ADJUSTER PRO UPDATED COMPREHENSIVE EXAM
QUESTIONS AND SOLUTIONS RATED A+
✔✔Estoppel - ✔✔A legal principle that prevents the insurer from denying coverage if
the policy holder has been lead to believe in good faith that coverage applies. It does
not allow the insurer to change the coverage in an insurance policy without the
policyholders consent.
✔✔The declaration page includes - ✔✔Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible, and
premium
✔✔Insuring Agreement - ✔✔A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
✔✔conditions - ✔✔provisions in the policy that qualify or place limitations on the
insurer's promise to perform
✔✔Endorsements - ✔✔add, modify, or take away coverage
✔✔Exclusions and Limitations - ✔✔conditions, situations, and services not covered by
the insurance carrier
✔✔Rider/addendum/attachment - ✔✔Same as endorsements
✔✔proximate cause - ✔✔The original occurrence, the source, of all the subsequent
damages.
✔✔Direct Loss - ✔✔a financial loss that results from the physical damage, destruction,
or theft of the property
✔✔Indirect Loss - ✔✔Economic loss resulting from a direct loss
✔✔Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under
the policy, recover the amount paid from any party (other than the insured) who caused
the loss or is otherwise legally liable for the loss.
✔✔Valuation - ✔✔determination of a monetary value
✔✔Actual Cash Value formula - ✔✔replacement cost minus depreciation
✔✔Annual Depreciation - ✔✔An item's Replacement cost divided by the number of
years in its expected lifespan.
,✔✔Accumulated Depreciation - ✔✔The items annual depreciation multiplied by its age
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔obsolescence - ✔✔Something no longer used
✔✔Valued policies - ✔✔used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
✔✔Franchise Deductible - ✔✔If loose are above the deductible, the insured pays 100%,
if below the insurer pays nothing
✔✔Percentage Deductible - ✔✔A deductible which requires a deduction from the loss
of a percentage of the value of the property or a percentage of the policy limits.
✔✔Calculate the indemnity with Co insurance penalty - ✔✔Had / Should have had x
partial loss =indemnity
✔✔Coinsurance math - ✔✔Take % times $
✔✔Negligence - ✔✔careless neglect, often resulting in injury
✔✔Vicarious Liability - ✔✔Legal responsibility placed on one person for the acts of
another.
✔✔Four elements of negligence - ✔✔duty, breach, causation, damages
✔✔Degrees of Liability - ✔✔Full, partial, and no Liability
✔✔Assumption of Risk - ✔✔A defense against negligence that can be used when the
plaintiff was aware of a danger and voluntarily assumed the risk of injury from that
danger.
✔✔Contributory Negligence - ✔✔A legal defense that may be raised when the
defendant feels that the conduct of the plaintiff somehow contributed to any injuries or
damages that were sustained by the plaintiff.
✔✔Comparative Negligence - ✔✔An adjuster may seek to suggest a claimant was
responsible examples 75% claimant 25% policyholder
✔✔Modified Comparative Negligence - ✔✔the same as comparative negligence, except
a plaintiff who is over 50% at fault cannot recover any money at all.
, ✔✔Res lpsa Loquitur - ✔✔the thing speaks for itself
✔✔Dangerous Instrumentality Doctrine - ✔✔States that anyone involved in the use of
inherently dangerous products or machines is held 100% liable for their own damages.
✔✔Four elements of negligence - ✔✔duty, breach, causation, damages
✔✔Vicarious Liability - ✔✔Transfers negligence
✔✔Single Limit Liability Insurance - ✔✔One maximum payout for liability damages
✔✔split liability limit - ✔✔Establish 3 different limits on how the policy will pay out
On car insurance document looks like 50/100/50
✔✔Aggregate Limit of Liability - ✔✔The maximum limit of coverage available under a
liability policy during a policy year regardless of the number of claims that may be made
or the number of accidents that may occur.
✔✔ISO - ✔✔Insurance Services Office
✔✔Pro Rata Apportionment - ✔✔Policies split the loss based on percentage of
coverage provides equal to the percentage of the loss
✔✔Nonconcurrency - ✔✔A situation in which two or more policies covering same risk
have different inception and expiration dates
✔✔liberation clause - ✔✔Any change to a policy form that broadens coverage with out
raising premium
✔✔Over insurance provision - ✔✔Benefits will be reduced to match loss
✔✔Recoverable Depreciation - ✔✔depreciation that is initially held back, then disbursed
after proof of repairs being performed to bring property back to whole
✔✔No Benefit to Bailee - ✔✔A provision that excludes any assignment or granting of
any policy provision to any person or organization holding, storing, repairing, or moving
insured property for a fee.
✔✔Apportionment - ✔✔Defines how a policy will respond when more than one policy
covers the same risk
✔✔Sever ability of interest - ✔✔Coverage applies to each insured separately, as if no
other insured existed
QUESTIONS AND SOLUTIONS RATED A+
✔✔Estoppel - ✔✔A legal principle that prevents the insurer from denying coverage if
the policy holder has been lead to believe in good faith that coverage applies. It does
not allow the insurer to change the coverage in an insurance policy without the
policyholders consent.
✔✔The declaration page includes - ✔✔Names, policy #, location & description of
insured item, value, dates of the policy, amount and limit of coverage, deductible, and
premium
✔✔Insuring Agreement - ✔✔A statement in an insurance policy that the insurer will,
under described circumstances, make a loss payment or provide a service.
✔✔conditions - ✔✔provisions in the policy that qualify or place limitations on the
insurer's promise to perform
✔✔Endorsements - ✔✔add, modify, or take away coverage
✔✔Exclusions and Limitations - ✔✔conditions, situations, and services not covered by
the insurance carrier
✔✔Rider/addendum/attachment - ✔✔Same as endorsements
✔✔proximate cause - ✔✔The original occurrence, the source, of all the subsequent
damages.
✔✔Direct Loss - ✔✔a financial loss that results from the physical damage, destruction,
or theft of the property
✔✔Indirect Loss - ✔✔Economic loss resulting from a direct loss
✔✔Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under
the policy, recover the amount paid from any party (other than the insured) who caused
the loss or is otherwise legally liable for the loss.
✔✔Valuation - ✔✔determination of a monetary value
✔✔Actual Cash Value formula - ✔✔replacement cost minus depreciation
✔✔Annual Depreciation - ✔✔An item's Replacement cost divided by the number of
years in its expected lifespan.
,✔✔Accumulated Depreciation - ✔✔The items annual depreciation multiplied by its age
✔✔Replacement Cost - ✔✔The cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation.
✔✔obsolescence - ✔✔Something no longer used
✔✔Valued policies - ✔✔used when it is difficult to establish the value of insured
property after a loss occurs, or when it is desirable to agree on a specific value in
advance
✔✔Franchise Deductible - ✔✔If loose are above the deductible, the insured pays 100%,
if below the insurer pays nothing
✔✔Percentage Deductible - ✔✔A deductible which requires a deduction from the loss
of a percentage of the value of the property or a percentage of the policy limits.
✔✔Calculate the indemnity with Co insurance penalty - ✔✔Had / Should have had x
partial loss =indemnity
✔✔Coinsurance math - ✔✔Take % times $
✔✔Negligence - ✔✔careless neglect, often resulting in injury
✔✔Vicarious Liability - ✔✔Legal responsibility placed on one person for the acts of
another.
✔✔Four elements of negligence - ✔✔duty, breach, causation, damages
✔✔Degrees of Liability - ✔✔Full, partial, and no Liability
✔✔Assumption of Risk - ✔✔A defense against negligence that can be used when the
plaintiff was aware of a danger and voluntarily assumed the risk of injury from that
danger.
✔✔Contributory Negligence - ✔✔A legal defense that may be raised when the
defendant feels that the conduct of the plaintiff somehow contributed to any injuries or
damages that were sustained by the plaintiff.
✔✔Comparative Negligence - ✔✔An adjuster may seek to suggest a claimant was
responsible examples 75% claimant 25% policyholder
✔✔Modified Comparative Negligence - ✔✔the same as comparative negligence, except
a plaintiff who is over 50% at fault cannot recover any money at all.
, ✔✔Res lpsa Loquitur - ✔✔the thing speaks for itself
✔✔Dangerous Instrumentality Doctrine - ✔✔States that anyone involved in the use of
inherently dangerous products or machines is held 100% liable for their own damages.
✔✔Four elements of negligence - ✔✔duty, breach, causation, damages
✔✔Vicarious Liability - ✔✔Transfers negligence
✔✔Single Limit Liability Insurance - ✔✔One maximum payout for liability damages
✔✔split liability limit - ✔✔Establish 3 different limits on how the policy will pay out
On car insurance document looks like 50/100/50
✔✔Aggregate Limit of Liability - ✔✔The maximum limit of coverage available under a
liability policy during a policy year regardless of the number of claims that may be made
or the number of accidents that may occur.
✔✔ISO - ✔✔Insurance Services Office
✔✔Pro Rata Apportionment - ✔✔Policies split the loss based on percentage of
coverage provides equal to the percentage of the loss
✔✔Nonconcurrency - ✔✔A situation in which two or more policies covering same risk
have different inception and expiration dates
✔✔liberation clause - ✔✔Any change to a policy form that broadens coverage with out
raising premium
✔✔Over insurance provision - ✔✔Benefits will be reduced to match loss
✔✔Recoverable Depreciation - ✔✔depreciation that is initially held back, then disbursed
after proof of repairs being performed to bring property back to whole
✔✔No Benefit to Bailee - ✔✔A provision that excludes any assignment or granting of
any policy provision to any person or organization holding, storing, repairing, or moving
insured property for a fee.
✔✔Apportionment - ✔✔Defines how a policy will respond when more than one policy
covers the same risk
✔✔Sever ability of interest - ✔✔Coverage applies to each insured separately, as if no
other insured existed
