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)
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)
Adhesion - ✔️CORRECT 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 (CropInsurance) - ✔️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. Can represent
either the insured or the insurer.
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 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, usually an insurer.
This authority is derived from the agent's contract with the
insurer.
Agency Authority - express - ✔️CORRECT ANSWER✅-
Authority that is expressly given to the agent in writing. Allows
agent to act on behalf of the principal.
Aency Authority - implied - ✔️CORRECT ANSWER✅-Authority
that an agent possesses by implication of his behavior,
, regardless of whether this authority is expressly granted in
writing.
Agency Authority - apparent - ✔️CORRECT ANSWER✅-
Authority that an agent possesses based on the appearance of
representing an insurer.
Agent - ✔️CORRECT ANSWER✅-Someone who has received
authority from an insurer to sell or service insurance policies.
Aggregate Limit - ✔️CORRECT ANSWER✅-A type of policy
limit found in some health, liability, and property damage
policies. It represents the total amount the insurer will pay for
all losses.
Agreement - ✔️CORRECT ANSWER✅-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 - ✔️CORRECT ANSWER✅-A business
that grows, harvests, and sells crops for profit.
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