CT ADJUSTER EXAM - BASIC TERMS AND
UNDERSTANDINGS
HO-1 - Answers - Basic named perils policy. Only covers 10 listen perils. RCV.
HO-2 - Answers - Broad named perils policy. Covers dwelling & personal property. 16
named perils.
HO-3 - Answers - Homeowners special form. Basic open perils policy. Dwelling - open
peril, covers everything except exclusions.
Contests - named peril.
HO-4 - Answers - Renters policy. No coverage for dwelling, other structures or loss of
use.
Personal property (amount that you specify.)
Liability (amount that you specify)
Medical payments to others (amount you specify)
Named peril policy
HO-5 - Answers - Full open perils policy.
Dwelling - open peril
Contents - open peril
* exclusions may apply.
HO-6 - Answers - Condo policy. Not responsible for exterior loss. Responsible for
interiors walls, floors, and ceilings as well as personal property. Have loss of use
coverage. Does not have "other structures." Named peril for dwelling, personal property,
and loss of use.
HO-8 - Answers - Basic market value policy. Only covers same 10 listed perils. ACV.
Normally insures older homes that would be extremely difficult to replace if destroyed.
Accident and Occurrence - Answers - A: unplanned, unexpected event
O: unexpected, recurrent, repeated exposure that over time causes illness or
impairment to person.
Cancellation: Short Rate and Pro Rata - Answers - SR: Insured canceled policy during
period
PR: Insurer canceled policy during period.
Valued Policy Laws - Answers - When policy written to cover any real property against
loss by fire, tornado, lightening and a total loss occurs, face value of coverage will be
paid.
, Other Methods of Loss Settlement Provisions:
Agreed Value
Stated Amount
Functional Replacement Cost - Answers - Agreed Value - Insurer and insured agree
with amount of coverage provided.
Stated Amount - Generally used to cover classic autos
Functional Replacement Cost - values property at the cost
necessary to replace damaged or destroyed property with new property of unlike kind
and quality. The property performs the same general function allowing the insured to
accomplish their business objectives. Property replaced using functionally equivalent
materials and products are less expensive and often require a shorter replacement
schedule
All provide max protection.
Limited of Liability - Answers - -Max provided as stated in insurance contract
-Policy coverage limits
=Automatically restored following a loss
Combined Single Limit: Amount paid per occurrence for covered bodily injury or
property damage of others.
Split Limit : Subsided into cov. limit for bodily injury pre person and per occurrence and
separate limit for prop. damage.
Aggregate Limits : Provide max limit of liability for total amount of losses occurring
during pol per.
Supplementary Payments : Payments made in addition to limit of liability Examples:
$250 for bail bonds, premiums of bonds and release attachment.
Conditional - Answers - Insurers promise/performance is conditional upon payment of
premiums to keep coverage
Both parties satisfy specific conditions for contract to be executed.
Personal - Answers - Contract between insured and insurer (people)
Utmost Good Faith - Answers - -Each party must tell the truth
-Insurer relies on insureds statements
-Insured relies on insurers promise
-If insured intentionally conceals info, contract may be void.
Representations - Answers - Statements made by applicants recovered on application
(if true).
UNDERSTANDINGS
HO-1 - Answers - Basic named perils policy. Only covers 10 listen perils. RCV.
HO-2 - Answers - Broad named perils policy. Covers dwelling & personal property. 16
named perils.
HO-3 - Answers - Homeowners special form. Basic open perils policy. Dwelling - open
peril, covers everything except exclusions.
Contests - named peril.
HO-4 - Answers - Renters policy. No coverage for dwelling, other structures or loss of
use.
Personal property (amount that you specify.)
Liability (amount that you specify)
Medical payments to others (amount you specify)
Named peril policy
HO-5 - Answers - Full open perils policy.
Dwelling - open peril
Contents - open peril
* exclusions may apply.
HO-6 - Answers - Condo policy. Not responsible for exterior loss. Responsible for
interiors walls, floors, and ceilings as well as personal property. Have loss of use
coverage. Does not have "other structures." Named peril for dwelling, personal property,
and loss of use.
HO-8 - Answers - Basic market value policy. Only covers same 10 listed perils. ACV.
Normally insures older homes that would be extremely difficult to replace if destroyed.
Accident and Occurrence - Answers - A: unplanned, unexpected event
O: unexpected, recurrent, repeated exposure that over time causes illness or
impairment to person.
Cancellation: Short Rate and Pro Rata - Answers - SR: Insured canceled policy during
period
PR: Insurer canceled policy during period.
Valued Policy Laws - Answers - When policy written to cover any real property against
loss by fire, tornado, lightening and a total loss occurs, face value of coverage will be
paid.
, Other Methods of Loss Settlement Provisions:
Agreed Value
Stated Amount
Functional Replacement Cost - Answers - Agreed Value - Insurer and insured agree
with amount of coverage provided.
Stated Amount - Generally used to cover classic autos
Functional Replacement Cost - values property at the cost
necessary to replace damaged or destroyed property with new property of unlike kind
and quality. The property performs the same general function allowing the insured to
accomplish their business objectives. Property replaced using functionally equivalent
materials and products are less expensive and often require a shorter replacement
schedule
All provide max protection.
Limited of Liability - Answers - -Max provided as stated in insurance contract
-Policy coverage limits
=Automatically restored following a loss
Combined Single Limit: Amount paid per occurrence for covered bodily injury or
property damage of others.
Split Limit : Subsided into cov. limit for bodily injury pre person and per occurrence and
separate limit for prop. damage.
Aggregate Limits : Provide max limit of liability for total amount of losses occurring
during pol per.
Supplementary Payments : Payments made in addition to limit of liability Examples:
$250 for bail bonds, premiums of bonds and release attachment.
Conditional - Answers - Insurers promise/performance is conditional upon payment of
premiums to keep coverage
Both parties satisfy specific conditions for contract to be executed.
Personal - Answers - Contract between insured and insurer (people)
Utmost Good Faith - Answers - -Each party must tell the truth
-Insurer relies on insureds statements
-Insured relies on insurers promise
-If insured intentionally conceals info, contract may be void.
Representations - Answers - Statements made by applicants recovered on application
(if true).
