ALABAMA ADJUSTERS LICENSE TEST
EXAM WITH 362QUESTIONS AND
ANSWERS 100% CORRECTLY
VERIFIED ANSWERS LATEST UPDATE
2025 RATED A+
Agreement - CORRECT ANSWERS 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 ANSWERS A business that grows, harvests, and sells
crops for profit.
Aleatory - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 ANSWERS An item's replacement cost divided by the
number of years in its expected lifespan.
1
,Annual Transit - CORRECT ANSWERS 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 - CORRECT ANSWERS 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.
Arbitration - CORRECT ANSWERS A dispute resolution 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 - CORRECT ANSWERS 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.
Artificially Generated
Current - CORRECT ANSWERS Also called "artificial current." A peril covered in some
property insurance policies. It includes sudden and
accidental damage from any electrical current, except currents that are naturally generated,
such as
lightning or static electricity.
Auto Policy - CORRECT ANSWERS Insurance policy designed to protect the policyholder
while owning, occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
Automobile - CORRECT ANSWERS In insurance policies, automobile generally means
any vehicle designed for use on public roads.
2
,Automobile No-Fault Laws - CORRECT ANSWERS Laws in effect in some states that
require any owner of a vehicle to purchase no-fault insurance; that is,
insurance that indemnifies the insured, regardless of who was at fault in an accident. No-fault
laws also
restrict the insured's right to sue the at-fault party.
Aviation - CORRECT ANSWERS Aviation insurance combines hull insurance for the
aircraft and liability insurance for any damage to
others' property or to people who are not passengers.
Average Weekly Wage
(AWW) - CORRECT ANSWERS The average amount of income that an employee earns
each week while able to perform normal job
duties. When an employee is injured on the job, his workers' compensation income benefits will
depend
on his AWW before the injury.
Bailee - CORRECT ANSWERS An individual or company that receives the property of
someone else for a special purpose and returns
the property after use.
Bailee Coverage - CORRECT ANSWERS Reimburses a bailee's customer for damage to
the customer's property while in the bailee's control
Binder - CORRECT ANSWERS A temporary contract provided by an insurer, which
ensures coverage until the complete, permanent
policy is issued
Black Lung Benefits Act - CORRECT ANSWERS Federal program that provides monthly
payments and medical treatments to coal miners who become
totally disabled from black lung disease or pneumoconiosis
Bodily Injury (BI) - CORRECT ANSWERS Physical damage to someone's person. Liability
insurance covers bodily injury that the insured might
3
, cause to another person through negligence.
Boiler & Machinery - CORRECT ANSWERS Insurance coverage designed to indemnify a
business for damages to, and damages by, boilers,
machinery, motors, generators, and a variety of other electrical devices and appliances.
Bond - CORRECT ANSWERS A contract wherein one party guarantees the performance
of a third party. Bonds involve three parties:
(1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal,
neglects
to carry out an obligation it has to the obligee.
Breach of Product
Warranty - CORRECT ANSWERS The failure or falsehood of a stated promise of a
product stipulation
Business Auto Policy
(BAP) - CORRECT ANSWERS Provides property damage and liability insurance for
automobiles used by a business
Business Floater - CORRECT ANSWERS Inland marine coverage form designed for
items that are excluded from most property contracts, such as
accounts receivable records, manuscripts, blueprints, etc.
Business Interruption
Coverage - CORRECT ANSWERS Commercial insurance form designed to indemnify a
business if a covered peril leads to lost profits or
revenue. The most common type of Time Element Insurance.
Business Personal
Property - CORRECT ANSWERS Moveable property used for business
4
EXAM WITH 362QUESTIONS AND
ANSWERS 100% CORRECTLY
VERIFIED ANSWERS LATEST UPDATE
2025 RATED A+
Agreement - CORRECT ANSWERS 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 ANSWERS A business that grows, harvests, and sells
crops for profit.
Aleatory - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 ANSWERS An item's replacement cost divided by the
number of years in its expected lifespan.
1
,Annual Transit - CORRECT ANSWERS 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 - CORRECT ANSWERS 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.
Arbitration - CORRECT ANSWERS A dispute resolution 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 - CORRECT ANSWERS 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.
Artificially Generated
Current - CORRECT ANSWERS Also called "artificial current." A peril covered in some
property insurance policies. It includes sudden and
accidental damage from any electrical current, except currents that are naturally generated,
such as
lightning or static electricity.
Auto Policy - CORRECT ANSWERS Insurance policy designed to protect the policyholder
while owning, occupying, or operating a vehicle.
Usually combines liability coverage and property coverage into one policy.
Automobile - CORRECT ANSWERS In insurance policies, automobile generally means
any vehicle designed for use on public roads.
2
,Automobile No-Fault Laws - CORRECT ANSWERS Laws in effect in some states that
require any owner of a vehicle to purchase no-fault insurance; that is,
insurance that indemnifies the insured, regardless of who was at fault in an accident. No-fault
laws also
restrict the insured's right to sue the at-fault party.
Aviation - CORRECT ANSWERS Aviation insurance combines hull insurance for the
aircraft and liability insurance for any damage to
others' property or to people who are not passengers.
Average Weekly Wage
(AWW) - CORRECT ANSWERS The average amount of income that an employee earns
each week while able to perform normal job
duties. When an employee is injured on the job, his workers' compensation income benefits will
depend
on his AWW before the injury.
Bailee - CORRECT ANSWERS An individual or company that receives the property of
someone else for a special purpose and returns
the property after use.
Bailee Coverage - CORRECT ANSWERS Reimburses a bailee's customer for damage to
the customer's property while in the bailee's control
Binder - CORRECT ANSWERS A temporary contract provided by an insurer, which
ensures coverage until the complete, permanent
policy is issued
Black Lung Benefits Act - CORRECT ANSWERS Federal program that provides monthly
payments and medical treatments to coal miners who become
totally disabled from black lung disease or pneumoconiosis
Bodily Injury (BI) - CORRECT ANSWERS Physical damage to someone's person. Liability
insurance covers bodily injury that the insured might
3
, cause to another person through negligence.
Boiler & Machinery - CORRECT ANSWERS Insurance coverage designed to indemnify a
business for damages to, and damages by, boilers,
machinery, motors, generators, and a variety of other electrical devices and appliances.
Bond - CORRECT ANSWERS A contract wherein one party guarantees the performance
of a third party. Bonds involve three parties:
(1) the surety agrees to pay the second party, (2) the obligee, if the third party, (3) the principal,
neglects
to carry out an obligation it has to the obligee.
Breach of Product
Warranty - CORRECT ANSWERS The failure or falsehood of a stated promise of a
product stipulation
Business Auto Policy
(BAP) - CORRECT ANSWERS Provides property damage and liability insurance for
automobiles used by a business
Business Floater - CORRECT ANSWERS Inland marine coverage form designed for
items that are excluded from most property contracts, such as
accounts receivable records, manuscripts, blueprints, etc.
Business Interruption
Coverage - CORRECT ANSWERS Commercial insurance form designed to indemnify a
business if a covered peril leads to lost profits or
revenue. The most common type of Time Element Insurance.
Business Personal
Property - CORRECT ANSWERS Moveable property used for business
4
