SC Property, Casualty, Surety, Marine Exam Questions with correct Answers

Accumulated Depreciation - ANSWER-The total decrease in an item's value over a period of time. Formula:(Annual Depreciation x Number ofyears used) 1-J Acreage Reporting Date - ANSWER-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. 3-E Actual Cash Value (ACV) - 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) 1-J Actual Production History - 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. 3-E Adhesion - 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."1-B Adjusted Gross Revenue (Crop Insurance) - 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. 3-E Adjuster - ANSWER-An agent who, for compensation, processes insurance claims. Can represent either the insured or the insurer. 2-B Adjuster - Emergency - 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. 2-B