TX ADJUSTER TEST QUESTIONS AND ANSWERS ALREADY PASSED

TX ADJUSTER TEST QUESTIONS AND ANSWERS ALREADY PASSED While investigating a claim, you determine that the loss was caused by a defective mechanism in the dishwasher. You would attempt to_________________________? Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid by the insurance carrier to the insured for the loss. What is the process when an insurer and an insured have a dispute regarding the amount of damage? Appraisal __________________________________________________is a significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. Material Misrepresentation As an adjuster, you should base depreciation on these three factors? Age, Condition and Life Expectancy An_________________ is a person hired by the property owner to settle the claim with insurance company on their behalf. Umpire This type of policy provides coverage only for those perils that are listed in the policy? HO-A _________________________ are extra charges covered by homeowner's policies over and above the policyholder's customary living expenses. Additional Living Expenses _______________________is an event that results in an insured loss/damages? Occurrence What is value of your property, based on the current cost to replace it, minus depreciation? Actual Cash Value Expenses that have already sustained and that have not yet been paid are known as ____________________________________. Incurred Expenses ________________________________is the part of the written insurance policy that states all the policy's specific's, including the name of the policyholder, the type of property insured, the premiums, and the term limits for the coverage. Declarations Page What is the failure to use that degree of care which an ordinary person of reasonable prudence would use under similar circumstances? Negligence ______________________________is the amount of money dedicated to a general contractor's cost of doing a business and earning a profit. Overhead and Profit ____________________________is a situation involving a person other than an insurer and the insured. Third Party Loss What is the amount representing actual or potential liabilities kept by and insurer to cover debts to policyholder? Reserves This loss involves only the insurer and the insured? First Party Loss What is the responsibility to another for one's negligence? Liability _____________________ is the size of a loss, the extent of damages. Severity ___________________________ is the amount paid by an insured to an insurance company to obtain or maintain an insurance policy Premium __________________________________is the cost associated with replacing property at the current market price. Replacement Cost The period of a policy is in force, from the beginning or effective date to the expiration date is the ________________________________? Policy Period The amount the insured must pay in a loss before any payment is due is known as the ____________________________________. deductible A person who investigates and settles insurance claims is the ______________________? Adjuster Mary Johnson has an HO-B policy. Her coverage A limit of liability is $250,000 and her coverage B limit is $125,000. Her policy has a 2% deductible. What is her deductible? $5000.00 If your policyholder has a 1% deductible, this percentage would be taken from what coverage? Coverage A The Homeowner's policy provides coverage's for Personal Property that is away from the residence premises. The total limit of liability for off premises losses is ______________________________? 10% of COV B When handing a homeowner's content claim, you should establish if the loss happened __________________________________________ to help determine the total limit of liability that will apply to the claim. at the residence or elsewhere Your policyholder has a Homeowner's Policy with the following limits on it COV A limit is $158,000 COV B limit is $90,000 His home has a detached garage. His home and detached garage were completely destroyed in a fire loss. What is the maximum that he can receive for his detached garage? $15,800 MINUS A 1% DEDUCTIBLE= $14,220 COV A limit is $85,000 COV B limit is $ 46,000Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Golf Clubs $1,500, Shoes $600, Luggage $400, Total Loss is $4950.00 less 1% deductible OF $85,000 = $850.00 = $4100.00 COV A limit is $75,000 COV B limit is $36,000 Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Business Laptop $3000 ONLY PAYS $2500, Music CD's $500, Golf Clubs $1,500, Shoes $900 Loss is $7850 is the total loss. 1% of COV A =$750.00 Amount to be paid is $7100.00 Name 3 things that are subject to "Special Limits of Liability" under the HO-B 1. Money or Bank Cards 2. Valuable Papers, deeds, stamps BULLIONS etc. 3. Jewelry Watches or furs Under a HO-B policy, the dwelling/structure is covered for what types of losses? Coverage A Under a HO-B policy, the contents are covered under what Coverage? Coverage B List the 12 named perils that contents are covered for under the HO-B? 1)Fire and Lightening, 2) Sudden and Accidental Damage from Smoke, 3) Windstorm , Hurricanes and Hail, 4)Explosion 5) Aircraft 6) Vandalism and Malicious Mischief 7) Riot and Civil Commotion 8) Collapse of a building, or part of a building 9) accidental discharge overflow of water or Steam form plumbing, heating, air conditioning, system or household appliance 10) Falling objects, 11) Freezing, 12) theft or attempted theft What is the maximum amount for coverage for a covered loss to a tree? $250 Your policyholder sustained a theft loss. His roommate's personal laptop, plasma television and Sony stereo were all stolen. What are you going to tell him regarding his roommate's property? (Explain your answer and cite where you found it in the policy) Not Covered Found on HO-B PG 2 Under Property Under Section I Exclusions, what does Exclusions c. (3). Say? personal property contained in a building unless direct force of wind or hail makes an opening in a roof or wall and rain, snow, sand or dust enters through this opening and causes the damage. Your aunt is caring for a 22 year old female. Is this 22 year old female an Insured under the HO-B policy? NO. She is OVER 21. Your policyholder misplaced his watch somewhere in his house. The watch costs $800. How much are you going to pay him? $0 not covered During the storm, your policyholder's dwelling sustained 12ft of flood water. He provides you with receipts for his Additional Living Expenses. The expenses are all reasonable. What do you tell the policyholder? Floods are not covered During a recent windstorm, your policyholder's cloth awning sustains damage. The damage to the cloth awning is $400. How much can you pay for the cloth awning? $0 not covered Found in SECTION 1 Exclusions C1 While working on a claim with an approved vendor, he invites you to the Cowboys game. What should you do? Not GO!! When dealing with a customer, you should always behave_________________? Professionally ________________________is critical to keep your Po