Insurance Adjuster
To be able to predict the number of future losses occurring among their insureds,
insurers rely on which of the following?
The law of large numbers
risk transfer
adverse selection
market surveys - answer The law of large numbers
The law of large numbers recognizes that as the number of exposure units increases,
the more likely it is to accurately predict the number of losses.
All of the following are elements of a legal contract EXCEPT:
offer
acceptance
consideration
counteroffer - answer Counteroffer
The three elements of a legal contract are offer, acceptance, and consideration. A
counteroffer may or may not be involved.
Which of the following is NOT a power granted to the South Carolina Director of
Insurance?
investigating suspected violations of the insurance code
enforcing insurance laws
issuing regulations to administer the insurance code
writing insurance laws - answerwriting insurance laws
What allows an adjuster to handle claims in the event of a catastrophe where there are
insufficient licensed adjusters or motor vehicle physical damage appraisers available in
South Carolina?
temporary license
emergency adjuster permit
nonresident permit
emergency adjuster license - answeremergency adjuster permit
The emergency adjuster permit allows an adjuster to handle claims in the event of a
catastrophe where there are insufficient licensed adjusters to handle claims in South
Carolina.
James is a licensed adjuster who recently moved. When must he notify the South
Carolina Department of Insurance of his move?
within 10 days
within 21 days
,within 30 days
within 31 days - answerwithin 30 days
An adjuster who changes his or her business, email and residential addresses must file
a change of address within 30 days
A business setting up a self-insurance program is an example of which method of risk
management?
risk retention
risk avoidance
risk transfer
risky control - answerrisk retention
An example of risk retention is when a business establishes a self-insurance program
through which funds are set aside, or other advance arrangements are made, to pay for
losses that occur within that business.
Main Street Corp. owns a shopping center. It buys liability and property insurance to
cover losses stemming from its business. This is an example of which method of
handling risk?
risk retention
risk avoidance
risk transfer
risk reduction - answerrisk transfer
In risk transfer, an individual or business transfers the risk of loss to another party. By
buying insurance, a person or business transfers certain risks to an insurance company
in return for the payment of a premium.
Which of the following statements regarding the concept of insurable risk is true?
Every risk is insurable, if there is a dollar value associated with it.
All pure risks are insurable, but only some speculative risks are insurable.
All pure risks are insurable, but speculative risks are never insurable.
Only pure (not speculative) risks are insurable, but not all pure risks are insurable. -
answerOnly pure (not speculative) risks are insurable, but not all pure risks are
insurable.
Not all risks are insurable. First, only pure risks are insurable. Even then, before an
insurer agrees to insure the risk, it must first determine if the risk conforms to certain
standards and requirements.
Which of the following terms refers to the things given by both parties to a contract that
make for a legal contract?
offer
legal purpose
consideration
acceptance - answerconsideration
, Insurance contracts involve considerations by both parties to the contract. The insured's
consideration is the premiums paid and the insurer's consideration is the promise to pay
claims.
What is the maximum amount the South Carolina Property and Casualty Insurance
Guaranty Association can be liable for on a covered claim?
less than $500,000
less than $300,000
less than $250,000
less than $100,000 - answerless than $300,000
The association is obligated to pay certain covered claims and may satisfy this
obligation by paying the claimant an amount greater than $250 but less than $300,000
for each covered claim.
In addition to the renewal terms, what must an insurer provide to the insured if it intends
to renew the insured's policy?
potential cancellation terms
potential nonrenewal terms
a statement of the amount of premium or estimated premium due
a statement requesting the insured to acknowledge reading the renewal terms -
answera statement of the amount of premium or estimated premium due
If an insurer intends to renew a policy, the insurer must provide the renewal terms and a
statement of the amount of premium or estimated premium due for the renewal policy
period.
Which of these would an adjuster NOT do when investigating a claim?
Visit the scene of the incident giving rise to the claim.
Read the documents filed in a lawsuit.
Interview the claimant.
Hire an expert witness. - answerHire an expert witness
If necessary, the insurance company-not the adjuster-will provide or retain a qualified
expert to offer an opinion or testimony related to a claim.
Which type of adjuster report tells the insured whether the insurer will cover the claim?
Initial report
Interim report
Loss report
Full formal report - answerFull formal report
The adjuster's initial or first filed report verifies coverage and records the claim. The
adjuster then issues interim (or status) reports to document the processing of the claim.
Lastly, the adjuster provides a full formal report to tell the insured whether coverage
applies to the loss, whether claims will be paid, and the reasons for these
determinations.
To be able to predict the number of future losses occurring among their insureds,
insurers rely on which of the following?
The law of large numbers
risk transfer
adverse selection
market surveys - answer The law of large numbers
The law of large numbers recognizes that as the number of exposure units increases,
the more likely it is to accurately predict the number of losses.
All of the following are elements of a legal contract EXCEPT:
offer
acceptance
consideration
counteroffer - answer Counteroffer
The three elements of a legal contract are offer, acceptance, and consideration. A
counteroffer may or may not be involved.
Which of the following is NOT a power granted to the South Carolina Director of
Insurance?
investigating suspected violations of the insurance code
enforcing insurance laws
issuing regulations to administer the insurance code
writing insurance laws - answerwriting insurance laws
What allows an adjuster to handle claims in the event of a catastrophe where there are
insufficient licensed adjusters or motor vehicle physical damage appraisers available in
South Carolina?
temporary license
emergency adjuster permit
nonresident permit
emergency adjuster license - answeremergency adjuster permit
The emergency adjuster permit allows an adjuster to handle claims in the event of a
catastrophe where there are insufficient licensed adjusters to handle claims in South
Carolina.
James is a licensed adjuster who recently moved. When must he notify the South
Carolina Department of Insurance of his move?
within 10 days
within 21 days
,within 30 days
within 31 days - answerwithin 30 days
An adjuster who changes his or her business, email and residential addresses must file
a change of address within 30 days
A business setting up a self-insurance program is an example of which method of risk
management?
risk retention
risk avoidance
risk transfer
risky control - answerrisk retention
An example of risk retention is when a business establishes a self-insurance program
through which funds are set aside, or other advance arrangements are made, to pay for
losses that occur within that business.
Main Street Corp. owns a shopping center. It buys liability and property insurance to
cover losses stemming from its business. This is an example of which method of
handling risk?
risk retention
risk avoidance
risk transfer
risk reduction - answerrisk transfer
In risk transfer, an individual or business transfers the risk of loss to another party. By
buying insurance, a person or business transfers certain risks to an insurance company
in return for the payment of a premium.
Which of the following statements regarding the concept of insurable risk is true?
Every risk is insurable, if there is a dollar value associated with it.
All pure risks are insurable, but only some speculative risks are insurable.
All pure risks are insurable, but speculative risks are never insurable.
Only pure (not speculative) risks are insurable, but not all pure risks are insurable. -
answerOnly pure (not speculative) risks are insurable, but not all pure risks are
insurable.
Not all risks are insurable. First, only pure risks are insurable. Even then, before an
insurer agrees to insure the risk, it must first determine if the risk conforms to certain
standards and requirements.
Which of the following terms refers to the things given by both parties to a contract that
make for a legal contract?
offer
legal purpose
consideration
acceptance - answerconsideration
, Insurance contracts involve considerations by both parties to the contract. The insured's
consideration is the premiums paid and the insurer's consideration is the promise to pay
claims.
What is the maximum amount the South Carolina Property and Casualty Insurance
Guaranty Association can be liable for on a covered claim?
less than $500,000
less than $300,000
less than $250,000
less than $100,000 - answerless than $300,000
The association is obligated to pay certain covered claims and may satisfy this
obligation by paying the claimant an amount greater than $250 but less than $300,000
for each covered claim.
In addition to the renewal terms, what must an insurer provide to the insured if it intends
to renew the insured's policy?
potential cancellation terms
potential nonrenewal terms
a statement of the amount of premium or estimated premium due
a statement requesting the insured to acknowledge reading the renewal terms -
answera statement of the amount of premium or estimated premium due
If an insurer intends to renew a policy, the insurer must provide the renewal terms and a
statement of the amount of premium or estimated premium due for the renewal policy
period.
Which of these would an adjuster NOT do when investigating a claim?
Visit the scene of the incident giving rise to the claim.
Read the documents filed in a lawsuit.
Interview the claimant.
Hire an expert witness. - answerHire an expert witness
If necessary, the insurance company-not the adjuster-will provide or retain a qualified
expert to offer an opinion or testimony related to a claim.
Which type of adjuster report tells the insured whether the insurer will cover the claim?
Initial report
Interim report
Loss report
Full formal report - answerFull formal report
The adjuster's initial or first filed report verifies coverage and records the claim. The
adjuster then issues interim (or status) reports to document the processing of the claim.
Lastly, the adjuster provides a full formal report to tell the insured whether coverage
applies to the loss, whether claims will be paid, and the reasons for these
determinations.
