Texas All Lines Adjuster Test
1. The total decrease in an item's value over a period of time.
Formula (Annual Depreciation x Number of years used)
Accumulated Depreciation
2. 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.
Acreage Reporting Date
3. 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 Cash Value (ACV)
4. 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.
Actual Production History
5. 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."
Adhesion
6. 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.
Adjusted Gross Revenue (Crop Insurance)
,7. An agent who, for compensation, processes insurance claims. Can
represent either the insured or the insurer.
Adjuster
8. 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 – Emergency
9. 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 – Independent
10. 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 – Public
11. Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called Company Adjuster
Adjuster – Staff
12. 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.
Advance Payment Settlement
,13. 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
14. Authority that is expressly given to the agent in writing. Allows agent to
act on behalf of the principal.
Agency Authority – express
15. Authority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agency Authority – implied
16. Authority that an agent possesses based on the appearance of
representing the insurer.
Agency Authority – apparent
17. Someone who has received authority from an insurer to sell or service
insurance policies.
Agent
18. 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).
Aggregate Limit
19. 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.
Agreement
, 20. A business that grows, harvests, and sells crops for profit.
Agricultural Producer
21. A characteristic of an insurance contract. Means "depending on 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.
Aleatory
22. 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) accept the complaint with a right to insert evidence into
the case.
Answer
23. An item's Replacement cost divided by the number of years in its
expected lifespan.
Annual Depreciation
24. 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 then work together to determine a settlement amount. If they
cannot agree, the Umpire steps in. Agreement by any two of the three is
binding.
Appraisal
25. 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 arbitrator reviews the positions of each opposing side, and
makes a final and legally binding decision.
Arbitration
1. The total decrease in an item's value over a period of time.
Formula (Annual Depreciation x Number of years used)
Accumulated Depreciation
2. 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.
Acreage Reporting Date
3. 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 Cash Value (ACV)
4. 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.
Actual Production History
5. 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."
Adhesion
6. 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.
Adjusted Gross Revenue (Crop Insurance)
,7. An agent who, for compensation, processes insurance claims. Can
represent either the insured or the insurer.
Adjuster
8. 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 – Emergency
9. 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 – Independent
10. 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 – Public
11. Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called Company Adjuster
Adjuster – Staff
12. 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.
Advance Payment Settlement
,13. 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
14. Authority that is expressly given to the agent in writing. Allows agent to
act on behalf of the principal.
Agency Authority – express
15. Authority that an agent possesses by implication of her behavior,
regardless of whether this authority is granted in writing.
Agency Authority – implied
16. Authority that an agent possesses based on the appearance of
representing the insurer.
Agency Authority – apparent
17. Someone who has received authority from an insurer to sell or service
insurance policies.
Agent
18. 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).
Aggregate Limit
19. 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.
Agreement
, 20. A business that grows, harvests, and sells crops for profit.
Agricultural Producer
21. A characteristic of an insurance contract. Means "depending on 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.
Aleatory
22. 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) accept the complaint with a right to insert evidence into
the case.
Answer
23. An item's Replacement cost divided by the number of years in its
expected lifespan.
Annual Depreciation
24. 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 then work together to determine a settlement amount. If they
cannot agree, the Umpire steps in. Agreement by any two of the three is
binding.
Appraisal
25. 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 arbitrator reviews the positions of each opposing side, and
makes a final and legally binding decision.
Arbitration
