TEXAS ALL LINES ADJUSTER TEST ACTUAL EXAM QUESTIONS AND CORRECT VERIFIED ANSWERS

TEXAS ALL LINES ADJUSTER
TEST ACTUAL EXAM QUESTIONS
AND CORRECT VERIFIED
ANSWERS
Accumulated Depreciation - ANS ✔✔✔The total decrease in an
item's value over a period of time. Formula: (Annual Depreciation
x Number of years used)
Acreage Reporting Date - ANS ✔✔✔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) - ANS ✔✔✔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 - ANS ✔✔✔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 - ANS ✔✔✔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) - ANS ✔✔✔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 - ANS ✔✔✔An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer.
Adjuster - Emergency - ANS ✔✔✔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 - ANS ✔✔✔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 - ANS ✔✔✔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 - ANS ✔✔✔Salaried employee of one insurance
company who can work locally, regionally, or nationally. Also
called: Company Adjuster
Advance Payment Settlement - ANS ✔✔✔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 - ANS ✔✔✔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 - ANS ✔✔✔Authority that is expressly
given to the agent in writing. Allows agent to act on behalf of the
principal.
Agency Authority - implied - ANS ✔✔✔Authority that an agent
possesses by implication of her behavior, regardless of whether
this authority is granted in writing.
Agency Authority - apparent - ANS ✔✔✔Authority that an agent
possesses based on the appearance of representing the insurer.
Agent - ANS ✔✔✔Someone who has received authority from an
insurer to sell or service insurance policies.
Aggregate Limit - ANS ✔✔✔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 - ANS ✔✔✔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 - ANS ✔✔✔A business that grows,
harvests, and sells crops for profit.
Aleatory - ANS ✔✔✔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