Texas All Lines Adjuster Test with Verified Answers Updated 2024
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WGU C483
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WGU C483
Texas All Lines Adjuster Test with Verified Answers Updated 2024
Accumulated Depreciation
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date
The deadline for providing the insurer with an acreage report, ...
texas all lines adjuster test with verified answer
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Texas All Lines Adjuster Test with Verified
Answers Updated 2024
Accumulated Depreciation
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number
of years used)
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.
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)
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.
Adhesion
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)
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
An agent who, for compensation, processes insurance claims. Can represent either the insured or the
insurer.
Adjuster - Emergency
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
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
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
Salaried employee of one insurance company who can work locally, regionally, or nationally. Also
called: Company Adjuster
,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.
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.
Agency Authority - express
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied
Authority that an agent possesses by implication of her behavior, regardless of whether this authority
is granted in writing.
Agency Authority - apparent
Authority that an agent possesses based on the appearance of representing the insurer.
Agent
Someone who has received authority from an insurer to sell or service insurance policies.
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).
Agreement
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
A business that grows, harvests, and sells crops for profit.
Aleatory
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.
Answer
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.
, Annual Depreciation
An item's Replacement cost divided by the number of years in its expected lifespan.
Appraisal
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
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
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
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
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
In Insurance policies, Automobile generally means any vehicle designed for use on public roads.
Automobile No-Fault Laws
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
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
An individual or company that receives the property of someone else for a special purpose, and
returns the product after use.
BAP
The Business Auto Policy provides property damage and liability insurance for automobiles used by a
business.
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