| A | B |
|---|
| Accidental Insurance | Covers expenses with a covered accident (ambulance and emergency room, hospital costs) Also provides for loss of income and death |
| Accumulated Depreciation | The total decrease in an item's value over a period of time. Formula (annual depreciation x the number of years used) |
| Acreage Reporting Date | (crop insurance) The deadline for providing the insurer with an acreage report |
| Actual Cash Value (ACV) | A method used by insurers to reflect an item's current market value right before being damaged. Formula (replacement cost- accumulated depreciation) |
| Actual Production History | A history of a farmer's crop yields over a multi-year period, which is used to determine the normal production of the farm. |
| Adhesion | Characteristic of an insurance contract. One party sets the terms (insurer), and (policyholder) can "take it or leave it" |
| Adjusted Gross Revenue (Crop Insurance) | Narrowest (and least expensive) form of crop revenue insurance. Insures farm revenue as a whole instead of individual crops. form of crop revenue insurance. |
| Adjuster | An agent who, for compensation, processes insurance claims. Can represent either the insured or the insurer. |
| Adjuster- Emergency | Adjusters who are temporarily licensed to handle claims during catastrophes or emergencies that produce many claims in a short period of time. |
| Adjuster- Independent | Self-employed adjusters who contract with multiple insurers at the same time. Paid on a commission or fee-plus-expenses basis for each claim. |
| Adjuster- Public | Adjuster who is hired to represent the claimant and help determine a fair indemnification. Usually specializes in appraisals and negotiation. |
| Adjuster- Staff | Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called company adjuster |
| Advance Payment Settlement | A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been settled. Often used when a claimant suffers bodily injury and is unable to work. |
| Agency Authority | The agent's authority to act on behalf of someone else (the principal), usually the insurer. This authority is derived from the contract, it can be apparent, express, or implied. |
| Agency Authority- Apparent | Indirect authority that the agent can reasonably be assumed to have, based on appearances. |
| Agency Authority- Express | Authority that is expressly given to the agent in writing. Allows the agent to act on behalf of the principal. |
| Agency Authority- Implied | Authority that an agent possesses by implication of her behavior, regardless of whether this authority is granted in writing. |
| Agent (Insurance) | Someone who has received authority from an from an insurer to sell or service insurance policies. |
| Agreed Value | 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. Also called a Guaranteed Value Policy. |
| Agreement | One of the four requirements of a legally binding contract. All parties involved must agree to the terms of the contract. |
| Agricultural Producer | A business that grows, harvests, and sells crops fro profit. |
| Aleatory | A characteristic of an insurance contract "depending on an unknown future event". An insurance contract will only pay IF and WHEN coverage damage occurs. |
| Answer | In liability cases, the defendant's response to a complaint. Three possible answers; Accept complaint and pay damages, deny the complaint, accept complaint with right to insert evidence into the case. |
