Texas All-Lines Adjusting; Questions & Answers
100% Pass
Accumulated Depresciation Correct Answer-The total decrease in an item's
value over a period of time.
Formula: (Annual Depreciation x Number of years used)
Actual Cash Value (ACV) Correct Answer-An item's current market value right
b...
Texas All-Lines Adjusting; Questions & Answers
100% Pass
Accumulated Depresciation Correct Answer-The total decrease in an item's
value over a period of time.
Formula: (Annual Depreciation x Number of years used)
Actual Cash Value (ACV) Correct Answer-An item's current market value right
before being damaged or destroyed.
Adhesion Correct Answer-One of the characteristics of an insurance contract.
One party sets the terms and the other party can "take it or leave".
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 % of the insured farm's average
revenue.
Adjuster Correct Answer-an agent who, for compensation, processes
insurance claims.
,Texas All-Lines Adjusting; Questions & Answers
100% Pass
Emergency Adjuster Correct Answer-Adjusters who are temporarily licensed
by the insurance commissioner to handle claims during catastrophes or
emergencies.
Independent Adjuster 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.
Public Adjuster Correct Answer-An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Paid commission, usually a
% of final settlement.
Staff Adjuster Correct Answer-Salaried employee of one insurance company
who can work locally, regionally, or nationally.
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.
Agency Authority Correct Answer-The agent's authority to act on behalf of
someone else (an insurer)
Express Agency Authority Correct Answer-Authority that is expressly given to
the agent in writing.
Implied Agency Authority Correct Answer-Authority that an agent possesses
by implication of his behavior, regardless of whether this authority is expressly
granted in writing.
Apparent Agency Authority Correct Answer-Authority that an agent
possesses based on the appearance of representing an insurer.
Agent Correct Answer-Someone who has received authority from an insurer
to sell or service insurance policies.
Aggregate Limit Correct Answer-It represents the total amount the insurer
will pay for all losses.
Agreement Correct Answer-One of the four requirements of a legally binding
contract.
All parties involved must agree to the terms of the contract.
Appraisal Correct Answer-Insurer and insured each choose an appraiser, the
two appraisers in turn choose an umpire. Appraisers work toward settlement
amount...if they cannot agree...umpire steps in. Agreement by any two (one
appraiser and umpire) is binding.
Arbitration Correct Answer-Each party submit evidence to the third party
arbitrator. Arbitrator makes final legal binding decision.
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