appearance of representing the insurer.
Agent - ANSWER Someone who has received authority from an insurer to sell or service
Aggregate Limit - ANSWER A type of policy limit found in some health, liability, and
property damage policies. It represents the total amount the insurer will pay for all
losses (as opposed to an occurrence limit, which denotes the total amount the insurer
will pay per occurrence).
Agreement - ANSWER 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 - ANSWER A business that grows, harvests, and sells crops
Aleatory - ANSWER 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 - ANSWER 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 - ANSWER An item's Replacement cost divided by the number
of years in its expected lifespan.
Appraisal - ANSWER A negotiation method which allows the claimant and the insurer