SC Property, Casualty, Surety,
Marine Exam | Questions and
Correct Answers | Latest Update
2024/2025 | 100% PASS
Accumulated Depreciation - Answer -The total decrease in an item's
value over a period of time. Formula:(Annual Depreciation x Number
ofyears used) 1-J
Acreage Reporting Date - An...
Accumulated Depreciation - Answer -The total decrease in an item's
value over a period of time. Formula:(Annual Depreciation x Number
ofyears used) 1-J
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. 3-E
Actual Cash Value (ACV) - 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) 1-J
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. 3-E
Adhesion - 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."1-B
,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. 3-E
Adjuster - Answer -An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer. 2-B
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. 2-B
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 2-B
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 commission, usually a percentage of
final settlement. 2-B
Adjuster - Staff - Answer -Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company
Adjuster 2-B
Advance Payment Settlement - 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.2-D
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 contract with the insurer. 2-A
Agency Authority - express - Answer -Authority that is expressly given to
the agent in writing. Allows agent to act on behalf of the principal. 2-A
Agency Authority - implied - Answer -Authority that an agent possesses
by implication of her behavior, regardless of whether this authority is
granted in writing. 2-A
Agency Authority - apparent - Answer -Authority that an agent
possesses based on the appearance of representing the insurer. 2-A
Agent - Answer -Someone who has received authority from an insurer
to sell or service insurance policies. 2-A
Aggregate Limit - 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 (as opposed to an occurrence limit,
which denotes the total amount the insurer will pay per occurrence). 1-
K
Agreement - 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. 1-A
Agricultural Producer - Answer -A business that grows, harvests, and
sells crops for profit. 3-E
, Aleatory - Answer -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 - 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 - Answer -An item's Replacement cost divided by
the number of years in its expected lifespan. 1-J
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. 2-D
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. 2-D
Artificially Generated Current - Answer -Also called "artificial current." A
peril covered in some property insurance policies. It includes sudden
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