Texas All Lines Adjuster Test 2025/2026 | Full
Exam Prep & Practice Questions
Accumulated Depreciation - correct answerThe total decrease in an item's value over a
period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - correct answerThe 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 answerA 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 answerA 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 answerCharacteristic 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 answerNarrowest (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 answerAn agent who, for compensation, processes insurance claims.
Can represent either the insured or the insurer.
Adjuster - Emergency - correct answerAdjusters 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 answerSelf-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 answerAn 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 answerSalaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
,Advance Payment Settlement - correct answerA 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 answerThe 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 answerAuthority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - correct answerAuthority that an agent possesses by
implication of her behavior, regardless of whether this authority is granted in writing.
Agency Authority - apparent - correct answerAuthority that an agent possesses based
on the appearance of representing the insurer.
Agent - correct answerSomeone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit - correct answerA 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 answerOne 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 answerA business that grows, harvests, and sells crops
for profit.
Aleatory - correct answerA 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.
Answer - correct answerIn 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.
Annual Depreciation - correct answerAn item's Replacement cost divided by the number
of years in its expected lifespan.
, Appraisal - correct answerA 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.
Arbitration - correct answerA 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.
Arbitrator - correct answerThe mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions of each opposing side, and makes a final and
legally binding decision.
Artificially Generated Current - correct answerAlso called "artificial current." A peril
covered in some property insurance policies. It includes sudden and accidental damage
from any electrical current, except currents that are naturally generated, such as
lightning or static electricity.
Auto Policy - correct answerInsurance policy designed to protect the policyholder while
owning, occupying, or operating a vehicle. Usually combines liability coverage and
property coverage into one policy.
Automobile - correct answerIn Insurance policies, Automobile generally means any
vehicle designed for use on public roads.
Automobile No-Fault Laws - correct answerLaws in effect in some states that require
any owner of a vehicle to purchase no-fault insurance; that is, insurance that
indemnifies the insured regardless of who was at fault in an accident. No-fault laws also
restrict the insured's right to sue the at-fault party.
Aviation - correct answerAviation insurance combines hull insurance for the aircraft and
liability insurance for any damage to others' property or to people who are not
passengers.
Bailee - correct answerAn individual or company that receives the property of someone
else for a special purpose, and returns the product after use.
BAP - correct answerThe Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
Binder - correct answerA temporary contract provided by an insurer that ensures
coverage until the complete, permanent policy is issued.
Exam Prep & Practice Questions
Accumulated Depreciation - correct answerThe total decrease in an item's value over a
period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - correct answerThe 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 answerA 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 answerA 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 answerCharacteristic 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 answerNarrowest (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 answerAn agent who, for compensation, processes insurance claims.
Can represent either the insured or the insurer.
Adjuster - Emergency - correct answerAdjusters 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 answerSelf-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 answerAn 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 answerSalaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
,Advance Payment Settlement - correct answerA 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 answerThe 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 answerAuthority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - correct answerAuthority that an agent possesses by
implication of her behavior, regardless of whether this authority is granted in writing.
Agency Authority - apparent - correct answerAuthority that an agent possesses based
on the appearance of representing the insurer.
Agent - correct answerSomeone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit - correct answerA 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 answerOne 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 answerA business that grows, harvests, and sells crops
for profit.
Aleatory - correct answerA 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.
Answer - correct answerIn 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.
Annual Depreciation - correct answerAn item's Replacement cost divided by the number
of years in its expected lifespan.
, Appraisal - correct answerA 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.
Arbitration - correct answerA 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.
Arbitrator - correct answerThe mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions of each opposing side, and makes a final and
legally binding decision.
Artificially Generated Current - correct answerAlso called "artificial current." A peril
covered in some property insurance policies. It includes sudden and accidental damage
from any electrical current, except currents that are naturally generated, such as
lightning or static electricity.
Auto Policy - correct answerInsurance policy designed to protect the policyholder while
owning, occupying, or operating a vehicle. Usually combines liability coverage and
property coverage into one policy.
Automobile - correct answerIn Insurance policies, Automobile generally means any
vehicle designed for use on public roads.
Automobile No-Fault Laws - correct answerLaws in effect in some states that require
any owner of a vehicle to purchase no-fault insurance; that is, insurance that
indemnifies the insured regardless of who was at fault in an accident. No-fault laws also
restrict the insured's right to sue the at-fault party.
Aviation - correct answerAviation insurance combines hull insurance for the aircraft and
liability insurance for any damage to others' property or to people who are not
passengers.
Bailee - correct answerAn individual or company that receives the property of someone
else for a special purpose, and returns the product after use.
BAP - correct answerThe Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
Binder - correct answerA temporary contract provided by an insurer that ensures
coverage until the complete, permanent policy is issued.
