TEXAS ALL LINES ADJUSTER TEST 2026/2027
VERIFIED QUESTIONS AND ANSWERS LATEST
UPDATED
Accumulated Depreciation - CORRECT ANSWER-The total decrease in
an item's value over a period of time. Formula: (Annual Depreciation x
Number of years used)
,Acreage Reporting Date - CORRECT ANSWER-The 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) - CORRECT ANSWER-A 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 - CORRECT ANSWER-A 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 - CORRECT ANSWER-Characteristic 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) - CORRECT ANSWER-
Narrowest (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 - CORRECT ANSWER-An agent who, for compensation,
processes insurance claims. Can represent either the insured or the
insurer.
Adjuster - Emergency - CORRECT ANSWER-Adjusters 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 - CORRECT 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. Also called: Fee
Adjuster, Bureau Adjuster
Adjuster - Public - CORRECT ANSWER-An 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 - CORRECT ANSWER-Salaried employee of one
insurance company who can work locally, regionally, or nationally. Also
called: Company Adjuster
, Advance Payment Settlement - CORRECT ANSWER-A 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 - CORRECT ANSWER-The 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 - express - CORRECT ANSWER-Authority that is
expressly given to the agent in writing. Allows agent to act on behalf of the
principal.
Agency Authority - implied - CORRECT ANSWER-Authority that an
agent possesses by implication of her behavior, regardless of whether this
authority is granted in writing.
Agency Authority - apparent - CORRECT ANSWER-Authority that an
agent possesses based on the appearance of representing the insurer.
Agent - CORRECT ANSWER-Someone who has received authority from
an insurer to sell or service insurance policies.
VERIFIED QUESTIONS AND ANSWERS LATEST
UPDATED
Accumulated Depreciation - CORRECT ANSWER-The total decrease in
an item's value over a period of time. Formula: (Annual Depreciation x
Number of years used)
,Acreage Reporting Date - CORRECT ANSWER-The 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) - CORRECT ANSWER-A 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 - CORRECT ANSWER-A 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 - CORRECT ANSWER-Characteristic 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) - CORRECT ANSWER-
Narrowest (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 - CORRECT ANSWER-An agent who, for compensation,
processes insurance claims. Can represent either the insured or the
insurer.
Adjuster - Emergency - CORRECT ANSWER-Adjusters 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 - CORRECT 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. Also called: Fee
Adjuster, Bureau Adjuster
Adjuster - Public - CORRECT ANSWER-An 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 - CORRECT ANSWER-Salaried employee of one
insurance company who can work locally, regionally, or nationally. Also
called: Company Adjuster
, Advance Payment Settlement - CORRECT ANSWER-A 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 - CORRECT ANSWER-The 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 - express - CORRECT ANSWER-Authority that is
expressly given to the agent in writing. Allows agent to act on behalf of the
principal.
Agency Authority - implied - CORRECT ANSWER-Authority that an
agent possesses by implication of her behavior, regardless of whether this
authority is granted in writing.
Agency Authority - apparent - CORRECT ANSWER-Authority that an
agent possesses based on the appearance of representing the insurer.
Agent - CORRECT ANSWER-Someone who has received authority from
an insurer to sell or service insurance policies.
