TEXAS ALL LINES ADJUSTER ACTUAL EXAM
GRADED A+ CURRENTLY TESTED AND APPROVED
NEW MODIFIED EXAM
Betterment ---- ANSWER----An improvement to property that puts it in a better condition
that it was before the occupancy or loss
Breach of Contract ---- ANSWER----Failure to comply with terms or conditions of an
insurance policy that may result in restricted coverage or void the policy
Bodily Injury ---- ANSWER----Means bodily harm, sickness, or disease
Claimant ---- ANSWER----A party who makes a claim
Catastrophe ---- ANSWER----A severe disaster that involves a large population & normally
generates large amount of property damage &/or bodily injury
Coinsurance Clause ---- ANSWER----A provision requiring specified amount of insurance
based on the value of the insured property
Collision ---- ANSWER----Coverage pays for damage to your car without regard to who
caused an accident. Applies when 2 vehicles hit each other or when a single vehicle hits an
object Ex: Tree
,Commercial General Liability ---- ANSWER----Provides commercial general liability
coverage, including premises & operations, products & completed operations, & other
liability options
Comprehensive Coverage ---- ANSWER----Pays for damage to or loss of your automobile
from causes other than accident Ex: Flood, Hail, Vandalism, Fire, & Theft
Concealment ---- ANSWER----The act of purposely not reporting info that would affect the
issuance or rate of an insurance contract. If info cannot be known to the insurer & is known
to be material by insured, concealment of that info can give the insurer grounds to nullify the
contract or not pay out on claim related to that material info
Concurrent Causation ---- ANSWER----Insurance theory stating that if loss or damages occur
as a result of more than one cause, one of which is covered (insured) while other is not.
Damages are likely to still be compensated for by insurer
Conditions ---- ANSWER----Part of insurance policy that details the rights and duties of
insured & insurance company in policy
Law of Large Numbers ---- ANSWER----Describes how the average of a randomly selected
large sample of population is likely to be close to the average of the whole population
Underwriting ---- ANSWER----The process insurance company uses to decide whether to
accept or reject application for a policy. Decides how much coverage policy holder should
,receive, pay, or whether even to accept risk & insure them. Involves measuring risk exposure
& determining the premium that needs to be charged to insure risk.
Peril ---- ANSWER----A cause of property losses. Ex: Fire/ lightning, explosion, windstorm,
hurricane, collapse of building, vandalism, accidental discharge, & theft
Hazard ---- ANSWER----A situation that poses a level of threat to life, health, property, or
environment. Most hazards are dormant or potential, with only a theoretical risk of harm;
however once becomes "active," it can create emergency situation
Direct Loss ---- ANSWER----Direct physical loss to property
Indirect Loss ---- ANSWER----Type of loss that does not result from direct damage of a
covered cause of loss or peril but is, instead a consequence of the direct damage loss. Ex: If
grocery store burns to ground from fire, that is direct loss. However, the income lost because
of store could not operate, is the indirect loss
Principle of Indemnity ---- ANSWER----An insurance principle stating that an insured may
not be compensated by insurance company in an amount exceeding the insured economic loss
Property Insurance ---- ANSWER----Insurance coverage for real & personal property against
loss or damage from perils insured against
Insuring Agreement ---- ANSWER----This section of insurance policy specifies what the
insurance will provide coverage for in exchange for premium payments by their customer
, Deductible ---- ANSWER----The amount the insured must pay in a loss before any payment
is due from the insurance company. Deductible is applied per occurrence. Can be very large
in Texas. Typical homeowners policy is a percentage deductible. (If percentage deductible,
percentage always taken from Coverage A)
Cancellation ---- ANSWER----Termination of an insurance policy by the insurance company
or insured before renewal date. Either side can cancel policy. All notices of cancellation must
be done in writing
Limit of Liability (LOL) ---- ANSWER----The maximum amount an insurance policy will
pay. Specified on Policy Declarations page
Loss Settlement ---- ANSWER----Process used to determine amount of loss
Actual Cash Value (ACV) ---- ANSWER----Value of property based on the current cost to
replace, minus application depreciation
Replacement Cost ---- ANSWER----Cost associated with replacing property at current market
prices
Agreed Value ---- ANSWER----Amount that the insured & insurer agree upon during the time
of policy inception
Market Value ---- ANSWER----Amount that property is worth in a competitive market.
Amount is accepted by the buyer and seller
GRADED A+ CURRENTLY TESTED AND APPROVED
NEW MODIFIED EXAM
Betterment ---- ANSWER----An improvement to property that puts it in a better condition
that it was before the occupancy or loss
Breach of Contract ---- ANSWER----Failure to comply with terms or conditions of an
insurance policy that may result in restricted coverage or void the policy
Bodily Injury ---- ANSWER----Means bodily harm, sickness, or disease
Claimant ---- ANSWER----A party who makes a claim
Catastrophe ---- ANSWER----A severe disaster that involves a large population & normally
generates large amount of property damage &/or bodily injury
Coinsurance Clause ---- ANSWER----A provision requiring specified amount of insurance
based on the value of the insured property
Collision ---- ANSWER----Coverage pays for damage to your car without regard to who
caused an accident. Applies when 2 vehicles hit each other or when a single vehicle hits an
object Ex: Tree
,Commercial General Liability ---- ANSWER----Provides commercial general liability
coverage, including premises & operations, products & completed operations, & other
liability options
Comprehensive Coverage ---- ANSWER----Pays for damage to or loss of your automobile
from causes other than accident Ex: Flood, Hail, Vandalism, Fire, & Theft
Concealment ---- ANSWER----The act of purposely not reporting info that would affect the
issuance or rate of an insurance contract. If info cannot be known to the insurer & is known
to be material by insured, concealment of that info can give the insurer grounds to nullify the
contract or not pay out on claim related to that material info
Concurrent Causation ---- ANSWER----Insurance theory stating that if loss or damages occur
as a result of more than one cause, one of which is covered (insured) while other is not.
Damages are likely to still be compensated for by insurer
Conditions ---- ANSWER----Part of insurance policy that details the rights and duties of
insured & insurance company in policy
Law of Large Numbers ---- ANSWER----Describes how the average of a randomly selected
large sample of population is likely to be close to the average of the whole population
Underwriting ---- ANSWER----The process insurance company uses to decide whether to
accept or reject application for a policy. Decides how much coverage policy holder should
,receive, pay, or whether even to accept risk & insure them. Involves measuring risk exposure
& determining the premium that needs to be charged to insure risk.
Peril ---- ANSWER----A cause of property losses. Ex: Fire/ lightning, explosion, windstorm,
hurricane, collapse of building, vandalism, accidental discharge, & theft
Hazard ---- ANSWER----A situation that poses a level of threat to life, health, property, or
environment. Most hazards are dormant or potential, with only a theoretical risk of harm;
however once becomes "active," it can create emergency situation
Direct Loss ---- ANSWER----Direct physical loss to property
Indirect Loss ---- ANSWER----Type of loss that does not result from direct damage of a
covered cause of loss or peril but is, instead a consequence of the direct damage loss. Ex: If
grocery store burns to ground from fire, that is direct loss. However, the income lost because
of store could not operate, is the indirect loss
Principle of Indemnity ---- ANSWER----An insurance principle stating that an insured may
not be compensated by insurance company in an amount exceeding the insured economic loss
Property Insurance ---- ANSWER----Insurance coverage for real & personal property against
loss or damage from perils insured against
Insuring Agreement ---- ANSWER----This section of insurance policy specifies what the
insurance will provide coverage for in exchange for premium payments by their customer
, Deductible ---- ANSWER----The amount the insured must pay in a loss before any payment
is due from the insurance company. Deductible is applied per occurrence. Can be very large
in Texas. Typical homeowners policy is a percentage deductible. (If percentage deductible,
percentage always taken from Coverage A)
Cancellation ---- ANSWER----Termination of an insurance policy by the insurance company
or insured before renewal date. Either side can cancel policy. All notices of cancellation must
be done in writing
Limit of Liability (LOL) ---- ANSWER----The maximum amount an insurance policy will
pay. Specified on Policy Declarations page
Loss Settlement ---- ANSWER----Process used to determine amount of loss
Actual Cash Value (ACV) ---- ANSWER----Value of property based on the current cost to
replace, minus application depreciation
Replacement Cost ---- ANSWER----Cost associated with replacing property at current market
prices
Agreed Value ---- ANSWER----Amount that the insured & insurer agree upon during the time
of policy inception
Market Value ---- ANSWER----Amount that property is worth in a competitive market.
Amount is accepted by the buyer and seller
