8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
Alabama Adjusters License Exam Questions &
Answers | With Well Elaborated and Verified
Questions |100% Verified solutions | 2025\2026
Latest!!
Save
Terms in this set (362)
Covers expenses associated with a covered accident
and can extend to ambulance and emergency room
Accident Insurance expenses, intensive care, and hospital costs. Accident
insurance also provides for loss of income, and a
death benefit if injuries prove fatal
The total decrease in an item's value over a period of
Accumulated time. Formula: (annual depreciation x number of
Depreciation years used). Subtract this number from the item's
replacement cost to get its actual cash value (ACV).
In crop insurance, the deadline for providing the
insurer with an acreage report, which is used to
Acreage Reporting Date
determine the amount of coverage needed and the
premium charged for a particular crop.
A valuation method used by insurers to reflect an
item's current market value right before being
Actual Cash Value (ACV) damaged
or destroyed. Formula: (replacement cost -
accumulated depreciation)
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 1/44
,8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
A history of a farmer's crop yields over a multi-year
Actual Production History period, which is used to determine the normal
production level of a farm.
Characteristic of an insurance contract. Means that
Adhesion one party (the insurer) sets the terms, and the other
(the policyholder) can "take it or leave it.
Narrowest (and least expensive) form of crop revenue
Adjusted Gross Revenue insurance. Insures farm revenue as a whole
(Crop Insurance) instead of individual crops. Guarantees a percentage
of the insured farm's average revenue.
An agent who, for compensation, processes insurance
claims. The adjuster investigates the damages,
Adjuster evaluates the claim, and makes a fair and equitable
settlement based on the insurance contract. Can
represent either the insured or the insurer.
Adjusters who are temporarily licensed by the
insurance commissioner to handle claims during
Adjuster - Emergency catastrophes or emergencies that produce an
overwhelming number of claims in a short period of
time.
Self-employed adjusters who contract with multiple
insurers at the same time. Paid on a commission or
Adjuster - Independent
fee-plus-expenses basis for each claim. Also called:
Fee Adjuster, Bureau Adjuster.
An adjuster who is hired to represent the claimant and
help determine a fair indemnification. Usually
Adjuster - Public
specializes in appraisals and negotiation. Paid
commission, usually a percentage of final settlement.
Salaried employee of one insurance company who
Adjuster - Staff can work locally, regionally, or nationally. Also called:
Company Adjuster
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 2/44
,8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
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
Advance Payment
payments to the claimant, which are then subtracted
Settlement
from
the final settlement amount. Often used when a
claimant suffers bodily injury and is unable to work.
The agent's authority to act on behalf of someone
else (the principal), usually an insurer. This authority is
Agency Authority
derived from the agent's contract with the principal. It
can be apparent, express, or implied
Indirect authority that the agent can reasonably be
assumed to have, based on appearances. If an
Agency Authority - adjuster is equipped to represent an insurer (with the
Apparent insurer's permission), then an individual can assume
that the adjuster has the authority to act on the
insurer's behalf.
Authority that is expressly given to the agent in
Agency Authority -
writing. Allows the agent to act on behalf of the
Express
principal.
Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is
Agency Authority - granted in writing. For example, a person portraying
Implied herself as a representative for an insurance
company, even though she is not employed by that
company.
Someone who has received authority from an insurer
Agent (Insurance)
to sell or service insurance policies.
A valued policy in which the insurer and the insured
agree to a specific value for an item, appraised at the
Agreed Value inception of the policy. Often used to insure items
whose value is difficult to quantify, such as antiques or
fine art. Also called a Guaranteed Value policy.
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 3/44
, 8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
One of the four requirements of a legally binding
contract. All parties involved must agree to the terms
Agreement of
the contract. Can also refer to a binder, which is the
preliminary substance of a contract.
A business that grows, harvests, and sells crops for
Agricultural Producer
profit.
A characteristic of an insurance contract. Means
"depending on an unknown future event." An
insurance
Aleatory
contract will only pay IF and WHEN covered damages
occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
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
Answer
complaint, or 3) accept the complaint with a right to
insert
evidence into the case.
An item's replacement cost divided by the number of
Annual Depreciation
years in its expected lifespan.
An uncontrolled inland marine form that covers loss
Annual Transit of goods in transit. It applies to all of the insured's
shipments during the year.
A dispute resolution method which allows the
claimant and the insurer each to select an appraiser.
The
Appraisal two appraisers in turn select an umpire. The appraisers
then work together to determine a settlement
amount. If they cannot agree, the umpire steps in.
Agreement by any two of the three is binding.
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 4/44
Alabama Adjusters License Exam Questions &
Answers | With Well Elaborated and Verified
Questions |100% Verified solutions | 2025\2026
Latest!!
Save
Terms in this set (362)
Covers expenses associated with a covered accident
and can extend to ambulance and emergency room
Accident Insurance expenses, intensive care, and hospital costs. Accident
insurance also provides for loss of income, and a
death benefit if injuries prove fatal
The total decrease in an item's value over a period of
Accumulated time. Formula: (annual depreciation x number of
Depreciation years used). Subtract this number from the item's
replacement cost to get its actual cash value (ACV).
In crop insurance, the deadline for providing the
insurer with an acreage report, which is used to
Acreage Reporting Date
determine the amount of coverage needed and the
premium charged for a particular crop.
A valuation method used by insurers to reflect an
item's current market value right before being
Actual Cash Value (ACV) damaged
or destroyed. Formula: (replacement cost -
accumulated depreciation)
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 1/44
,8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
A history of a farmer's crop yields over a multi-year
Actual Production History period, which is used to determine the normal
production level of a farm.
Characteristic of an insurance contract. Means that
Adhesion one party (the insurer) sets the terms, and the other
(the policyholder) can "take it or leave it.
Narrowest (and least expensive) form of crop revenue
Adjusted Gross Revenue insurance. Insures farm revenue as a whole
(Crop Insurance) instead of individual crops. Guarantees a percentage
of the insured farm's average revenue.
An agent who, for compensation, processes insurance
claims. The adjuster investigates the damages,
Adjuster evaluates the claim, and makes a fair and equitable
settlement based on the insurance contract. Can
represent either the insured or the insurer.
Adjusters who are temporarily licensed by the
insurance commissioner to handle claims during
Adjuster - Emergency catastrophes or emergencies that produce an
overwhelming number of claims in a short period of
time.
Self-employed adjusters who contract with multiple
insurers at the same time. Paid on a commission or
Adjuster - Independent
fee-plus-expenses basis for each claim. Also called:
Fee Adjuster, Bureau Adjuster.
An adjuster who is hired to represent the claimant and
help determine a fair indemnification. Usually
Adjuster - Public
specializes in appraisals and negotiation. Paid
commission, usually a percentage of final settlement.
Salaried employee of one insurance company who
Adjuster - Staff can work locally, regionally, or nationally. Also called:
Company Adjuster
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 2/44
,8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
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
Advance Payment
payments to the claimant, which are then subtracted
Settlement
from
the final settlement amount. Often used when a
claimant suffers bodily injury and is unable to work.
The agent's authority to act on behalf of someone
else (the principal), usually an insurer. This authority is
Agency Authority
derived from the agent's contract with the principal. It
can be apparent, express, or implied
Indirect authority that the agent can reasonably be
assumed to have, based on appearances. If an
Agency Authority - adjuster is equipped to represent an insurer (with the
Apparent insurer's permission), then an individual can assume
that the adjuster has the authority to act on the
insurer's behalf.
Authority that is expressly given to the agent in
Agency Authority -
writing. Allows the agent to act on behalf of the
Express
principal.
Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is
Agency Authority - granted in writing. For example, a person portraying
Implied herself as a representative for an insurance
company, even though she is not employed by that
company.
Someone who has received authority from an insurer
Agent (Insurance)
to sell or service insurance policies.
A valued policy in which the insurer and the insured
agree to a specific value for an item, appraised at the
Agreed Value inception of the policy. Often used to insure items
whose value is difficult to quantify, such as antiques or
fine art. Also called a Guaranteed Value policy.
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 3/44
, 8/17/25, 11:41 AM Alabama Adjusters License Exam Questions & Answers | With Well Elaborated and Verified Questions |100% Verified solutions | 2…
One of the four requirements of a legally binding
contract. All parties involved must agree to the terms
Agreement of
the contract. Can also refer to a binder, which is the
preliminary substance of a contract.
A business that grows, harvests, and sells crops for
Agricultural Producer
profit.
A characteristic of an insurance contract. Means
"depending on an unknown future event." An
insurance
Aleatory
contract will only pay IF and WHEN covered damages
occur. Neither party knows how much the contract
will end up paying when they enter into the contract.
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
Answer
complaint, or 3) accept the complaint with a right to
insert
evidence into the case.
An item's replacement cost divided by the number of
Annual Depreciation
years in its expected lifespan.
An uncontrolled inland marine form that covers loss
Annual Transit of goods in transit. It applies to all of the insured's
shipments during the year.
A dispute resolution method which allows the
claimant and the insurer each to select an appraiser.
The
Appraisal two appraisers in turn select an umpire. The appraisers
then work together to determine a settlement
amount. If they cannot agree, the umpire steps in.
Agreement by any two of the three is binding.
https://quizlet.com/1066195629/alabama-adjusters-license-exam-questions-answers-with-well-elaborated-and-verified-questions-100-verified-solution… 4/44
