Exam (elaborations)
Alabama Adjusters License Exam/362 Questions and Answers 2024
- Course
- Institution
Alabama Adjusters License Exam/362 Questions and Answers 2024
[Show more]
Content preview
Alabama Adjusters License Exam/362Questions and Answers 2024
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.
-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.
-Adjuster - Staff - -Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called:
Company Adjuster
-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.
-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
-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.
-Agency Authority -
Express - -Authority that is expressly given to the agent in writing. Allows
the agent to act on behalf of the principal.
-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.
-Agent (Insurance) - -Someone who has received authority from an insurer
to sell or service insurance policies.
-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.
-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.
-Agricultural Producer - -A business that grows, harvests, and sells crops for
profit.
-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.
-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.
-Annual Depreciation - -An item's replacement cost divided by the number
of years in its expected lifespan.
-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.
-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.
, -Arbitration - -A dispute resolution method in which the opposing parties
each submit their evidence to a mutuallyagreed-
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.
-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.
-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.
-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.
-Automobile - -In insurance policies, automobile generally means any
vehicle designed for use on public roads.
-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.
-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.
-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.
-Bailee - -An individual or company that receives the property of someone
else for a special purpose and returns
the property after use.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now