Texas All Lines Adjuster Exam– Brand New 2026
Edition | 200+ Questions with Verified Correct
Answers
The totaldecreasein an item'svalueovera periodof time.Formula:(Annual
Depreciation x Number of years used)- ANSWER>>>AccumulatedDepreciation
The deadlinefor providing the insurer with an acreagereport,which is used to
determinethe amount of coverage needed and the premium charged for a
particular crop.- ANSWER>>>Acreage Reporting Date
A valuation method used by insurers to reflect an item's current market value
right beforebeingdamagedor destroyed.Formula:(Replacementcost
- AccumulatedDepreciation)- ANSWER>>>Actual Cash Value(ACV)
A historyof a farmer'scrop yieldsovera multi-yearperiod,whichis usedto
.determine the normal production level of a farm.
- ANSWER>>>Actual
Production History
Characteristicof an insurancecontract.Meansthatoneparty(theinsurer) sets the
terms, and the other (the policyholder) can "take it or leave
- it."
ANSWER>>>Adhesion
Narrowest (and least expensive) form of Crop Revenue
Insurance. Insures farm
revenue as a whole instead of individual crops. Guarantees a percentage
of the
insuredfarm'saveragerevenue.- ANSWER>>>Adjusted Gross Revenue (Crop
Insurance)
An agentwho,for compensation,processesinsuranceclaims.Can represent either
the insured or the insurer.
- ANSWER>>>Adjuster
Adjusterswhoaretemporarilylicensedby theinsurancecommissionerto handle
claims during catastrophes or emergencies that produce an
,overwhelmingnumberof claimsin a shortperiodof time.-
ANSWER>>>Adjuster - Emergency
Self-employed adjusters who contract with multiple insurers at the same time.
Paid ona commission or fee
-plus-expensesbasis for each claim. Also called:
Fee
Adjuster,BureauAdjuster- ANSWER>>>Adjuster - Independent
An adjusterwhois hired to representtheclaimantand helpdeterminea fair
indemnification. Usually specializes in appraisals and negotiation. Paid
commission,usuallya percentageof final settlement.- ANSWER>>>Adjuster
- Public
Salariedemployeeof oneinsurancecompanywhocan worklocally, regionally, or
nationally. Also called: Company Adjuster
- ANSWER>>>Adjuster - Staff
A settlement option that lets the insurer offer some financial relief to the claimant
beforetheclaim has beenfully settled. Theinsurermakesadvance 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.
-
ANSWER>>>Advance Payment Settlement
The Agent'sauthorityto act on behalfof someoneelse,usuallyan insurer. This
authority is derived from the agent's contract with the insurer.
-
ANSWER>>>Agency Authority
Authoritythatis expresslygivento theagentin writing.Allowsagentto act on
behalf of the principal.
- ANSWER>>>Agency Authority- express
Authoritythatan agentpossessesby implicationof her behavior,regardless of
whether this authority is granted in writing.
- ANSWER>>>Agency Authority-
implied
Authoritythatan agentpossessesbasedon theappearanceof representing the
insurer.- ANSWER>>>Agency Authority- apparent
,Someonewhohas receivedauthorityfrom an insurerto sell or service insurance
policies.- ANSWER>>>Agent
A 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
opposedto an occurrencelimit, whichdenotesthetotalamounttheinsurer will
pay per occurrence). - ANSWER>>>Aggregate Limit
One of the four requirements of a legally binding contract. All parties involved
mustagreeto thetermsof thecontract.Can alsoreferto a binder, which is the
preliminary substance of a contract.
- ANSWER>>>Agreement
A businessthatgrows,harvests,and sellscropsfor profit.-
ANSWER>>>Agricultural Producer
A characteristicof an insurancecontract.Means"dependingon 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.
- ANSWER>>>Aleatory
In 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)
acceptthecomplaintwitha right to insertevidenceinto the case.-
ANSWER>>>ANSWER
An item'sReplacementcostdividedby thenumberof yearsin its expected
lifespan.- ANSWER>>>Annual Depreciation
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
thenwork
togetherto determinea settlementamount.If they cannot agree, the Umpire steps
in. Agreement by any two of the three is binding.
- ANSWER>>>Appraisal
, A negotiation method in which the opposing parties each submit their evidence to
a mutually-agreed-upon and neutral third party, called an arbitrator.
The
arbitratorreviewsthepositionsof eachopposingside,and makes a final and
legally binding decision.
- ANSWER>>>Arbitration
The mutually-agreed-upon and neutral third party in an arbitration who reviews
thepositionsof eachopposingside,and makesa final and legally binding
decision.- ANSWER>>>Arbitrator
Also called"artificialcurrent."A peril coveredin somepropertyinsurance
policies. It includes sudden and accidental damage from any electrical current,
exceptcurrentsthatarenaturallygenerated,such as lightning or static electricity.
- ANSWER>>>Artificially Generated Current
Insurance policy designed to protect the policyholder while owning, occupying,
or
operatinga vehicle.Usuallycombinesliabilitycoverageand property coverage
into one policy.- ANSWER>>>Auto Policy
In Insurancepolicies,Automobilegenerallymeansany vehicledesignedfor use on
public roads.- ANSWER>>>Automobile
Laws in effectin somestatesthatrequireany ownerof a vehicleto purchase no-
fault insurance; that is, insurance that indemnifies the insured regardless of who
was at fault in an accident. No
-fault laws also restrict the insured's right to sue the
at-fault party.- ANSWER>>>Automobile No-Fault Laws
Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not
passengers.- ANSWER>>>Aviation
An individualor companythatreceivesthepropertyof someoneelsefor a special
purpose, and returns the product after use.
- ANSWER>>>Bailee
The BusinessAuto Policy providespropertydamageand liabilityinsurance for
Edition | 200+ Questions with Verified Correct
Answers
The totaldecreasein an item'svalueovera periodof time.Formula:(Annual
Depreciation x Number of years used)- ANSWER>>>AccumulatedDepreciation
The deadlinefor providing the insurer with an acreagereport,which is used to
determinethe amount of coverage needed and the premium charged for a
particular crop.- ANSWER>>>Acreage Reporting Date
A valuation method used by insurers to reflect an item's current market value
right beforebeingdamagedor destroyed.Formula:(Replacementcost
- AccumulatedDepreciation)- ANSWER>>>Actual Cash Value(ACV)
A historyof a farmer'scrop yieldsovera multi-yearperiod,whichis usedto
.determine the normal production level of a farm.
- ANSWER>>>Actual
Production History
Characteristicof an insurancecontract.Meansthatoneparty(theinsurer) sets the
terms, and the other (the policyholder) can "take it or leave
- it."
ANSWER>>>Adhesion
Narrowest (and least expensive) form of Crop Revenue
Insurance. Insures farm
revenue as a whole instead of individual crops. Guarantees a percentage
of the
insuredfarm'saveragerevenue.- ANSWER>>>Adjusted Gross Revenue (Crop
Insurance)
An agentwho,for compensation,processesinsuranceclaims.Can represent either
the insured or the insurer.
- ANSWER>>>Adjuster
Adjusterswhoaretemporarilylicensedby theinsurancecommissionerto handle
claims during catastrophes or emergencies that produce an
,overwhelmingnumberof claimsin a shortperiodof time.-
ANSWER>>>Adjuster - Emergency
Self-employed adjusters who contract with multiple insurers at the same time.
Paid ona commission or fee
-plus-expensesbasis for each claim. Also called:
Fee
Adjuster,BureauAdjuster- ANSWER>>>Adjuster - Independent
An adjusterwhois hired to representtheclaimantand helpdeterminea fair
indemnification. Usually specializes in appraisals and negotiation. Paid
commission,usuallya percentageof final settlement.- ANSWER>>>Adjuster
- Public
Salariedemployeeof oneinsurancecompanywhocan worklocally, regionally, or
nationally. Also called: Company Adjuster
- ANSWER>>>Adjuster - Staff
A settlement option that lets the insurer offer some financial relief to the claimant
beforetheclaim has beenfully settled. Theinsurermakesadvance 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.
-
ANSWER>>>Advance Payment Settlement
The Agent'sauthorityto act on behalfof someoneelse,usuallyan insurer. This
authority is derived from the agent's contract with the insurer.
-
ANSWER>>>Agency Authority
Authoritythatis expresslygivento theagentin writing.Allowsagentto act on
behalf of the principal.
- ANSWER>>>Agency Authority- express
Authoritythatan agentpossessesby implicationof her behavior,regardless of
whether this authority is granted in writing.
- ANSWER>>>Agency Authority-
implied
Authoritythatan agentpossessesbasedon theappearanceof representing the
insurer.- ANSWER>>>Agency Authority- apparent
,Someonewhohas receivedauthorityfrom an insurerto sell or service insurance
policies.- ANSWER>>>Agent
A 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
opposedto an occurrencelimit, whichdenotesthetotalamounttheinsurer will
pay per occurrence). - ANSWER>>>Aggregate Limit
One of the four requirements of a legally binding contract. All parties involved
mustagreeto thetermsof thecontract.Can alsoreferto a binder, which is the
preliminary substance of a contract.
- ANSWER>>>Agreement
A businessthatgrows,harvests,and sellscropsfor profit.-
ANSWER>>>Agricultural Producer
A characteristicof an insurancecontract.Means"dependingon 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.
- ANSWER>>>Aleatory
In 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)
acceptthecomplaintwitha right to insertevidenceinto the case.-
ANSWER>>>ANSWER
An item'sReplacementcostdividedby thenumberof yearsin its expected
lifespan.- ANSWER>>>Annual Depreciation
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
thenwork
togetherto determinea settlementamount.If they cannot agree, the Umpire steps
in. Agreement by any two of the three is binding.
- ANSWER>>>Appraisal
, A negotiation method in which the opposing parties each submit their evidence to
a mutually-agreed-upon and neutral third party, called an arbitrator.
The
arbitratorreviewsthepositionsof eachopposingside,and makes a final and
legally binding decision.
- ANSWER>>>Arbitration
The mutually-agreed-upon and neutral third party in an arbitration who reviews
thepositionsof eachopposingside,and makesa final and legally binding
decision.- ANSWER>>>Arbitrator
Also called"artificialcurrent."A peril coveredin somepropertyinsurance
policies. It includes sudden and accidental damage from any electrical current,
exceptcurrentsthatarenaturallygenerated,such as lightning or static electricity.
- ANSWER>>>Artificially Generated Current
Insurance policy designed to protect the policyholder while owning, occupying,
or
operatinga vehicle.Usuallycombinesliabilitycoverageand property coverage
into one policy.- ANSWER>>>Auto Policy
In Insurancepolicies,Automobilegenerallymeansany vehicledesignedfor use on
public roads.- ANSWER>>>Automobile
Laws in effectin somestatesthatrequireany ownerof a vehicleto purchase no-
fault insurance; that is, insurance that indemnifies the insured regardless of who
was at fault in an accident. No
-fault laws also restrict the insured's right to sue the
at-fault party.- ANSWER>>>Automobile No-Fault Laws
Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not
passengers.- ANSWER>>>Aviation
An individualor companythatreceivesthepropertyof someoneelsefor a special
purpose, and returns the product after use.
- ANSWER>>>Bailee
The BusinessAuto Policy providespropertydamageand liabilityinsurance for
