Claims Adjuster Glossary of Terms
Questions With Correct Answers
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)
| | | |
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) |
Adhesion - CORRECT ANSWER✔✔-One of the characteristics of an
| | | | | | | | |
insurance contract. Means that one party (the insurer) sets the terms,
| | | | | | | | | | |
and the other (the insured) 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. 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 commision,
| | | | | | | |
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, usually an insurer. This authority is derived
| | | | | | | | | | | |
from the agent's contract with the insurer.
| | | | | |
Agency Authority - express - CORRECT ANSWER✔✔-Authority that is
| | | | | | | | |
expressly given to the agent in writing. Allows agent to act on behalf of
| | | | | | | | | | | | | |
the principal.
|
Agency Authority - implied - CORRECT ANSWER✔✔-Authority that an
| | | | | | | | |
agent possesses by implication of his behavior, regardless of whether
| | | | | | | | | |
this authority is expressly granted in writing.
| | | | | |
Agency Authority - apparent - CORRECT ANSWER✔✔-Authority that an
| | | | | | | | |
agent possesses based on the appearance of representing an insurer.
| | | | | | | | |
Agent - CORRECT ANSWER✔✔-Someone who has received authority
| | | | | | | |
from an insurer to sell or service insurance policies.
| | | | | | | |
, Aggregate Limit - CORRECT ANSWER✔✔-A type of policy limit found in
| | | | | | | | | | |
some health, liability, and property damage policies. It represents the
| | | | | | | | | |
total amount the insurer will pay for all losses (as opposed to an
| | | | | | | | | | | | |
occurrence limit, which denotes the total amount the insurer will pay
| | | | | | | | | | |
per occurrence).
|
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 insurance
| | | | | | |
contracts. Aleatory 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
| | | |
Questions With Correct Answers
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)
| | | |
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) |
Adhesion - CORRECT ANSWER✔✔-One of the characteristics of an
| | | | | | | | |
insurance contract. Means that one party (the insurer) sets the terms,
| | | | | | | | | | |
and the other (the insured) 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. 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 commision,
| | | | | | | |
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, usually an insurer. This authority is derived
| | | | | | | | | | | |
from the agent's contract with the insurer.
| | | | | |
Agency Authority - express - CORRECT ANSWER✔✔-Authority that is
| | | | | | | | |
expressly given to the agent in writing. Allows agent to act on behalf of
| | | | | | | | | | | | | |
the principal.
|
Agency Authority - implied - CORRECT ANSWER✔✔-Authority that an
| | | | | | | | |
agent possesses by implication of his behavior, regardless of whether
| | | | | | | | | |
this authority is expressly granted in writing.
| | | | | |
Agency Authority - apparent - CORRECT ANSWER✔✔-Authority that an
| | | | | | | | |
agent possesses based on the appearance of representing an insurer.
| | | | | | | | |
Agent - CORRECT ANSWER✔✔-Someone who has received authority
| | | | | | | |
from an insurer to sell or service insurance policies.
| | | | | | | |
, Aggregate Limit - CORRECT ANSWER✔✔-A type of policy limit found in
| | | | | | | | | | |
some health, liability, and property damage policies. It represents the
| | | | | | | | | |
total amount the insurer will pay for all losses (as opposed to an
| | | | | | | | | | | | |
occurrence limit, which denotes the total amount the insurer will pay
| | | | | | | | | | |
per occurrence).
|
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 insurance
| | | | | | |
contracts. Aleatory 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
| | | |
