South Carolina Adjuster Licensing Exam questions and answers.

Abandonment Condition A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Absolute Liability Type of liability imposed by law on those participating in certain activities that are coered particularly hazardous; person may be held liabile even though they were not negligent. 6 Ways to Show Appreciation for Your Child's Teacher 0:14 / 0:54 Accident A loss that occurs at a specific time and place. Accounts Recivable Insurance Filed commercial inland marine form that insures against loss the insured suffers becuase of an inability to collect from customers when accounts receivable records are damaged or destroyed. Actual Cash Value (ACV) the cost to replace an item of property at the time of loss, less an allowance for depreciation; ofter used to determine the amount of reimbursement for a loss Additional Coverages Supplemental Insurance coverages that apply only in certain circumstances, have reduced or separate limits of liability, or require the insured to meet certain requirements before the y are applicable; also called coverage extensions, other coverages, and extended coverages Additional Insured An individual or company , in additiona to the insured, who is listed in the declarations; an example is a mortgage company that has insurable intrest in the property insured Additonal Insured-Lessor Endorsement commercial auto endorsement used to make leased vehicles considered owned vehicles for coverage purposes Adhesion Contract a contract where one party has more power than the other party in drafting the contract; an insurance policy is an adhesion contract---the insurer is the one with more power Adverse Selection the tendancy of insureds with a greater-than-average chance of loss to purchase insurance Agency Principles governing the authority of any agent that represents a principle Agent an individual or organization that legally represents another; a state-licensed professional who prepresents the insurance company in the sale and servicing of insurance; the direct link between the insurance company and policyholder Aggregate limit Type of policy limit found in liability policies that limits coverage to a specified tootal amount for all losses occuring within the policy period Agreed Value Condition Condition found in some property insurance policies that stipulates a certain value that will meet the coinsurance requirement Aleatory Contract A contract that is contingent on an uncertain event (loss); an insurance policy is an aleatory contract Alien Company An insurance company incorporated in any other country other than the United States that is doing business in the United States A.M. Best Company Organization that rates the financial stability of insurance companies doing businessin the United States Annual Transit Policy Nonfiled commercial inland marine transportation form that insures property owner's incoming or outgoing shipments of goods during a year. Apparent authority Legal doctrine that states that an agent has whatever authority a reasonable person would assume she has application questionaire filled out by an agent and the prospect who is seeking insurance; the form contains information used to underwrite and rate the policy Apprasial condition policy condition that outlines a procedure for when the insured and insurer disagree on the amount of a loss; each party selects their own appraiser, and the two appraisers selelct and umpire Appurenant Sturctures Buildings of lesser value that are on the same premsises as the main buliding insured unnder a property policy; they are usually covered by the policy Arbitration Condition Policy condition that is similar to the appraisal condition; may be used to resolve other areas of disagreement besides those regarding loss of value Assessment Mutual Company Mutual insurance company that charges members a pro-rata share of losses at end of each policy perod Assignment Condition when a policy may not be transferred to anyone else without the written consent of insurer unless the named insured dies Assumption of Risk a doctrine under which a plaintiff may not recover for injuries or damage suffered from risks he or she knew of and voluntarily assumed Authorized User company that meets a state insurance departments standards and is authorized to do business in that state; also called an admitted insurer Automatic Increase in Insurance Endorsement If a dwelling is currently insured for $200,000 and the rate of inflation is 4% at the next renewal of the policy, then the coverage will be increased to $208,000 at renewal, and the insured will be charged premium on $208,000 instead of $200,000.; could also be by 6%, or 8% Automobile Insurance Plan Makes auto insurance available to motorists who are unable to obtain insurance in the voluntary market Aviation Hull Insurance Insurance that provides coverage for pysical damage to aircraft Aviation Liability Insurance Insurance provided for owners of aircraft that covers liability for bodily injury, injury to passengers, and property damamge; also provides medical payments coverage Bailee person having temporary possession and control of another person's goods, holding them in trust for a specified purpose