Illinois Public Adjuster Exam Questions With Correct
Answers
Actual Cash Value (ACV) - accurate answers-Replacement cost less
depreciation, considering the age and condition of your property.
Additional Living Expenses (ALE) - accurate answers-Pays expenses over and
above your normal living costs (motel rooms, restaurant meals, and laundry
service) while your home is being repaired or rebuilt after damage from an
insured loss.
Agent - accurate answers-A representative who sells insurance for one or
more companies. or Someone that represents the Insurance Carrier
Application - accurate answers-A signed request for insurance, giving
information about the prospective policyholder
Appraisal - accurate answers-If you and we fail to agree on the actual cash
value, amount of loss, or cost of repair or replacement, either can make a
written demand for appraisal. Each will then select a competent, independent,
appraiser and notify the other of the appraiser's identity within 20 days of
receipt of the written demand. The two appraisers will choose an umpire. If
they cannot agree upon an umpire within 15 days, you or we may request that
the choice be made by a judge of a district court of a judicial district where the
loss occurred. The two appraisers will then set the amount of loss, stating
separately the actual cash value and loss to each item.
Binder - accurate answers-A temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued.
Broker - accurate answers-A licensed person or organization you can pay to
shop for insurance on your behalf.
Builders Risk - accurate answers-Coverage for a home under construction.
Claim payments are based on the percentage completed at time of loss. This
coverage must be changed to a homeowners policy upon completion of the
building.
, Cancellation - accurate answers-Termination of a policy before its normal
expiration date.
Claim - accurate answers-used in reference to insurance, a claim may be a
demand by an individual or corporation to recover, under a policy of
insurance, for loss that may come within that policy.
claims adjusters or representatives - accurate answers-A person an insurance
company hires to settle claims. The adjuster could either be a company
employee or under contract with the company -
one who settles insurance claims. This typically involves investigation of the
loss and a determination of the extent of coverage. In the context of first-party
(e.g., property) insurance, the adjuster negotiates a settlement with the
insured. In liability insurance, the adjuster coordinates the insured's defense
and participates in settlement negotiations. Adjusters may be employees of
the insurer (staff adjusters) or of independent adjusting bureaus
(independent adjusters) that represent insurers and self-insureds on a
contract basis. Public adjusters are consultants who specialize in assisting
insureds in presenting claims to insurance companies in a manner that will
maximize their recovery
coinsurance clause in property insurance - accurate answers-An agreement
with the insurance company in which you agree to carry insurance on your
property in an amount equal to a certain percentage of its actual cash value.
Covered Expenses: - accurate answers-The losses or conditions the policy will
pay for.
Deductible - accurate answers-The dollar amount you must pay out-of-pocket
for each claim before the insurance company begins paying.
Depreciation - accurate answers-Decrease in home or property value due to
age or wear and tear.
Earthquake Insurance - accurate answers-A special coverage transferring risk
of earthquake damages
Answers
Actual Cash Value (ACV) - accurate answers-Replacement cost less
depreciation, considering the age and condition of your property.
Additional Living Expenses (ALE) - accurate answers-Pays expenses over and
above your normal living costs (motel rooms, restaurant meals, and laundry
service) while your home is being repaired or rebuilt after damage from an
insured loss.
Agent - accurate answers-A representative who sells insurance for one or
more companies. or Someone that represents the Insurance Carrier
Application - accurate answers-A signed request for insurance, giving
information about the prospective policyholder
Appraisal - accurate answers-If you and we fail to agree on the actual cash
value, amount of loss, or cost of repair or replacement, either can make a
written demand for appraisal. Each will then select a competent, independent,
appraiser and notify the other of the appraiser's identity within 20 days of
receipt of the written demand. The two appraisers will choose an umpire. If
they cannot agree upon an umpire within 15 days, you or we may request that
the choice be made by a judge of a district court of a judicial district where the
loss occurred. The two appraisers will then set the amount of loss, stating
separately the actual cash value and loss to each item.
Binder - accurate answers-A temporary written or oral agreement to provide
insurance coverage until a formal written policy is issued.
Broker - accurate answers-A licensed person or organization you can pay to
shop for insurance on your behalf.
Builders Risk - accurate answers-Coverage for a home under construction.
Claim payments are based on the percentage completed at time of loss. This
coverage must be changed to a homeowners policy upon completion of the
building.
, Cancellation - accurate answers-Termination of a policy before its normal
expiration date.
Claim - accurate answers-used in reference to insurance, a claim may be a
demand by an individual or corporation to recover, under a policy of
insurance, for loss that may come within that policy.
claims adjusters or representatives - accurate answers-A person an insurance
company hires to settle claims. The adjuster could either be a company
employee or under contract with the company -
one who settles insurance claims. This typically involves investigation of the
loss and a determination of the extent of coverage. In the context of first-party
(e.g., property) insurance, the adjuster negotiates a settlement with the
insured. In liability insurance, the adjuster coordinates the insured's defense
and participates in settlement negotiations. Adjusters may be employees of
the insurer (staff adjusters) or of independent adjusting bureaus
(independent adjusters) that represent insurers and self-insureds on a
contract basis. Public adjusters are consultants who specialize in assisting
insureds in presenting claims to insurance companies in a manner that will
maximize their recovery
coinsurance clause in property insurance - accurate answers-An agreement
with the insurance company in which you agree to carry insurance on your
property in an amount equal to a certain percentage of its actual cash value.
Covered Expenses: - accurate answers-The losses or conditions the policy will
pay for.
Deductible - accurate answers-The dollar amount you must pay out-of-pocket
for each claim before the insurance company begins paying.
Depreciation - accurate answers-Decrease in home or property value due to
age or wear and tear.
Earthquake Insurance - accurate answers-A special coverage transferring risk
of earthquake damages
