ADJUSTER PRO TERMS QUESTIONS WITH COMPLETE
SOLUTIONS UPDATED.
Accumulated Depreciation
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)
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
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)
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
An agent who, for compensation, processes insurance claims. Can represent either the
insured
or the insurer.
Adjuster - Emergency
,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
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 - Staff
Salaried employee of one insurance company who can work locally, regionally, or
nationally.
Also called: Company Adjuster
Adjuster - Public
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.
Advance Payment Settlement
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
,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
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of
the
principal.
Aency Authority - implied
Authority that an agent possesses by implication of his behavior, regardless of whether
this
authority is expressly granted in writing.
Agency Authority - apparent
Authority that an agent possesses based on the appearance of representing an insurer.
Agent
Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit
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
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
A business that grows, harvests, and sells crops for profit.
Aleatory
, 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
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
An item's Replacement cost divided by the number of years in its expected lifespan.
Appraisal
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
A negotiation method in which the opposing parties each submit their evidence to a
mutuallyagreed-
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.
Arbitrator
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
SOLUTIONS UPDATED.
Accumulated Depreciation
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)
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
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)
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
An agent who, for compensation, processes insurance claims. Can represent either the
insured
or the insurer.
Adjuster - Emergency
,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
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 - Staff
Salaried employee of one insurance company who can work locally, regionally, or
nationally.
Also called: Company Adjuster
Adjuster - Public
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.
Advance Payment Settlement
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
,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
Authority that is expressly given to the agent in writing. Allows agent to act on behalf of
the
principal.
Aency Authority - implied
Authority that an agent possesses by implication of his behavior, regardless of whether
this
authority is expressly granted in writing.
Agency Authority - apparent
Authority that an agent possesses based on the appearance of representing an insurer.
Agent
Someone who has received authority from an insurer to sell or service insurance
policies.
Aggregate Limit
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
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
A business that grows, harvests, and sells crops for profit.
Aleatory
, 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
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
An item's Replacement cost divided by the number of years in its expected lifespan.
Appraisal
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
A negotiation method in which the opposing parties each submit their evidence to a
mutuallyagreed-
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.
Arbitrator
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
