ADJUSTER PRO INSURANCE ADJUSTER
ACTUAL PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● 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)
●● Adhesion.
Answer: One of the characteristics of an insurance contract. Means that
one party (the insurer) sets the
terms, and the other (the insured) 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.
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 - Staff.
Answer: Salaried employee of one insurance company who can work
locally, regionally, or nationally.
Also called: Company 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 commision,
usually a percentage of final
settlement.
●● 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, usually
an insurer. This authority is
derived from the agent's contract with the insurer.
●● Agency Authority - express.
Answer: Authority that is expressly given to the agent in writing. Allows
agent to act on behalf of the
, principal.
●● Aency Authority - implied.
Answer: Authority that an agent possesses by implication of his
behavior, regardless of whether this
authority is expressly granted in writing.
●● Agency Authority - apparent.
Answer: Authority that an agent possesses based on the appearance of
representing an insurer.
●● Agent.
Answer: Someone who has received authority from an insurer to sell or
service insurance policies.
●● Aggregate Limit.
Answer: A type of policy limit found in some health, liability, and
property damage policies. It represents
the total amount the insurer will pay for all losses (as opposed to an
occurrence limit, which
denotes the total amount the insurer will pay per occurrence).
●● Agreement.
ACTUAL PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
●● 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)
●● Adhesion.
Answer: One of the characteristics of an insurance contract. Means that
one party (the insurer) sets the
terms, and the other (the insured) 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.
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 - Staff.
Answer: Salaried employee of one insurance company who can work
locally, regionally, or nationally.
Also called: Company 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 commision,
usually a percentage of final
settlement.
●● 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, usually
an insurer. This authority is
derived from the agent's contract with the insurer.
●● Agency Authority - express.
Answer: Authority that is expressly given to the agent in writing. Allows
agent to act on behalf of the
, principal.
●● Aency Authority - implied.
Answer: Authority that an agent possesses by implication of his
behavior, regardless of whether this
authority is expressly granted in writing.
●● Agency Authority - apparent.
Answer: Authority that an agent possesses based on the appearance of
representing an insurer.
●● Agent.
Answer: Someone who has received authority from an insurer to sell or
service insurance policies.
●● Aggregate Limit.
Answer: A type of policy limit found in some health, liability, and
property damage policies. It represents
the total amount the insurer will pay for all losses (as opposed to an
occurrence limit, which
denotes the total amount the insurer will pay per occurrence).
●● Agreement.
