ALABAMA ADJUSTERS LICENSE 2026 UPDATED EXAM WITH VERIFIED QUESTIONS &
ANSWERS |GRADED A+
Accident Insurance
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
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
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)
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
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
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)
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
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
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
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
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
Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called:
Company Adjuster
, Advance Payment
Settlement
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
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
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
ANSWERS |GRADED A+
Accident Insurance
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
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
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)
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
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
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)
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
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
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
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
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
Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called:
Company Adjuster
, Advance Payment
Settlement
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
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
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
