ADJUSTER PRO CERTIFICATION GLOSSARY OF TERMS EXAM
259 QUESTIONS WITH 100% COMPLETE SOLUTIONS/2023/A+
GRADE
Aency Authority - implied Correct Answer:
... [Show More] 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 right to insert evidence into the case.
Annual Depreciation Correct Answer: An item?s Replacement cost divided by the number of
years in its expected lifespan.
Appraisal Correct Answer: 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 a settlement amount. If they cannot agree, the Umpire steps in. Agreement
by any two of the three is binding.
Arbitration Correct Answer: 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 of each opposing side, and makes a final and legally binding
decision.
ADJUSTER PRO CERTIFICATION GLOSSARY OF TERMS EXAM
259 QUESTIONS WITH 100% COMPLETE SOLUTIONS/2023/A+
GRADE
Arbitrator Correct Answer: The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each opposing side, and makes a final and legally binding decision.
Auto Policy Correct Answer: Insurance policy designed to protect the policyholder while
owning, occupying, or operating a vehicle. Usually combines liability coverage and property
coverage into one policy.
Automobile Correct Answer: In Insurance policies, Automobile generally means any vehicle
designed for use on public roads.
Automobile No-fault Laws Correct Answer: Laws in effect in some states that require any
owner of a vehicle to purchase no-fault insurance; that is, insurance that indemnifies the insured
regardless of who was at fault in an accident. No- fault laws also res [Show Less]