Exam (elaborations)
Indiana Adjuster Pro Exam|413 Questions and Answers|2023
Indiana Adjuster Pro Exam|413 Questions and Answers|2023
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Indiana Adjuster Pro Exam|413Questions and Answers|2023
insurance - -transfer of risk
-insurance - -transfer of risk
-Accident Insurance - -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 - -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 - -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) - -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 - -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 - -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) - -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 - -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 - -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 - -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. 2-
B
-Adjuster - Public - -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.2-B
-Adjuster - Staff - -Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster.2-B
-Advance Payment Settlement - -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. 2-D
-Agency Authority - -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.2-A
-Agency Authority - Apparent - -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. 2-A
-Agency Authority - Express - -Authority that is expressly given to the agent
in writing. Allows the agent to act on behalf of the principal.2-A
-Agency Authority - Implied - -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. 2-A
-Agent (Insurance) - -Someone who has received authority from an insurer
to sell or service insurance policies.2-A
-Agreed Value - -A valued policy in which the insurer and the insured agree
to a specific value for an item, appraised at the inception of the policy. Often
,used to insure items whose value is difficult to quantify, such as antiques or
fine art. Also called a Guaranteed Value policy.1-J
-Agreement - -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.1-A
-Agricultural Producer - -A business that grows, harvests, and sells crops for
profit.3-E
-Aleatory - -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.1-B
-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.1-L
-Annual Depreciation - -An item's replacement cost divided by the number
of years in its expected lifespan.1-J
-Annual Transit - -An uncontrolled inland marine form that covers loss of
goods in transit. It applies to all of the insured's shipments during the year.
5-E
-Appraisal - -A dispute resolution 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. 2-D
-Arbitration - -A dispute resolution 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.2-D
-Arbitrator - -The mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions of each opposing side before making a
final and legally binding decision.2-D
-Artificially Generated Current - -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.3-A
, -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.3-C
-Automobile - -In insurance policies, automobile generally means any
vehicle designed for use on public roads.3-C
-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. 3-C
-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.5-F
-Average Weekly Wage (AWW) - -The average amount of income that an
employee earns each week while able to perform normal job duties. When an
employee is injured on the job, his workers' compensation income benefits
will depend on his AWW before the injury.5-G
-Bailee - -An individual or company that receives the property of someone
else for a special purpose and returns the property after use. 5-E
-Bailee Coverage - -Reimburses a bailee's customer for damage to the
customer's property while in the bailee's control. 5-E
-Binder - -A temporary contract provided by an insurer, which ensures
coverage until the complete, permanent policy is issued.1-F
-Black Lung Benefits Act - -Federal program that provides monthly
payments and medical treatments to coal miners who become totally
disabled from black lung disease or pneumoconiosis.5-G
-Bodily Injury (BI) - -Physical damage to someone's person. Liability
insurance covers bodily injury that the insured might cause to another
person through negligence.1-K
-Boiler & Machinery Insurance - -coverage designed to indemnify a business
for damages to, and damages by, boilers, machinery, motors, generators,
and a variety of other electrical devices and appliances. 4-H
-Bond - -A contract wherein one party guarantees the performance of a
third party. Bonds involve three parties: (1) the surety agrees to pay the
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