QUESTIONS AND ANSWERS FOR INDIANA ADJUSTER PRO 2023-202

QUESTIONS AND ANSWERS FOR INDIANA ADJUSTER PRO insurance - CORRECT ANSWER-transfer of risk insurance - CORRECT ANSWER-transfer of risk Accident Insurance - CORRECT 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 - CORRECT 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 - CORRECT 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) - CORRECT 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 - CORRECT 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 - CORRECT 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) - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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. 2-B Adjuster - Public - CORRECT 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.2-B Adjuster - Staff - CORRECT ANSWER-Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called: Company Adjuster.2-B Advance Payment Settlement - CORRECT 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. 2-D Agency Authority - CORRECT 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.2-A Agency Authority - Apparent - CORRECT 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. 2-A Agency Authority - Express - CORRECT ANSWER-Authority that is expressly given to the agent in writing. Allows the agent to act on behalf of the principal.2-A Agency Authority - Implied - CORRECT 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. 2-A Agent (Insurance) - CORRECT ANSWER-Someone who has received authority from an insurer to sell or service insurance policies.2-A Agreed Value - CORRECT 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.1-J Agreement - CORRECT 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.1-A Agricultural Producer - CORRECT ANSWER-A business that grows, harvests, and sells crops for profit.3-E Aleatory - CORRECT 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.1-B Answer - CORRECT 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.1-L Annual Depreciation - CORRECT ANSWER-An item's replacement cost divided by the number of years in its expected lifespan.1-J Annual Transit - CORRECT ANSWER-An uncontrolled inland marine form that covers loss of goods in transit. It applies to all of the insured's shipments during the year. 5-E Appraisal - CORRECT ANSWER-A dispute resolution 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. 2-D Arbitration - CORRECT ANSWER-A dispute resolution 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.2-D Arbitrator - CORRECT ANSWER-The mutually-agreed-upon and neutral third party in an arbitration who reviews the positions of each opposing side before making a final and legally binding decision.2-D Artificially Generated Current - CORRECT ANSWER-Also called "artificial current." A peril covered in some property insurance policies. It includes sudden and accidental damage from any electrical current, except currents that are naturally generated, such as lightning or static electricity.3-A Auto Policy Insurance - CORRECT ANSWER-policy designed to protect the policyholder while owning, occupying, or operating a vehicle. Usually combines liability coverage and property coverage into one policy.3-C Automobile - CORRECT ANSWER-In insurance policies, automobile generally means any vehicle designed for use on public roads.3-C Automobile No-Fault Laws - CORRECT ANSWER-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. 3-C Aviation Aviation - CORRECT ANSWER-insurance combines hull insurance for the aircraft and liability insurance for any damage to others' property or to people who are not passengers.5-F Average Weekly Wage (AWW) - CORRECT ANSWER-The average amount of income that an employee earns each week while able to perform normal job duties. When an employee is injured on the job, his workers' compensation income benefits will depend on his AWW before the injury.5-G Bailee - CORRECT ANSWER-An individual or company that receives the property of someone else for a special purpose and returns the property after use. 5-E Bailee Coverage - CORRECT ANSWER-Reimburses a bailee's customer for damage to the customer's property while in the bailee's control. 5-E Binder - CORRECT ANSWER-A temporary contract provided by an insurer, which ensures coverage until the complete, permanent policy is issued.1-F Black Lung Benefits Act - CORRECT ANSWER-Federal program that provides monthly payments and medical treatments to coal miners who become totally disabled from black lung disease or pneumoconiosis.5-G Bodily Injury (BI) - CORRECT ANSWER-Physical damage to someone's person. Liability insurance covers bodily injury that the insured might cause to another person through negligence.1-K Boiler & Machinery Insurance - CORRECT ANSWER-coverage designed to indemnify a business for damages to, and damages by, boilers, machinery, motors, generators, and a variety of other electrical devices and appliances. 4-H Bond - CORRECT ANSWER-A contract wherein one party guarantees the performance of a third party. Bonds involve three parties: (1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal, neglects to carry out an obligation it has to the obligee. 4-D Breach of Product Warranty - CORRECT ANSWER-The failure or falsehood of a stated promise of a product stipulation.1-