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Alabama Adjusters License questions and answers
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Alabama Adjusters License questions and answers
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AlabamaAdjusters
License
questions
and
answers
Accident
Insurance
-
answer-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
-
answer-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
-
answer-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)
-
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)
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-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)
-
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.
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
-
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
commission,
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
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
-
answer-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
-
answer-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
-
answer-Authority
that
is
expressly
given
to
the
agent
in
writing.
Allows
the
agent
to
act
on
behalf
of
the
principal.
Agency
Authority
-
Implied
-
answer-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)
-
answer-Someone
who
has
received
authority
from
an
insurer
to
sell
or
service
insurance
policies.
Agreed
Value
-
answer-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
-
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
-
answer-A
business
that
grows,
harvests,
and
sells
crops
for
profit.
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.
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.
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