Louisiana P&C Adjuster Exam Prep
questions and answers 2022-2023
The one who receives the authority to act on behalf of someone else? - Answer-Agent
what does a sale's agent receive authority for? - Answer-to sell
An insurance agent receives authority to what? - Answer-Settle claims brought against
the insurer
How do agents receive their authority? - Answer-written contract
What is the power to bind? - Answer-an agent's authority can bind:
-what an agent says or does can bind insurer
-agents should take the utmost care in what they say or do
-even if insure makes mistakes, the insurer may have to accept them
What are the three major responsibilities of contracted agents? - Answer-1.adhere to or
follow contract
2. use reasonable judgement and care at all times
3. provide all necessary info and documentation to the insurer
What are the three types of authority granted in agency relationship? - Answer-
expressed, implied, apparent
What is expressed authority? - Answer-authority that is directly granted to the agent in
writing via the agent's contract (usually to sell policies, collect premiums, issue binders,
offer discounts, cancel insurance)
What is implied authority? - Answer-authority that the public reasonably believes the
agent to have, based on the agent's representations
What does representation include? - Answer--portraying oneself as a representative
-wearing a name tag w/ company logo
-handing out company business cards
-words to perform agent's duties
What is apparent authority? - Answer-indirect authority that is granted when the insurer
does not correct agent, even though agent may be acting in error
-by not correcting agent, insurer implies consent
-granted when insurer does not act
What are the four types of sales agents? - Answer--independent insurance sales agent
,-exclusive agent
-general agent
-direct writer
What is an independent agent? - Answer--self employed
-offers insurance from more than one company at the same
-they can compare and give quotes from different companies
-find a policy that best suits the customer
What is an exclusive agent? - Answer--also called captive agent
-commissioned
-represents only one insurer and only their policies
What is a general agent? - Answer--works for only one insurance company
-supervises other exclusive agents
-trains other agents
What is a direct writer agent? - Answer--salaried employees
-works for one company
What are the sale agent duties? - Answer--sell insurance policies
-service policyholders contracts
-collect premiums
-represent the insurer
What are the two claim function purpose? - Answer--comply w/ terms fo the contract
-support the insurer's financial stability
*** part of the insurance contract that lets the insurer fulfill its promises to the insured
What must an adjuster do when dealing with a claim? - Answer-they must get claims the
indemnity they serve while protecting the insurer from fraud and making sure not to pay
more than the contract allows
What is adjusting? - Answer--process of comparing a claimant's losses to the promises
made by an insurance policy
What is an insurance adjuster? - Answer--an agent who processes insurance claims for
a salary, a fee, or commission
What are the types of adjusters? - Answer--staff adjuster
-independent adjuster
-public adjuster
-emergency adjuster
What is a staff adjuster? - Answer--employed by only one insurer
, -salaried employees
-also called compound adjuster
ex: State Farm, nationwide, aethna
What is an independent adjuster? - Answer--fee adjuster, bureau
-not contracted to any particular insurer
-self employed
-processes claims (can be for multi companies)
-paid by fee schedule, daily rate, or time +expense
-sometimes paid on commission basis (% of final settlement amount)
What is a public adjuster? - Answer--hired by policyholder (claimant)
-represents policyholder in the claim
-charges commission (usually 10% fo settlement)
-hired when insured knows the insurer will be making a payment for claim
-helps determine the proper identification
-specializes in appraising/negotiating claims
What is an emergency adjuster? - Answer--temporarily licensed by insurance
commissioner when catastrophe
-only allowed to work on class related to disaster
What are the responsibilities of insurance adjusters? - Answer--act as the fiduciary
agent
-has power to bind
-reports to the principle is a must
What do you need in order to be a fiduciary agent? - Answer--have authority granted by
insurer via contract
-act for, and one behalf of the principle (the insurer)
-protect the principles financial and property interest
-highest amount of honesty
How does an adjuster report to the principal? - Answer--giving frequent status and
progress reports the principle
-provide private info for the benefit of the principal on essential elements of loss report
What are the essential elements of the loss report? - Answer--date of occurrence/loss
-full description of loss
-tort and tort feasor (if applicable)
-policy inception and expiration date
-policy form and policy #
-policy coverage
-policy deductible
questions and answers 2022-2023
The one who receives the authority to act on behalf of someone else? - Answer-Agent
what does a sale's agent receive authority for? - Answer-to sell
An insurance agent receives authority to what? - Answer-Settle claims brought against
the insurer
How do agents receive their authority? - Answer-written contract
What is the power to bind? - Answer-an agent's authority can bind:
-what an agent says or does can bind insurer
-agents should take the utmost care in what they say or do
-even if insure makes mistakes, the insurer may have to accept them
What are the three major responsibilities of contracted agents? - Answer-1.adhere to or
follow contract
2. use reasonable judgement and care at all times
3. provide all necessary info and documentation to the insurer
What are the three types of authority granted in agency relationship? - Answer-
expressed, implied, apparent
What is expressed authority? - Answer-authority that is directly granted to the agent in
writing via the agent's contract (usually to sell policies, collect premiums, issue binders,
offer discounts, cancel insurance)
What is implied authority? - Answer-authority that the public reasonably believes the
agent to have, based on the agent's representations
What does representation include? - Answer--portraying oneself as a representative
-wearing a name tag w/ company logo
-handing out company business cards
-words to perform agent's duties
What is apparent authority? - Answer-indirect authority that is granted when the insurer
does not correct agent, even though agent may be acting in error
-by not correcting agent, insurer implies consent
-granted when insurer does not act
What are the four types of sales agents? - Answer--independent insurance sales agent
,-exclusive agent
-general agent
-direct writer
What is an independent agent? - Answer--self employed
-offers insurance from more than one company at the same
-they can compare and give quotes from different companies
-find a policy that best suits the customer
What is an exclusive agent? - Answer--also called captive agent
-commissioned
-represents only one insurer and only their policies
What is a general agent? - Answer--works for only one insurance company
-supervises other exclusive agents
-trains other agents
What is a direct writer agent? - Answer--salaried employees
-works for one company
What are the sale agent duties? - Answer--sell insurance policies
-service policyholders contracts
-collect premiums
-represent the insurer
What are the two claim function purpose? - Answer--comply w/ terms fo the contract
-support the insurer's financial stability
*** part of the insurance contract that lets the insurer fulfill its promises to the insured
What must an adjuster do when dealing with a claim? - Answer-they must get claims the
indemnity they serve while protecting the insurer from fraud and making sure not to pay
more than the contract allows
What is adjusting? - Answer--process of comparing a claimant's losses to the promises
made by an insurance policy
What is an insurance adjuster? - Answer--an agent who processes insurance claims for
a salary, a fee, or commission
What are the types of adjusters? - Answer--staff adjuster
-independent adjuster
-public adjuster
-emergency adjuster
What is a staff adjuster? - Answer--employed by only one insurer
, -salaried employees
-also called compound adjuster
ex: State Farm, nationwide, aethna
What is an independent adjuster? - Answer--fee adjuster, bureau
-not contracted to any particular insurer
-self employed
-processes claims (can be for multi companies)
-paid by fee schedule, daily rate, or time +expense
-sometimes paid on commission basis (% of final settlement amount)
What is a public adjuster? - Answer--hired by policyholder (claimant)
-represents policyholder in the claim
-charges commission (usually 10% fo settlement)
-hired when insured knows the insurer will be making a payment for claim
-helps determine the proper identification
-specializes in appraising/negotiating claims
What is an emergency adjuster? - Answer--temporarily licensed by insurance
commissioner when catastrophe
-only allowed to work on class related to disaster
What are the responsibilities of insurance adjusters? - Answer--act as the fiduciary
agent
-has power to bind
-reports to the principle is a must
What do you need in order to be a fiduciary agent? - Answer--have authority granted by
insurer via contract
-act for, and one behalf of the principle (the insurer)
-protect the principles financial and property interest
-highest amount of honesty
How does an adjuster report to the principal? - Answer--giving frequent status and
progress reports the principle
-provide private info for the benefit of the principal on essential elements of loss report
What are the essential elements of the loss report? - Answer--date of occurrence/loss
-full description of loss
-tort and tort feasor (if applicable)
-policy inception and expiration date
-policy form and policy #
-policy coverage
-policy deductible
