Texas Property and Casualty Adjusters License Correct 100%

Risk - Answer Uncertainty Types of risk - Answer Pure vs speculative Pure not insured Peril - Answer Cause of loss- open vs named Hazard - Answer Types- physical , moral , morale Indemnity - Answer No gain Subrogation - Answer Insurance sues at fault party Fiduciary - Answer Responsible for property of others Waiver - Answer Insurance company voluntarily gives up a policy right Warranty - Answer Written into contract-a promise- if broken claim does not have to be paid Limit of liability - Answer Max company pays Law of numbers - Answer Claims from a large number of homogenous risks more predictable Misrepresentation - Answer Claims will still be paid Ex. Wrong zip code reported Concealment - Answer Hiding the truth Material misrepresentation - Answer Company will not pay a claim Elements of a legal contract - Answer LACC - legal agreement between a insured over the age of 18 , and an insurance company and they give each other something Ex insured pays premium and insurance provides coverage Named insured - Answer Listed on the policy Insured - Answer Defined in the policy (resident relative) Parts of a policy - Answer DICE Declaration , insurance agreement (promise to pay), conditions ( duty of insured to protect property from loss),endorsement (modifies or changes the contract) Deductible - Answer Paid by the insured Other insurance Pro Rata - Answer 2 policies same about of coverage split losses 50/50 Coinsurance - Answer 80% min . Appraisal - Answer Disagree about money Arbitration - Answer Disagree about coverage Removal - Answer Protect against a sure loss ,30 days Liberalization - Answer Benefits all insured Insurance interest - Answer Owner , lender , worked on insured property but not yet paid Direct loss - Answer Immediate Indirect loss - Answer After the direct loss Cannot happen with out direct loss Ex. Hotel room needed after fire at a home Salvage - Answer What remains after direct loss Total loss - Answer Salvage value plus repair cost exceeds property value after repair Partial loss - Answer Not a total loss Abandonment - Answer Demanding total loss coverage for a partial loss Named peril - Answer List coverage perils Open peril - Answer All perils except for exclusions listed Extended converge - Answer WCSHAVVER- includes damage to property cause by neighbors car Proof of loss - Answer Within 91 days of company request Pair and set - Answer Pays difference between the value of property before the loss minus the value of the property that remains after loss Scheduled/stated value - Answer Easiest claim to pay Replacement - Answer Cost to buy a new one today Actual cash value - Answer Replacements minus depreciation Liquidated demand - Answer Pays policy limits if a building is totally destroy by fire Third party - Answer Party to whom insured is liable Civil tort - Answer Intentional vs unintentional Criminal - Answer Government Bodily injury - Answer Includes sickness or death Property Damage - Answer Cars , buildings ect... Personal injury - Answer Feelings not body Ex. False arrest Negligence - Answer What would a reasonable person have done? Elements of negligence - Answer Duty , breach , loss , and cause Comparative - Answer Comparing insureds liability to the third party Contributory - Answer Injured person doesn't get paid Assumption of risk - Answer Sporting event Absolute liability - Answer Very hazardous activity Single limit - Answer One dollar limit Split limit - Answer BI (bodily injury) limit & PD (property damage limit Aggregate limit - Answer Total during the policy