Louisiana Insurance
Adjuster Exam
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, Louisiana Insurance Adjuster
Study online at https://quizlet.com/_536qil
1. Lender Interest Protects lender interest by allowing the lender certain rights in the policy.
Provisions
2. Coinsurance A property insurance provision that penalizes the insured's loss recovery if the limit
Penalty of insurance purchased by the insured is not equal to or greater than a specified
percentage (commonly 80 percent) of the value of the insured property.
3. Underinsured A situation resulting from a failure to carry enough coverage on the value of a
property, especially when there are coinsurance implications.
4. Coinsurance A type of insurance in which the insured pays a share of the payment made against
a claim.
5. Franchise De- A minimum amount of loss that must be incurred before insurance coverage
ductible applies. A franchise deductible differs from an ordinary deductible in that, once it
is met, the entire amount of the loss is paid, subject to the policy limit. Franchise
deductibles can be stated either as a dollar amount or as a percentage of the
policy limit.
6. Percentage De- Requires the insured party to pay a deductible equal to the percentage of the
ductible value of the insured risk.
7. Fixed Deductible One specific, predetermined amount that a policyholder must pay out-of-pocket
before he can be indemnified.
8. 3 Typed of De- Fixed, Percentage, Franchise
ductibles
9. Deductible The amount the policyholder must pay out-of-pocket before the insurer will pay
for losses.
10. Replacement A method of valuation based on the cost of replacing an item at current market
Cost (RC) price, regardless of depreciation.
2026
, Louisiana Insurance Adjuster
Study online at https://quizlet.com/_536qil
11. Valued Policy A valuation method that assigns a set of values to each insured item. Value is
determined prior to the issuance of policy. Avoids the confusion of assessing
appreciation or depreciation.
12. Annual Deprecia- Replacement Cost / the items useful life
tion Formula
13. Accumulated De- Items annual depreciation X it's age
preciation For-
mula
14. Depreciation An items estimated loss of value due to wear, tear and age.
15. Actual Cash Val- A valuation method that takes into account an items depreciation.
ue
16. Actual Cash Val- Replacement Cost (RC) - depreciation
ue (ACV) Formula
17. 3 methods of Val- Actual Cash Value (ACV), Replacement Cost (RC), Agreed Value (Valued Policy)
uation
18. Valuation The process of estimating what an item is worth.
19. Subrogation The transfer of rights that allows the insurer to recover it's losses after it has
indemnified a policyholder.
20. Lender Interest A lender's financial stake in an insured item.
21. Insurable Inter- Direct financial interest in protecting something or someone.
est
22. Misrepresenta- A false, distorted, or deceitful statement of fact or opinion even if made uninten-
tion tionally.
2026
Adjuster Exam
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, Louisiana Insurance Adjuster
Study online at https://quizlet.com/_536qil
1. Lender Interest Protects lender interest by allowing the lender certain rights in the policy.
Provisions
2. Coinsurance A property insurance provision that penalizes the insured's loss recovery if the limit
Penalty of insurance purchased by the insured is not equal to or greater than a specified
percentage (commonly 80 percent) of the value of the insured property.
3. Underinsured A situation resulting from a failure to carry enough coverage on the value of a
property, especially when there are coinsurance implications.
4. Coinsurance A type of insurance in which the insured pays a share of the payment made against
a claim.
5. Franchise De- A minimum amount of loss that must be incurred before insurance coverage
ductible applies. A franchise deductible differs from an ordinary deductible in that, once it
is met, the entire amount of the loss is paid, subject to the policy limit. Franchise
deductibles can be stated either as a dollar amount or as a percentage of the
policy limit.
6. Percentage De- Requires the insured party to pay a deductible equal to the percentage of the
ductible value of the insured risk.
7. Fixed Deductible One specific, predetermined amount that a policyholder must pay out-of-pocket
before he can be indemnified.
8. 3 Typed of De- Fixed, Percentage, Franchise
ductibles
9. Deductible The amount the policyholder must pay out-of-pocket before the insurer will pay
for losses.
10. Replacement A method of valuation based on the cost of replacing an item at current market
Cost (RC) price, regardless of depreciation.
2026
, Louisiana Insurance Adjuster
Study online at https://quizlet.com/_536qil
11. Valued Policy A valuation method that assigns a set of values to each insured item. Value is
determined prior to the issuance of policy. Avoids the confusion of assessing
appreciation or depreciation.
12. Annual Deprecia- Replacement Cost / the items useful life
tion Formula
13. Accumulated De- Items annual depreciation X it's age
preciation For-
mula
14. Depreciation An items estimated loss of value due to wear, tear and age.
15. Actual Cash Val- A valuation method that takes into account an items depreciation.
ue
16. Actual Cash Val- Replacement Cost (RC) - depreciation
ue (ACV) Formula
17. 3 methods of Val- Actual Cash Value (ACV), Replacement Cost (RC), Agreed Value (Valued Policy)
uation
18. Valuation The process of estimating what an item is worth.
19. Subrogation The transfer of rights that allows the insurer to recover it's losses after it has
indemnified a policyholder.
20. Lender Interest A lender's financial stake in an insured item.
21. Insurable Inter- Direct financial interest in protecting something or someone.
est
22. Misrepresenta- A false, distorted, or deceitful statement of fact or opinion even if made uninten-
tion tionally.
2026
