Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Accumulated Depreciation Correct Answer-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 Answer-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 Answer-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 Answer-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 Answer-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."
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Adjusted Gross Revenue (Crop Insurance) Correct Answer-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 Answer-An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer.
Adjuster - Emergency Correct Answer-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 Answer-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 Answer-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.
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Adjuster - Staff Correct Answer-Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement Correct Answer-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 Answer-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 Correct Answer-Authority that is expressly given
to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied Correct Answer-Authority that an agent possesses
by implication of her behavior, regardless of whether this authority is granted in
writing.
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Agency Authority - apparent Correct Answer-Authority that an agent
possesses based on the appearance of representing the insurer.
Agent Correct Answer-Someone who has received authority from an insurer
to sell or service insurance policies.
Aggregate Limit Correct Answer-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 Answer-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 Answer-A business that grows, harvests, and
sells crops for profit.
Aleatory Correct Answer-A characteristic of an insurance contract. Means
"depending on an unknown future event." An insurance contract will only pay IF
Answers 100% Pass
Accumulated Depreciation Correct Answer-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 Answer-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 Answer-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 Answer-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 Answer-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."
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Adjusted Gross Revenue (Crop Insurance) Correct Answer-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 Answer-An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer.
Adjuster - Emergency Correct Answer-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 Answer-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 Answer-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.
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Adjuster - Staff Correct Answer-Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement Correct Answer-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 Answer-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 Correct Answer-Authority that is expressly given
to the agent in writing. Allows agent to act on behalf of the principal.
Agency Authority - implied Correct Answer-Authority that an agent possesses
by implication of her behavior, regardless of whether this authority is granted in
writing.
, Texas All Lines Adjuster Test; Questions &
Answers 100% Pass
Agency Authority - apparent Correct Answer-Authority that an agent
possesses based on the appearance of representing the insurer.
Agent Correct Answer-Someone who has received authority from an insurer
to sell or service insurance policies.
Aggregate Limit Correct Answer-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 Answer-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 Answer-A business that grows, harvests, and
sells crops for profit.
Aleatory Correct Answer-A characteristic of an insurance contract. Means
"depending on an unknown future event." An insurance contract will only pay IF
