Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
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Structured Settlement - CORRECT ANSWERS A settlement option whereby the insurer indemnifies
the claimant in a series of smaller payments over a set period of time, instead of paying all at once.
Typically reserved for claims involving a very large settlement amount, and the insurer often has to pay
some of the amount in a lump sum up front.
Subrogation - CORRECT ANSWERS The transfer of rights that occurs when an insurer indemnifies a
claimant for a loss. The claimant transfers to the insurer his right to collect the amount of the indemnity
from the guilty party.
Sudden and Accidental
Tearing Apart - CORRECT ANSWERS A peril covered in some property insurance policies. It refers to
damage caused by rupture, cracking,
burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire
sprinkler
system, or an appliance for heating water. Unlike accidental discharge, this peril includes coverage for
the system or appliance itself
Supplementary Payments - CORRECT ANSWERS Coverage provided in liability policies to help with
a variety of expenses that the insured may incur at the request of the insurer in the event of a claim or
lawsuit, such as lost wages, bail bonds, and records filing fees. It is separate from, and not restricted by,
the liability limits of the policy.
Surety Bonds - CORRECT ANSWERS An arrangement where one party promises to perform for
another party, and a third party guarantees this
promise. Then, if the party making the promise does not perform, the third-party steps in to fulfill the
obligation. This is not insurance because it involves three parties instead of two. Also known as a
"Suretyship." See also: "Principal," "Obligee" and "Surety (Guarantor)."
Surety (Guarantor) - CORRECT ANSWERS With regard to a surety bond, the surety is the party
(often an insurance or bonding company) that
guarantees the obligee that the principal will fulfill its contractual obligations. If the principal fails to
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
perform, the surety will pay the bond amount to the obligee and then go after the principal to recover
their losses. See also: "Principal" and "Obligee."
Surgical Expense
Insurance - CORRECT ANSWERS Provides indemnification for physician costs associated with
surgical procedures.
Third Party Administrator
(TPA) - CORRECT ANSWERS A licensed organization that collects premiums and processes claims for
an insurer; basically, a company doing another company's outsourced administrative tasks. The risk of
loss remains with the insurer, not the TPA.
Third Party Claim - CORRECT ANSWERS A claim filed against an insurance policy by a third party not
named on that policy. Used for liability claims
Time Element Coverage - CORRECT ANSWERS Provides coverage for an indirect loss that occurs as
the result of a direct loss, when covered property can't be used and therefore causes an indirect loss.
Usually an endorsement within a commercial package policy
Tort - CORRECT ANSWERS Any civil wrongdoing, whether intentional or unintentional, resulting in a
court action to remedy.
Tort - Intentional - CORRECT ANSWERS A premeditated wrongful act that causes intentional or
intentional damages to another party.
Tort - Negligent - CORRECT ANSWERS When a negligent act causes unintentional damages to
another party.
Tort law - CORRECT ANSWERS The body of law that addresses and provides remedies for any civil
wrongdoing performed on another
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
party.
Tortfeasor - CORRECT ANSWERS The defendant in a court case who committed the tort; also
known as the defendant
Transitional yield - CORRECT ANSWERS County 10-year yield average as determined by the
National Agricultural Statistical Service. Used when issuing a crop insurance policy to a farmer who lacks
four years of yield records on which to base coverage and premium amounts.
Transportations Form - CORRECT ANSWERS An Inland Marine form designed to cover businesses
that ship or receive merchandise, as well as cargo while in transit. This can include travel by truck, train,
ship, mail, or plane
Trigger - CORRECT ANSWERS An event that "triggers" the coverage provided under a Commercial
general liability (CGL) policy: in claims-made, it is a claim, in occurrence form, it is the "occurrence."
Trip Transit - CORRECT ANSWERS An uncontrolled Inland Marine coverage form which insures a
single shipment. Coverage applies from the trip origination point to its destination.
Trustworthiness - CORRECT ANSWERS The virtue of carrying out responsibilities reliably, worthy of
being trusted. A necessary attribute of insurance adjusters
Umbrella Liability Policy - CORRECT ANSWERS An umbrella policy provides liability coverage over
and above the normal or base limits of liability in a policy. An umbrella policy is a type of Excess Liability.
Uncontrolled Line Floaters - CORRECT ANSWERS As opposed to controlled line floaters, which are
standard forms, uncontrolled line floaters are nonstandard forms tailored to meet the needs of the
insured. They are not filed with state departments of insurance. They cover movable property and are
typically used in Inland Marine insurance.
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Underinsured - CORRECT ANSWERS Not sufficiently insured against particular losses. For example,
any home insured at less than 80% of its value is considered underinsured.
Unfair Claim Settlement
Practices - CORRECT ANSWERS Dishonest or unfair behavior related to settling insurance claims
which is specifically proscribed by state law.
Unilateral - CORRECT ANSWERS A characteristic of insurance contracts. It means that only one of
the parties (the insurer) makes a
promise to perform. The insurer is obligated to fulfill this promise, whereas the insured is free to void
the contract at any time
Uninsurable - CORRECT ANSWERS Risks are said to be uninsurable when they do not meet certain
qualifications. For example, an insurable risk cannot involve a loss that the insured deliberately causes.
Certain perils are too catastrophic to be insurable (like war or nuclear events).
Unscheduled - CORRECT ANSWERS Unscheduled property is property covered under an insurance
contract that is not listed item by item (as
"Scheduled" property would be listed).
U.S. Environmental
Protection Agency - CORRECT ANSWERS Federal agency primarily responsible for the
implementation of most federal laws designed to protect, enhance, and conserve the nation's natural
resources.
Utmost Good Faith - CORRECT ANSWERS A characteristic of insurance contracts: 'utmost' meaning
the 'highest degree' and 'good faith' meaning,
"act with honesty, fair dealing and full disclosure." All parties to an insurance contract must act with
utmost good faith. It also applies to a fiduciary agent's responsibility towards the principal.
and answers 100%Correctly verified answers latest update
RATED A+
Structured Settlement - CORRECT ANSWERS A settlement option whereby the insurer indemnifies
the claimant in a series of smaller payments over a set period of time, instead of paying all at once.
Typically reserved for claims involving a very large settlement amount, and the insurer often has to pay
some of the amount in a lump sum up front.
Subrogation - CORRECT ANSWERS The transfer of rights that occurs when an insurer indemnifies a
claimant for a loss. The claimant transfers to the insurer his right to collect the amount of the indemnity
from the guilty party.
Sudden and Accidental
Tearing Apart - CORRECT ANSWERS A peril covered in some property insurance policies. It refers to
damage caused by rupture, cracking,
burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire
sprinkler
system, or an appliance for heating water. Unlike accidental discharge, this peril includes coverage for
the system or appliance itself
Supplementary Payments - CORRECT ANSWERS Coverage provided in liability policies to help with
a variety of expenses that the insured may incur at the request of the insurer in the event of a claim or
lawsuit, such as lost wages, bail bonds, and records filing fees. It is separate from, and not restricted by,
the liability limits of the policy.
Surety Bonds - CORRECT ANSWERS An arrangement where one party promises to perform for
another party, and a third party guarantees this
promise. Then, if the party making the promise does not perform, the third-party steps in to fulfill the
obligation. This is not insurance because it involves three parties instead of two. Also known as a
"Suretyship." See also: "Principal," "Obligee" and "Surety (Guarantor)."
Surety (Guarantor) - CORRECT ANSWERS With regard to a surety bond, the surety is the party
(often an insurance or bonding company) that
guarantees the obligee that the principal will fulfill its contractual obligations. If the principal fails to
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
perform, the surety will pay the bond amount to the obligee and then go after the principal to recover
their losses. See also: "Principal" and "Obligee."
Surgical Expense
Insurance - CORRECT ANSWERS Provides indemnification for physician costs associated with
surgical procedures.
Third Party Administrator
(TPA) - CORRECT ANSWERS A licensed organization that collects premiums and processes claims for
an insurer; basically, a company doing another company's outsourced administrative tasks. The risk of
loss remains with the insurer, not the TPA.
Third Party Claim - CORRECT ANSWERS A claim filed against an insurance policy by a third party not
named on that policy. Used for liability claims
Time Element Coverage - CORRECT ANSWERS Provides coverage for an indirect loss that occurs as
the result of a direct loss, when covered property can't be used and therefore causes an indirect loss.
Usually an endorsement within a commercial package policy
Tort - CORRECT ANSWERS Any civil wrongdoing, whether intentional or unintentional, resulting in a
court action to remedy.
Tort - Intentional - CORRECT ANSWERS A premeditated wrongful act that causes intentional or
intentional damages to another party.
Tort - Negligent - CORRECT ANSWERS When a negligent act causes unintentional damages to
another party.
Tort law - CORRECT ANSWERS The body of law that addresses and provides remedies for any civil
wrongdoing performed on another
,Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
party.
Tortfeasor - CORRECT ANSWERS The defendant in a court case who committed the tort; also
known as the defendant
Transitional yield - CORRECT ANSWERS County 10-year yield average as determined by the
National Agricultural Statistical Service. Used when issuing a crop insurance policy to a farmer who lacks
four years of yield records on which to base coverage and premium amounts.
Transportations Form - CORRECT ANSWERS An Inland Marine form designed to cover businesses
that ship or receive merchandise, as well as cargo while in transit. This can include travel by truck, train,
ship, mail, or plane
Trigger - CORRECT ANSWERS An event that "triggers" the coverage provided under a Commercial
general liability (CGL) policy: in claims-made, it is a claim, in occurrence form, it is the "occurrence."
Trip Transit - CORRECT ANSWERS An uncontrolled Inland Marine coverage form which insures a
single shipment. Coverage applies from the trip origination point to its destination.
Trustworthiness - CORRECT ANSWERS The virtue of carrying out responsibilities reliably, worthy of
being trusted. A necessary attribute of insurance adjusters
Umbrella Liability Policy - CORRECT ANSWERS An umbrella policy provides liability coverage over
and above the normal or base limits of liability in a policy. An umbrella policy is a type of Excess Liability.
Uncontrolled Line Floaters - CORRECT ANSWERS As opposed to controlled line floaters, which are
standard forms, uncontrolled line floaters are nonstandard forms tailored to meet the needs of the
insured. They are not filed with state departments of insurance. They cover movable property and are
typically used in Inland Marine insurance.
, Alabama Adjusters License Test Exam with 362questions
and answers 100%Correctly verified answers latest update
RATED A+
Underinsured - CORRECT ANSWERS Not sufficiently insured against particular losses. For example,
any home insured at less than 80% of its value is considered underinsured.
Unfair Claim Settlement
Practices - CORRECT ANSWERS Dishonest or unfair behavior related to settling insurance claims
which is specifically proscribed by state law.
Unilateral - CORRECT ANSWERS A characteristic of insurance contracts. It means that only one of
the parties (the insurer) makes a
promise to perform. The insurer is obligated to fulfill this promise, whereas the insured is free to void
the contract at any time
Uninsurable - CORRECT ANSWERS Risks are said to be uninsurable when they do not meet certain
qualifications. For example, an insurable risk cannot involve a loss that the insured deliberately causes.
Certain perils are too catastrophic to be insurable (like war or nuclear events).
Unscheduled - CORRECT ANSWERS Unscheduled property is property covered under an insurance
contract that is not listed item by item (as
"Scheduled" property would be listed).
U.S. Environmental
Protection Agency - CORRECT ANSWERS Federal agency primarily responsible for the
implementation of most federal laws designed to protect, enhance, and conserve the nation's natural
resources.
Utmost Good Faith - CORRECT ANSWERS A characteristic of insurance contracts: 'utmost' meaning
the 'highest degree' and 'good faith' meaning,
"act with honesty, fair dealing and full disclosure." All parties to an insurance contract must act with
utmost good faith. It also applies to a fiduciary agent's responsibility towards the principal.
