Texas All Lines Adjuster Test
Accumulated Depreciation - AnswerThe total decrease in an item's value over a period of
time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - AnswerThe 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) - AnswerA 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 - AnswerA 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 - AnswerCharacteristic 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) - AnswerNarrowest (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 - AnswerAn agent who, for compensation, processes insurance claims. Can
represent either the insured or the insurer.
Adjuster - Emergency - AnswerAdjusters 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 - AnswerSelf-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 - AnswerAn 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 - AnswerSalaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - AnswerA 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 - AnswerThe 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 - apparent - AnswerAuthority that an agent possesses based on the
appearance of representing the insurer.
Agency Authority - express - AnswerAuthority that is expressly given to the agent in writing.
Allows agent to act on behalf of the principal.
Agency Authority - implied - AnswerAuthority that an agent possesses by implication of her
behavior, regardless of whether this authority is granted in writing.
Agent - AnswerSomeone who has received authority from an insurer to sell or service
insurance policies.
, Aggregate Limit - AnswerA 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 - AnswerOne 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 - AnswerA business that grows, harvests, and sells crops for profit.
Aleatory - AnswerA 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.
Annual Depreciation - AnswerAn item's Replacement cost divided by the number of years in
its expected lifespan.
Answer - AnswerIn 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.
Appraisal - AnswerA 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 - AnswerA 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 treviews tthe tpositions tof teach topposing tside, tand tmakes ta tfinal tand tlegally tbinding
tdecision.
Accumulated Depreciation - AnswerThe total decrease in an item's value over a period of
time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - AnswerThe 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) - AnswerA 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 - AnswerA 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 - AnswerCharacteristic 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) - AnswerNarrowest (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 - AnswerAn agent who, for compensation, processes insurance claims. Can
represent either the insured or the insurer.
Adjuster - Emergency - AnswerAdjusters 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 - AnswerSelf-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 - AnswerAn 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 - AnswerSalaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - AnswerA 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 - AnswerThe 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 - apparent - AnswerAuthority that an agent possesses based on the
appearance of representing the insurer.
Agency Authority - express - AnswerAuthority that is expressly given to the agent in writing.
Allows agent to act on behalf of the principal.
Agency Authority - implied - AnswerAuthority that an agent possesses by implication of her
behavior, regardless of whether this authority is granted in writing.
Agent - AnswerSomeone who has received authority from an insurer to sell or service
insurance policies.
, Aggregate Limit - AnswerA 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 - AnswerOne 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 - AnswerA business that grows, harvests, and sells crops for profit.
Aleatory - AnswerA 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.
Annual Depreciation - AnswerAn item's Replacement cost divided by the number of years in
its expected lifespan.
Answer - AnswerIn 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.
Appraisal - AnswerA 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 - AnswerA 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 treviews tthe tpositions tof teach topposing tside, tand tmakes ta tfinal tand tlegally tbinding
tdecision.
