Adjuster Pro - Florida Certified Adjuster Glossary| 260 QUESTIONS/LATEST VERSION /GRADED A
Accumulated Depreciation Correct Answer: The total
... [Show More] 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 (CropInsurance) 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 commission, 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.
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.
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; means depending on an unknown future event."
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. [Show Less]