- | Page
SC PROPERTY, CASUALT Y,
SURETY, MARINE EXAM
QUESTIONS AND ANSWER S
(LATEST UPDATE)
Question : 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
Question : 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
Question : 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
- | Page
Question : 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
Question : 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
Question : 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
Question : Adjuster
- | Page
CORRECT ANSWER: An agent who, for
compensation, processes insurance claims. Can represent either the insured or the insurer. 2-B
Question : 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
Question : 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
Question : Adjuster - Public
CORRECT ANSWER: An adjuster who is hired to
represent the claimant and help determine a fair indemnification. Usually specializes in appraisals and
- | Page
negotiation. Paid commission, usually a percentage of final settlement. 2-B
Question : Adjuster - Staff
CORRECT ANSWER: Salaried employee of one
insurance company who can work locally, regionally, or
nationally. Also called: Company Adjuster 2-B
Question : 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
Question : 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