Texas All Lines Adjuster Test Latest Update 2024 Version 283 Questions and Verified Correct Answers Guaranteed A+
Accumulated Depreciation - CORRECT ANWER: 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 ANWER: 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 ANWER: 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 ANWER: 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 ANWER: 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 ANWER: 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 ANWER: An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
Adjuster - Emergency - CORRECT ANWER: 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 ANWER: 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 ANWER: 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 ANWER: Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
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Advance Payment Settlement - CORRECT ANWER: 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 ANWER: 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 - apparent - CORRECT ANWER: Authority that an agent possesses
based on the appearance of representing the insurer.
Agency Authority - express - CORRECT ANWER: Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied - CORRECT ANWER: Authority that an agent possesses by implication of her behavior, regardless of whether this authority is granted in writing.
Agent - CORRECT ANWER: Someone who has received authority from an insurer to
sell or service insurance policies.
Aggregate Limit - CORRECT ANWER: 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 ANWER: 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 ANWER: A business that grows, harvests, and sells crops for profit.
Aleatory - CORRECT ANWER: 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.
Annual Depreciation - CORRECT ANWER: An item's Replacement cost divided by the
number of years in its expected lifespan.
Answer - CORRECT ANWER: 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. 2 / 3
Appraisal - CORRECT ANWER: 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.
Arbitration - CORRECT ANWER: 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.
Arbitrator - CORRECT ANWER: The 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 ANWER: Also 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 ANWER: Insurance 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 ANWER: In Insurance policies, Automobile generally means
any vehicle designed for use on public roads.
Automobile No-Fault Laws - CORRECT ANWER: Laws 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 ANWER: Aviation 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 ANWER: An individual or company that receives the property of
someone else for a special purpose, and returns the product after use.
BAP - CORRECT ANWER: The Business Auto Policy provides property damage and
liability insurance for automobiles used by a business.
Binder - CORRECT ANWER: A temporary contract provided by an insurer that ensures coverage until the complete, permanent policy is issued.
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