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Texas All Lines Adjuster Test
1.Accumulated Depreciation: The total decrease in an item's value over
a period of time. Formula: (Annual Depreciation x Number of years
used)
2.Acreage Reporting Date: 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.
3.Actual Cash Value (ACV): 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)
4.Actual Production History: 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.
5.Adhesion: Characteristic of an insurance contract. Means that one
party (the insurer) sets the terms, and the other (the policyholder) 1 / 4
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can "take it or leave it."
6.Adjusted Gross Revenue (Crop Insurance): 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.
7.Adjuster: An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
8.Adjuster - Emergency: Adjusters who are temporarily licensed by
the insur- ance commissioner to handle claims during catastrophes or emergencies that produce an overwhelming number of claims in a short period of time.
9.Adjuster - Independent: 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
10.Adjuster - Public: 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 2 / 4
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final settlement.
11.Adjuster - Staff: Salaried employee of one insurance company who
can work locally, regionally, or nationally. Also called: Company
Adjuster
12.Advance Payment Settlement: 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. 3 / 4
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13.Agency Authority: 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.
14.Agency Authority - express: Authority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
15.Agency Authority - implied: Authority that an agent possesses by
implication of her behavior, regardless of whether this authority is granted in writing.
16.Agency Authority - apparent: Authority that an agent possesses
based on the appearance of representing the insurer.
17.Agent: Someone who has received authority from an insurer to sell
or service insurance policies.
18.Aggregate Limit: 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).
19.Agreement: One of the four requirements of a legally binding
contract. All parties involved must agree to the terms of the contract.
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