LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
LA Claims Adjuster Property and Causality Practice Exam
1 Questions With Answers Latest Update.
______in the property and would suffer a financial loss if the property were damaged by an insured
peril, their family members (names need not be listed in the policy), and others such as a lien holder,
for example, the bank that holds the mortgage on a house. - ✔✔✔ - Insurable Interest
____establish and define the causes of loss (or perils) for which coverage is provided under the form.
(Please do not confuse the "cause of loss" forms with the "proof of loss" form, which is the form
submitted to the insurance company by the insured when they have a claim.) - ✔✔✔ - Cause of Loss
Forms
This form is a "named peril" form, that specifies the perils insured against. The perils listed on this form
will usually be, as the name implies,
the most basic perils. This form will only cover those perils that are specifically named in the form. -
✔✔✔ - Basic Cause of Loss Form
This form is also a "named peril" form and provides coverage for the perils named in the basic form,
but adds additional perils and names
them on the form. - ✔✔✔ - Broad Cause of Loss Form
___form is an "open peril" or "all risk"
form that provides coverage for all risks of loss, from any peril, except those that are
specifically excluded in the policy. Remember for your state licensing exam that
when coverage is provided under an open peril form, the burden of proof lies with
the insurance company to prove that the cause of loss is excluded. - ✔✔✔ - Special Cause of Loss Form
This property insurance provision allows either the insured or the insurance company to demand a
binding appraisal of the damaged property in the event of a dispute as to the value of the property.
The clause also establishes the required appraisal procedure. - ✔✔✔ - Appraisal Clause
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,LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
A provision in property insurance policies stating that the insurance company and the insured will
share in the loss incurred by the insured, based on a fixed percentage of the value of the insured
property. In addition, the insured will face a penalty, and must pay a higher percentage on the loss if
they do not insure the property for a certain percentage of its full value (usually at least 80%).
Sometimes, in Dwelling & Homeowners policies this clause is called the "Loss Settlement Clause". -
✔✔✔ - Coinsurance Clause
This term, when referring to property insurance, is a doctrine stating that if loss or damage to property
occurs as a result of more than one cause, one of which is covered under the policy, while the other
cause is not covered, the damages are still likely to be compensated by the insurer. However, this
doctrine is being revisited frequently in the courts and a number of recent cases have been decided in
favor of denying the claim. - ✔✔✔ - Concurrent Causation
This policy provision states that if part of a pair or set is lost or damaged, the loss will be valued as a fair
proportion of the total value of the set. It gives consideration to the importance of the damaged article
to the set. The insurer is not required to pay for the value of the whole set - ✔✔✔ - Pair or Set Clause
This provision protects the
interests of the bank/financial institution that holds the mortgage on the insured property.
This clause also grants coverage to the mortgagee, even if the insured intentionally caused the loss.
The bank can also provide a proof of loss or pay the insurance premiums in case the insured cannot, or
refuses to do so. The mortgagee must also be advised if the
contract has been cancelled or nonrenewed by the insurer - ✔✔✔ - The Standard Mortgage Clause
(Mortgagee Rights)
which is a combination of
"replacement cost minus depreciation" and "fair market value" that a judge determines - ✔✔✔ - broad
evidence rule
This is defined as "the current cost to purchase new, the item that was lost or damaged, with no
deduction for depreciation". - ✔✔✔ - Replacement Cost
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,LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
would be used to value of the property at the cost to replace the property that was lost,
damaged or destroyed, with property that serves the same function. - ✔✔✔ - Functional Replacement
Cost
a state law requiring insurance companies to pay the full "agreed value" of the policy in
the event of a total loss. - ✔✔✔ - Valued Policy Law
perils that are typically not covered under property insurance policies are: - ✔✔✔ - • Flood (a separate
policy must be purchased);
• Earthquake (a separate policy must be purchased);
• Mold;
• Acts of War;
• Parts of the property in disrepair, such as worn-out electrical wiring and plumbing, air
conditioning, heating units, and roofs.
state-mandated insurance programs that provide "fair" access to property
insurance for individuals who cannot secure insurance in the standard market. - ✔✔✔ - Fair Access to
Insurance Requirements (FAIR Plans)
FAIR Plans are considered part of the "residual market" of any state. Insurers in the standard market
may consider the individual's claims history or the property they are attempting to insure, ___ - ✔✔✔ -
High risk
____ occurs when a person or entity is determined to have been responsible, or
legally liable, for injury or loss to another person or liable for damage to another's property and
the law requires them to make financial restitution. - ✔✔✔ - A liability loss
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, LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
arises when the law recognizes a relationship between two
parties, and due to this relationship, one party has a legal obligation to act in a certain
manner toward the other. For example, a department store has a duty to take reasonable
care to keep their premises safe for customers - ✔✔✔ - A duty of care
A person or entity breaches the duty of care by failing to take reasonable care in fulfilling the duty. -
✔✔✔ - Breach of Duty
Common law defense against negligence states that if an
individual contributes to his or her own loss in any way, then another cannot be held
liable for the loss - ✔✔✔ - Contributory Negligence
Law that allows an injured party to collect from another
party for a loss, even when the injured party contributed to his or her own loss.
Damages are reduced to the extent of the injured party's negligence. This is the
defense used in most states. - ✔✔✔ - Comparative Negligence
In some states, a doctrine known as assumption of risk may
apply. Assumption of risk applies when a person knowingly exposes himself or herself to
danger or injury. When a person assumes this risk, he or she may be prevented from
recovering from a negligent party. This doctrine is frequently associated with injuries
incurred by spectators at sporting events - ✔✔✔ - Assumption of Risk
An independent action that breaks the chain of causation and
sets in motion a new chain of events. When this occurs, the intervening cause becomes
©®™ Page 4
LA Claims Adjuster Property and Causality Practice Exam
1 Questions With Answers Latest Update.
______in the property and would suffer a financial loss if the property were damaged by an insured
peril, their family members (names need not be listed in the policy), and others such as a lien holder,
for example, the bank that holds the mortgage on a house. - ✔✔✔ - Insurable Interest
____establish and define the causes of loss (or perils) for which coverage is provided under the form.
(Please do not confuse the "cause of loss" forms with the "proof of loss" form, which is the form
submitted to the insurance company by the insured when they have a claim.) - ✔✔✔ - Cause of Loss
Forms
This form is a "named peril" form, that specifies the perils insured against. The perils listed on this form
will usually be, as the name implies,
the most basic perils. This form will only cover those perils that are specifically named in the form. -
✔✔✔ - Basic Cause of Loss Form
This form is also a "named peril" form and provides coverage for the perils named in the basic form,
but adds additional perils and names
them on the form. - ✔✔✔ - Broad Cause of Loss Form
___form is an "open peril" or "all risk"
form that provides coverage for all risks of loss, from any peril, except those that are
specifically excluded in the policy. Remember for your state licensing exam that
when coverage is provided under an open peril form, the burden of proof lies with
the insurance company to prove that the cause of loss is excluded. - ✔✔✔ - Special Cause of Loss Form
This property insurance provision allows either the insured or the insurance company to demand a
binding appraisal of the damaged property in the event of a dispute as to the value of the property.
The clause also establishes the required appraisal procedure. - ✔✔✔ - Appraisal Clause
©®™ Page 1
,LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
A provision in property insurance policies stating that the insurance company and the insured will
share in the loss incurred by the insured, based on a fixed percentage of the value of the insured
property. In addition, the insured will face a penalty, and must pay a higher percentage on the loss if
they do not insure the property for a certain percentage of its full value (usually at least 80%).
Sometimes, in Dwelling & Homeowners policies this clause is called the "Loss Settlement Clause". -
✔✔✔ - Coinsurance Clause
This term, when referring to property insurance, is a doctrine stating that if loss or damage to property
occurs as a result of more than one cause, one of which is covered under the policy, while the other
cause is not covered, the damages are still likely to be compensated by the insurer. However, this
doctrine is being revisited frequently in the courts and a number of recent cases have been decided in
favor of denying the claim. - ✔✔✔ - Concurrent Causation
This policy provision states that if part of a pair or set is lost or damaged, the loss will be valued as a fair
proportion of the total value of the set. It gives consideration to the importance of the damaged article
to the set. The insurer is not required to pay for the value of the whole set - ✔✔✔ - Pair or Set Clause
This provision protects the
interests of the bank/financial institution that holds the mortgage on the insured property.
This clause also grants coverage to the mortgagee, even if the insured intentionally caused the loss.
The bank can also provide a proof of loss or pay the insurance premiums in case the insured cannot, or
refuses to do so. The mortgagee must also be advised if the
contract has been cancelled or nonrenewed by the insurer - ✔✔✔ - The Standard Mortgage Clause
(Mortgagee Rights)
which is a combination of
"replacement cost minus depreciation" and "fair market value" that a judge determines - ✔✔✔ - broad
evidence rule
This is defined as "the current cost to purchase new, the item that was lost or damaged, with no
deduction for depreciation". - ✔✔✔ - Replacement Cost
©®™ Page 2
,LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
would be used to value of the property at the cost to replace the property that was lost,
damaged or destroyed, with property that serves the same function. - ✔✔✔ - Functional Replacement
Cost
a state law requiring insurance companies to pay the full "agreed value" of the policy in
the event of a total loss. - ✔✔✔ - Valued Policy Law
perils that are typically not covered under property insurance policies are: - ✔✔✔ - • Flood (a separate
policy must be purchased);
• Earthquake (a separate policy must be purchased);
• Mold;
• Acts of War;
• Parts of the property in disrepair, such as worn-out electrical wiring and plumbing, air
conditioning, heating units, and roofs.
state-mandated insurance programs that provide "fair" access to property
insurance for individuals who cannot secure insurance in the standard market. - ✔✔✔ - Fair Access to
Insurance Requirements (FAIR Plans)
FAIR Plans are considered part of the "residual market" of any state. Insurers in the standard market
may consider the individual's claims history or the property they are attempting to insure, ___ - ✔✔✔ -
High risk
____ occurs when a person or entity is determined to have been responsible, or
legally liable, for injury or loss to another person or liable for damage to another's property and
the law requires them to make financial restitution. - ✔✔✔ - A liability loss
©®™ Page 3
, LA Claims Adjuster Property and Causality Practice Exam 1 Questions With Answers Latest Update
arises when the law recognizes a relationship between two
parties, and due to this relationship, one party has a legal obligation to act in a certain
manner toward the other. For example, a department store has a duty to take reasonable
care to keep their premises safe for customers - ✔✔✔ - A duty of care
A person or entity breaches the duty of care by failing to take reasonable care in fulfilling the duty. -
✔✔✔ - Breach of Duty
Common law defense against negligence states that if an
individual contributes to his or her own loss in any way, then another cannot be held
liable for the loss - ✔✔✔ - Contributory Negligence
Law that allows an injured party to collect from another
party for a loss, even when the injured party contributed to his or her own loss.
Damages are reduced to the extent of the injured party's negligence. This is the
defense used in most states. - ✔✔✔ - Comparative Negligence
In some states, a doctrine known as assumption of risk may
apply. Assumption of risk applies when a person knowingly exposes himself or herself to
danger or injury. When a person assumes this risk, he or she may be prevented from
recovering from a negligent party. This doctrine is frequently associated with injuries
incurred by spectators at sporting events - ✔✔✔ - Assumption of Risk
An independent action that breaks the chain of causation and
sets in motion a new chain of events. When this occurs, the intervening cause becomes
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