FINAL South Carolina Adjuster
Licensing Exam and All Accurate
Answers.
Abandonment Condition - Answer A condition often contained in property insurance policies
that states that the insured cannot abandon damaged property to the insurer and demand to
be reimbursed for its full value.
Absolute Liability - Answer Type of liability imposed by law on those participating in certain
activities that are covered particularly hazardous; person may be held liable even though they
were not negligent.
Accident - Answer A loss that occurs at a specific time and place.
Accounts Receivable Insurance - Answer Filed commercial inland marine form that insures
against loss the insured suffers because of an inability to collect from customers when accounts
receivable records are damaged or destroyed.
Actual Cash Value (ACV) - Answer the cost to replace an item of property at the time of loss,
less an allowance for depreciation; often used to determine the amount of reimbursement for a
loss
Additional Coverages - Answer Supplemental Insurance coverages that apply only in certain
circumstances, have reduced or separate limits of liability, or require the insured to meet certain
requirements before the y are applicable; also called coverage extensions, other coverages, and
extended coverages
Additional Insured - Answer An individual or company, in additional to the insured, who is
listed in the declarations; an example is a mortgage company that has insurable interest in the
property insured
Additional Insured-Lessor Endorsement - Answer commercial auto endorsement used to
make leased vehicles considered owned vehicles for coverage purposes
Adhesion Contract - Answer a contract where one party has more power than the other
party in drafting the contract; an insurance policy is an adhesion contract---the insurer is the
one with more power
Adverse Selection - Answer the tendency of insureds with a greater-than-average chance of
loss to purchase insurance
,Agency - Answer Principles governing the authority of any agent that represents a principle
Agent - Answer an individual or organization that legally represents another; a state-licensed
professional who represents the insurance company in the sale and servicing of insurance; the
direct link between the insurance company and policyholder
Aggregate limit - Answer Type of policy limit found in liability policies that limits coverage to
a specified total amount for all losses occurring within the policy period
Agreed Value Condition - Answer Condition found in some property insurance policies that
stipulates a certain value that will meet the coinsurance requirement
Aleatory Contract - Answer A contract that is contingent on an uncertain event (loss); an
insurance policy is an aleatory contract
Alien Company - Answer An insurance company incorporated in any other country other
than the United States that is doing business in the United States
A.M. Best Company - Answer Organization that rates the financial stability of insurance
companies doing business in the United States
Annual Transit Policy - Answer Nonfiled commercial inland marine transportation form that
insures property owner's incoming or outgoing shipments of goods during a year.
Apparent authority - Answer Legal doctrine that states that an agent has whatever authority
a reasonable person would assume she has
application - Answer questionnaire filled out by an agent and the prospect who is seeking
insurance; the form contains information used to underwrite and rate the policy
Appraisal condition - Answer policy condition that outlines a procedure for when the insured
and insurer disagree on the amount of a loss; each party selects their own appraiser, and the
two appraisers select and umpire
Appurtenant Structures - Answer Buildings of lesser value that are on the same premises as
the main building insured under a property policy; they are usually covered by the policy
, Arbitration Condition - Answer Policy condition that is similar to the appraisal condition; may
be used to resolve other areas of disagreement besides those regarding loss of value
Assessment Mutual Company - Answer Mutual insurance company that charges members a
pro-rata share of losses at end of each policy perod
Assignment Condition - Answer when a policy may not be transferred to anyone else without
the written consent of insurer unless the named insured dies
Assumption of Risk - Answer a doctrine under which a plaintiff may not recover for injuries
or damage suffered from risks he or she knew of and voluntarily assumed
Authorized User - Answer company that meets a state insurance departments standards and
is authorized to do business in that state; also called an admitted insurer
Automatic Increase in Insurance Endorsement - Answer If a dwelling is currently insured for
$200,000 and the rate of inflation is 4% at the next renewal of the policy, then the coverage will
be increased to $208,000 at renewal, and the insured will be charged premium on $208,000
instead of $200,000.; could also be by 6%, or 8%
Automobile Insurance Plan - Answer Makes auto insurance available to motorists who are
unable to obtain insurance in the voluntary market
Aviation Hull Insurance - Answer Insurance that provides coverage for pysical damage to
aircraft
Aviation Liability Insurance - Answer Insurance provided for owners of aircraft that covers
liability for bodily injury, injury to passengers, and property damamge; also provides medical
payments coverage
Bailee - Answer person having temporary possession and control of another person's goods,
holding them in trust for a specified purpose
Bailee's Customer Policy - Answer Nonfiled commercial inland marine form obtained by a
bailee to cover loss or damage to customers property in the bailees custody without regard to
liability
Bailment - Answer delivery of personal property to another to be held for a particular person
and then returned
Licensing Exam and All Accurate
Answers.
Abandonment Condition - Answer A condition often contained in property insurance policies
that states that the insured cannot abandon damaged property to the insurer and demand to
be reimbursed for its full value.
Absolute Liability - Answer Type of liability imposed by law on those participating in certain
activities that are covered particularly hazardous; person may be held liable even though they
were not negligent.
Accident - Answer A loss that occurs at a specific time and place.
Accounts Receivable Insurance - Answer Filed commercial inland marine form that insures
against loss the insured suffers because of an inability to collect from customers when accounts
receivable records are damaged or destroyed.
Actual Cash Value (ACV) - Answer the cost to replace an item of property at the time of loss,
less an allowance for depreciation; often used to determine the amount of reimbursement for a
loss
Additional Coverages - Answer Supplemental Insurance coverages that apply only in certain
circumstances, have reduced or separate limits of liability, or require the insured to meet certain
requirements before the y are applicable; also called coverage extensions, other coverages, and
extended coverages
Additional Insured - Answer An individual or company, in additional to the insured, who is
listed in the declarations; an example is a mortgage company that has insurable interest in the
property insured
Additional Insured-Lessor Endorsement - Answer commercial auto endorsement used to
make leased vehicles considered owned vehicles for coverage purposes
Adhesion Contract - Answer a contract where one party has more power than the other
party in drafting the contract; an insurance policy is an adhesion contract---the insurer is the
one with more power
Adverse Selection - Answer the tendency of insureds with a greater-than-average chance of
loss to purchase insurance
,Agency - Answer Principles governing the authority of any agent that represents a principle
Agent - Answer an individual or organization that legally represents another; a state-licensed
professional who represents the insurance company in the sale and servicing of insurance; the
direct link between the insurance company and policyholder
Aggregate limit - Answer Type of policy limit found in liability policies that limits coverage to
a specified total amount for all losses occurring within the policy period
Agreed Value Condition - Answer Condition found in some property insurance policies that
stipulates a certain value that will meet the coinsurance requirement
Aleatory Contract - Answer A contract that is contingent on an uncertain event (loss); an
insurance policy is an aleatory contract
Alien Company - Answer An insurance company incorporated in any other country other
than the United States that is doing business in the United States
A.M. Best Company - Answer Organization that rates the financial stability of insurance
companies doing business in the United States
Annual Transit Policy - Answer Nonfiled commercial inland marine transportation form that
insures property owner's incoming or outgoing shipments of goods during a year.
Apparent authority - Answer Legal doctrine that states that an agent has whatever authority
a reasonable person would assume she has
application - Answer questionnaire filled out by an agent and the prospect who is seeking
insurance; the form contains information used to underwrite and rate the policy
Appraisal condition - Answer policy condition that outlines a procedure for when the insured
and insurer disagree on the amount of a loss; each party selects their own appraiser, and the
two appraisers select and umpire
Appurtenant Structures - Answer Buildings of lesser value that are on the same premises as
the main building insured under a property policy; they are usually covered by the policy
, Arbitration Condition - Answer Policy condition that is similar to the appraisal condition; may
be used to resolve other areas of disagreement besides those regarding loss of value
Assessment Mutual Company - Answer Mutual insurance company that charges members a
pro-rata share of losses at end of each policy perod
Assignment Condition - Answer when a policy may not be transferred to anyone else without
the written consent of insurer unless the named insured dies
Assumption of Risk - Answer a doctrine under which a plaintiff may not recover for injuries
or damage suffered from risks he or she knew of and voluntarily assumed
Authorized User - Answer company that meets a state insurance departments standards and
is authorized to do business in that state; also called an admitted insurer
Automatic Increase in Insurance Endorsement - Answer If a dwelling is currently insured for
$200,000 and the rate of inflation is 4% at the next renewal of the policy, then the coverage will
be increased to $208,000 at renewal, and the insured will be charged premium on $208,000
instead of $200,000.; could also be by 6%, or 8%
Automobile Insurance Plan - Answer Makes auto insurance available to motorists who are
unable to obtain insurance in the voluntary market
Aviation Hull Insurance - Answer Insurance that provides coverage for pysical damage to
aircraft
Aviation Liability Insurance - Answer Insurance provided for owners of aircraft that covers
liability for bodily injury, injury to passengers, and property damamge; also provides medical
payments coverage
Bailee - Answer person having temporary possession and control of another person's goods,
holding them in trust for a specified purpose
Bailee's Customer Policy - Answer Nonfiled commercial inland marine form obtained by a
bailee to cover loss or damage to customers property in the bailees custody without regard to
liability
Bailment - Answer delivery of personal property to another to be held for a particular person
and then returned
