LA Claims Adjuster
Property and Causality
Practice Exam 1
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
1. Insurable Interest ______in the property
and would suffer a finan-
cial loss if the proper-
ty were damaged by an
insured peril, their fami-
ly members (names need
not be listed in the policy),
and others such as a lien
holder, for example, the
bank that holds the mort-
gage on a house.
2. Cause of Loss Forms ____establish and define
the causes of loss (or per-
ils) for which coverage is
provided under the form.
(Please do not confuse the
"cause of loss" forms with
the "proof of loss" form,
which is the form submit-
ted to the insurance com-
pany by the insured when
they have a claim.)
3. Basic Cause of Loss Form This form is a "named
peril" form, that specifies
the perils insured against.
The perils listed on this
form will usually be, as the
name implies,
the most basic perils. This
form will only cover those
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
perils that are specifically
named in the form.
4. Broad Cause of Loss Form This form is also a "named
peril" form and provides
coverage for the perils
named in the basic form,
but adds additional perils
and names
them on the form.
5. Special Cause of Loss Form ___form is an "open peril"
or "all risk"
form that provides cover-
age for all risks of loss,
from any peril, except
those that are
specifically excluded in the
policy. Remember for your
state licensing exam that
when coverage is provid-
ed under an open peril
form, the burden of proof
lies with
the insurance company to
prove that the cause of
loss is excluded.
6. Appraisal Clause This property insurance
provision allows either the
insured or the insurance
company to demand a
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
binding appraisal of the
damaged property in the
event of a dispute as to the
value of the property. The
clause also establishes the
required appraisal proce-
dure.
7. Coinsurance Clause A provision in property
insurance policies stating
that the insurance com-
pany and the insured will
share in the loss incurred
by the insured, based on
a fixed percentage of the
value of the insured prop-
erty. In addition, the in-
sured will face a penal-
ty, and must pay a high-
er percentage on the loss
if they do not insure the
property for a certain per-
centage of its full val-
ue (usually at least 80%).
Sometimes, in Dwelling &
Homeowners policies this
clause is called the "Loss
Settlement Clause".
8. Concurrent Causation This term, when referring
to property insurance, is
a doctrine stating that if
2026
Property and Causality
Practice Exam 1
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
1. Insurable Interest ______in the property
and would suffer a finan-
cial loss if the proper-
ty were damaged by an
insured peril, their fami-
ly members (names need
not be listed in the policy),
and others such as a lien
holder, for example, the
bank that holds the mort-
gage on a house.
2. Cause of Loss Forms ____establish and define
the causes of loss (or per-
ils) for which coverage is
provided under the form.
(Please do not confuse the
"cause of loss" forms with
the "proof of loss" form,
which is the form submit-
ted to the insurance com-
pany by the insured when
they have a claim.)
3. Basic Cause of Loss Form This form is a "named
peril" form, that specifies
the perils insured against.
The perils listed on this
form will usually be, as the
name implies,
the most basic perils. This
form will only cover those
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
perils that are specifically
named in the form.
4. Broad Cause of Loss Form This form is also a "named
peril" form and provides
coverage for the perils
named in the basic form,
but adds additional perils
and names
them on the form.
5. Special Cause of Loss Form ___form is an "open peril"
or "all risk"
form that provides cover-
age for all risks of loss,
from any peril, except
those that are
specifically excluded in the
policy. Remember for your
state licensing exam that
when coverage is provid-
ed under an open peril
form, the burden of proof
lies with
the insurance company to
prove that the cause of
loss is excluded.
6. Appraisal Clause This property insurance
provision allows either the
insured or the insurance
company to demand a
2026
, LA Claims Adjuster Property and Causality Practice Exam 1
Study online at https://quizlet.com/_5hp3bs
binding appraisal of the
damaged property in the
event of a dispute as to the
value of the property. The
clause also establishes the
required appraisal proce-
dure.
7. Coinsurance Clause A provision in property
insurance policies stating
that the insurance com-
pany and the insured will
share in the loss incurred
by the insured, based on
a fixed percentage of the
value of the insured prop-
erty. In addition, the in-
sured will face a penal-
ty, and must pay a high-
er percentage on the loss
if they do not insure the
property for a certain per-
centage of its full val-
ue (usually at least 80%).
Sometimes, in Dwelling &
Homeowners policies this
clause is called the "Loss
Settlement Clause".
8. Concurrent Causation This term, when referring
to property insurance, is
a doctrine stating that if
2026
