Adjuster Pro - Florida Certified Adjuster
Glossary _ Q&A
Accumulated Depreciation Correct Ans - 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 Ans - 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 Ans - 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 (CropInsurance) Correct Ans - 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 Ans - An agent who, for compensation, processes insurance claims.
Can represent either the insured or the insurer.
Adjuster - Emergency Correct Ans - 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 Ans - 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 Ans - 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 Ans - Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement Correct Ans - 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 Ans - 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 Ans - Authority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Aency Authority - implied Correct Ans - Authority that an agent possesses by
implication of his behavior, clothing etc, regardless of whether this authority is expressly
granted in writing.
Agency Authority - apparent Correct Ans - Authority that an agent possesses based
on the appearance of representing an insurer.
Indirect authority granted when the insurer does not act even when the agent is incorrect
Agent Correct Ans - Someone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit Correct Ans - 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.
Agreement Correct Ans - 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 Ans - A business that grows, harvests, and sells crops
for profit.
Aleatory Correct Ans - A characteristic of insurance contracts; means depending on
an unknown future event."
Answer Correct Ans - 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.
Annual Depreciation Correct Ans - An item's Replacement cost divided by the
number of years in its expected lifespan.
Appraisal Correct Ans - A negotiation 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 asettlement amount. If they cannot agree, the
Umpire steps in. Agreement by any two of thethree is binding.
Arbitration Correct Ans - A negotiation method in which the opposing parties each
submit their evidence to a mutually-agreed-upon and neutral third party, called an
arbitrator. The arbitrator reviews the positions ofeach opposing side, and makes a final and
legally binding decision.
, Arbitrator Correct Ans - The mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions ofeach opposing side, and makes a final and legally
binding decision.
Auto Policy Correct Ans - Insurance policy designed to protect the policyholder
while owning, occupying, or operating avehicle. Usually combines liability coverage and
property coverage into one policy.
Automobile Correct Ans - In Insurance policies, Automobile generally means any
vehicle designed for use on publicroads.
Automobile No-fault Laws Correct Ans - Insurance that indemnifies the insured
regardless of who was at fault in an accident; also restrict the insured's right to sue the at-
fault party.
Aviation Correct Ans - Aviation insurance combines hull insurance for the aircraft
and liability insurance for any damage to others' property or to people who are not
passengers.
Bailee Correct Ans - An individual or company that receives the property of
someone else for a special purpose, and returns the product after use.
BAP Correct Ans - The Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
Binder Correct Ans - A temporary contract provided by an insurer that ensures
coverage until the complete, permanent policy is issued.
BI Correct Ans - (Bodily Injury): Physical damage to someone's person.
Body Language Correct Ans - The signals we give through posture, behaviour,
apparel, etc., which are involved in communication.
Boiler & Machinery Correct Ans - Insurance designed to indemnify a business for
damages to, and damages by, boilers, machinery, motors, generators and a variety of other
electrical devices and appliances.
Bond Correct Ans - A contract wherein one party guarantees the performance of a
third party. Bonds involve three parties: (1) the surety agrees to pay the second party (2)
the obligee if the third party (3) the principal neglects to carry out an obligation it has to
the obligee.
Breach of Product Warranty Correct Ans - The failure or falsehood of a stated
promise of a product stipulation.
Glossary _ Q&A
Accumulated Depreciation Correct Ans - 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 Ans - 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 Ans - 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 (CropInsurance) Correct Ans - 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 Ans - An agent who, for compensation, processes insurance claims.
Can represent either the insured or the insurer.
Adjuster - Emergency Correct Ans - 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 Ans - 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 Ans - 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 Ans - Salaried employee of one insurance company who can
work locally, regionally, or nationally. Also called: Company Adjuster
Advance Payment Settlement Correct Ans - 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 Ans - 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 Ans - Authority that is expressly given to the
agent in writing. Allows agent to act on behalf of the principal.
Aency Authority - implied Correct Ans - Authority that an agent possesses by
implication of his behavior, clothing etc, regardless of whether this authority is expressly
granted in writing.
Agency Authority - apparent Correct Ans - Authority that an agent possesses based
on the appearance of representing an insurer.
Indirect authority granted when the insurer does not act even when the agent is incorrect
Agent Correct Ans - Someone who has received authority from an insurer to sell or
service insurance policies.
Aggregate Limit Correct Ans - 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.
Agreement Correct Ans - 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 Ans - A business that grows, harvests, and sells crops
for profit.
Aleatory Correct Ans - A characteristic of insurance contracts; means depending on
an unknown future event."
Answer Correct Ans - 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.
Annual Depreciation Correct Ans - An item's Replacement cost divided by the
number of years in its expected lifespan.
Appraisal Correct Ans - A negotiation 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 asettlement amount. If they cannot agree, the
Umpire steps in. Agreement by any two of thethree is binding.
Arbitration Correct Ans - A negotiation method in which the opposing parties each
submit their evidence to a mutually-agreed-upon and neutral third party, called an
arbitrator. The arbitrator reviews the positions ofeach opposing side, and makes a final and
legally binding decision.
, Arbitrator Correct Ans - The mutually-agreed-upon and neutral third party in an
arbitration who reviews the positions ofeach opposing side, and makes a final and legally
binding decision.
Auto Policy Correct Ans - Insurance policy designed to protect the policyholder
while owning, occupying, or operating avehicle. Usually combines liability coverage and
property coverage into one policy.
Automobile Correct Ans - In Insurance policies, Automobile generally means any
vehicle designed for use on publicroads.
Automobile No-fault Laws Correct Ans - Insurance that indemnifies the insured
regardless of who was at fault in an accident; also restrict the insured's right to sue the at-
fault party.
Aviation Correct Ans - Aviation insurance combines hull insurance for the aircraft
and liability insurance for any damage to others' property or to people who are not
passengers.
Bailee Correct Ans - An individual or company that receives the property of
someone else for a special purpose, and returns the product after use.
BAP Correct Ans - The Business Auto Policy provides property damage and liability
insurance for automobiles used by a business.
Binder Correct Ans - A temporary contract provided by an insurer that ensures
coverage until the complete, permanent policy is issued.
BI Correct Ans - (Bodily Injury): Physical damage to someone's person.
Body Language Correct Ans - The signals we give through posture, behaviour,
apparel, etc., which are involved in communication.
Boiler & Machinery Correct Ans - Insurance designed to indemnify a business for
damages to, and damages by, boilers, machinery, motors, generators and a variety of other
electrical devices and appliances.
Bond Correct Ans - A contract wherein one party guarantees the performance of a
third party. Bonds involve three parties: (1) the surety agrees to pay the second party (2)
the obligee if the third party (3) the principal neglects to carry out an obligation it has to
the obligee.
Breach of Product Warranty Correct Ans - The failure or falsehood of a stated
promise of a product stipulation.
