1
TEXAS ALL LINES ADJUSTER EXAM
QUESTIONS AND CORRECT
ANSWERS
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.
, 2
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
, 3
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.
, 4
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.
Aggregate Limit - correct-answer -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 opposed to an occurrence limit, which denotes the total
amount the insurer will pay per occurrence).
Agreement - correct-answer -One 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 - correct-answer -A business that grows, harvests, and sells
crops for profit.
TEXAS ALL LINES ADJUSTER EXAM
QUESTIONS AND CORRECT
ANSWERS
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.
, 2
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
, 3
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.
, 4
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.
Aggregate Limit - correct-answer -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 opposed to an occurrence limit, which denotes the total
amount the insurer will pay per occurrence).
Agreement - correct-answer -One 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 - correct-answer -A business that grows, harvests, and sells
crops for profit.
