Adjusterpro Alabama Glossary Terms
Questions And Answers With Verified
Solutions Latest Updated 2024
Accumulated Depreciation - ANSWER✔✔ The total decrease in an item's value
over a period of time. Formula: (Annual Depreciation x Number of years used)
Acreage Reporting Date - ANSWER✔✔ 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) - ANSWER✔✔ A valuation method used by insurers to
reflect an item's current market value right before being damaged or estroyed.
Formula: (Replacement cost - Accumulated Depreciation)
Actual Production History - 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 - ANSWER✔✔ One of the characteristics of an insurance contract.
Means that one party (the insurer) sets the terms, and the other (the insured) can
'take it or leave it.'
Adjusted Gross Revenue (Crop Insurance) - 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 - ANSWER✔✔ An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
,Adjuster - Emergency - 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 - 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 - ANSWER✔✔ An adjuster who is hired to represent the
claimant and help determine a fair indemnification. Usually specializes in
appraisals and negotiation. Paid commision, usually a percentage of final
settlement.
Adjuster - Staff - ANSWER✔✔ Salaried employee of one insurance company who
can work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - ANSWER✔✔ A settlement option that lets the
insurer offer some financial relief to the claimant before the claim has been ully
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 - ANSWER✔✔ The Agent's authority to act on behalf of
someone else, usually an insurer. This authority is derived from the agent's ontract
with the insurer.
Agency Authority - express - ANSWER✔✔ Authority that is expressly given to
the agent in writing. Allows agent to act on behalf of the principal.
Aency Authority - implied - ANSWER✔✔ Authority that an agent possesses by
implication of his behavior, regardless of whether this authority is expressly ranted
in writing.
,Agency Authority - apparent - ANSWER✔✔ Authority that an agent possesses
based on the appearance of representing an insurer.
Agent - ANSWER✔✔ Someone who has received authority from an insurer to sell
or service insurance policies.
Aggregate Limit - ANSWER✔✔ A type of policy limit found in some health,
liability, and property damage policies. It represents the total amount the insurer ill
pay for all losses (as opposed to an occurrence limit, which denotes the total
amount the insurer will pay per occurrence).
Agreement - ANSWER✔✔ One of the four requirements of a legally binding
contract. All parties involved must agree to theterms of the contract. Can also refer
to a binder, which is the preliminary substance of a contract.
Agricultural Producer - ANSWER✔✔ A business that grows, harvests, and sells
crops for profit.
Aleatory - ANSWER✔✔ A characteristic of insurance contracts. Aleatory 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 - 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 - ANSWER✔✔ An item's Replacement cost divided by the
number of years in its expected lifespan.
, Appraisal - ANSWER✔✔ A negotiation 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 - ANSWER✔✔ A negotiation 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.
Arbitrator - ANSWER✔✔ The mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions of each opposing side, and makes a final and
legally binding decision.
Auto Policy - ANSWER✔✔ 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 n public roads.
Automobile No-fault Laws - ANSWER✔✔ 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. Nofaultlaws
also restrict the insured's right to sue the at-fault party.
Aviation - ANSWER✔✔ Aviation insurance combines hull insurance for the
aircraft and liability insurance for any damage to others' property or to people who
are not passengers.
Bailee - ANSWER✔✔ An individual or company that receives the property of
someone else for a special purpose, and returns the product after use.
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