Texas All Lines Adjuster Test questions and
answers 2026\2027 A+ Grade
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of
years used)
- correct answer Accumulated Depreciation
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.
- correct answer Acreage Reporting Date
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)
- correct answer Actual Cash Value (ACV)
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.
- correct answer Actual Production History
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."
- correct answer Adhesion
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.
- correct answer Adjusted Gross Revenue (Crop Insurance)
An agent who, for compensation, processes insurance claims. Can represent either the insured or the
insurer.
- correct answer Adjuster
,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.
- correct answer Adjuster - Emergency
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
- correct answer Adjuster - Independent
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.
- correct answer Adjuster - Public
Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called:
Company Adjuster
- correct answer Adjuster - Staff
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.
- correct answer Advance Payment Settlement
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.
- correct answer Agency Authority
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal.
- correct answer Agency Authority - express
Authority that an agent possesses by implication of her behavior, regardless of whether this authority is
granted in writing.
- correct answer Agency Authority - implied
Authority that an agent possesses based on the appearance of representing the insurer.
- correct answer Agency Authority - apparent
,Someone who has received authority from an insurer to sell or service insurance policies.
- correct answer Agent
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).
- correct answer Aggregate Limit
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.
- correct answer Agreement
A business that grows, harvests, and sells crops for profit.
- correct answer Agricultural Producer
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.
- correct answer Aleatory
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.
- correct answer Answer
An item's Replacement cost divided by the number of years in its expected lifespan.
- correct answer Annual Depreciation
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.
- correct answer Appraisal
, 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.
- correct answer Arbitration
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.
- correct answer Arbitrator
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.
- correct answer Artificially Generated Current
Insurance policy designed to protect the policyholder while owning, occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
- correct answer Auto Policy
In Insurance policies, Automobile generally means any vehicle designed for use on public roads.
- correct answer Automobile
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.
- correct answer Automobile No-Fault Laws
Aviation insurance combines hull insurance for the aircraft and liability insurance for any damage to
others' property or to people who are not passengers.
- correct answer Aviation
An individual or company that receives the property of someone else for a special purpose, and returns
the product after use.
- correct answer Bailee
answers 2026\2027 A+ Grade
The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of
years used)
- correct answer Accumulated Depreciation
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.
- correct answer Acreage Reporting Date
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)
- correct answer Actual Cash Value (ACV)
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.
- correct answer Actual Production History
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."
- correct answer Adhesion
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.
- correct answer Adjusted Gross Revenue (Crop Insurance)
An agent who, for compensation, processes insurance claims. Can represent either the insured or the
insurer.
- correct answer Adjuster
,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.
- correct answer Adjuster - Emergency
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
- correct answer Adjuster - Independent
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.
- correct answer Adjuster - Public
Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called:
Company Adjuster
- correct answer Adjuster - Staff
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.
- correct answer Advance Payment Settlement
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.
- correct answer Agency Authority
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal.
- correct answer Agency Authority - express
Authority that an agent possesses by implication of her behavior, regardless of whether this authority is
granted in writing.
- correct answer Agency Authority - implied
Authority that an agent possesses based on the appearance of representing the insurer.
- correct answer Agency Authority - apparent
,Someone who has received authority from an insurer to sell or service insurance policies.
- correct answer Agent
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).
- correct answer Aggregate Limit
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.
- correct answer Agreement
A business that grows, harvests, and sells crops for profit.
- correct answer Agricultural Producer
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.
- correct answer Aleatory
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.
- correct answer Answer
An item's Replacement cost divided by the number of years in its expected lifespan.
- correct answer Annual Depreciation
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.
- correct answer Appraisal
, 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.
- correct answer Arbitration
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.
- correct answer Arbitrator
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.
- correct answer Artificially Generated Current
Insurance policy designed to protect the policyholder while owning, occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
- correct answer Auto Policy
In Insurance policies, Automobile generally means any vehicle designed for use on public roads.
- correct answer Automobile
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.
- correct answer Automobile No-Fault Laws
Aviation insurance combines hull insurance for the aircraft and liability insurance for any damage to
others' property or to people who are not passengers.
- correct answer Aviation
An individual or company that receives the property of someone else for a special purpose, and returns
the product after use.
- correct answer Bailee
