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Alabama Adjusters License Exam Questions and Answers (verified answers) 361 Questions
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Alabama Adjusters License Exam Questions and Answers (verified answers) 361 Questions
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Alabama Adjusters License Exam Questions and Answers (verified answers) 361 QuestionsAccident Insurance - correct answer ✅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 - correct answer ✅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 - correct answer ✅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) - correct 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) Alabama Adjusters License Exam Questions and Answers (verified answers) 361 Questions
Actual Production History - correct 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 - correct 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) - correct 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 - correct answer ✅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. Alabama Adjusters License Exam Questions and Answers (verified answers) 361 Questions
Adjuster - Emergency - correct 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 - correct 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.
Adjuster - Public - correct answer ✅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 - correct answer ✅Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called:
Company Adjuster
Advance Payment
Settlement - correct answer ✅A settlement option that lets the insurer offer some financial relief to the claimant before the claim has Alabama Adjusters License Exam Questions and Answers (verified answers) 361 Questions
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 - correct answer ✅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 - correct answer ✅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 - correct answer ✅Authority that is expressly given to the agent in writing. Allows the agent to act on behalf of the principal.
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