Download Texas Insurance Adjuster Exam Prep: Q&A Guide 2025-2026 and more Exams Insurance Economics in PDF only on Docsity!
2025 - 2026 TEXAS ALL LINES ADJUSTER
EXAM|280+Qs&As|ALREADY GRADED A+
Accumulated Depreciation 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 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) 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 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
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." Adjusted Gross Revenue (Crop Insurance) 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 ANSWER:- An agent who, for compensation, processes insurance claims. Can represent either the insured or the insurer. Adjuster - Emergency 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 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
ANSWER:- Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal. Agency Authority - implied ANSWER:- 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 ANSWER:- Someone who has received authority from an insurer to sell or service insurance policies. Aggregate Limit 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 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 ANSWER:- A business that grows, harvests, and sells crops for profit. Aleatory ANSWER:- 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 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
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. Binder A temporary contract provided by an insurer that ensures coverage until the complete, permanent policy is issued. Bl (Bodily Injury): Physical damage to someone's person. Liability insurance covers bodily injury that the insured might cause to another person through negligence. Body Language The signals we give through posture, behaviour, apparel, etc., which are involved in communication.
Cause of Loss A form included in a Commercial Package Policy or a Commercial Property Policy that lists the causes of loss from which the insured property is covered. CGL A Commercial General Liability policy protects businesses against damages and injuries to third parties. Civil Civil law observes court cases of one citizen charging another citizen for damages caused by tort; it differs from criminal law. Claim The "offer of settlement" that the policyholder files with an insurer after she experiences a loss. Claims-Made Form
A liability policy in which the insurer pays only those claims arising during the policy period (as opposed to those claims arising after the policy period is over, regardless of whether the incident took place during the policy period). Claims Management The practice of the insurance adjuster of managing a claim by processing it in a prompt and effective manner from the time the claim is filed until a settlement is reached, while adhering to all local and federal laws. Claimant One who files a claim with an insurer for a loss. Claude the Clueless Adjuster In this course, Claude the Clueless Adjuster represents an incompetent or unprofessional adjuster. Coarse Grains In Crop Insurance, a provision that covers reduction in crop quality, as well as crop-yield losses. Coarse grains are corn, grain sorghum, and soybeans.
Commercial Crime Insurance Commercial insurance that covers employee dishonesty and theft by employees or others. Commercial Lines A variety of insurance coverages that protect those involved in the business of creating, selling, displaying, evaluating, or shipping, etc. Example include: Business Owner's Policy; Commercial Property; Commercial General Liability; Workers Compensation; Professional Liability (D&O), Errors and Omissions (E&O) and Employment-Related Practices Liability. Commercial Property Floater A means of protecting a business' property that is not in one fixed location. Common Crop Insurance Policy A single uniform policy that combines Crop Revenue Coverage, Revenue Assurance, Income Protection, and Indexed Income Protection. Common Law
Based on court decisions and customs when statutory law does not provide an answer; creates precedent. Compensatory Damages Money awarded in civil court for tangible and intangible damages caused by a policyholder. Compensatory damages - Special Money awarded for the exact value of the physical damage caused to the plaintiff up to the trial date. This is an objective value determined by receipts and medical bills. Compensatory damages - General Money awarded for the emotional losses of the plaintiff that will continue after the trial date. These are a subjective value and are determined by the court. Competence One of the four qualifications of a legally binding contract. All parties must be competent, with the necessary legal and mental capacity.
The amount and extent of protection provided by an insurance policy. Crime An offense against the State or Federal Government, or a breach of law, for which the offender shall make satisfaction to the public. Criminal Someone who has been convicted of a criminal act in a court of law. Crop Hail Insurance A form of Crop Yield Insurance that is usually provided by private insurers without government subsidy. It offers named-peril protection on an acreage basis. Crop Insurance Insurance coverage designed to protect a farmer's financial investment in his or her crops. Covers losses to a crop's profitability. Crop Revenue Insurance Crop insurance that combines crop-yield insurance and price insurance to protect against losses to crop value.
Crop Yield Insurance Crop insurance that covers physical losses to actual crops. Damages - general Intangible losses such as pain and suffering, or mental anguish. Damages - special Tangible, financial losses that can be documented. Dangerous Instrumentality Doctrine States that anyone involved in the use of inherently dangerous products or machines is held 100% liable for their own damages. Dec Page Also called the Declarations Page. First page of a policy, which provides a summary of the contract; includes names of insured, addresses, coverage limits, policy period, etc.
Defamation Damage to another's name or reputation, whether by libel, which is in print, or by slander, which is in speech. Default Judgement Default Judgement is entered by the court against the party who failed to defend against a claim brought on by another party. In other words, if the person fails to show up and answer the claim the court will find in favor of the other party. Definitions Page in policy that gives specific limited meaning to terms used in policy. Depreciation A decline in value of property caused by wear or loss of usefulness usually measured by a specific formula. Direct Loss Physical harm to tangible property caused by a peril. Discoverable
Capable of being demanded and handed over as evidence in a court of law; during litigation proceedings, the adjuster's claims file is discoverable. Eligiblity Eligibility Requirements are found in some insurance policies. They identify the conditions that must be met by the policyholder in order to qualify for coverage under a policy. End of Insurance Date The date that crop insurance coverage will end. It is the earliest of: total crop destruction, harvest of the crop, final adjustment of a loss, abandonment of a crop, or a date predesignated by crop type. Endorsement(s) An optional provision that can be added to a policy to increase, reduce, or modify coverage for specific property types or perils. Errors and Omissions Liability insurance that indemnifies professionals for errors or oversights on the part of the insured that caused harm to their clients.
