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SC PROPERTY, CASUALTY, SURETY, MARINE
EXAM 2025| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Accumulated Depreciation - correct answer - The total decrease in an
item's value over a period of time. Formula:(Annual Depreciation x
Number ofyears used) 1-J
2. Acreage Reporting Date - correct answer - The deadline for providing
the insurer with an acreage report, which is used to determine the
amount of coverage needed and the premium charged for a particular
crop. 3-E
3. 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) 1-J
4. Actual Production History - correct answer - A history of a farmer's crop
yields over a multi-year period, which is used to determine the normal
production level of a farm. 3-E
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5. Adhesion - correct answer - Characteristic of an insurance contract.
Means that one party (the insurer) sets the terms, and the other (the
policyholder) can "take it or leave it."1-B
6. 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. 3-E
7. Adjuster - correct answer - An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer. 2-B
8. 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. 2-B
9. 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 2-B
10. Adjuster - Public - correct answer - An adjuster who is hired to
represent the claimant and help determine a fair indemnification. Usually
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specializes in appraisals and negotiation. Paid commission, usually a
percentage of final settlement. 2-B
11. Adjuster - Staff - correct answer - Salaried employee of one
insurance company who can work locally, regionally, or nationally. Also
called: Company Adjuster 2-B
12. 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.2-D
13. 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. 2-A
14. Agency Authority - express - correct answer - Authority that is
expressly given to the agent in writing. Allows agent to act on behalf of
the principal. 2-A
15. Agency Authority - implied - correct answer - Authority that an agent
possesses by implication of her behavior, regardless of whether this
authority is granted in writing. 2-A
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16. Agency Authority - apparent - correct answer - Authority that an agent
possesses based on the appearance of representing the insurer. 2-A
17. Agent - correct answer - Someone who has received authority from
an insurer to sell or service insurance policies. 2-A
18. 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). 1-K
19. 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. 1-A
20. Agricultural Producer - correct answer - A business that grows,
harvests, and sells crops for profit. 3-E
21. Aleatory - correct answer - A characteristic of an insurance contract.
Means "depending on an unknown future event." An insurance contract
SC PROPERTY, CASUALTY, SURETY, MARINE
EXAM 2025| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. Accumulated Depreciation - correct answer - The total decrease in an
item's value over a period of time. Formula:(Annual Depreciation x
Number ofyears used) 1-J
2. Acreage Reporting Date - correct answer - The deadline for providing
the insurer with an acreage report, which is used to determine the
amount of coverage needed and the premium charged for a particular
crop. 3-E
3. 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) 1-J
4. Actual Production History - correct answer - A history of a farmer's crop
yields over a multi-year period, which is used to determine the normal
production level of a farm. 3-E
, Page |2
5. Adhesion - correct answer - Characteristic of an insurance contract.
Means that one party (the insurer) sets the terms, and the other (the
policyholder) can "take it or leave it."1-B
6. 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. 3-E
7. Adjuster - correct answer - An agent who, for compensation, processes
insurance claims. Can represent either the insured or the insurer. 2-B
8. 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. 2-B
9. 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 2-B
10. Adjuster - Public - correct answer - An adjuster who is hired to
represent the claimant and help determine a fair indemnification. Usually
, Page |3
specializes in appraisals and negotiation. Paid commission, usually a
percentage of final settlement. 2-B
11. Adjuster - Staff - correct answer - Salaried employee of one
insurance company who can work locally, regionally, or nationally. Also
called: Company Adjuster 2-B
12. 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.2-D
13. 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. 2-A
14. Agency Authority - express - correct answer - Authority that is
expressly given to the agent in writing. Allows agent to act on behalf of
the principal. 2-A
15. Agency Authority - implied - correct answer - Authority that an agent
possesses by implication of her behavior, regardless of whether this
authority is granted in writing. 2-A
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16. Agency Authority - apparent - correct answer - Authority that an agent
possesses based on the appearance of representing the insurer. 2-A
17. Agent - correct answer - Someone who has received authority from
an insurer to sell or service insurance policies. 2-A
18. 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). 1-K
19. 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. 1-A
20. Agricultural Producer - correct answer - A business that grows,
harvests, and sells crops for profit. 3-E
21. Aleatory - correct answer - A characteristic of an insurance contract.
Means "depending on an unknown future event." An insurance contract
