Alabama Adjusters License Exam Questions
With Correct Answers
Accident |Insurance |- |CORRECT |ANSWER✔✔-Covers |expenses |associated |with |a |covered |
accident |and |can |extend |to |ambulance |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
Accumulated |Depreciation |- |CORRECT |ANSWER✔✔-The |total |decrease |in |an |item's |value |over |
a |period |of |time. |Formula: |(annual |depreciation |x |number |of
years |used). |Subtract |this |number |from |the |item's |replacement |cost |to |get |its |actual |cash |
value |(ACV).
Acreage |Reporting |Date |- |CORRECT |ANSWER✔✔-In |crop |insurance, |the |deadline |for |providing |
the |insurer |with |an |acreage |report, |which |is |used |to
determine |the |amount |of |coverage |needed |and |the |premium |charged |for |a |particular |crop.
Actual |Cash |Value |(ACV) |- |CORRECT |ANSWER✔✔-A |valuation |method |used |by |insurers |to |
reflect |an |item's |current |market |value |right |before |being |damaged
or |destroyed. |Formula: |(replacement |cost |- |accumulated |depreciation)
Actual |Production |History |- |CORRECT |ANSWER✔✔-A |history |of |a |farmer's |crop |yields |over |a |
multi-year |period, |which |is |used |to |determine |the |normal
production |level |of |a |farm.
Adhesion |- |CORRECT |ANSWER✔✔-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.
Adjusted |Gross |Revenue
(Crop |Insurance) |- |CORRECT |ANSWER✔✔-Narrowest |(and |least |expensive) |form |of |crop |
revenue |insurance. |Insures |farm |revenue |as |a |whole
instead |of |individual |crops. |Guarantees |a |percentage |of |the |insured |farm's |average |revenue.
Adjuster |- |CORRECT |ANSWER✔✔-An |agent |who, |for |compensation, |processes |insurance |
claims. |The |adjuster |investigates |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.
Adjuster |- |Emergency |- |CORRECT |ANSWER✔✔-Adjusters |who |are |temporarily |licensed |by |the |
insurance |commissioner |to |handle |claims |during
catastrophes |or |emergencies |that |produce |an |overwhelming |number |of |claims |in |a |short |
period |of |time.
Adjuster |- |Independent |- |CORRECT |ANSWER✔✔-Self-employed |adjusters |who |contract |with |
multiple |insurers |at |the |same |time. |Paid |on |a |commission |or
fee-plus-expenses |basis |for |each |claim. |Also |called: |Fee |Adjuster, |Bureau |Adjuster.
Adjuster |- |Public |- |CORRECT |ANSWER✔✔-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.
Adjuster |- |Staff |- |CORRECT |ANSWER✔✔-Salaried |employee |of |one |insurance |company |who |
can |work |locally, |regionally, |or |nationally. |Also |called:
,Company |Adjuster
Advance |Payment
Settlement |- |CORRECT |ANSWER✔✔-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 |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.
Agency |Authority |- |CORRECT |ANSWER✔✔-The |agent's |authority |to |act |on |behalf |of |someone |
else |(the |principal), |usually |an |insurer. |This |authority |is
derived |from |the |agent's |contract |with |the |principal. |It |can |be |apparent, |express, |or |implied
Agency |Authority |-
Apparent |- |CORRECT |ANSWER✔✔-Indirect |authority |that |the |agent |can |reasonably |be |
assumed |to |have, |based |on |appearances. |If |an
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.
Agency |Authority |-
Express |- |CORRECT |ANSWER✔✔-Authority |that |is |expressly |given |to |the |agent |in |writing. |
Allows |the |agent |to |act |on |behalf |of |the |principal.
Agency |Authority |- |Implied |- |CORRECT |ANSWER✔✔-Authority |that |an |agent |possesses |by |
implication |of |her |behavior, |regardless |of |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.
Agent |(Insurance) |- |CORRECT |ANSWER✔✔-Someone |who |has |received |authority |from |an |
insurer |to |sell |or |service |insurance |policies.
Agreed |Value |- |CORRECT |ANSWER✔✔-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.
Agreement |- |CORRECT |ANSWER✔✔-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.
Agricultural |Producer |- |CORRECT |ANSWER✔✔-A |business |that |grows, |harvests, |and |sells |crops
|for |profit.
Aleatory |- |CORRECT |ANSWER✔✔-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.
Answer |- |CORRECT |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.
With Correct Answers
Accident |Insurance |- |CORRECT |ANSWER✔✔-Covers |expenses |associated |with |a |covered |
accident |and |can |extend |to |ambulance |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
Accumulated |Depreciation |- |CORRECT |ANSWER✔✔-The |total |decrease |in |an |item's |value |over |
a |period |of |time. |Formula: |(annual |depreciation |x |number |of
years |used). |Subtract |this |number |from |the |item's |replacement |cost |to |get |its |actual |cash |
value |(ACV).
Acreage |Reporting |Date |- |CORRECT |ANSWER✔✔-In |crop |insurance, |the |deadline |for |providing |
the |insurer |with |an |acreage |report, |which |is |used |to
determine |the |amount |of |coverage |needed |and |the |premium |charged |for |a |particular |crop.
Actual |Cash |Value |(ACV) |- |CORRECT |ANSWER✔✔-A |valuation |method |used |by |insurers |to |
reflect |an |item's |current |market |value |right |before |being |damaged
or |destroyed. |Formula: |(replacement |cost |- |accumulated |depreciation)
Actual |Production |History |- |CORRECT |ANSWER✔✔-A |history |of |a |farmer's |crop |yields |over |a |
multi-year |period, |which |is |used |to |determine |the |normal
production |level |of |a |farm.
Adhesion |- |CORRECT |ANSWER✔✔-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.
Adjusted |Gross |Revenue
(Crop |Insurance) |- |CORRECT |ANSWER✔✔-Narrowest |(and |least |expensive) |form |of |crop |
revenue |insurance. |Insures |farm |revenue |as |a |whole
instead |of |individual |crops. |Guarantees |a |percentage |of |the |insured |farm's |average |revenue.
Adjuster |- |CORRECT |ANSWER✔✔-An |agent |who, |for |compensation, |processes |insurance |
claims. |The |adjuster |investigates |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.
Adjuster |- |Emergency |- |CORRECT |ANSWER✔✔-Adjusters |who |are |temporarily |licensed |by |the |
insurance |commissioner |to |handle |claims |during
catastrophes |or |emergencies |that |produce |an |overwhelming |number |of |claims |in |a |short |
period |of |time.
Adjuster |- |Independent |- |CORRECT |ANSWER✔✔-Self-employed |adjusters |who |contract |with |
multiple |insurers |at |the |same |time. |Paid |on |a |commission |or
fee-plus-expenses |basis |for |each |claim. |Also |called: |Fee |Adjuster, |Bureau |Adjuster.
Adjuster |- |Public |- |CORRECT |ANSWER✔✔-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.
Adjuster |- |Staff |- |CORRECT |ANSWER✔✔-Salaried |employee |of |one |insurance |company |who |
can |work |locally, |regionally, |or |nationally. |Also |called:
,Company |Adjuster
Advance |Payment
Settlement |- |CORRECT |ANSWER✔✔-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 |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.
Agency |Authority |- |CORRECT |ANSWER✔✔-The |agent's |authority |to |act |on |behalf |of |someone |
else |(the |principal), |usually |an |insurer. |This |authority |is
derived |from |the |agent's |contract |with |the |principal. |It |can |be |apparent, |express, |or |implied
Agency |Authority |-
Apparent |- |CORRECT |ANSWER✔✔-Indirect |authority |that |the |agent |can |reasonably |be |
assumed |to |have, |based |on |appearances. |If |an
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.
Agency |Authority |-
Express |- |CORRECT |ANSWER✔✔-Authority |that |is |expressly |given |to |the |agent |in |writing. |
Allows |the |agent |to |act |on |behalf |of |the |principal.
Agency |Authority |- |Implied |- |CORRECT |ANSWER✔✔-Authority |that |an |agent |possesses |by |
implication |of |her |behavior, |regardless |of |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.
Agent |(Insurance) |- |CORRECT |ANSWER✔✔-Someone |who |has |received |authority |from |an |
insurer |to |sell |or |service |insurance |policies.
Agreed |Value |- |CORRECT |ANSWER✔✔-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.
Agreement |- |CORRECT |ANSWER✔✔-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.
Agricultural |Producer |- |CORRECT |ANSWER✔✔-A |business |that |grows, |harvests, |and |sells |crops
|for |profit.
Aleatory |- |CORRECT |ANSWER✔✔-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.
Answer |- |CORRECT |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.
