Alabama Adjusters License Exam 2025/2026 Actual Complete
Real Exam Questions & Answers | With Well Elaborated and
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Liability - Product - ANSWER-Protects a policyholder from legal
liability for
damages to third parties caused by the manufacturing,
merchandising, distributing, or operation of a product
Liability - Professional - ANSWER-Professional Liability
Coverage protects professionals such as doctors, lawyers,
engineers, architects, etc. It includes two types of coverage:
malpractice insurance and errors and omissions insurance
Liability - Public - ANSWER-Protects individuals and
commercial venues from
any property damage or personal injury they
may cause
to the general
public
,Libel - ANSWER-Damage to another's name or reputation in
print. See also:
"Defamation."
Liberalization - ANSWER-The liberalization clause in an
insurance contract is a
condition that states that the insurer
can add or
broaden coverage at any time without writing up a new
contract. This clause
guarantees that, in the
case
of legislative action that broadens insurance coverage without
any increase in
premiums, this
additional
coverage must take effect in existing policies as well as
in new policies.
License - ANSWER-A document that shows that a person has
been granted
authority by the state to act as an
insurance
agent, broker, or
adjuster
,Limit - ANSWER-The limits of an insurance policy represent the
highest amount
an insurer will pay. Any cost
above the
limits of insurance is the responsibility of the
policyholder.
Limit - Aggregate - ANSWER-The total amount the insurer will
pay for all losses during the policy period. Often appears
preceded by an
occurrence limit (e.g. 100,000/1,000,000). The first number
indicates the maximum payout for covered
losses in any single occurrence, and the second number
indicates the total amount the insurer will pay for
all covered occurrences during the policy term
Limit - Single - ANSWER-Establishes 1 maximum limit for
liability damages
caused by the policyholder. Contrast with
split limits
Limit - Split - ANSWER-An insurance provision that specifies
different coverage limits for different parts of a claim. The most
, common example is split limits in a personal auto policy, which
includes 3 different limits of liability: (1)
maximum limit for bodily injury for any one individual, (2)
maximum limit for bodily injury to multiple people
in any one accident or occurrence, and (3) maximum limit for
property damage in any one accident or occurrence.
Litigation - ANSWER-An action brought in court. Litigation
takes place when an
insurer and a policyholder disagree
about a
settlement amount and cannot resolve their differences
through any sort of
negotiation.
Livestock Floater - ANSWER-Optional farm insurance
coverage. Provides stand-alone protection for six kinds of
domesticated animals on a scheduled or unscheduled basis.
Includes coverage for animals while in transit.
Longshore and Harbor
Workers' Compensation
Act - ANSWER-Federal program that provides compensation
and medical care to employees who are injured while on the
job on navigable waters of the United States.
Real Exam Questions & Answers | With Well Elaborated and
Verified Questions |100% Verified solutions | 2025 Latest!!
Liability - Product - ANSWER-Protects a policyholder from legal
liability for
damages to third parties caused by the manufacturing,
merchandising, distributing, or operation of a product
Liability - Professional - ANSWER-Professional Liability
Coverage protects professionals such as doctors, lawyers,
engineers, architects, etc. It includes two types of coverage:
malpractice insurance and errors and omissions insurance
Liability - Public - ANSWER-Protects individuals and
commercial venues from
any property damage or personal injury they
may cause
to the general
public
,Libel - ANSWER-Damage to another's name or reputation in
print. See also:
"Defamation."
Liberalization - ANSWER-The liberalization clause in an
insurance contract is a
condition that states that the insurer
can add or
broaden coverage at any time without writing up a new
contract. This clause
guarantees that, in the
case
of legislative action that broadens insurance coverage without
any increase in
premiums, this
additional
coverage must take effect in existing policies as well as
in new policies.
License - ANSWER-A document that shows that a person has
been granted
authority by the state to act as an
insurance
agent, broker, or
adjuster
,Limit - ANSWER-The limits of an insurance policy represent the
highest amount
an insurer will pay. Any cost
above the
limits of insurance is the responsibility of the
policyholder.
Limit - Aggregate - ANSWER-The total amount the insurer will
pay for all losses during the policy period. Often appears
preceded by an
occurrence limit (e.g. 100,000/1,000,000). The first number
indicates the maximum payout for covered
losses in any single occurrence, and the second number
indicates the total amount the insurer will pay for
all covered occurrences during the policy term
Limit - Single - ANSWER-Establishes 1 maximum limit for
liability damages
caused by the policyholder. Contrast with
split limits
Limit - Split - ANSWER-An insurance provision that specifies
different coverage limits for different parts of a claim. The most
, common example is split limits in a personal auto policy, which
includes 3 different limits of liability: (1)
maximum limit for bodily injury for any one individual, (2)
maximum limit for bodily injury to multiple people
in any one accident or occurrence, and (3) maximum limit for
property damage in any one accident or occurrence.
Litigation - ANSWER-An action brought in court. Litigation
takes place when an
insurer and a policyholder disagree
about a
settlement amount and cannot resolve their differences
through any sort of
negotiation.
Livestock Floater - ANSWER-Optional farm insurance
coverage. Provides stand-alone protection for six kinds of
domesticated animals on a scheduled or unscheduled basis.
Includes coverage for animals while in transit.
Longshore and Harbor
Workers' Compensation
Act - ANSWER-Federal program that provides compensation
and medical care to employees who are injured while on the
job on navigable waters of the United States.
