Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
Punitive Damages - CORRECT ANSWERS Intangible damages awarded to the plaintiff when the
defendant's actions show intentional heinous,
antisocial behavior or extreme indifference to harm. These damages are determined by the court and
the
adjuster cannot negotiate them.
Rating System - CORRECT ANSWERS A risk management technique by which insurers identify
hazards, assign risks to different classes, and set
premiums accordingly. There are also rating systems whereby agencies rate different insurers' financial
well-being, to educate the public and try to prevent insurer insolvency.
Rebate - CORRECT ANSWERS Refunding part of a premium, due to the creation of a new contract
or change to an existing contract
Reciprocal Insurer - CORRECT ANSWERS An unincorporated organization of subscribers that
operates through an attorney-in-fact to provide
insurance benefits for its members.
Reinsurers - CORRECT ANSWERS Companies which sell insurance to insurers to reduce the insurer's
exposure to loss.
Replacement Cost (RC) - CORRECT ANSWERS A method of valuation based on the cost of replacing
an item at current market prices, regardless of
depreciation
Reporting - CORRECT ANSWERS One of the adjuster's duties is to report to the principal. The
adjuster must give the principal frequent
updates of her progress on any given claim.
Reservation of Rights - CORRECT ANSWERS A notification that an insurer might give to an insured,
informing him that a reported loss might not be
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
covered under his insurance policy
Residual Market - CORRECT ANSWERS State run, or state subsidized, program that provides
insurance coverage to high-risk individuals. Residual
market programs collect and maintain large premium pools made of required contributions from other
insurers. Also known as "Shared Markets" or "Involuntary Markets."
Retroactive date - CORRECT ANSWERS Date preceding a policy period before which the policy will
not cover occurrences.
Revenue Protection (Crop
Insurance) - CORRECT ANSWERS This MPCI policy insures against losses caused by low yield, low
prices, or a combination of both. This
coverage is broader than yield protection, since it can account for falling prices as well as poor
production. The revenue guarantee is based on the higher of: harvest-market price or early market
price.
Previously called Crop Revenue Coverage (CRC).
Revenue Assurance (Crop
Insurance) Protection
Guarantee - CORRECT ANSWERS A form of crop revenue insurance that provides a fixed revenue
guarantee based on average county
prices.
Risk - CORRECT ANSWERS In the insurance industry, risk can have two meanings: 1) the potential
for financial loss; being exposed or
open to damage, and 2) an insured item.
Risk - Pure - CORRECT ANSWERS Risk that does not entail the possibility of gain; the only possible
outcomes are a loss or no loss. Insurable
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
(as opposed to speculative risk which is uninsurable).
Risk - Speculative - CORRECT ANSWERS Risk that might result in gain, loss, or no change in
circumstance (as opposed to pure risk, which does not
include the possibility of gain). Uninsurable
Risk Avoidance - CORRECT ANSWERS Insurers' practice of denying insurance applications that they
believe would involve an inordinate amount
of risk.
Risk Management - CORRECT ANSWERS Measures taken by an insurance company to ensure that
their exposure is not too high and to control the
effect of a loss; for example, an insurer might charge higher premiums to drivers who have received
speeding tickets
Risk Management Agency - CORRECT ANSWERS A federal agency under the USDA that administers
the Federal Crop Insurance Program.
Risk Purchasing Groups - CORRECT ANSWERS Groups of people with similar insurance needs who
form an organization to buy insurance as a group.
Risk Reduction - CORRECT ANSWERS An insurer practices risk reduction when it takes precautions
in order to reduce its exposure; for example,
requiring that all homes insured by a homeowners policy have fire alarms installed.
Risk Retention - CORRECT ANSWERS An insurer practices risk retention when it chooses to insure a
risk instead of denying coverage.
Risk Retention Group
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
(RRG) - CORRECT ANSWERS A group in which the members insure each other, using their own
capital to write insurance policies
Sales Closing Date - CORRECT ANSWERS The last date on which an insurance application for a
particular crop can be completed and signed
Salvage - CORRECT ANSWERS Salvage is damaged property that has cash value. In homeowners
insurance, the policyholder has the
option of keeping the salvage and accepting a smaller settlement from the insurer. The insurer has the
option of keeping the salvage if they have fully indemnified the insured.
Scheduled Payment
Release - CORRECT ANSWERS Sometimes called "open-ended release" or "rehabilitation
settlement." The insurer agrees to pay all of the
special damages and general damages that have accumulated so far, and agrees to pay special
damages in the future.
Settlement - CORRECT ANSWERS A resolution of a dispute, or an agreement. Settlement allows an
insurer and a claimant to resolve a case
before it reaches a court of law.
Settlement Padding - CORRECT ANSWERS Increasing the settlement amount dishonestly in order to
increase one's commission. This is unethical and
criminal behavior
Severability of Interests - CORRECT ANSWERS An insurance provision that states that coverage
applies to each insured separately, as if no other insured
existed. Each individual insured is protected as a separate entity, even against other insureds (if one
insured were to file a claim against another insured), but the limits of the policy still apply to all insureds
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
Punitive Damages - CORRECT ANSWERS Intangible damages awarded to the plaintiff when the
defendant's actions show intentional heinous,
antisocial behavior or extreme indifference to harm. These damages are determined by the court and
the
adjuster cannot negotiate them.
Rating System - CORRECT ANSWERS A risk management technique by which insurers identify
hazards, assign risks to different classes, and set
premiums accordingly. There are also rating systems whereby agencies rate different insurers' financial
well-being, to educate the public and try to prevent insurer insolvency.
Rebate - CORRECT ANSWERS Refunding part of a premium, due to the creation of a new contract
or change to an existing contract
Reciprocal Insurer - CORRECT ANSWERS An unincorporated organization of subscribers that
operates through an attorney-in-fact to provide
insurance benefits for its members.
Reinsurers - CORRECT ANSWERS Companies which sell insurance to insurers to reduce the insurer's
exposure to loss.
Replacement Cost (RC) - CORRECT ANSWERS A method of valuation based on the cost of replacing
an item at current market prices, regardless of
depreciation
Reporting - CORRECT ANSWERS One of the adjuster's duties is to report to the principal. The
adjuster must give the principal frequent
updates of her progress on any given claim.
Reservation of Rights - CORRECT ANSWERS A notification that an insurer might give to an insured,
informing him that a reported loss might not be
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
covered under his insurance policy
Residual Market - CORRECT ANSWERS State run, or state subsidized, program that provides
insurance coverage to high-risk individuals. Residual
market programs collect and maintain large premium pools made of required contributions from other
insurers. Also known as "Shared Markets" or "Involuntary Markets."
Retroactive date - CORRECT ANSWERS Date preceding a policy period before which the policy will
not cover occurrences.
Revenue Protection (Crop
Insurance) - CORRECT ANSWERS This MPCI policy insures against losses caused by low yield, low
prices, or a combination of both. This
coverage is broader than yield protection, since it can account for falling prices as well as poor
production. The revenue guarantee is based on the higher of: harvest-market price or early market
price.
Previously called Crop Revenue Coverage (CRC).
Revenue Assurance (Crop
Insurance) Protection
Guarantee - CORRECT ANSWERS A form of crop revenue insurance that provides a fixed revenue
guarantee based on average county
prices.
Risk - CORRECT ANSWERS In the insurance industry, risk can have two meanings: 1) the potential
for financial loss; being exposed or
open to damage, and 2) an insured item.
Risk - Pure - CORRECT ANSWERS Risk that does not entail the possibility of gain; the only possible
outcomes are a loss or no loss. Insurable
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
(as opposed to speculative risk which is uninsurable).
Risk - Speculative - CORRECT ANSWERS Risk that might result in gain, loss, or no change in
circumstance (as opposed to pure risk, which does not
include the possibility of gain). Uninsurable
Risk Avoidance - CORRECT ANSWERS Insurers' practice of denying insurance applications that they
believe would involve an inordinate amount
of risk.
Risk Management - CORRECT ANSWERS Measures taken by an insurance company to ensure that
their exposure is not too high and to control the
effect of a loss; for example, an insurer might charge higher premiums to drivers who have received
speeding tickets
Risk Management Agency - CORRECT ANSWERS A federal agency under the USDA that administers
the Federal Crop Insurance Program.
Risk Purchasing Groups - CORRECT ANSWERS Groups of people with similar insurance needs who
form an organization to buy insurance as a group.
Risk Reduction - CORRECT ANSWERS An insurer practices risk reduction when it takes precautions
in order to reduce its exposure; for example,
requiring that all homes insured by a homeowners policy have fire alarms installed.
Risk Retention - CORRECT ANSWERS An insurer practices risk retention when it chooses to insure a
risk instead of denying coverage.
Risk Retention Group
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
2025/2026 RATED A+
(RRG) - CORRECT ANSWERS A group in which the members insure each other, using their own
capital to write insurance policies
Sales Closing Date - CORRECT ANSWERS The last date on which an insurance application for a
particular crop can be completed and signed
Salvage - CORRECT ANSWERS Salvage is damaged property that has cash value. In homeowners
insurance, the policyholder has the
option of keeping the salvage and accepting a smaller settlement from the insurer. The insurer has the
option of keeping the salvage if they have fully indemnified the insured.
Scheduled Payment
Release - CORRECT ANSWERS Sometimes called "open-ended release" or "rehabilitation
settlement." The insurer agrees to pay all of the
special damages and general damages that have accumulated so far, and agrees to pay special
damages in the future.
Settlement - CORRECT ANSWERS A resolution of a dispute, or an agreement. Settlement allows an
insurer and a claimant to resolve a case
before it reaches a court of law.
Settlement Padding - CORRECT ANSWERS Increasing the settlement amount dishonestly in order to
increase one's commission. This is unethical and
criminal behavior
Severability of Interests - CORRECT ANSWERS An insurance provision that states that coverage
applies to each insured separately, as if no other insured
existed. Each individual insured is protected as a separate entity, even against other insureds (if one
insured were to file a claim against another insured), but the limits of the policy still apply to all insureds
