TEXAS ALL LINES CERTIFICATION EVALUATION
EXAMS PREP GUIDE 2026
⩥ Accumulated Depresciation . Answer: The total decrease in an item's
value over a period of time.
Formula: (Annual Depreciation x Number of years used)
⩥ Actual Cash Value (ACV) . Answer: An item's current market value
right before being damaged or destroyed.
Formula: (Replacement Cost-Accumulated Depreciation)
⩥ Adhesion . Answer: One of the characteristics of an insurance
contract.
One party sets the terms and the other party can "take it or leave".
⩥ Adjusted Gross Revenue (Crop Insurance) . Answer: Narrowest (and
least expensive) form of Crop Revenue Insurance. Insures farm revenue
as a whole instead of individual crops. Guarantees a % of the insured
farm's average revenue.
⩥ Adjuster . Answer: an agent who, for compensation, processes
insurance claims.
,⩥ Emergency Adjuster . Answer: Adjusters who are temporarily licensed
by the insurance commissioner to handle claims during catastrophes or
emergencies.
⩥ Independent Adjuster . Answer: Self-Employed adjusters who contract
with multiple insurers at the same time. Paid on a commission or fee-
plus-expenses basis for each claim.
⩥ Public Adjuster . Answer: An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Paid commission,
usually a % of final settlement.
⩥ Staff Adjuster . Answer: Salaried employee of one insurance company
who can work locally, regionally, or nationally.
⩥ Advance Payment Settlement . Answer: A settlement option that lets
the insurer offer some financial relief to the claimant before the claim
has been fully settled.
⩥ Agency Authority . Answer: The agent's authority to act on behalf of
someone else (an insurer)
⩥ Express Agency Authority . Answer: Authority that is expressly given
to the agent in writing.
,⩥ Implied Agency Authority . Answer: Authority that an agent possesses
by implication of his behavior, regardless of whether this authority is
expressly granted in writing.
⩥ Apparent Agency Authority . Answer: Authority that an agent
possesses based on the appearance of representing an insurer.
⩥ Agent . Answer: Someone who has received authority from an insurer
to sell or service insurance policies.
⩥ Aggregate Limit . Answer: It represents the total amount the insurer
will pay for all losses.
⩥ Agreement . Answer: One of the four requirements of a legally
binding contract.
All parties involved must agree to the terms of the contract.
⩥ Agricultural Producer . Answer: A business that grows, harvests, and
sells crops for profit.
⩥ Aleatory . Answer: "depending on an unknown future event"
An insurance contract will only pay IF and WHEN covered damages
occur.
⩥ Answer . Answer: the defendants response to a complaint
, ⩥ Annual Depreciation . Answer: item's replacement cost /
#of years in its expected lifespan.
⩥ Appraisal . Answer: Insurer and insured each choose an appraiser, the
two appraisers in turn choose an umpire. Appraisers work toward
settlement amount...if they cannot agree...umpire steps in. Agreement by
any two (one appraiser and umpire) is binding.
⩥ Arbitration . Answer: Each party submit evidence to the third party
arbitrator. Arbitrator makes final legal binding decision.
⩥ Arbitrator . Answer: Third party negotiator, makes final legal binding
decision for two parties.
⩥ Auto Policy . Answer: designed to protect the policyholder while
owning, occupying, or operating a vehicle.
⩥ Automobile . Answer: any vehicle designed for use on public roads.
⩥ Auto No-Fault Laws . Answer: some states require vehicle owners to
purchase no-fault insurance
⩥ Aviation . Answer: haul insurance for aircraft, liability insurance for
any others property or people who are not passengers
EXAMS PREP GUIDE 2026
⩥ Accumulated Depresciation . Answer: The total decrease in an item's
value over a period of time.
Formula: (Annual Depreciation x Number of years used)
⩥ Actual Cash Value (ACV) . Answer: An item's current market value
right before being damaged or destroyed.
Formula: (Replacement Cost-Accumulated Depreciation)
⩥ Adhesion . Answer: One of the characteristics of an insurance
contract.
One party sets the terms and the other party can "take it or leave".
⩥ Adjusted Gross Revenue (Crop Insurance) . Answer: Narrowest (and
least expensive) form of Crop Revenue Insurance. Insures farm revenue
as a whole instead of individual crops. Guarantees a % of the insured
farm's average revenue.
⩥ Adjuster . Answer: an agent who, for compensation, processes
insurance claims.
,⩥ Emergency Adjuster . Answer: Adjusters who are temporarily licensed
by the insurance commissioner to handle claims during catastrophes or
emergencies.
⩥ Independent Adjuster . Answer: Self-Employed adjusters who contract
with multiple insurers at the same time. Paid on a commission or fee-
plus-expenses basis for each claim.
⩥ Public Adjuster . Answer: An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Paid commission,
usually a % of final settlement.
⩥ Staff Adjuster . Answer: Salaried employee of one insurance company
who can work locally, regionally, or nationally.
⩥ Advance Payment Settlement . Answer: A settlement option that lets
the insurer offer some financial relief to the claimant before the claim
has been fully settled.
⩥ Agency Authority . Answer: The agent's authority to act on behalf of
someone else (an insurer)
⩥ Express Agency Authority . Answer: Authority that is expressly given
to the agent in writing.
,⩥ Implied Agency Authority . Answer: Authority that an agent possesses
by implication of his behavior, regardless of whether this authority is
expressly granted in writing.
⩥ Apparent Agency Authority . Answer: Authority that an agent
possesses based on the appearance of representing an insurer.
⩥ Agent . Answer: Someone who has received authority from an insurer
to sell or service insurance policies.
⩥ Aggregate Limit . Answer: It represents the total amount the insurer
will pay for all losses.
⩥ Agreement . Answer: One of the four requirements of a legally
binding contract.
All parties involved must agree to the terms of the contract.
⩥ Agricultural Producer . Answer: A business that grows, harvests, and
sells crops for profit.
⩥ Aleatory . Answer: "depending on an unknown future event"
An insurance contract will only pay IF and WHEN covered damages
occur.
⩥ Answer . Answer: the defendants response to a complaint
, ⩥ Annual Depreciation . Answer: item's replacement cost /
#of years in its expected lifespan.
⩥ Appraisal . Answer: Insurer and insured each choose an appraiser, the
two appraisers in turn choose an umpire. Appraisers work toward
settlement amount...if they cannot agree...umpire steps in. Agreement by
any two (one appraiser and umpire) is binding.
⩥ Arbitration . Answer: Each party submit evidence to the third party
arbitrator. Arbitrator makes final legal binding decision.
⩥ Arbitrator . Answer: Third party negotiator, makes final legal binding
decision for two parties.
⩥ Auto Policy . Answer: designed to protect the policyholder while
owning, occupying, or operating a vehicle.
⩥ Automobile . Answer: any vehicle designed for use on public roads.
⩥ Auto No-Fault Laws . Answer: some states require vehicle owners to
purchase no-fault insurance
⩥ Aviation . Answer: haul insurance for aircraft, liability insurance for
any others property or people who are not passengers
