TX ADJUSTER TEST Questions with 100% Correct Answers

TX ADJUSTER TEST Questions with 100% Correct Answers Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid by the insurance carrier to the insured for the loss. While investigating a claim, you determine that the loss was caused by a defective mechanism in the dishwasher. You would attempt to_________________________? Appraisal What is the process when an insurer and an insured have a dispute regarding the amount of damage? Material Misrepresentation __________________________________________________is a significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. Age, Condition and Life Expectancy As an adjuster, you should base depreciation on these three factors? Umpire An_________________ is a person hired by the property owner to settle the claim with insurance company on their behalf. HO-A This type of policy provides coverage only for those perils that are listed in the policy? Additional Living Expenses _________________________ are extra charges covered by homeowner's policies over and above the policyholder's customary living expenses. Occurrence _______________________is an event that results in an insured loss/damages? Actual Cash Value What is value of your property, based on the current cost to replace it, minus depreciation? Incurred Expenses Expenses that have already sustained and that have not yet been paid are known as ____________________________________. Declarations Page ________________________________is the part of the written insurance policy that states all the policy's specific's, including the name of the policyholder, the type of property insured, the premiums, and the term limits for the coverage. Negligence What is the failure to use that degree of care which an ordinary person of reasonable prudence would use under similar circumstances? Overhead and Profit ______________________________is the amount of money dedicated to a general contractor's cost of doing a business and earning a profit. Third Party Loss ____________________________is a situation involving a person other than an insurer and the insured. Reserves What is the amount representing actual or potential liabilities kept by and insurer to cover debts to policyholder? First Party Loss This loss involves only the insurer and the insured? Liability What is the responsibility to another for one's negligence? Severity _____________________ is the size of a loss, the extent of damages. Premium ___________________________ is the amount paid by an insured to an insurance company to obtain or maintain an insurance policy Replacement Cost __________________________________is the cost associated with replacing property at the current market price. Policy Period The period of a policy is in force, from the beginning or effective date to the expiration date is the ________________________________? deductible The amount the insured must pay in a loss before any payment is due is known as the ____________________________________. Adjuster A person who investigates and settles insurance claims is the ______________________? $5000.00 Mary Johnson has an HO-B policy. Her coverage A limit of liability is $250,000 and her coverage B limit is $125,000. Her policy has a 2% deductible. What is her deductible? Coverage A If your policyholder has a 1% deductible, this percentage would be taken from what coverage? 10% of COV B The Homeowner's policy provides coverage's for Personal Property that is away from the residence premises. The total limit of liability for off premises losses is ______________________________? at the residence or elsewhere When handing a homeowner's content claim, you should establish if the loss happened __________________________________________ to help determine the total limit of liability that will apply to the claim. $14,220 Your policyholder has a Homeowner's Policy with the following limits on it COV A limit is $158,000 COV B limit is $90,000 His home has a detached garage. His home and detached garage were completely destroyed in a fire loss. What is the maximum that he can receive for his detached garage? $15,800 MINUS A 1% DEDUCTIBLE= Total Loss is $4950.00 less 1% deductible OF $85,000 = $850.00 = $4100.00 COV A limit is $85,000 COV B limit is $ 46,000Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Golf Clubs $1,500, Shoes $600, Luggage $400, Loss is $7850 is the total loss. 1% of COV A =$750.00 Amount to be paid is $7100.00 COV A limit is $75,000 COV B limit is $36,000 Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Business Laptop $3000 ONLY PAYS $2500, Music CD's $500, Golf Clubs $1,500, Shoes $900 1. Money or Bank Cards 2. Valuable Papers, deeds, stamps BULLIONS etc. 3. Jewelry Watches or furs Name 3 things that are subject to "Special Limits of Liability" under the HO-B Coverage A Under a HO-B policy, the dwelling/structure is covered for what types of losses? Coverage B Under a HO-B policy, the contents are covered under what Coverage? 1)Fire and Lightening, 2) Sudden and Accidental Damage from Smoke, 3) Windstorm , Hurricanes and Hail, 4)Explosion 5) Aircraft 6) Vandalism and Malicious Mischief 7) Riot and Civil Commotion 8) Collapse of a building, or part of a building 9) accidental discharge overflow of water or Steam form plumbing, heating, air conditioning, system or household appliance 10) Falling objects, 11) Freezing, 12) theft or attempted theft