ALABAMA ADJUSTER LATEST 2026 EXAM QUESTIONS AND
ANSWERS GRADED A+
✔✔Evaluation - ✔✔The process of determining the approximate value of damages
relevant to a claim (i.e. total of medical
bills, costs of repair & replacement of damaged property) and considering the financial
provisions of the
insurance policy to decide on a fair settlement amount.
✔✔Excess Policy - ✔✔Pays for a loss only after the primary policy's limits have been
exhausted. See also: "Primary Policy."
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils
that the policy does NOT cover
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely, so
this is a determining factor in an insurer's underwriting decisions
✔✔Fair Credit Reporting Act
(FCRA) - ✔✔This act regulates how companies collect, share, and use consumers'
personal and financial information.
It is enforced by the US Federal Trade Commission and civil lawsuits.
✔✔False Advertising - ✔✔Presenting something to the public in a deceptive or untrue
manner; misrepresentations in
advertisements
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage
Form - ✔✔A form added to a farm insurance policy that provides coverage for injury and
damage to a third party.
✔✔Farm Property Coverage
Form - ✔✔A form added to a farm insurance policy that provides coverage for the
dwelling, other structures, farm
structures, and both household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In farm insurance, a farmer
must reside and do business on the same premises.
,✔✔Federal Crop Insurance
Act - ✔✔Legislation passed by Congress that established the federal crop insurance
program.
✔✔Federal Crop Insurance
Corporation (FCIC) - ✔✔A government-owned corporation that manages the federal
crop insurance program.
✔✔Federal Emergency
Management Agency
(FEMA) - ✔✔A branch of homeland security that coordinates relief programs when
disaster strikes an entire
community.
✔✔Federal Employees
Compensation Act (FECA) - ✔✔Federal program that provides insurance for civilian
employees of the federal government. As a workers'
compensation program, FECA covers disability or death sustained while the employee
is on the job. Pays
medical expenses and two-thirds of normal monthly salary while the employee is unable
to work.
Additional payments may be made for permanent injuries or to dependents.
✔✔Federal Employers
Liability Act (FELA) - ✔✔Federal program enacted in 1908 before most state workers'
compensation laws. FELA protects only
interstate railroad workers and their families, by allowing workers who are not covered
by regular WC
laws to sue their employer
✔✔Fiduciary - ✔✔One of the terms that describes the adjuster's relationship with the
principal (the insurer). As fiduciary
agent, the adjuster acts for the benefit of the principal, rather than for his own benefit.
✔✔Fiduciary Duty - ✔✔A legal relationship in which one party represents the best
interests of another. As the insurer's fiduciary
agent, the adjuster makes financial decisions on behalf of the insurer and must uphold
the insurer's
financial interests in all transactions,while ensuring that claims are settled fairly
according to their
insurance contracts. This means the adjuster must perform her job with honesty and
"utmost good faith"
at all times.
, ✔✔Final Planting Date - ✔✔In crop insurance, the last day to plant crops in order to
receive the full insurance yield and/or revenue
guarantee selected.
✔✔First Named Insured - ✔✔The first person or entity named as insured on the
declarations page of a policy
✔✔First Party Claim - ✔✔A claim that a policyholder files with her own insurer (as
opposed to a third party claim, which the claimant
files with someone else's insurer).
✔✔Floater - ✔✔A term for inland marine policies that cover mobile property. See also:
"Controlled Lines Floater" and
"Uncontrolled Lines Floater."
✔✔Flood - ✔✔An overflow of inland or tidal waters; an unusual or rapid accumulation of
runoff or surface waters from
any source; mud flows; collapse or subsidence of land along the shore of a lake or other
body of water.
✔✔Flood Insurance - ✔✔Provides relief following flood damage to communities who
participate in the NFIP floodplain management
system; covers damages to the building and its contents
✔✔Floodplain Management - ✔✔Maps out areas with high risk of flood, so that
communities will avoid building in these areas
✔✔Fraternal Benefit Societies - ✔✔Non-profit, mutual aid organizations that engage
primarily in charitable or benevolent activities. They offer
their members insurance against death, disease, and disability. Also known as Fraternal
Associations
✔✔Fraud - Hard - ✔✔Deliberately faking or causing an incident in order to collect
money
✔✔Fraud - Soft - ✔✔Inflating the gravity or the extent of claims in order to receive a
higher indemnification.
✔✔Free on Board (FOB)
Destination Point - ✔✔A term used in Ocean Marine insurance. It means that the title to
the property being shipped remains with
the shipper until it arrives at the buyer's destination and the buyer accepts the property
✔✔Free on Board (FOB)
ANSWERS GRADED A+
✔✔Evaluation - ✔✔The process of determining the approximate value of damages
relevant to a claim (i.e. total of medical
bills, costs of repair & replacement of damaged property) and considering the financial
provisions of the
insurance policy to decide on a fair settlement amount.
✔✔Excess Policy - ✔✔Pays for a loss only after the primary policy's limits have been
exhausted. See also: "Primary Policy."
✔✔Exclusions - ✔✔A section of an insurance policy that reduces coverage by listing
specific individuals, property, or perils
that the policy does NOT cover
✔✔Exposure - ✔✔The extent to which an item is open to damage or loss. More
exposure means a loss is more likely, so
this is a determining factor in an insurer's underwriting decisions
✔✔Fair Credit Reporting Act
(FCRA) - ✔✔This act regulates how companies collect, share, and use consumers'
personal and financial information.
It is enforced by the US Federal Trade Commission and civil lawsuits.
✔✔False Advertising - ✔✔Presenting something to the public in a deceptive or untrue
manner; misrepresentations in
advertisements
✔✔Farm - ✔✔A property where a farmer or rancher both resides and conducts
commercial business.
✔✔Farm Liability Coverage
Form - ✔✔A form added to a farm insurance policy that provides coverage for injury and
damage to a third party.
✔✔Farm Property Coverage
Form - ✔✔A form added to a farm insurance policy that provides coverage for the
dwelling, other structures, farm
structures, and both household and farm personal property.
✔✔Farmer - ✔✔Someone in the business of growing, harvesting, and selling crops for
profit. In farm insurance, a farmer
must reside and do business on the same premises.
,✔✔Federal Crop Insurance
Act - ✔✔Legislation passed by Congress that established the federal crop insurance
program.
✔✔Federal Crop Insurance
Corporation (FCIC) - ✔✔A government-owned corporation that manages the federal
crop insurance program.
✔✔Federal Emergency
Management Agency
(FEMA) - ✔✔A branch of homeland security that coordinates relief programs when
disaster strikes an entire
community.
✔✔Federal Employees
Compensation Act (FECA) - ✔✔Federal program that provides insurance for civilian
employees of the federal government. As a workers'
compensation program, FECA covers disability or death sustained while the employee
is on the job. Pays
medical expenses and two-thirds of normal monthly salary while the employee is unable
to work.
Additional payments may be made for permanent injuries or to dependents.
✔✔Federal Employers
Liability Act (FELA) - ✔✔Federal program enacted in 1908 before most state workers'
compensation laws. FELA protects only
interstate railroad workers and their families, by allowing workers who are not covered
by regular WC
laws to sue their employer
✔✔Fiduciary - ✔✔One of the terms that describes the adjuster's relationship with the
principal (the insurer). As fiduciary
agent, the adjuster acts for the benefit of the principal, rather than for his own benefit.
✔✔Fiduciary Duty - ✔✔A legal relationship in which one party represents the best
interests of another. As the insurer's fiduciary
agent, the adjuster makes financial decisions on behalf of the insurer and must uphold
the insurer's
financial interests in all transactions,while ensuring that claims are settled fairly
according to their
insurance contracts. This means the adjuster must perform her job with honesty and
"utmost good faith"
at all times.
, ✔✔Final Planting Date - ✔✔In crop insurance, the last day to plant crops in order to
receive the full insurance yield and/or revenue
guarantee selected.
✔✔First Named Insured - ✔✔The first person or entity named as insured on the
declarations page of a policy
✔✔First Party Claim - ✔✔A claim that a policyholder files with her own insurer (as
opposed to a third party claim, which the claimant
files with someone else's insurer).
✔✔Floater - ✔✔A term for inland marine policies that cover mobile property. See also:
"Controlled Lines Floater" and
"Uncontrolled Lines Floater."
✔✔Flood - ✔✔An overflow of inland or tidal waters; an unusual or rapid accumulation of
runoff or surface waters from
any source; mud flows; collapse or subsidence of land along the shore of a lake or other
body of water.
✔✔Flood Insurance - ✔✔Provides relief following flood damage to communities who
participate in the NFIP floodplain management
system; covers damages to the building and its contents
✔✔Floodplain Management - ✔✔Maps out areas with high risk of flood, so that
communities will avoid building in these areas
✔✔Fraternal Benefit Societies - ✔✔Non-profit, mutual aid organizations that engage
primarily in charitable or benevolent activities. They offer
their members insurance against death, disease, and disability. Also known as Fraternal
Associations
✔✔Fraud - Hard - ✔✔Deliberately faking or causing an incident in order to collect
money
✔✔Fraud - Soft - ✔✔Inflating the gravity or the extent of claims in order to receive a
higher indemnification.
✔✔Free on Board (FOB)
Destination Point - ✔✔A term used in Ocean Marine insurance. It means that the title to
the property being shipped remains with
the shipper until it arrives at the buyer's destination and the buyer accepts the property
✔✔Free on Board (FOB)
