ADJUSTER PRO UPDATED EXAM SCRIPT QUESTIONS AND
SOLUTIONS RATED A+
✔✔exposure - ✔✔How likely a loss will occur
✔✔Law of large numbers - ✔✔The larger the number of units insured, the more
accurately the insurer can predict the number of claims from that group
✔✔Binder - ✔✔A temporary written or oral agreement to provide insurance coverage
until a formal written policy is issued.
✔✔blanket coverage - ✔✔Policy which provides a single limit of insurance for all
property falling within a specific class
✔✔Specific Limits - ✔✔Limits that apply to one specific type of property
✔✔Warranties - ✔✔Found on the conditions page... if policy holder breaks the warranty
the insurer can deny coverage
✔✔Concealment - ✔✔Hiding the truth
✔✔Waver - ✔✔Voluntary surrender of a right, claim, or privilege
✔✔Implied Waiver - ✔✔a person's actions that cause another to believe that a right has
been relinquished
✔✔Expressed Waiver - ✔✔In writing, signed
✔✔Estoppel - ✔✔A legal principle that prevents the insurer from denying coverage if
the policy holder has been lead to believe in good faith that coverage applies. It does
not allow the insurer to change the coverage in an insurance policy without the
policyholders consent.
✔✔The declaration page includes - ✔✔Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible, and
premium
✔✔Insuring Agreement - ✔✔A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
✔✔conditions - ✔✔provisions in the policy that qualify or place limitations on the
insurer's promise to perform
✔✔Endorsements - ✔✔add, modify, or take away coverage
, ✔✔Exclusions and Limitations - ✔✔conditions, situations, and services not covered by
the insurance carrier
✔✔Rider/addendum/attachment - ✔✔Same as endorsements
✔✔proximate cause - ✔✔The original occurrence, the source, of all the subsequent
damages.
✔✔Direct Loss - ✔✔a financial loss that results from the physical damage, destruction,
or theft of the property
✔✔Indirect Loss - ✔✔Economic loss resulting from a direct loss
✔✔Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under
the policy, recover the amount paid from any party (other than the insured) who caused
the loss or is otherwise legally liable for the loss.
✔✔Valuation - ✔✔determination of a monetary value
✔✔Actual Cash Value formula - ✔✔replacement cost minus depreciation
✔✔Annual Depreciation - ✔✔An item's Replacement cost divided by the number of
years the items useful life
✔✔Accumulated Depreciation - ✔✔The items annual depreciation multiplied by its age
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔obsolescence - ✔✔Something no longer used
✔✔Valued policies - ✔✔used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
✔✔Franchise Deductible - ✔✔If loose are above the deductible, the insured pays 100%,
if below the insurer pays nothing
✔✔Percentage Deductible - ✔✔A deductible which requires a deduction from the loss
of a percentage of the value of the property or a percentage of the policy limits.
✔✔Calculate the indemnity with Co insurance penalty - ✔✔Had / Should have had x
partial loss =indemnity
SOLUTIONS RATED A+
✔✔exposure - ✔✔How likely a loss will occur
✔✔Law of large numbers - ✔✔The larger the number of units insured, the more
accurately the insurer can predict the number of claims from that group
✔✔Binder - ✔✔A temporary written or oral agreement to provide insurance coverage
until a formal written policy is issued.
✔✔blanket coverage - ✔✔Policy which provides a single limit of insurance for all
property falling within a specific class
✔✔Specific Limits - ✔✔Limits that apply to one specific type of property
✔✔Warranties - ✔✔Found on the conditions page... if policy holder breaks the warranty
the insurer can deny coverage
✔✔Concealment - ✔✔Hiding the truth
✔✔Waver - ✔✔Voluntary surrender of a right, claim, or privilege
✔✔Implied Waiver - ✔✔a person's actions that cause another to believe that a right has
been relinquished
✔✔Expressed Waiver - ✔✔In writing, signed
✔✔Estoppel - ✔✔A legal principle that prevents the insurer from denying coverage if
the policy holder has been lead to believe in good faith that coverage applies. It does
not allow the insurer to change the coverage in an insurance policy without the
policyholders consent.
✔✔The declaration page includes - ✔✔Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible, and
premium
✔✔Insuring Agreement - ✔✔A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
✔✔conditions - ✔✔provisions in the policy that qualify or place limitations on the
insurer's promise to perform
✔✔Endorsements - ✔✔add, modify, or take away coverage
, ✔✔Exclusions and Limitations - ✔✔conditions, situations, and services not covered by
the insurance carrier
✔✔Rider/addendum/attachment - ✔✔Same as endorsements
✔✔proximate cause - ✔✔The original occurrence, the source, of all the subsequent
damages.
✔✔Direct Loss - ✔✔a financial loss that results from the physical damage, destruction,
or theft of the property
✔✔Indirect Loss - ✔✔Economic loss resulting from a direct loss
✔✔Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under
the policy, recover the amount paid from any party (other than the insured) who caused
the loss or is otherwise legally liable for the loss.
✔✔Valuation - ✔✔determination of a monetary value
✔✔Actual Cash Value formula - ✔✔replacement cost minus depreciation
✔✔Annual Depreciation - ✔✔An item's Replacement cost divided by the number of
years the items useful life
✔✔Accumulated Depreciation - ✔✔The items annual depreciation multiplied by its age
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔obsolescence - ✔✔Something no longer used
✔✔Valued policies - ✔✔used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
✔✔Franchise Deductible - ✔✔If loose are above the deductible, the insured pays 100%,
if below the insurer pays nothing
✔✔Percentage Deductible - ✔✔A deductible which requires a deduction from the loss
of a percentage of the value of the property or a percentage of the policy limits.
✔✔Calculate the indemnity with Co insurance penalty - ✔✔Had / Should have had x
partial loss =indemnity
