ADJUSTER PRO - FLORIDA CERTIFIED
ADJUSTER GLOSSARY
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)
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)
Adhesion - correct Answers -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 (CropInsurance) - 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. 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.
Adjuster - Independent - correct Answers -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 - correct Answers -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.
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,Adjuster - Staff - correct Answers -Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - correct Answers -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 - correct Answers -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 - correct Answers -Authority that is expressly given to the agent in writing.
Allows agent to act on behalf of the principal.
Aency Authority - implied - correct Answers -Authority that an agent possesses by implication of his
behavior, regardless of whether this authority is expressly granted in writing.
Agency Authority - apparent - correct Answers -Authority that an agent possesses based on the
appearance of representing an insurer.
Agent - correct Answers -Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - correct Answers -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.
Agreement - correct Answers -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 - correct Answers -A business that grows, harvests, and sells crops for profit.
Aleatory - correct Answers -A characteristic of insurance contracts; means depending on an unknown
future event."
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, Answer - correct Answers -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.
Annual Depreciation - correct Answers -An item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - correct Answers -A negotiation 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 asettlement amount. If they cannot agree, the Umpire steps in. Agreement by any two of
thethree is binding.
Arbitration - correct Answers -A negotiation 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 ofeach opposing side, and makes a final and legally binding decision.
Arbitrator - correct Answers -The mutually-agreed-upon and neutral third party in an arbitration who
reviews the positions ofeach opposing side, and makes a final and legally binding decision.
Auto Policy - correct Answers -Insurance policy designed to protect the policyholder while owning,
occupying, or operating avehicle. Usually combines liability coverage and property coverage into one
policy.
Automobile - correct Answers -In Insurance policies, Automobile generally means any vehicle designed
for use on publicroads.
Automobile No-fault Laws - correct Answers -Insurance that indemnifies the insured regardless of who
was at fault in an accident; also restrict the insured's right to sue the at-fault party.
Aviation - correct Answers -Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not passengers.
Bailee - correct Answers -An individual or company that receives the property of someone else for a
special purpose, and returns the product after use.
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ADJUSTER GLOSSARY
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)
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)
Adhesion - correct Answers -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 (CropInsurance) - 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. 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.
Adjuster - Independent - correct Answers -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 - correct Answers -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.
1
,Adjuster - Staff - correct Answers -Salaried employee of one insurance company who can work locally,
regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement - correct Answers -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 - correct Answers -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 - correct Answers -Authority that is expressly given to the agent in writing.
Allows agent to act on behalf of the principal.
Aency Authority - implied - correct Answers -Authority that an agent possesses by implication of his
behavior, regardless of whether this authority is expressly granted in writing.
Agency Authority - apparent - correct Answers -Authority that an agent possesses based on the
appearance of representing an insurer.
Agent - correct Answers -Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit - correct Answers -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.
Agreement - correct Answers -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 - correct Answers -A business that grows, harvests, and sells crops for profit.
Aleatory - correct Answers -A characteristic of insurance contracts; means depending on an unknown
future event."
2
, Answer - correct Answers -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.
Annual Depreciation - correct Answers -An item's Replacement cost divided by the number of years in its
expected lifespan.
Appraisal - correct Answers -A negotiation 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 asettlement amount. If they cannot agree, the Umpire steps in. Agreement by any two of
thethree is binding.
Arbitration - correct Answers -A negotiation 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 ofeach opposing side, and makes a final and legally binding decision.
Arbitrator - correct Answers -The mutually-agreed-upon and neutral third party in an arbitration who
reviews the positions ofeach opposing side, and makes a final and legally binding decision.
Auto Policy - correct Answers -Insurance policy designed to protect the policyholder while owning,
occupying, or operating avehicle. Usually combines liability coverage and property coverage into one
policy.
Automobile - correct Answers -In Insurance policies, Automobile generally means any vehicle designed
for use on publicroads.
Automobile No-fault Laws - correct Answers -Insurance that indemnifies the insured regardless of who
was at fault in an accident; also restrict the insured's right to sue the at-fault party.
Aviation - correct Answers -Aviation insurance combines hull insurance for the aircraft and liability
insurance for any damage to others' property or to people who are not passengers.
Bailee - correct Answers -An individual or company that receives the property of someone else for a
special purpose, and returns the product after use.
3
