NC adjuster Exam Questions and Answers Already Passed

NC adjuster Exam Questions and Answers Already Passed Inception/Expiration Date The date on which coverage became effective or expired. Policies in North Carolina become effective and expire at 12:01am Occurrence Date The date on which the loss occurred Identification of Parties involve The loss report should include the names and addresses of the parties involved in the loss, the names and addresses of any injured person(s) and the names and addresses of any witness(s) Policy form /Number Identifies the type of coverage purchased (policy form) and the policy number for the particular policy purchased by the insured Description of the Loss Information concerning how, when and where the accident or loss happened is an essential element in any loss report Coverage Shows the type of coverage purchased as well as the limits of coverage purchased. Deductible (retention) That portion of any covered property claim that must be paid by the insured. Tort/Tort Feasor A tort is a legal injury or a civil wrong to another that arises out of actions other than a breach of contract which a court will provide a remedy through allowing the injured party a monetary recover for damages. Elements of an Investigation The insured and the claims team need to work together to ensure they have secured all of the available evidence (surveillance videos, witnesses and their statements) as well as continue the ongoing investigation Adjusters, investigators index reports and witnesses can all be key pieces of the puzzle that may not be available, or there may not have been enough information to involve at the onset Statute of Limitations Each state has its own statute of limitations laws. NC is three years Types of liability Contributory, Vicarious, and Strict Contributory Liability If a person was injured due to their own negligence (contributed to the accident), the injured party would not be entitled to collect any damages (money) from another party who supposedly caused the accident. (ex. person runs a red light and car hits them) Vicarious Liability Someone is held responsible for the actions or omissions of another person while performing their employment duties (ex. employee fails to mop up a spill and a customer falls) Strict Liability Liability incurred for causing damage to life, limb, or property by a hazardous activity or a defective product. ( toy company sells doll that injured a child are responsible even though they did not manufacture the doll) Damages Special, General, and Punitive Special (compensatory) Damages are amounts paid to compensate the plaintiff for direct expenses such as: medical treatment, loss wages, and funeral expenses (Can be measured) General (compensatory) Damages are paid for losses that CANNOT be specifically measured and itemized in order to compensate the plaintiff such as: pain and suffering, loss of arm or leg, vision, and physical disfigurement. Punitive (punish) damages are awarded to the plaintiff in addition to compensatory damages when the defendant's conduct has been malicious. They are awarded to punish the defendant and to deter others from committing similar actions Actual Cash Value (ACV) is replacement cost at the time of loss less any depreciation Stated Value (stated amount) is the maximum amount of insurance. The policy will still pay the actual cash value at the time of loss. If ACV is less than the state amount the insurance company will pay you ACV. If ACV is greater, insurance company will pay stated amount (pays the least amount of the two) Reproductive Cost The cost of researching, replacing or restoring lost information, such as valuable papers or records, which have suffered loss or damage. Local market value shall be determined by using either the local price of a comparable vehicle or if no comparable vehicle can be found, quotations from at least two qualified dealers within the local market area. Total loss When a motor vehicle is damage in an amount which equals or exceeds 75% of the pre-accident actual cash value. Loss and claims payments shall be mailed or otherwise delivered within how many business days after a claim is settled? 10 days. Specific Coverage Covers items on a scheduled property (ring) Open Perils all direct losses are included unless are excluded in the policy (burden of proof is on the insurance company) Named Perils Only perils that are named are covered (insured must prove what caused the loss) blanket coverage One amount (deductible) insures more than one thing Economic Loss Loss of rental income Principle of Indemnity Puts you back the way you were but you won't make money on it. Indirect loss You lose money (income) you incur additional expenses as a result of a direct loss. (don't pay a deductible) Direct loss Actual loss of home, contents (pay a deductible) Replacement Cost (co-insurance loss of real property (house), it's a partial loss and replaced with like kind like quality (does NOT deduct depreciation) New for Old Functional Replacement product no longer is available, (8 track for a cd player) Salvage Value (SFP) parts value sold after a total loss by insurance company Accident One time event with a KNOWN PLACE and a KNOWN TIME. Occurrence A type of accident that occurs over a period of time. (hurricane) Personal Injury Defame character, falsely arrested Commercial General Liability Policies offer liability coverage for the commercial risk that does not qualify for coverage under another commercial multi-line form. (Automatically covers personal injury liability) Absolute Wind Hail Storm coverage The only endorsement that takes away coverage. Beach Plan Includes wind and hail. Binder Your covered, may be written or oral Certificate of Insurance Proof of written insurance Prudent Person Rule What would a normal person do if in the same situation. How many do you have to report a proof of loss unless you ask for an extension from he insurance company 60 days. Concealment Failure to state the entire truth (ex. mentions 2 of the four accidents they had within a year) Agent -Are representatives of the insurer (insurance company)