Alabama Adjusters License
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1. Accident Insur- Covers expenses associated with a covered accident and can extend to ambulance
ance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for
loss of income, and a
death benefit if injuries prove fatal
2. Accumulated De- The total decrease in an item's value over a period of time. Formula: (annual
preciation depreciation x number of
years used). Subtract this number from the item's replacement cost to get its
actual cash value (ACV).
3. Acreage Report- In crop insurance, the deadline for providing the insurer with an acreage report,
ing Date which is used to
determine the amount of coverage needed and the premium charged for a
particular crop.
4. Actual Cash Val- A valuation method used by insurers to reflect an item's current market value right
ue (ACV) before being damaged
or destroyed. Formula: (replacement cost - accumulated depreciation)
5. Actual Produc- A history of a farmer's crop yields over a multi-year period, which is used to
tion History determine the normal
production level of a farm.
6. Adhesion Characteristic of an insurance contract. Means that one party (the insurer) sets the
terms, and the other
(the policyholder) can "take it or leave it.
7. Adjusted Gross Narrowest (and least expensive) form of crop revenue insurance. Insures farm
Revenue revenue as a whole
(Crop Insurance) instead of individual crops. Guarantees a percentage of the insured farm's aver-
age revenue.
, Alabama Adjusters License
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8. Adjuster An agent who, for compensation, processes insurance claims. The adjuster inves-
tigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the
insurance contract. Can
represent either the insured or the insurer.
9. Adjuster - Emer- Adjusters who are temporarily licensed by the insurance commissioner to handle
gency claims during
catastrophes or emergencies that produce an overwhelming number of claims in
a short period of time.
10. Adjuster - Inde- Self-employed adjusters who contract with multiple insurers at the same time.
pendent Paid on a commission or
fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster.
11. Adjuster - Public An adjuster who is hired to represent the claimant and help determine a fair
indemnification. Usually
specializes in appraisals and negotiation. Paid commission, usually a percentage
of final settlement.
12. Adjuster - Staff Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called:
Company Adjuster
13. Advance Pay- A settlement option that lets the insurer offer some financial relief to the claimant
ment before the claim has
Settlement been fully settled. The insurer makes advance payments to the claimant, which are
then subtracted from
the final settlement amount. Often used when a claimant suffers bodily injury and
is unable to work.
14. Agency Authority The agent's authority to act on behalf of someone else (the principal), usually an
insurer. This authority is
, Alabama Adjusters License
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derived from the agent's contract with the principal. It can be apparent, express,
or implied
15. Agency Authority Indirect authority that the agent can reasonably be assumed to have, based on
- appearances. If an
Apparent adjuster is equipped to represent an insurer (with the insurer's permission), then
an individual can assume
that the adjuster has the authority to act on the insurer's behalf.
16. Agency Authority Authority that is expressly given to the agent in writing. Allows the agent to act on
- behalf of the principal.
Express
17. Agency Authority Authority that an agent possesses by implication of her behavior, regardless of
- Implied whether this authority is
granted in writing. For example, a person portraying herself as a representative
for an insurance
company, even though she is not employed by that company.
18. Agent (Insur- Someone who has received authority from an insurer to sell or service insurance
ance) policies.
19. Agreed Value A valued policy in which the insurer and the insured agree to a specific value for
an item, appraised at the
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.
20. Agreement One of the four requirements of a legally binding contract. All parties involved
must agree to the terms of
the contract. Can also refer to a binder, which is the preliminary substance of a
contract.
, Alabama Adjusters License
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21. Agricultural Pro- A business that grows, harvests, and sells crops for profit.
ducer
22. Aleatory A characteristic of an insurance contract. Means "depending on an unknown
future event." An insurance
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.
23. Answer 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 complaint, or 3) accept the complaint
with a right to insert
evidence into the case.
24. Annual Deprecia- An item's replacement cost divided by the number of years in its expected lifespan.
tion
25. Annual Transit An uncontrolled inland marine form that covers loss of goods in transit. It applies
to all of the insured's
shipments during the year.
26. Appraisal A dispute resolution method which allows the claimant and the insurer each to
select an appraiser. The
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.
27. Arbitration A dispute resolution method in which the opposing parties each submit their
evidence to a mutuallyagreed-
upon and neutral third party, called an arbitrator. The arbitrator reviews the
Study online at https://quizlet.com/_huu5n1
1. Accident Insur- Covers expenses associated with a covered accident and can extend to ambulance
ance and emergency room
expenses, intensive care, and hospital costs. Accident insurance also provides for
loss of income, and a
death benefit if injuries prove fatal
2. Accumulated De- The total decrease in an item's value over a period of time. Formula: (annual
preciation depreciation x number of
years used). Subtract this number from the item's replacement cost to get its
actual cash value (ACV).
3. Acreage Report- In crop insurance, the deadline for providing the insurer with an acreage report,
ing Date which is used to
determine the amount of coverage needed and the premium charged for a
particular crop.
4. Actual Cash Val- A valuation method used by insurers to reflect an item's current market value right
ue (ACV) before being damaged
or destroyed. Formula: (replacement cost - accumulated depreciation)
5. Actual Produc- A history of a farmer's crop yields over a multi-year period, which is used to
tion History determine the normal
production level of a farm.
6. Adhesion Characteristic of an insurance contract. Means that one party (the insurer) sets the
terms, and the other
(the policyholder) can "take it or leave it.
7. Adjusted Gross Narrowest (and least expensive) form of crop revenue insurance. Insures farm
Revenue revenue as a whole
(Crop Insurance) instead of individual crops. Guarantees a percentage of the insured farm's aver-
age revenue.
, Alabama Adjusters License
Study online at https://quizlet.com/_huu5n1
8. Adjuster An agent who, for compensation, processes insurance claims. The adjuster inves-
tigates the damages,
evaluates the claim, and makes a fair and equitable settlement based on the
insurance contract. Can
represent either the insured or the insurer.
9. Adjuster - Emer- Adjusters who are temporarily licensed by the insurance commissioner to handle
gency claims during
catastrophes or emergencies that produce an overwhelming number of claims in
a short period of time.
10. Adjuster - Inde- Self-employed adjusters who contract with multiple insurers at the same time.
pendent Paid on a commission or
fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster.
11. Adjuster - Public An adjuster who is hired to represent the claimant and help determine a fair
indemnification. Usually
specializes in appraisals and negotiation. Paid commission, usually a percentage
of final settlement.
12. Adjuster - Staff Salaried employee of one insurance company who can work locally, regionally, or
nationally. Also called:
Company Adjuster
13. Advance Pay- A settlement option that lets the insurer offer some financial relief to the claimant
ment before the claim has
Settlement been fully settled. The insurer makes advance payments to the claimant, which are
then subtracted from
the final settlement amount. Often used when a claimant suffers bodily injury and
is unable to work.
14. Agency Authority The agent's authority to act on behalf of someone else (the principal), usually an
insurer. This authority is
, Alabama Adjusters License
Study online at https://quizlet.com/_huu5n1
derived from the agent's contract with the principal. It can be apparent, express,
or implied
15. Agency Authority Indirect authority that the agent can reasonably be assumed to have, based on
- appearances. If an
Apparent adjuster is equipped to represent an insurer (with the insurer's permission), then
an individual can assume
that the adjuster has the authority to act on the insurer's behalf.
16. Agency Authority Authority that is expressly given to the agent in writing. Allows the agent to act on
- behalf of the principal.
Express
17. Agency Authority Authority that an agent possesses by implication of her behavior, regardless of
- Implied whether this authority is
granted in writing. For example, a person portraying herself as a representative
for an insurance
company, even though she is not employed by that company.
18. Agent (Insur- Someone who has received authority from an insurer to sell or service insurance
ance) policies.
19. Agreed Value A valued policy in which the insurer and the insured agree to a specific value for
an item, appraised at the
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.
20. Agreement One of the four requirements of a legally binding contract. All parties involved
must agree to the terms of
the contract. Can also refer to a binder, which is the preliminary substance of a
contract.
, Alabama Adjusters License
Study online at https://quizlet.com/_huu5n1
21. Agricultural Pro- A business that grows, harvests, and sells crops for profit.
ducer
22. Aleatory A characteristic of an insurance contract. Means "depending on an unknown
future event." An insurance
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.
23. Answer 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 complaint, or 3) accept the complaint
with a right to insert
evidence into the case.
24. Annual Deprecia- An item's replacement cost divided by the number of years in its expected lifespan.
tion
25. Annual Transit An uncontrolled inland marine form that covers loss of goods in transit. It applies
to all of the insured's
shipments during the year.
26. Appraisal A dispute resolution method which allows the claimant and the insurer each to
select an appraiser. The
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.
27. Arbitration A dispute resolution method in which the opposing parties each submit their
evidence to a mutuallyagreed-
upon and neutral third party, called an arbitrator. The arbitrator reviews the
