TEXAS ALL LINE ADJUSTER EXAM VERSION ACTUAL
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Income Protection (Crop Insurance) - ansA form of Crop Revenue Insurance. One of the
cheapest available; provides a fixed revenue guarantee based on early commodity prices for
the crop type.
Indemnification - ansReimbursement for a loss, which leaves the claimant in the same
financial position that she was in before the loss.
Indemnify - ansTo restore by payment, repair, or replacement
Indemnity Insurance - ansInsurance that indemnity's loss as opposed to liability
Indirect Loss - ansAn economic loss that results from the direct, or physical, loss.
Inland Marine - ansInsurance that protects property being transported over land
Insurable acreage - ansAll of the acreage of the insured crop, for which a premium rate is
provided in the actuarial documents, in which the insured has a financial interest, and which is
planted in the county listed on the application.
Insurance - ansA financial device that transfers the risk of unexpected, catastrophic losses
from one party to another.
Insurance Company - ansCompany which sells insurance policies to individuals or to other
companies.
Insurance Policy - ansA contract wherein an insured pays premiums to an insurer in
exchange for financial protection in the event of a covered loss.
Insurance Rating Systems - ansMethods of evaluating the risk involved in insuring a person,
property, or a corporation. Insurers use rating systems to calculate premiums.
Insured - ansA person or entity who is covered under an insurance policy.
Insured crop - ansThe crop in the county for which coverage is available as specified by the
policy.
Insurer - ansThe person or entity providing coverage to one or more insureds.
Insuring Agreement - ansA section of an insurance policy that summarizes the insurer's
promise to pay. Includes list of covered property and perils.
Interest - ansDirect financial interest in protecting a unit.
,TEXAS ALL LINE ADJUSTER EXAM VERSION ACTUAL
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Intervening Cause - ansA separate occurrence that "intervenes" between a defendant's
actions and damage or loss to another person. An intervening cause may decrease the
defendant's liability, if the defendant can show that it was the intervening cause (rather than
the defendant himself) that caused the damage or loss. For example, say your neighbor asked
you to watch his Yorkshire terrier during his weekend vacation. As the dog explores the
ravine behind your house, a red tailed hawk swoops down and carries the little dog away.
When your neighbor sues you for negligence, you could argue that the hawk (and not your
own negligence) was the real cause of loss.
Joint - ansLiability shared by two or more persons.
Judgement - ansAn official court ruling forming a final decision resolving a dispute or forming
a final decree.
Kickbacks - ansAny sort of reward or remuneration for referrals or favors; for example, a body
shop giving money to an adjuster for referring customers.
Landlord - ansOne who has leased property to a tenant.
Late planting period - ans25 days after the final planting date, during which the yield and/or
revenue guarantee drops by one percent per day.
Leased worker - ansWorker hired through a labor leasing firm.
Legal Purpose - ansOne of the four qualifications of a legally binding contract. The purpose of
the contract must be legal (e.g. no contracts for illicit drug deals)
Liability - ansAn obligation to do or not to do something; responsibility for an action.
Liability - employer - ansProtects employers from damages and bodily injury caused to
employees or by employees while performing under the scope of their employment.
Liability - product - ansProtects a policyholder from legal liability for damages to third parties
caused by the manufacturing, merchandising, distributing, or operation of a product.
Liability - public - ansProtects individuals and commercial venues from any property damage
or personal injury they may cause to the general public
Liability Insurance - ansLiability insurance indemnifies a third party for damages caused by the
insured's negligence.
Liberalization - ansThe liberalization clause in an insurance contract is a condition that
states that the insurer can add or broaden coverage at any time without writing up a new
contract. This clause guarantees that, in the case of legislative action that broadens
insurance coverage without any increase in premiums, this additional coverage must take
effect in existing policies as well as in new policies.
License - ansA document that shows that a person has been granted authority by the state to
act as an insurance agent, broker, or adjuster.
Limits - ansThe limits of an insurance policy represent the highest amount an insurer will pay.
, TEXAS ALL LINE ADJUSTER EXAM VERSION ACTUAL
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Any cost above the limits of insurance is the responsibility of the policyholder.
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Income Protection (Crop Insurance) - ansA form of Crop Revenue Insurance. One of the
cheapest available; provides a fixed revenue guarantee based on early commodity prices for
the crop type.
Indemnification - ansReimbursement for a loss, which leaves the claimant in the same
financial position that she was in before the loss.
Indemnify - ansTo restore by payment, repair, or replacement
Indemnity Insurance - ansInsurance that indemnity's loss as opposed to liability
Indirect Loss - ansAn economic loss that results from the direct, or physical, loss.
Inland Marine - ansInsurance that protects property being transported over land
Insurable acreage - ansAll of the acreage of the insured crop, for which a premium rate is
provided in the actuarial documents, in which the insured has a financial interest, and which is
planted in the county listed on the application.
Insurance - ansA financial device that transfers the risk of unexpected, catastrophic losses
from one party to another.
Insurance Company - ansCompany which sells insurance policies to individuals or to other
companies.
Insurance Policy - ansA contract wherein an insured pays premiums to an insurer in
exchange for financial protection in the event of a covered loss.
Insurance Rating Systems - ansMethods of evaluating the risk involved in insuring a person,
property, or a corporation. Insurers use rating systems to calculate premiums.
Insured - ansA person or entity who is covered under an insurance policy.
Insured crop - ansThe crop in the county for which coverage is available as specified by the
policy.
Insurer - ansThe person or entity providing coverage to one or more insureds.
Insuring Agreement - ansA section of an insurance policy that summarizes the insurer's
promise to pay. Includes list of covered property and perils.
Interest - ansDirect financial interest in protecting a unit.
,TEXAS ALL LINE ADJUSTER EXAM VERSION ACTUAL
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Intervening Cause - ansA separate occurrence that "intervenes" between a defendant's
actions and damage or loss to another person. An intervening cause may decrease the
defendant's liability, if the defendant can show that it was the intervening cause (rather than
the defendant himself) that caused the damage or loss. For example, say your neighbor asked
you to watch his Yorkshire terrier during his weekend vacation. As the dog explores the
ravine behind your house, a red tailed hawk swoops down and carries the little dog away.
When your neighbor sues you for negligence, you could argue that the hawk (and not your
own negligence) was the real cause of loss.
Joint - ansLiability shared by two or more persons.
Judgement - ansAn official court ruling forming a final decision resolving a dispute or forming
a final decree.
Kickbacks - ansAny sort of reward or remuneration for referrals or favors; for example, a body
shop giving money to an adjuster for referring customers.
Landlord - ansOne who has leased property to a tenant.
Late planting period - ans25 days after the final planting date, during which the yield and/or
revenue guarantee drops by one percent per day.
Leased worker - ansWorker hired through a labor leasing firm.
Legal Purpose - ansOne of the four qualifications of a legally binding contract. The purpose of
the contract must be legal (e.g. no contracts for illicit drug deals)
Liability - ansAn obligation to do or not to do something; responsibility for an action.
Liability - employer - ansProtects employers from damages and bodily injury caused to
employees or by employees while performing under the scope of their employment.
Liability - product - ansProtects a policyholder from legal liability for damages to third parties
caused by the manufacturing, merchandising, distributing, or operation of a product.
Liability - public - ansProtects individuals and commercial venues from any property damage
or personal injury they may cause to the general public
Liability Insurance - ansLiability insurance indemnifies a third party for damages caused by the
insured's negligence.
Liberalization - ansThe liberalization clause in an insurance contract is a condition that
states that the insurer can add or broaden coverage at any time without writing up a new
contract. This clause guarantees that, in the case of legislative action that broadens
insurance coverage without any increase in premiums, this additional coverage must take
effect in existing policies as well as in new policies.
License - ansA document that shows that a person has been granted authority by the state to
act as an insurance agent, broker, or adjuster.
Limits - ansThe limits of an insurance policy represent the highest amount an insurer will pay.
, TEXAS ALL LINE ADJUSTER EXAM VERSION ACTUAL
TEST BANK 378 QUESTION AND DETAILED ANSWERS
WITH RATIONALE.
Any cost above the limits of insurance is the responsibility of the policyholder.
