ADJUSTER PRO CERTIFICATION GLOSSARY OF TERMS EXAM
259 QUESTIONS WITH 100% COMPLETE SOLUTIONS/2023/A+
GRADE
Accumulated Depreciation Correct Answer:
... [Show More] 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.
ADJUSTER PRO CERTIFICATION GLOSSARY OF TERMS EXAM
259 QUESTIONS WITH 100% COMPLETE SOLUTIONS/2023/A+
GRADE
Aency 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. [Show Less]