Property and Casualty Adjuster In
UPDATED ACTUAL Exam Questions and
CORECT Answers
Indemnity - CORRECT ANSWER -Insured restored to approximate financial condition as
before loss occurred, no better or worse
Independent Adjuster - CORRECT ANSWER -must represent more than 1 company
Binder - CORRECT ANSWER -Commits company to act as if the policy has been issued,
temporary contract, initiate coverage, oral or written, expires when policy coverages begins
Consideration - CORRECT ANSWER -insurer's promise to provide indemnity in the event
of a loss
Hazards - CORRECT ANSWER -Conditions that create or increase chance of loss
Insurable interest - CORRECT ANSWER -actual, lawful, and substantial economic
interest; financial interest at the time of loss
Insurer - CORRECT ANSWER -company or person that provides insurance
Material Misrepresentation - CORRECT ANSWER -incorrect information given by the
prospect/insured but when corrected does affect coverage; voids the contract
Morale Hazard - CORRECT ANSWER -carelessness or indifference to a loss, takes
additional risks because she has insurance
Physical Hazard - CORRECT ANSWER -visible (ice on a sidewalk)
,Types of Hazards - CORRECT ANSWER -Physical, Morale, and Moral
Concealment - CORRECT ANSWER -deliberately withholding material information from
the insurer; will void coverage
Direct Loss - CORRECT ANSWER -immediate actual physical damage to tangible
property
Insurance - CORRECT ANSWER -transfer of risk form one person or organization to an
insurance company that accumulates funds (premiums)
Law of Large Numbers - CORRECT ANSWER -large number of homogenous or like
exposure units to predict future losses accurately
Misrepresentation - CORRECT ANSWER -incorrect information given by the prospect/
insured that when corrected does not affect coverage
Named Insured - CORRECT ANSWER -1st party to the contract
Pure Risk - CORRECT ANSWER -only the chance of loss and is insurable
Package policy/ Multiline - CORRECT ANSWER -property and liability policies together
Consequential Loss - CORRECT ANSWER -indirect loss; resulting from spoilage or
temperature change
Estoppel - CORRECT ANSWER -involuntary relinquishment of a known right; if the
agent says it is covered, it is covered, even when this is not the insurer's intent
, Indirect Loss - CORRECT ANSWER -is an inability to use property as a result of a direct
Insured - CORRECT ANSWER -the claimant/ complaining party / who the insurer
promises to protect in addition to the named insured
Limit of Liability - CORRECT ANSWER -maximum amount that can be paid for a
covered loss
Morale Hazard - CORRECT ANSWER -E's carelessness or indifference to a loss, takes
additional risks because she has insurance
Peril - CORRECT ANSWER -actual causes of loss identified in the policy; fire, wind,
hail, collision
Risk - CORRECT ANSWER -chance / uncertainty of loss
Warranty - CORRECT ANSWER -written statement that must be true at the time of the
loss or the policy is void
Texas Department of Insurance (TDI) - CORRECT ANSWER -responsible for licensing
property and casualty adjusters
10 days - CORRECT ANSWER -days adjuster is entitled to receive in the event of a
hearing with the Texas Department of Insurance
AIC - CORRECT ANSWER -Associate in Claims; designation that exempts a person from
taking the property and casualty adjuster site exam
18 yrs old - CORRECT ANSWER -minimum age to be licensed
UPDATED ACTUAL Exam Questions and
CORECT Answers
Indemnity - CORRECT ANSWER -Insured restored to approximate financial condition as
before loss occurred, no better or worse
Independent Adjuster - CORRECT ANSWER -must represent more than 1 company
Binder - CORRECT ANSWER -Commits company to act as if the policy has been issued,
temporary contract, initiate coverage, oral or written, expires when policy coverages begins
Consideration - CORRECT ANSWER -insurer's promise to provide indemnity in the event
of a loss
Hazards - CORRECT ANSWER -Conditions that create or increase chance of loss
Insurable interest - CORRECT ANSWER -actual, lawful, and substantial economic
interest; financial interest at the time of loss
Insurer - CORRECT ANSWER -company or person that provides insurance
Material Misrepresentation - CORRECT ANSWER -incorrect information given by the
prospect/insured but when corrected does affect coverage; voids the contract
Morale Hazard - CORRECT ANSWER -carelessness or indifference to a loss, takes
additional risks because she has insurance
Physical Hazard - CORRECT ANSWER -visible (ice on a sidewalk)
,Types of Hazards - CORRECT ANSWER -Physical, Morale, and Moral
Concealment - CORRECT ANSWER -deliberately withholding material information from
the insurer; will void coverage
Direct Loss - CORRECT ANSWER -immediate actual physical damage to tangible
property
Insurance - CORRECT ANSWER -transfer of risk form one person or organization to an
insurance company that accumulates funds (premiums)
Law of Large Numbers - CORRECT ANSWER -large number of homogenous or like
exposure units to predict future losses accurately
Misrepresentation - CORRECT ANSWER -incorrect information given by the prospect/
insured that when corrected does not affect coverage
Named Insured - CORRECT ANSWER -1st party to the contract
Pure Risk - CORRECT ANSWER -only the chance of loss and is insurable
Package policy/ Multiline - CORRECT ANSWER -property and liability policies together
Consequential Loss - CORRECT ANSWER -indirect loss; resulting from spoilage or
temperature change
Estoppel - CORRECT ANSWER -involuntary relinquishment of a known right; if the
agent says it is covered, it is covered, even when this is not the insurer's intent
, Indirect Loss - CORRECT ANSWER -is an inability to use property as a result of a direct
Insured - CORRECT ANSWER -the claimant/ complaining party / who the insurer
promises to protect in addition to the named insured
Limit of Liability - CORRECT ANSWER -maximum amount that can be paid for a
covered loss
Morale Hazard - CORRECT ANSWER -E's carelessness or indifference to a loss, takes
additional risks because she has insurance
Peril - CORRECT ANSWER -actual causes of loss identified in the policy; fire, wind,
hail, collision
Risk - CORRECT ANSWER -chance / uncertainty of loss
Warranty - CORRECT ANSWER -written statement that must be true at the time of the
loss or the policy is void
Texas Department of Insurance (TDI) - CORRECT ANSWER -responsible for licensing
property and casualty adjusters
10 days - CORRECT ANSWER -days adjuster is entitled to receive in the event of a
hearing with the Texas Department of Insurance
AIC - CORRECT ANSWER -Associate in Claims; designation that exempts a person from
taking the property and casualty adjuster site exam
18 yrs old - CORRECT ANSWER -minimum age to be licensed
