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TEXAS ALL LINES ADJUSTER EXAM BRAND NEW 2025/2026 (660 QUESTIONS AND
CORRECT ANSWERS) VERIFIED ANSWERS
Civil - ......ANSWER........Civil law observes court cases of one citizen charging another
citizen for damages caused by tort; it differs from criminal law.
Claim - ......ANSWER........The "offer of settlement" that the policyholder files with an
insurer after she experiences a loss.
Claims-Made Form - ......ANSWER........A liability policy in which the insurer pays only
those claims arising during the policy period (as opposed to those claims arising after the
policy period is over, regardless of whether the incident took place during the policy
period).
Claims Management - ......ANSWER........The practice of the insurance adjuster of
managing a claim by processing it in a prompt and effective manner from the time the
claim is filed until a settlement is reached, while adhering to all local and federal laws.
Claimant - ......ANSWER........One who files a claim with an insurer for a loss.
Claude the Clueless Adjuster - ......ANSWER........In this course, Claude the Clueless
Adjuster represents an incompetent or unprofessional adjuster.
Coarse Grains - ......ANSWER........In Crop Insurance, a provision that covers reduction in
crop quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
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Coinsurance - ......ANSWER........The Coinsurance Clause applies to policyholders who
purchase an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a covered
claim that the insured is responsible for paying out-of-pocket, after the deductible has
been paid.
Code of Ethics - ......ANSWER........A set of governing professional standards of conduct,
usually created by regulatory bodies or government regulatory agencies. These standards
may also be formally codified with statutes.
Coercion - ......ANSWER........The practice of forcing another party to behave in an
involuntary manner (whether through action or inaction) by use of threats or intimidation or
some other form of pressure or force.
Commerce - ......ANSWER........The exchange or transport of goods or property.
Commercial - ......ANSWER........Having to do with commerce or business activity in
general.
Commercial Crime Insurance - ......ANSWER........Commercial insurance that covers
employee dishonesty and theft by employees or others.
Commercial Lines - ......ANSWER........A variety of insurance coverages that protect those
involved in the business of creating, selling, displaying, evaluating, or shipping, etc.
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Examples include: Business Owner's Policy; Commercial Property; Commercial General
Liability; Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O)
and Employment-Related Practices Liability.
Commercial Property Floater - ......ANSWER........A means of protecting a business'
property that is not in one fixed location.
Common Crop Insurance Policy - ......ANSWER........A single uniform policy that combines
Crop Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
Common Law - ......ANSWER........Based on court decisions and customs when statutory
law does not provide an answer; creates precedent.
Compensatory Damages - ......ANSWER........Money awarded in civil court for tangible and
intangible damages caused by a policyholder.
Compensatory damages - Special - ......ANSWER........Money awarded for the exact value
of the physical damage caused to the plaintiff up to the trial date. This is an objective value
determined by receipts and medical bills.
Compensatory damages - General - ......ANSWER........Money awarded for the emotional
losses of the plaintiff that will continue after the trial date. These are a subjective value and
are determined by the court.
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Competence - ......ANSWER........One of the four qualifications of a legally binding
contract. All parties must be competent, with the necessary legal and mental capacity.
Complaint - ......ANSWER........A complaint initiates a civil lawsuit by a claimant requesting
financial relief from damages caused by a policyholder.
Concealment - ......ANSWER........The act of withholding relevant material facts from an
insurer.
Conditions - ......ANSWER........The section of a policy that qualifies or limits an insurer's
promise to pay or perform.
Consideration - ......ANSWER........One of the four qualifications of a legally binding
contract. All parties must bring something of value to the contract.
Contract - ......ANSWER........An agreement entered voluntarily by two parties or more with
the intention of creating a legal obligation.
Coverages - ......ANSWER........The amount and extent of protection provided by an
insurance policy.
Crime - ......ANSWER........An offense against the State or Federal Government, or a breach
of law, for which the offender shall make satisfaction to the public.
TEXAS ALL LINES ADJUSTER EXAM BRAND NEW 2025/2026 (660 QUESTIONS AND
CORRECT ANSWERS) VERIFIED ANSWERS
Civil - ......ANSWER........Civil law observes court cases of one citizen charging another
citizen for damages caused by tort; it differs from criminal law.
Claim - ......ANSWER........The "offer of settlement" that the policyholder files with an
insurer after she experiences a loss.
Claims-Made Form - ......ANSWER........A liability policy in which the insurer pays only
those claims arising during the policy period (as opposed to those claims arising after the
policy period is over, regardless of whether the incident took place during the policy
period).
Claims Management - ......ANSWER........The practice of the insurance adjuster of
managing a claim by processing it in a prompt and effective manner from the time the
claim is filed until a settlement is reached, while adhering to all local and federal laws.
Claimant - ......ANSWER........One who files a claim with an insurer for a loss.
Claude the Clueless Adjuster - ......ANSWER........In this course, Claude the Clueless
Adjuster represents an incompetent or unprofessional adjuster.
Coarse Grains - ......ANSWER........In Crop Insurance, a provision that covers reduction in
crop quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and
soybeans.
,2 of 54
Coinsurance - ......ANSWER........The Coinsurance Clause applies to policyholders who
purchase an inadequate amount of property insurance. These policyholders must pay a
percentage of the claim. In health insurance, coinsurance refers to the portion of a covered
claim that the insured is responsible for paying out-of-pocket, after the deductible has
been paid.
Code of Ethics - ......ANSWER........A set of governing professional standards of conduct,
usually created by regulatory bodies or government regulatory agencies. These standards
may also be formally codified with statutes.
Coercion - ......ANSWER........The practice of forcing another party to behave in an
involuntary manner (whether through action or inaction) by use of threats or intimidation or
some other form of pressure or force.
Commerce - ......ANSWER........The exchange or transport of goods or property.
Commercial - ......ANSWER........Having to do with commerce or business activity in
general.
Commercial Crime Insurance - ......ANSWER........Commercial insurance that covers
employee dishonesty and theft by employees or others.
Commercial Lines - ......ANSWER........A variety of insurance coverages that protect those
involved in the business of creating, selling, displaying, evaluating, or shipping, etc.
,3 of 54
Examples include: Business Owner's Policy; Commercial Property; Commercial General
Liability; Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O)
and Employment-Related Practices Liability.
Commercial Property Floater - ......ANSWER........A means of protecting a business'
property that is not in one fixed location.
Common Crop Insurance Policy - ......ANSWER........A single uniform policy that combines
Crop Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income
Protection.
Common Law - ......ANSWER........Based on court decisions and customs when statutory
law does not provide an answer; creates precedent.
Compensatory Damages - ......ANSWER........Money awarded in civil court for tangible and
intangible damages caused by a policyholder.
Compensatory damages - Special - ......ANSWER........Money awarded for the exact value
of the physical damage caused to the plaintiff up to the trial date. This is an objective value
determined by receipts and medical bills.
Compensatory damages - General - ......ANSWER........Money awarded for the emotional
losses of the plaintiff that will continue after the trial date. These are a subjective value and
are determined by the court.
, 4 of 54
Competence - ......ANSWER........One of the four qualifications of a legally binding
contract. All parties must be competent, with the necessary legal and mental capacity.
Complaint - ......ANSWER........A complaint initiates a civil lawsuit by a claimant requesting
financial relief from damages caused by a policyholder.
Concealment - ......ANSWER........The act of withholding relevant material facts from an
insurer.
Conditions - ......ANSWER........The section of a policy that qualifies or limits an insurer's
promise to pay or perform.
Consideration - ......ANSWER........One of the four qualifications of a legally binding
contract. All parties must bring something of value to the contract.
Contract - ......ANSWER........An agreement entered voluntarily by two parties or more with
the intention of creating a legal obligation.
Coverages - ......ANSWER........The amount and extent of protection provided by an
insurance policy.
Crime - ......ANSWER........An offense against the State or Federal Government, or a breach
of law, for which the offender shall make satisfaction to the public.
