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ALABAMA ADJUSTERS LICENSE EXAM QUESTIONS AND ANSWERS 2024
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ALABAMA ADJUSTERS LICENSE EXAM QUESTIONS AND ANSWERS 2024
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ALABAMA ADJUSTERS LICENSE EXAMAccident Insurance - ANSWERS-Covers expenses associated with a covered
accident and can extend to ambulance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for
loss of income, and a
death benefit if injuries prove fatal
Accumulated Depreciation - ANSWERS-The total decrease in an item's value over
a period of time. Formula: (annual depreciation x number of
years used). Subtract this number from the item's replacement cost to get its
actual cash value (ACV).
Acreage Reporting Date - ANSWERS-In crop insurance, 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) - ANSWERS-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 - ANSWERS-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 - ANSWERS-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) - ANSWERS-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 - ANSWERS-An agent who, for compensation, processes insurance
claims. The adjuster investigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the
insurance contract. Can
represent either the insured or the insurer.
Adjuster - Emergency - ANSWERS-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 - ANSWERS-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 - ANSWERS-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.
Adjuster - Staff - ANSWERS-Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called:
Company Adjuster
Advance Payment
Settlement - ANSWERS-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 - ANSWERS-The agent's authority to act on behalf of someone
else (the principal), usually an insurer. This authority is
derived from the agent's contract with the principal. It can be apparent, express,
or implied
, Agency Authority -
Apparent - ANSWERS-Indirect authority that the agent can reasonably be
assumed to have, based on appearances. If an
adjuster is equipped to represent an insurer (with the insurer's permission), then
an individual can assume
that the adjuster has the authority to act on the insurer's behalf.
Agency Authority -
Express - ANSWERS-Authority that is expressly given to the agent in writing.
Allows the agent to act on behalf of the principal.
Agency Authority - Implied - ANSWERS-Authority that an agent possesses by
implication of her behavior, regardless of whether this authority is
granted in writing. For example, a person portraying herself as a representative
for an insurance
company, even though she is not employed by that company.
Agent (Insurance) - ANSWERS-Someone who has received authority from an
insurer to sell or service insurance policies.
Agreed Value - ANSWERS-A valued policy in which the insurer and the insured
agree to a specific value for an item, appraised at the
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