ILLINOIS PUBLIC ADJUSTER UPDATED STUDY GUIDE
QUESTIONS AND ANSWERS MARKED A+
✔✔what 2 broad principles form the legal foundation - ✔✔- The doctrine of utmost good
faith
-the doctrine of reasonable expectation
✔✔what are the 4 types of misrepresentations? - ✔✔twisting, chiming, sliding,
concealment
✔✔hard fraud vs soft fraud - ✔✔premeditated vs unplanned
✔✔difference between misrepresentation and concealment - ✔✔misrepresentation
involves lying, while concealment involves hiding
✔✔ambiguous language - ✔✔language in favor of insured
✔✔application for insurance - ✔✔applicants representation
✔✔arbitration clause - ✔✔process of bringing contract dispute
✔✔assignment - ✔✔transfer of legal rights (requires consent from insurance company)
✔✔binder - ✔✔provides temporary evidence of insurance coverage
✔✔difference between short rate and pro-rata - ✔✔penalty for cancelling while prorate
gives full refund
✔✔entire contract clause - ✔✔limited to terms of contract
✔✔fiduciary - ✔✔a person who holds assets in trust for a beneficiary
✔✔law of agency - ✔✔The law that governs the relationship between a principal and his
or her agent.
✔✔liberalization clause - ✔✔is an insurance policy provision that allows for additional
coverage or benefits to be added to an existing policy without requiring the policyholder
to pay more.
✔✔limit of liability - ✔✔most that will be payed
✔✔loss reserves - ✔✔sum of money set aside to meet future obligations
✔✔other insurance provision - ✔✔defines how each policy will pay
, ✔✔policy inception - ✔✔The actual date, and in some cases the hour, in which the
policy goes into effect.
✔✔policy expiration - ✔✔The actual date that the policy is no longer in effect
✔✔Policy Provisions - ✔✔clauses in insurance how coverage applies
✔✔policy period - ✔✔when the policy begins and ends
✔✔policy territory - ✔✔Defines the location where coverage will be provided.
✔✔Proof of loss (POL) - ✔✔A statement of facts about a loss for which the insured is
making a claim.
✔✔Subrogation clause - ✔✔allows an insurer to step into the shoes of the policyholder
and file a claim against a third party who caused the damage.
✔✔voided policy - ✔✔like it never existed
✔✔suspended policy - ✔✔temporary suspension
✔✔cancelled policy - ✔✔cancelled completely for a reason
✔✔certificate of authority - ✔✔grants power to write contacts of insurance in state
✔✔admitted/ authorized - ✔✔insurer is authorized by this State's Commissioner of
Insurance to do business in this State once they have certificate of authority
✔✔surplus line companies - ✔✔companies with no certificate of authority. Not admitted
✔✔what does the State Guaranty Association do? - ✔✔protects insurance policyholders
from financial losses if their insurance company becomes insolvent. SGAs are non-profit
organizations that ensure policyholders continue to receive coverage up to state-
specified limits.
✔✔specific coverage - ✔✔separate limits for different purposes
✔✔blanket coverage - ✔✔single limit for similar items
✔✔difference between burglary/robbery/ theft? - ✔✔Burglary- offender entering
Robbery- using force or threat of force
Theft- larceny (taking of property secretly)
QUESTIONS AND ANSWERS MARKED A+
✔✔what 2 broad principles form the legal foundation - ✔✔- The doctrine of utmost good
faith
-the doctrine of reasonable expectation
✔✔what are the 4 types of misrepresentations? - ✔✔twisting, chiming, sliding,
concealment
✔✔hard fraud vs soft fraud - ✔✔premeditated vs unplanned
✔✔difference between misrepresentation and concealment - ✔✔misrepresentation
involves lying, while concealment involves hiding
✔✔ambiguous language - ✔✔language in favor of insured
✔✔application for insurance - ✔✔applicants representation
✔✔arbitration clause - ✔✔process of bringing contract dispute
✔✔assignment - ✔✔transfer of legal rights (requires consent from insurance company)
✔✔binder - ✔✔provides temporary evidence of insurance coverage
✔✔difference between short rate and pro-rata - ✔✔penalty for cancelling while prorate
gives full refund
✔✔entire contract clause - ✔✔limited to terms of contract
✔✔fiduciary - ✔✔a person who holds assets in trust for a beneficiary
✔✔law of agency - ✔✔The law that governs the relationship between a principal and his
or her agent.
✔✔liberalization clause - ✔✔is an insurance policy provision that allows for additional
coverage or benefits to be added to an existing policy without requiring the policyholder
to pay more.
✔✔limit of liability - ✔✔most that will be payed
✔✔loss reserves - ✔✔sum of money set aside to meet future obligations
✔✔other insurance provision - ✔✔defines how each policy will pay
, ✔✔policy inception - ✔✔The actual date, and in some cases the hour, in which the
policy goes into effect.
✔✔policy expiration - ✔✔The actual date that the policy is no longer in effect
✔✔Policy Provisions - ✔✔clauses in insurance how coverage applies
✔✔policy period - ✔✔when the policy begins and ends
✔✔policy territory - ✔✔Defines the location where coverage will be provided.
✔✔Proof of loss (POL) - ✔✔A statement of facts about a loss for which the insured is
making a claim.
✔✔Subrogation clause - ✔✔allows an insurer to step into the shoes of the policyholder
and file a claim against a third party who caused the damage.
✔✔voided policy - ✔✔like it never existed
✔✔suspended policy - ✔✔temporary suspension
✔✔cancelled policy - ✔✔cancelled completely for a reason
✔✔certificate of authority - ✔✔grants power to write contacts of insurance in state
✔✔admitted/ authorized - ✔✔insurer is authorized by this State's Commissioner of
Insurance to do business in this State once they have certificate of authority
✔✔surplus line companies - ✔✔companies with no certificate of authority. Not admitted
✔✔what does the State Guaranty Association do? - ✔✔protects insurance policyholders
from financial losses if their insurance company becomes insolvent. SGAs are non-profit
organizations that ensure policyholders continue to receive coverage up to state-
specified limits.
✔✔specific coverage - ✔✔separate limits for different purposes
✔✔blanket coverage - ✔✔single limit for similar items
✔✔difference between burglary/robbery/ theft? - ✔✔Burglary- offender entering
Robbery- using force or threat of force
Theft- larceny (taking of property secretly)
