ALABAMA ADJUSTERS LICENSE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS BRAND NEW
2025
Accident Insurance - 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 - 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 - 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) - 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 - 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 - 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) - 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 - 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 - 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 - 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.
Adjuster - Public - 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.
Adjuster - Staff - ANSWER - >Salaried employee of one insurance
company who can
work locally, regionally, or nationally. Also
called:
Company
Adjuster
Advance Payment
Settlement - 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.
Agency Authority - 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
Agency Authority -
Apparent - 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.
Agency Authority -
Express - ANSWER - >Authority that is expressly given to the agent in
writing. Allows the agent to act on behalf of the principal.
, Agency Authority - Implied - 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.
Agent (Insurance) - ANSWER - >Someone who has received authority from
an insurer to
sell or service insurance
policies.
Agreed Value - 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.
Agreement - 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.
Agricultural Producer - ANSWER - >A business that grows, harvests, and
sells crops for
profit.
Aleatory - ANSWER - >A characteristic of an insurance contract. Means
"depending on
COMPLETE SOLUTIONS GUARANTEED PASS BRAND NEW
2025
Accident Insurance - 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 - 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 - 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) - 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 - 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 - 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) - 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 - 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 - 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 - 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.
Adjuster - Public - 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.
Adjuster - Staff - ANSWER - >Salaried employee of one insurance
company who can
work locally, regionally, or nationally. Also
called:
Company
Adjuster
Advance Payment
Settlement - 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.
Agency Authority - 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
Agency Authority -
Apparent - 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.
Agency Authority -
Express - ANSWER - >Authority that is expressly given to the agent in
writing. Allows the agent to act on behalf of the principal.
, Agency Authority - Implied - 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.
Agent (Insurance) - ANSWER - >Someone who has received authority from
an insurer to
sell or service insurance
policies.
Agreed Value - 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.
Agreement - 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.
Agricultural Producer - ANSWER - >A business that grows, harvests, and
sells crops for
profit.
Aleatory - ANSWER - >A characteristic of an insurance contract. Means
"depending on
