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LOUISIANA CLAIMS ADJ USTER'S
WORKERS COMP LICENSE STUDY
GUIDE WITH COMPLETE
SOLUTION
Question: What is Accident Insurance?
Correct answer: Covers expenses associated with a
covered accident and can extend to ambulance and emergency room expenses, intensive care, and hospital costs. Accident insurance also provides for loss of income, and a death benefit if injuries prove fatal.
Question: What is Accumulated Depreciation?
Correct 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 (ACV).
Question: What is Acreage Reporting Date?
Correct answer: In crop insurance, the deadline for
providing the insurer with an acreage report, which is
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used to determine the amount of coverage needed and the premium charged for a particular crop.
Question: What is 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)
Question: What is 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.
Question: What is 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."
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Question: What is 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.
Question: Who is an Adjuster?
Correct 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.
Question: Who is an 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.
Question: Who is an Adjuster - Independent?
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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.
Question: Who is an Adjuster - Public?
Correct 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: Who is an Adjuster - Staff?
Correct answer: Salaried employee of one insurance
company who can work locally, regionally, or nationally.
Also called: Company Adjuster.
Question: What is 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
