Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Uncontrolled Line Floaters - CORRECT ANSWERS As opposed to controlled line floaters, which are
standard forms, uncontrolled line floaters are nonstandard forms tailored to meet the needs of the
insured. They are not filed with state departments of insurance. They cover movable property and are
typically used in Inland Marine insurance.
Underinsured - CORRECT ANSWERS Not sufficiently insured against particular losses. For example,
any home insured at less than 80% of its value is considered underinsured.
Unfair Claim Settlement
Practices - CORRECT ANSWERS Dishonest or unfair behavior related to settling insurance claims
which is specifically proscribed by state law.
Unilateral - CORRECT ANSWERS A characteristic of insurance contracts. It means that only one of
the parties (the insurer) makes a
promise to perform. The insurer is obligated to fulfill this promise, whereas the insured is free to void
the contract at any time
Uninsurable - CORRECT ANSWERS Risks are said to be uninsurable when they do not meet certain
qualifications. For example, an insurable risk cannot involve a loss that the insured deliberately causes.
Certain perils are too catastrophic to be insurable (like war or nuclear events).
Unscheduled - CORRECT ANSWERS Unscheduled property is property covered under an insurance
contract that is not listed item by item (as
"Scheduled" property would be listed).
U.S. Environmental
Protection Agency - CORRECT ANSWERS Federal agency primarily responsible for the
implementation of most federal laws designed to protect, enhance, and conserve the nation's natural
resources.
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Utmost Good Faith - CORRECT ANSWERS A characteristic of insurance contracts: 'utmost' meaning
the 'highest degree' and 'good faith' meaning,
"act with honesty, fair dealing and full disclosure." All parties to an insurance contract must act with
utmost good faith. It also applies to a fiduciary agent's responsibility towards the principal.
Valuable Papers Business
Coverage - CORRECT ANSWERS Provides indemnification when a business experiences a loss of
vital business records
Valuation - CORRECT ANSWERS The process of estimating what an item is worth. Methods of
valuation include "Actual Cash Value,"
"Replacement Cost," "Stated Value," and "Agreed Value."
Value - CORRECT ANSWERS The estimated or appraised worth of an item, used to determine the
replacement cost or indemnification amount.
Valued policy - CORRECT ANSWERS A policy in which the insurer and the insured agree to a specific
value prior to the start of the policy. If the item is lost or destroyed, the insurer pays the amount agreed
upon
Vicarious Liability - CORRECT ANSWERS When an act of negligence is transferred from one party to
another, such as from employee to employer or from child to parent
Waiver - CORRECT ANSWERS A waiver is a voluntary act of relinquishing a known right, claim or
privilege. Either an insured or an insurer may waive rights. There are two types: express and implied.
Waiver - Express - CORRECT ANSWERS An explicit relinquishment of a right.
Waiver - Implied - CORRECT ANSWERS An implicit relinquishment of a right through behavior that
seems to assume that the right does not exist
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Waiver of Sovereign
Immunity - CORRECT ANSWERS Sovereign Immunity disallows an individual to sue a governmental
entity; the waiver of sovereign immunity allows individuals to sue governmental entities under specific
circumstances
Warranty - CORRECT ANSWERS An ongoing assurance made by the insured that certain conditions
in an insurance contract will be met
(for example, that the insured will maintain functional fire alarms).
Workers' Compensation
(WC) - CORRECT ANSWERS A form of insurance that covers medical costs and lost wages in the
event of a work-related injury,
disease, or disability sustained by an employee. Purchased by employers as an "exclusive remedy" to
ensure that employees will not sue the employer.
Wrongful Death Act - CORRECT ANSWERS Allows the individuals who are associated with a
deceased person who was killed because of a negligent act to sue the responsible party
Yield Protection (Crop
Insurance - CORRECT ANSWERS Determined by Average Crop Yield, this Multi-Peril Crop Insurance
(MPCI) policy protects a farmer from losses caused by low crop yield.
Accident Insurance - CORRECT ANSWERS 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
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Accumulated Depreciation - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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.
and answers 100%Correctly verified answers latest update
RATED A+
Uncontrolled Line Floaters - CORRECT ANSWERS As opposed to controlled line floaters, which are
standard forms, uncontrolled line floaters are nonstandard forms tailored to meet the needs of the
insured. They are not filed with state departments of insurance. They cover movable property and are
typically used in Inland Marine insurance.
Underinsured - CORRECT ANSWERS Not sufficiently insured against particular losses. For example,
any home insured at less than 80% of its value is considered underinsured.
Unfair Claim Settlement
Practices - CORRECT ANSWERS Dishonest or unfair behavior related to settling insurance claims
which is specifically proscribed by state law.
Unilateral - CORRECT ANSWERS A characteristic of insurance contracts. It means that only one of
the parties (the insurer) makes a
promise to perform. The insurer is obligated to fulfill this promise, whereas the insured is free to void
the contract at any time
Uninsurable - CORRECT ANSWERS Risks are said to be uninsurable when they do not meet certain
qualifications. For example, an insurable risk cannot involve a loss that the insured deliberately causes.
Certain perils are too catastrophic to be insurable (like war or nuclear events).
Unscheduled - CORRECT ANSWERS Unscheduled property is property covered under an insurance
contract that is not listed item by item (as
"Scheduled" property would be listed).
U.S. Environmental
Protection Agency - CORRECT ANSWERS Federal agency primarily responsible for the
implementation of most federal laws designed to protect, enhance, and conserve the nation's natural
resources.
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Utmost Good Faith - CORRECT ANSWERS A characteristic of insurance contracts: 'utmost' meaning
the 'highest degree' and 'good faith' meaning,
"act with honesty, fair dealing and full disclosure." All parties to an insurance contract must act with
utmost good faith. It also applies to a fiduciary agent's responsibility towards the principal.
Valuable Papers Business
Coverage - CORRECT ANSWERS Provides indemnification when a business experiences a loss of
vital business records
Valuation - CORRECT ANSWERS The process of estimating what an item is worth. Methods of
valuation include "Actual Cash Value,"
"Replacement Cost," "Stated Value," and "Agreed Value."
Value - CORRECT ANSWERS The estimated or appraised worth of an item, used to determine the
replacement cost or indemnification amount.
Valued policy - CORRECT ANSWERS A policy in which the insurer and the insured agree to a specific
value prior to the start of the policy. If the item is lost or destroyed, the insurer pays the amount agreed
upon
Vicarious Liability - CORRECT ANSWERS When an act of negligence is transferred from one party to
another, such as from employee to employer or from child to parent
Waiver - CORRECT ANSWERS A waiver is a voluntary act of relinquishing a known right, claim or
privilege. Either an insured or an insurer may waive rights. There are two types: express and implied.
Waiver - Express - CORRECT ANSWERS An explicit relinquishment of a right.
Waiver - Implied - CORRECT ANSWERS An implicit relinquishment of a right through behavior that
seems to assume that the right does not exist
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Waiver of Sovereign
Immunity - CORRECT ANSWERS Sovereign Immunity disallows an individual to sue a governmental
entity; the waiver of sovereign immunity allows individuals to sue governmental entities under specific
circumstances
Warranty - CORRECT ANSWERS An ongoing assurance made by the insured that certain conditions
in an insurance contract will be met
(for example, that the insured will maintain functional fire alarms).
Workers' Compensation
(WC) - CORRECT ANSWERS A form of insurance that covers medical costs and lost wages in the
event of a work-related injury,
disease, or disability sustained by an employee. Purchased by employers as an "exclusive remedy" to
ensure that employees will not sue the employer.
Wrongful Death Act - CORRECT ANSWERS Allows the individuals who are associated with a
deceased person who was killed because of a negligent act to sue the responsible party
Yield Protection (Crop
Insurance - CORRECT ANSWERS Determined by Average Crop Yield, this Multi-Peril Crop Insurance
(MPCI) policy protects a farmer from losses caused by low crop yield.
Accident Insurance - CORRECT ANSWERS 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
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Accumulated Depreciation - CORRECT ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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.
