UPDATED 2024/2025 Glossary of Terms - Adjuster Pro Certification Questions and Answers 2023 100% Verified
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Glossary of Terms - Adjuster Pro
Certification Questions and Answers
2023 100% Verified
Accumulated Depreciation - CORRECT ANS 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 ANS A valuat...
Glossary of Terms - Adjuster Pro
Certification Questions and Answers
2023 100% Verified
Accumulated Depreciation - CORRECT ANS 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 ANS 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 ANS 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) - CORRECT ANS 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 ANS An agent who, for compensation, processes insurance
claims. Can represent either the insured or the insurer.
Adjuster - Emergency - CORRECT ANS 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 ANS 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 ANS 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 - CORRECT ANS Salaried employee of one insurance company
who can work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - CORRECT ANS 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 ANS 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 ANS Authority that is expressly given to
the agent in writing. Allows agent to act on behalf of the principal.
Aency Authority - implied - CORRECT ANS Authority that an agent possesses by
implication of his behavior, regardless of whether this authority is expressly granted
in writing.
Agency Authority - apparent - CORRECT ANS Authority that an agent possesses
based on the appearance of representing an insurer.
, Glossary of Terms - Adjuster Pro
Certification Questions and Answers
2023 100% Verified
Agent - CORRECT ANS Someone who has received authority from an insurer to
sell or service insurance policies.
Aggregate Limit - CORRECT ANS 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).
Agreement - CORRECT ANS 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 ANS A business that grows, harvests, and
sells crops for profit.
Aleatory - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS An item?s Replacement cost divided by
the number of years in its expected lifespan.
Appraisal - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS In Insurance policies, Automobile generally means
any vehicle designed for use on public roads.
Automobile No-fault Laws - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS 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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