Public adjuster exam Questions With Correct Answers
Declarations - accurate answers-Identity, address, named insured, policy
term, amount of insurance, liability, policy premium & deductibles of a policy
Insuring agreement - accurate answers-Describes covered perils, risk
assumed,nature of coverage or makes reference to the contractual agreement
between the insurer & the insured.
Conditions - accurate answers-Set provisions, rules of conduct, duties &
obligations of both parties. Such as the policy period, the insured's obligation
to provide proof of loss.
Exclusions - accurate answers-Perils, hazards or losses arising from specific
causes that are not covered by the policy.
Definitions - accurate answers-Important terms used in the policy language
Endorsements - accurate answers-Add, delete or change any of the policy
parts.
Abandonment - accurate answers-Insured cannot simply abandon the
property to the insurance company in exchange for the full-insured value.
Appraisal Clause - accurate answers-When there s a dispute over a claim both
parties select an appraiser & the appraisers choose an umpire to settle the
dispute.
Arbitration Clause - accurate answers-Appears in Automobile policies to
resolve liability disputes for bodily injury/property damage.
,Assignment - accurate answers-Policy cannot be assigned without written
consent of the insurance company.
Deductible - accurate answers-Part of the claim that the insured is responsible
for.
Direct vs Indirect loss - accurate answers-Direct loss is one that is a direct
consequence of a particular peril (Fire damage to an apartment building) The
loss of rental as a result of a fire is an indirect loss.
Excess Insurance - accurate answers-An insurance policy that pays benefits
only when the coverage under other applicable insurance policies has been
exhausted.
Indemnity - accurate answers-Claimant should only be restored to the
approximate condition prior to the loss, no better, no worse.
Liberalization - accurate answers-A clause which states that if the policy or
endorsement forms are broadened & no additional premium is required, then
all existing similar policies or endorsements will be construed to include the
broaden coverage. Any changes will automatically be included 45 days of the
renewal date without the policy having to be reprinted.
Primary Insurance - accurate answers-When more than one policy is in place
the primary policy pays first.
Proof of Loss - accurate answers-Form that must be completed by the insured
regarding the loss with 60 days of the date of loss.
, Proximate Cause - accurate answers-Unbroken chain of events that causes a
loss.
Vacancy vs Unoccupancy - accurate answers-Vacancy is void of contents &
people. Unoccupancy means premises is void of people.
Cause of loss Forms - accurate answers-State the perils that are to be insured
against
Named peril vs open peril - accurate answers-Named peril form lists specific
perils to be covered. Open peril does not list specific perils, it provides
broader coverage but may have exclusions.
Actual Cash Value - accurate answers-The cost of replacement less
depreciation
Replacement Cost - accurate answers-The current cost to purchase new with
no depreciation.
Functional Replacement Cost - accurate answers-As reasonably close to the
replacement cost as possible.
Market Value - accurate answers-The price that the market will support, often
used in losses involving antiques.
Agreed Value - accurate answers-The value to be insured is agreed by the
insured & the insurer.
Declarations - accurate answers-Identity, address, named insured, policy
term, amount of insurance, liability, policy premium & deductibles of a policy
Insuring agreement - accurate answers-Describes covered perils, risk
assumed,nature of coverage or makes reference to the contractual agreement
between the insurer & the insured.
Conditions - accurate answers-Set provisions, rules of conduct, duties &
obligations of both parties. Such as the policy period, the insured's obligation
to provide proof of loss.
Exclusions - accurate answers-Perils, hazards or losses arising from specific
causes that are not covered by the policy.
Definitions - accurate answers-Important terms used in the policy language
Endorsements - accurate answers-Add, delete or change any of the policy
parts.
Abandonment - accurate answers-Insured cannot simply abandon the
property to the insurance company in exchange for the full-insured value.
Appraisal Clause - accurate answers-When there s a dispute over a claim both
parties select an appraiser & the appraisers choose an umpire to settle the
dispute.
Arbitration Clause - accurate answers-Appears in Automobile policies to
resolve liability disputes for bodily injury/property damage.
,Assignment - accurate answers-Policy cannot be assigned without written
consent of the insurance company.
Deductible - accurate answers-Part of the claim that the insured is responsible
for.
Direct vs Indirect loss - accurate answers-Direct loss is one that is a direct
consequence of a particular peril (Fire damage to an apartment building) The
loss of rental as a result of a fire is an indirect loss.
Excess Insurance - accurate answers-An insurance policy that pays benefits
only when the coverage under other applicable insurance policies has been
exhausted.
Indemnity - accurate answers-Claimant should only be restored to the
approximate condition prior to the loss, no better, no worse.
Liberalization - accurate answers-A clause which states that if the policy or
endorsement forms are broadened & no additional premium is required, then
all existing similar policies or endorsements will be construed to include the
broaden coverage. Any changes will automatically be included 45 days of the
renewal date without the policy having to be reprinted.
Primary Insurance - accurate answers-When more than one policy is in place
the primary policy pays first.
Proof of Loss - accurate answers-Form that must be completed by the insured
regarding the loss with 60 days of the date of loss.
, Proximate Cause - accurate answers-Unbroken chain of events that causes a
loss.
Vacancy vs Unoccupancy - accurate answers-Vacancy is void of contents &
people. Unoccupancy means premises is void of people.
Cause of loss Forms - accurate answers-State the perils that are to be insured
against
Named peril vs open peril - accurate answers-Named peril form lists specific
perils to be covered. Open peril does not list specific perils, it provides
broader coverage but may have exclusions.
Actual Cash Value - accurate answers-The cost of replacement less
depreciation
Replacement Cost - accurate answers-The current cost to purchase new with
no depreciation.
Functional Replacement Cost - accurate answers-As reasonably close to the
replacement cost as possible.
Market Value - accurate answers-The price that the market will support, often
used in losses involving antiques.
Agreed Value - accurate answers-The value to be insured is agreed by the
insured & the insurer.
