Michigan Claims Adjuster questions fully
solved & updated 2026/2027
Accident Insurance - answer Covers expenses associated with a covered accident and can
extend to ambulance and emergency room expenses, intensive care, and hospital costs.
This also provides for loss of income, and a death benefit if injuries prove fatal.
Accumulated Depreciation - answer The total decrease in an item's value over a period of
time. Formula: (annual depreciation x number of years used). Subtract this number from
the item's replacement cost to get its actual cash value
Acreage Reporting Date - answer In crop insurance, 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.
Act of Terrorism - answer Any violent act that is dangerous to human life, property, or
infrastructure and results in damage within the US (or to an air carrier, a US-flagged vessel,
or on the premises of any US mission), which is committed in an effort to coerce the US
civilian population or influence policy or the conduct of the US Government.
Actual Cash Value (ACV) - 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)
Actual Production History - 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.
Adjusted Gross Revenue (Crop Insurance) - 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 - answer An agent who, for compensation, processes insurance claims. The
adjuster investigates the damages, evaluates the claim, and makes a fair and equitable
settlement based on the insurance contract. Can represent either the insured or the insurer.
Adjuster - Emergency - 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 - 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 - 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 - answer Salaried employee of one insurance company who can work
locally, regionally, or nationally. Also called: Company Adjuster.
Advance Payment Settlement - 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.
Advertising Injury - answer Damages to a third party resulting from another party
advertising their goods or services in a public arena. This kind of injury can come in the
form of: libel, slander, copyright
infringement, or stealing advertisement ideas
Agency Authority - answer The agent's authority to act on behalf of someone else (the
principal), usually an insurer. This authority is derived from the agent's contract with the
principal. It can be apparent, express, or implied.
,Agency Authority - Apparent - answer Indirect authority that the agent can reasonably be
assumed to have, based on appearances. If an adjuster is equipped to represent an insurer
(with the insurer's permission), then an individual can assume that the adjuster has the
authority to act on
the insurer's behalf.
Agency Authority - Express - answer Authority that is expressly given to the agent in
writing. Allows the agent to act on behalf of the principal.
Agency Authority - Implied - answer Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is granted in writing. For example, a
person portraying herself as a representative for an insurance company, even though she is
not employed by that
company.
Agent (Insurance) - answer Someone who has received authority from an insurer to sell or
service insurance policies.
Agreed Value - answer A valued policy in which the insurer and the insured agree to a
specific value for an item, appraised at the inception of the policy. Often used to insure
items whose value is difficult to quantify, such as antiques or fine art. Also called a
Guaranteed Value policy
Agreement - 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 - answer A business that grows, harvests, and sells crops for profit.
Agritainment - answer Refers to farm-based entertainment such as hay-rides, corn mazes,
etc. A farmer can add an endorsement to cover property and/or liability damages caused by
agritainment activities.
, Aleatory - answer A characteristic of an insurance contract. 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 - 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 - answer An item's Replacement cost divided by the number of years
in its expected lifespan.
Annual Transit - answer An uncontrolled inland marine form that covers loss of goods in
transit. It applies to all of the insured's shipments during the year.
Appraisal - answer A dispute resolution 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.
Appurtenant Physical Structures (APS) - answer The physical structures that are located
on the same premises as the main insured building; they are "appurtenant" to the insured
premises, meaning that they accompany or belong with it. For example, appurtenant
structures could include gazebos, sheds, detached apartments, lamp posts, mail boxes,
fences, in-ground swimming pools, and pool houses.
Arbitration - answer A dispute resolution 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.
Arbitrator - answer The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each opposing side before making a final and legally binding
decision.
solved & updated 2026/2027
Accident Insurance - answer Covers expenses associated with a covered accident and can
extend to ambulance and emergency room expenses, intensive care, and hospital costs.
This also provides for loss of income, and a death benefit if injuries prove fatal.
Accumulated Depreciation - answer The total decrease in an item's value over a period of
time. Formula: (annual depreciation x number of years used). Subtract this number from
the item's replacement cost to get its actual cash value
Acreage Reporting Date - answer In crop insurance, 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.
Act of Terrorism - answer Any violent act that is dangerous to human life, property, or
infrastructure and results in damage within the US (or to an air carrier, a US-flagged vessel,
or on the premises of any US mission), which is committed in an effort to coerce the US
civilian population or influence policy or the conduct of the US Government.
Actual Cash Value (ACV) - 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)
Actual Production History - 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.
Adjusted Gross Revenue (Crop Insurance) - 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 - answer An agent who, for compensation, processes insurance claims. The
adjuster investigates the damages, evaluates the claim, and makes a fair and equitable
settlement based on the insurance contract. Can represent either the insured or the insurer.
Adjuster - Emergency - 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 - 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 - 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 - answer Salaried employee of one insurance company who can work
locally, regionally, or nationally. Also called: Company Adjuster.
Advance Payment Settlement - 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.
Advertising Injury - answer Damages to a third party resulting from another party
advertising their goods or services in a public arena. This kind of injury can come in the
form of: libel, slander, copyright
infringement, or stealing advertisement ideas
Agency Authority - answer The agent's authority to act on behalf of someone else (the
principal), usually an insurer. This authority is derived from the agent's contract with the
principal. It can be apparent, express, or implied.
,Agency Authority - Apparent - answer Indirect authority that the agent can reasonably be
assumed to have, based on appearances. If an adjuster is equipped to represent an insurer
(with the insurer's permission), then an individual can assume that the adjuster has the
authority to act on
the insurer's behalf.
Agency Authority - Express - answer Authority that is expressly given to the agent in
writing. Allows the agent to act on behalf of the principal.
Agency Authority - Implied - answer Authority that an agent possesses by implication of
her behavior, regardless of whether this authority is granted in writing. For example, a
person portraying herself as a representative for an insurance company, even though she is
not employed by that
company.
Agent (Insurance) - answer Someone who has received authority from an insurer to sell or
service insurance policies.
Agreed Value - answer A valued policy in which the insurer and the insured agree to a
specific value for an item, appraised at the inception of the policy. Often used to insure
items whose value is difficult to quantify, such as antiques or fine art. Also called a
Guaranteed Value policy
Agreement - 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 - answer A business that grows, harvests, and sells crops for profit.
Agritainment - answer Refers to farm-based entertainment such as hay-rides, corn mazes,
etc. A farmer can add an endorsement to cover property and/or liability damages caused by
agritainment activities.
, Aleatory - answer A characteristic of an insurance contract. 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 - 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 - answer An item's Replacement cost divided by the number of years
in its expected lifespan.
Annual Transit - answer An uncontrolled inland marine form that covers loss of goods in
transit. It applies to all of the insured's shipments during the year.
Appraisal - answer A dispute resolution 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.
Appurtenant Physical Structures (APS) - answer The physical structures that are located
on the same premises as the main insured building; they are "appurtenant" to the insured
premises, meaning that they accompany or belong with it. For example, appurtenant
structures could include gazebos, sheds, detached apartments, lamp posts, mail boxes,
fences, in-ground swimming pools, and pool houses.
Arbitration - answer A dispute resolution 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.
Arbitrator - answer The mutually-agreed-upon and neutral third party in an arbitration
who reviews the positions of each opposing side before making a final and legally binding
decision.
