER A contract wherein one party guarantees the performance of a third
ne
party. Bonds involve three parties: (1) the surety agrees to pay the second party, (2)
la
the obligee, if the third party, (3) the principal, neglects to carry out an obligation it has
tz
sh
to the obligee.
Sp
ne
Breach of Product Warranty - ANSWER The failure or falsehood of a stated
la
promise of a product stipulation.
tz
sh
Sp
Business Personal Property - ANSWER Moveable property used for business
ne
la
Catastrophe - ANSWER An occurrence or a sequence of occurrences that causes
tz
sh
enormous property losses. Catastrophes are normally uninsurable by private
Sp
ne
insurers.
la
Cause of Loss - ANSWER A form included in a Commercial Package Policy or a
tz
sh
Sp
Commercial Property Policy that lists the causes of loss from which the insured
ne
property is covered.
la
tz
CGL - ANSWER A Commercial General Liability policy protects businesses against
sh
Sp
damages and injuries to third parties.
ne
la
Civil - ANSWER Civil law observes court cases of one citizen charging another
citizen for damages caused by tort; it differs from criminal law.
tz
sh
Sp
ne
Claim - ANSWER The "offer of settlement" that the policyholder files with an insurer
la
after she experiences a loss.
tz
sh
Sp
Claims-Made Form - ANSWER A liability policy in which the insurer pays only those
ne
claims arising during the policy period (as opposed to those claims arising after the
la
policy period is over, regardless of whether the incident took place during the policy
tz
sh
period).
Sp
ne
Claims Management - ANSWER The practice of the insurance adjuster of managing a
la
claim by processing it in a prompt and effective manner from the time the claim is
tz
sh
Sp
filed until a settlement is reached, while adhering to all local and federal laws.
ne
Claimant - ANSWER One who files a claim with an insurer for a loss.
la
sh
Claude the Clueless Adjuster - ANSWER In this course, Claude the
Sp
Clueless Adjuster represents an incompetent or unprofessional adjuster.
la
Sp
