Exam FX- Property and Casualty Glossary | 118 Question and Answers (A+ guide solution)

Abandonment - The abdication of insured property into the hands of another, or into the possession of no one in particular. Accident - An unplanned, unforeseen event which occurs suddenly and at a specific place. Actual Cash Value (ACV) - The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation. Additional Coverage - A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium. Additional Insureds - Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. Adhesion - A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted Insurer - An insurance company authorized and licensed to transact business in a particular state. Adverse Selection - The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agent - An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer.