ALABAMA ADJUSTERS LICENSE EXAM QUESTIONS

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ALABAMA ADJUSTERS LICENSE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: 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.

Question 2: Common Crop Insurance

Policy

Answer:

A single uniform policy that combines crop revenue coverage, revenue assurance, income protection, and indexed income protection

Question 3: Business Personal

Property

Answer:

Moveable property used for business

Question 4: 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.

Question 5: Common Law

Answer:

Based on court decisions and customs when statutory law does not provide an answer; creates precedent.

Question 6: 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.

Question 7: Artificially Generated

Current

Answer:

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.

Question 8: Complaint

Answer:

A complaint initiates a civil lawsuit by one person (the plaintiff) requesting financial relief from damages caused by someone else (the defendant).

Question 9: Automobile

Answer:

In insurance policies, automobile generally means any vehicle designed for use on public roads.

Question 10: 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.

Question 11: Crop Yield Insurance

Answer:

Crop insurance that covers physical losses to actual crops.

Question 12: Aviation

Answer:

Aviation insurance combines hull insurance for the aircraft and liability insurance for any damage to others' property or to people who are not passengers.

Question 13: Compensatory Damages -

General

Answer:

Money awarded for the emotional losses of the plaintiff that will continue after the trial date. These are a subjective value and are determined by the court.

Question 14: 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.

Question 15: Copayment

Answer:

The amount a policyholder must pay each time she accesses the benefits of a health insurance policy.

Question 16: Code of Ethics

Answer:

A set of governing professional standards of conduct, usually created by regulatory bodies or government regulatory agencies. These standards may also be formally codified with statutes.

Question 17: Controlled Line Floaters

Answer:

Standardized forms provided by a bureau and filed with the state. These forms disclose the rates being charged and can be used as both general property floaters (such as "personal effects" or "personal property") and specific property floaters that break down covered property by type.

Question 18: Commercial Property

Floater

Answer:

A means of protecting a business' property that is not in one fixed location. Includes domestic shipments, instrumentalities of transportation and communication, and commercial property floater risks.

Question 19: Automobile No-Fault Laws

Answer:

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.

Question 20: Commerce

Answer:

The exchange or transport of goods or property

Question 21: 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.

Question 22: Crop Hail Insurance

Answer:

A form of crop yield insurance that is usually provided by private insurers without government subsidy. It offers named-peril protection on an acreage basis

Question 23: Deductible - Fixed

Answer:

One specific, predetermined amount that a policyholder must pay out-of-pocket before his policy coverage kicks in

Question 24: Deductible - Percentage

Answer:

A deductible that is calculated as a percentage of the value of the insured risk