Claims Adjuster Glossary of Terms Questions and Answers Updated 2026

Claims Adjuster
Glossary of Terms
Questions and Answers
Updated 2026
AccumulatedBDepreciationB-
BAnswerTheBtotalBdecreaseBinBanBitem'sBvalueBoverBaBperiodBofBtime.BFormula:B(Annu
alBDepreciationBxBNumberBofByearsBused)



ActualBCashBValueB(ACV)B-
BAnswerABvaluationBmethodBusedBbyBinsurersBtoBreflectBanBitem'sBcurrentBmarketBval
ueBrightBbeforeBbeingBdamagedBorBdestroyed.BFormula:B(ReplacementBcostB-
BAccumulatedBDepreciation)



AdhesionB-
BAnswerOneBofBtheBcharacteristicsBofBanBinsuranceBcontract.BMeansBthatBoneBpartyB(t
heBinsurer)BsetsBtheBterms,BandBtheBotherB(theBinsured)BcanB'takeBitBorBleaveBit.'



AdjustedBGrossBRevenueB(CropBInsurance)B-
BAnswerNarrowestB(andBleastBexpensive)BformBofBCropBRevenueBInsurance.BInsuresBfar
mBrevenueBasBaBwholeBinsteadBofBindividualBcrops.BGuaranteesBaBpercentageBofBtheBi
nsuredBfarm'sBaverageBrevenue.



AdjusterB-
BAnswerAnBagentBwho,BforBcompensation,BprocessesBinsuranceBclaims.BCanBrepresentB
eitherBtheBinsuredBorBtheBinsurer.



AdjusterB-BEmergencyB-
BAnswerAdjustersBwhoBareBtemporarilyBlicensedBbyBtheBinsuranceBcommissionerBtoBha
ndleBclaimsBduringBcatastrophesBorBemergenciesBthatBproduceBanBoverwhelmingBnumb
erBofBclaimsBinBaBshortBperiodBofBtime.

,Adjuster-IndependentB-BAnswerSelf-
employedBadjustersBwhoBcontractBwithBmultipleBinsurersBatBtheBsameBtime.BPaidBonBa
BcommissionBorBfee-plus-
expensesBbasisBforBeachBclaim.BAlsoBcalled:FeeBAdjuster,BBureauBAdjuster



Adjuster-PublicB-
BAnswerAnBadjusterBwhoBisBhiredBtoBrepresentBtheBclaimantBandBhelpBdetermineBaBfai
rBindemnification.BUsuallyBspecializesBinBappraisalsBandBnegotiation.BPaidBcommision,Bu
suallyBaBpercentageBofBfinalBsettlement.



Adjuster-StaffB-
BAnswerSalariedBemployeeBofBoneBinsuranceBcompanyBwhoBcanBworkBlocally,Bregionall
y,BorBnationally.BAlsoBcalled:BCompanyBAdjuster



AdvanceBPaymentBSettlementB-
BAnswerABsettlementBoptionBthatBletsBtheBinsurerBofferBsomeBfinancialBreliefBtoBtheBcl
aimantBbeforeBtheBclaimBhasBbeenBfullyBsettled.BTheBinsurerBmakesBadvanceBpayments
BtoBtheBclaimant,BwhichBareBthenBsubtractedBfromBtheBfinalBsettlementBamount.BOften
BusedBwhenBaBclaimantBsuffersBbodilyBinjuryBandBisBunableBtoBwork.



AgencyBAuthorityB-
BAnswerTheBAgent'sBauthorityBtoBactBonBbehalfBofBsomeoneBelse,BusuallyBanBinsurer.B
ThisBauthorityBisBderivedBfromBtheBagent'sBcontractBwithBtheBinsurer.



AgencyBAuthorityB-BexpressB-
BAnswerAuthorityBthatBisBexpresslyBgivenBtoBtheBagentBinBwriting.BAllowsBagentBtoBact
BonBbehalfBofBtheBprincipal.



AgencyBAuthorityB-BimpliedB-
BAnswerAuthorityBthatBanBagentBpossessesBbyBimplicationBofBhisBbehavior,BregardlessB
ofBwhetherBthisBauthorityBisBexpresslyBgrantedBinBwriting.

,AgencyBAuthorityB-BapparentB-
BAnswerAuthorityBthatBanBagentBpossessesBbasedBonBtheBappearanceBofBrepresentingB
anBinsurer.



AgentB-
BAnswerSomeoneBwhoBhasBreceivedBauthorityBfromBanBinsurerBtoBsellBorBserviceBinsur
anceBpolicies.



AggregateBLimitB-
BAnswerABtypeBofBpolicyBlimitBfoundBinBsomeBhealth,Bliability,BandBpropertyBdamageB
policies.BItBrepresentsBtheBtotalBamountBtheBinsurerBwillBpayBforBallBlossesB(asBoppose
dBtoBanBoccurrenceBlimit,BwhichBdenotesBtheBtotalBamountBtheBinsurerBwillBpayBperBo
ccurrence).



AgreementB-
BAnswerOneBofBtheBfourBrequirementsBofBaBlegallyBbindingBcontract.BAllBpartiesBinvolv
edBmustBagreeBtoBtheBtermsBofBtheBcontract.BCanBalsoBreferBtoBaBbinder,BwhichBisBth
eBpreliminaryBsubstanceBofBaBcontract.



AgriculturalBProducerB-
BAnswerABbusinessBthatBgrows,Bharvests,BandBsellsBcropsBforBprofit.



AleatoryB-
BAnswerABcharacteristicBofBinsuranceBcontracts.BAleatoryBmeansB"dependingBonBanBun
knownBfuture

event."BAnBinsuranceBcontractBwillBonlyBpayBIFBandBWHENBcoveredBdamagesBoccur.BN
eitherBparty

knowsBhowBmuchBtheBcontractBwillBendBupBpayingBwhenBtheyBenterBintoBtheBcontract
.



AnswerB-
BAnswerInBliabilityBcases,BtheBdefendant'sBresponseBtoBaBcomplaint.BThereBareBthreeBp
ossibleBanswers:B1)

, acceptBcomplaintBandBpayBforBdamages,B2)BdenyBtheBcomplaint,BorB3)BacceptBtheBco
mplaintBwithBa

rightBtoBinsertBevidenceBintoBtheBcase.



AnnualBDepreciationB-
BAnswerAnBitem'sBReplacementBcostBdividedBbyBtheBnumberBofByearsBinBitsBexpectedB
lifespan.



AppraisalB-
BAnswerABnegotiationBmethodBwhichBallowsBtheBclaimantBandBtheBinsurerBeachBtoBsel
ectBanBappraiser.

TheBtwoBappraisersBinBturnBselectBanBUmpire.BTheBappraisersBthenBworkBtogetherBtoB
determineBa

settlementBamount.BIfBtheyBcannotBagree,BtheBUmpireBstepsBin.BAgreementBbyBanyBtw
oBofBthe

threeBisBbinding.



ArbitrationB-
BAnswerABnegotiationBmethodBinBwhichBtheBopposingBpartiesBeachBsubmitBtheirBevide
nceBtoBaBmutuallyagreed-

uponBandBneutralBthirdBparty,BcalledBanBarbitrator.BTheBarbitratorBreviewsBtheBposition
sBof

eachBopposingBside,BandBmakesBaBfinalBandBlegallyBbindingBdecision.



ArbitratorB-BAnswerTheBmutually-agreed-
uponBandBneutralBthirdBpartyBinBanBarbitrationBwhoBreviewsBtheBpositionsBof

eachBopposingBside,BandBmakesBaBfinalBandBlegallyBbindingBdecision.



AutoBPolicyB-
BAnswerInsuranceBpolicyBdesignedBtoBprotectBtheBpolicyholderBwhileBowning,Boccupyin
g,BorBoperatingBa

vehicle.BUsuallyBcombinesBliabilityBcoverageBandBpropertyBcoverageBintoBoneBpolicy.