TEST FOR ADJUSTER PRO, FLORIDA STUDY(QUESTIONS AND ANSWERS)A+ GRADED EXAM

TEST FOR ADJUSTER PRO, FLORIDA STUDY(QUESTIONS AND ANSWERS)A+ GRADED EXAM - CORRECT ANSWER-Subtract the deductible from covered damages to get indemnification - CORRECT ANSWER-6 unique characteristics of insurance policy 1 Contracts of adhesion (court ez win) 2 Utmost good faith 3 aleatory 4 personal 5 Unilateral (only insurer has obligation) 6 Conditional - CORRECT ANSWER-1945 regulate insurance Naic doesn't give benefits to comissioners 90 day to pay hijacking only covered with endorsement - CORRECT ANSWERFranchise Deductible in marine insurance - CORRECT ANSWERstandard deductible 500 - CORRECT ANSWERSeaworthy cargo legal no deviation in voyage - CORRECT ANSWERinsurer has 14 days to respond to claim - CORRECT ANSWERtheft. by insider not covered - CORRECT ANSWERpaying ,% - CORRECT ANSWER-coinsurance policy premiums - CORRECT ANSWER-not out of pocket Estoppel - CORRECT ANSWER-protects the insured party from an insured who initially approves coverage but then later denies coverage after the insured pays for repairs contributory negligence - CORRECT ANSWER-if plaintiff is negligent den no settlement insurance claim is - CORRECT ANSWER-a formal requestto settle the damage Non-waiver agreement is used for - CORRECT ANSWER-when an independent adjuster is investigating a claim in catastrophe situation Public adjuster - CORRECT ANSWER-represents insured not insurer law and ordinance - CORRECT ANSWER-(a.k.a. Code Upgrade Coverage): covers the repair or upgradecost when new building codes, laws, or ordinances go into effect tort - CORRECT ANSWER-any civil wrongdoing federal employee compensation actually 11 - CORRECT ANSWER-provides federal govt insurance for civillian employees what is coverage for cc fraud or forgery - CORRECT ANSWER-500$ FL sell auto insurance u need - CORRECT ANSWER-Florida auto joint underwriting assoy FELA (Federal Employer's Liability Act) - CORRECT ANSWER-protects only trailroad workers insured must advise insurance of broke sprinkler within 48 hours that is - CORRECT ANSWER-commercial floater block policy's are - CORRECT ANSWER-commercial floater DICE - CORRECT ANSWER-rations page ing agreement tions 4exlusiins 1 actual cash value replacement cost minus depreciation 2replacement cost 3stated amount 4Agreed value 1 actual cash value replacement cost minus depreciation 2replacement cost 3stated amount 4Agreed value 1 actual cash value replacement cost minus depreciation 2replacement cost 3stated amount 4Agreed value 1 actual cash value replacement cost minus depreciation 2replacement cost 3stated amount 4Agreed value - CORRECT ANSWER-Valuation is 6 conditions of what can be insured - CORRECT ANSWER-1 adequate premiums 2 Definable 3 Unexpected 4 substantial losses 5 Exclusions 6 Law of large numbers 1 adequate premiums 2 Definable 3 Unexpected 4 substantial losses 5 Exclusions 6 Law of large numbers 1 adequate premiums 2 Definable 3 Unexpected 4 substantial losses 5 Exclusions 6 Law of large numbers 1 adequate premiums 2 Definable 3 Unexpected 4 substantial losses 5 Exclusions 6 Law of large numbers unexpected Definable Freight insurance is vessal owne - CORRECT ANSWER-Freight insurance is vessal owne Carge 3 types 1 single risk for single shipment 2. Floating open or long term multiple trips in specific time 3. Warehouse to warehouse Model regulation that defines six categories of eligible marine risks: 1. Imports 2. Exports 3. Domestic Shipments 4. Instrumentalities of Transportation or Communication 5. Personal Property Floater Risks 6. Commercial Property Floater Risks - CORRECT ANSWER-twisting is severability of interests - CORRECT ANSWER-separate policy were issued to each. Thus, a policy containing such a clause will cover a claim made by one insured against another insured. coverage b other structures - CORRECT ANSWER-detached garagesp nfip - CORRECT ANSWER-fema flood in surance Cost and freight - CORRECT ANSWER-legal term used in contracts for international trade that specifies that the seller of the goods is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the items from the carrier. Hospital expense insurance - CORRECT ANSWER-protects policyholders against losses associated with being treated in a hospital for a medical issue. ... Some people buy this type of insurance rather than rely solely on their health insurance policy to cover every cost. primary insurance - CORRECT ANSWER-Primary insurance pays first, before other policies that apply to the same loss. See also: "Excess Insurance." guarantee association - CORRECT ANSWER-A non-profit association of insurers from similar markets that handle and pay claims for insurers that have been declared insolvent Accumulated Depreciation - CORRECT ANSWER-The total decrease in an item's value over a period of time. Formula: (Annual Depreciation x Number of years used) Actual Cash Value (ACV) - CORRECT ANSWER-A valuation method used by insurers to reflect an item's current market value right before being damaged or destroyed. Formula: (Replacement cost - Accumulated Depreciation) Adhesion - CORRECT ANSWER-One of the characteristics of an insurance contract. Means that one party (the insurer) sets the terms, and the other (the insured) can 'take it or leave it.' Adjusted Gross Revenue (CropInsurance) - CORRECT ANSWER-Narrowest (and least expensive) form of Crop Revenue Insurance. Insures farm revenue as a whole instead of individual crops. Guarantees a percentage of the insured farm's average revenue. Adjuster - CORRECT ANSWER-An agent who, for compensation, processes insurance claims. Can represent either the insured or the insurer. Adjuster - Emergency - CORRECT ANSWER-Adjusters who are temporarily licensed by the insurance commissioner to handle claims during catastrophes or emergencies that produce an overwhelming number of claims in a short period of time. Adjuster - Independent - CORRECT ANSWER-Self-employed adjusters who contract with multiple insurers at the same time. Paid on a commission or fee-plus-expenses basis for each claim. Also called: Fee Adjuster, Bureau Adjuster Adjuster - Public - CORRECT ANSWER-An adjuster who is hired to represent the claimant and help determine a fair indemnification.Usually specializes in appraisals and negotiation. Paid commission, usually a percentage of final settlement. Adjuster - Staff - CORRECT ANSWER-Salaried employee of one insurance company who can work locally, regionally, or nationally. Also called: Company Adjuster Advance Payment Settlement - CORRECT ANSWER-A settlement option that lets the insurer offer some financial relief to the claimant before the claim has been fully settled. The insurer makes advance payments to the claimant, which are then subtracted from the final settlement amount. Often used when a claimant suffers bodily injury and is unable to work. Agency Authority - CORRECT ANSWER-The Agent's authority to act on behalf of someone else, usually an insurer. This authority is derived from the agent's contract with the insurer. Agency Authority - express - CORRECT ANSWER-Authority that is expressly given to the agent in writing. Allows agent to act on behalf of the principal. Aency Authority - implied - CORRECT ANSWER-Authority that an agent possesses by implication of his behavior, regardless of whether this authority is expressly granted in writing. Agency Authority - apparent - CORRECT ANSWER-Authority that an agent possesses based on the appearance of representing an insurer. Agent - CORRECT ANSWER-Someone who has received authority from an insurer to sell or service insurance policies. Aggregate Limit - CORRECT ANSWER-A type of policy limit found in some health, liability, and property damage policies. It represents the total amount the insurer will pay for all losses. Agreement - CORRECT ANSWER-One of the four requirements of a legally binding contract. All parties involved must agree to the terms of the contract. Can also refer to a binder, which is the preliminary substance of a contract. Agricultural Producer - CORRECT ANSWER-A business that grows, harvests, and sells crops for profit. Aleatory - CORRECT ANSWER-A characteristic of insurance contracts; means depending on an unknown future event." Answer - CORRECT ANSWER-In liability cases, the defendant's response to a complaint. There are three possible answers: 1)accept complaint and pay for damages, 2) deny the complaint, or 3) accept the complaint with a right to insert evidence into the case. Annual Depreciation - CORRECT ANSWER-An item's Replacement cost divided by the number of years in its expected lifespan. Appraisal - CORRECT ANSWER-A negotiation method which allows the claimant and the insurer each to select an appraiser.The two appraisers in turn select an Umpire. The appraisers then work together to determine asettlement amount. If they cannot agree, the Umpire steps in. Agreement by any two of thethree is binding. Arbitration - CORRECT ANSWER-A negotiation method in which the opposing parties each submit their evidence to a mutually-agreed-upon and neutral third party, called an arbitrator. The arbitrator reviews the positions ofeach opposing side, and makes a final and legally binding decision. Arbitrator - CORRECT ANSWER-The mutually-agreed-upon and neutral third party in an arbitration who reviews the positions ofeach opposing side, and makes a final and legally binding decision. Auto Policy - CORRECT ANSWER-Insurance policy designed to protect the policyholder while owning, occupying, or operating avehicle. Usually combines liability coverage and property coverage into one policy. Automobile - CORRECT ANSWER-In Insurance policies, Automobile generally means any vehicle designed for use on publicroads. Automobile No-fault Laws - CORRECT ANSWER-Insurance that indemnifies the insured regardless of who was at fault in an accident; also restrict the insured's right to sue the at-fault party. Aviation - CORRECT ANSWER-Aviation insurance combines hull insurance for the aircraft and liability insurance for any damage to others' property or to people who are not passengers. Bailee - CORRECT ANSWER-An individual or company that receives the property of someone else for a special purpose, and returns the product after use. BAP - CORRECT ANSWER-The Business Auto Policy provides property damage and liability insurance for automobiles used by a business. Binder - CORRECT ANSWER-A temporary contract provided by an insurer that ensures coverage until the complete, permanent policy is issued. BI - CORRECT ANSWER-(Bodily Injury): Physical damage to someone's person. Body Language - CORRECT ANSWER-The signals we give through posture, behaviour, apparel, etc., which are involved in communication. Boiler & Machinery - CORRECT ANSWER-Insurance designed to indemnify a business for damages to, and damages by, boilers, machinery, motors, generators and a variety of other electrical devices and appliances. Bond - CORRECT ANSWER-A contract wherein one party guarantees the performance of a third party. Bonds involve three parties: (1) the surety agrees to pay the second party (2) the obligee if the third party (3) the principal neglects to carry out an obligation it has to the obligee. Breach of Product Warranty - CORRECT ANSWER-The failure or falsehood of a stated promise of a product stipulation. Business Personal Property - CORRECT ANSWER-Moveable property used for business Catastrophe - CORRECT ANSWER-An occurrence or a sequence of occurrences that causes enormous property losses; normally uninsurable by private insurers. Cause of Loss - CORRECT ANSWER-A form included in a Commercial Package Policy or a Commercial Property Policy that lists the causes of loss from which the insured property is covered. CGL - CORRECT ANSWER-A Commercial General Liability policy protects businesses against damages and injuries to thirdparties.