Insurance Adjuster Questions and Answers Graded A

Insurance Adjuster Questions and Answers Graded A ACV Actual Cash Value ALE Additional Living Expense CE Continuing Education CGL Commercial General Liability CIM Commercial Inland Marine COM Commercial Ocean Marine CPP Commercial Property Policy DTPA Deceptive Trade Practices Act HO Home Owners IA Independent Adjuster NI Name Insured NOL Notice of Loss NRD Non-Recoverable Depreciation PA Public Adjuster PAP Personal Auto Policy PIP Personal Injury Policy POL Proof of Loss RC Replacement Cost RD Recoverable Depreciation SIU Special Investigation Unit TDI Texas Department of Insurance TIC Texas Insurance Code TPAP Texas Personal Auto Policy TSFP Texas Standard Fire Policy Underwriting to access the eligibility of a customer to receive their products, decide how much coverage the client should receive, and how much they should pay for it. Umpire an individual that is used when a claim has been questioned by either the insured or the insurer; an unbiased third party is required to resolve the dispute Recoverable Depreciation depreciation that is initially held back, then disbursed after proof of repairs being performed to bring property back to whole Reciprocity granting of the privileges and licensing in a state based on having a license in another state that is deemed equivalent by the granting state Replacement Cost the cost associated with replacing property at current market value. Actual cash value plus depreciation equals replacement cost Reservation of rights a letter sent by the insurance company to avoid "waiver and estoppels" of a right to deny a claim while permitting the insurance company to make an investigation into the circumstances of the claim. Risk uncertainty of a loss Salvage damaged property an insurer takes over to reduce their loss after paying a claim Second Party the insurance company to which the risk is transferred to by the contract Special Investigation Unit a subset of the claims function whereby suspicious losses are investigated separately from the normal claims adjusters' activities Statutes legislative acts or laws Subrogation the process by which an insurance company, after paying a loss, seeks to recover the amount of the loss from the party responsible or liable for the damages Surety Bonds guarantee that contractual obligations will be fulfilled TDI License Number an identification number that the department assigns to the licensee and located on the license certificate Texas Department of Insurance Department of the government of Texas responsible for regulation, education, adherence, and control of insurance related issues Third Party a beneficiary of a contract only as a result of the First Party's negligence TORT civil wrong based on common law Trespasser someone who intrudes on the privacy or property of another without permission Insured a person or organization covered by an insurance policy Insurer an organization that provides insurance products Law of Large Numbers a mathematical concept used by insurance companies that works upon the principal that the more times an event is repeated, the more predictable the outcome of a specified event Legislative Act an act (statue) passed by a legislative body Liability damages for which any insured becomes legally responsible and that the insured is legally obligated to pay Liability Insurance designed to protect the insured and/or policyholder from financial loss due to liability resulting from injuries to others and/or damage to their property Loss required payment by a company because of a specific insured incident based on the reduction in value prior to application of a deductible Negligence failure to use the care that a reasonable and prudent person would have used under that same or similar circumstance Non-Recoverable Depreciation the depreciation from the total Replacement Cost due to age, use, and condition. The resulting dollar amount is Actual Cash Value Obligee the entity that is the "recipient" to the Principal Package Policy a combination of property and liability coverages of two or more separate policies in one premium Peril a specific risk or cause of loss covered by an insurance policy, such as fire, windstorm, flood, theft, etc. Principal the entity that has agreed to fulfill an obligation Proof of Loss a statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy Provider an individual or organization offering continuing education courses for licenses and/or pre-licensing instruction for adjusters Public Adjuster an individual hired by the insured to settle a claim with the insurance company on behalf of the insured Deductible amount of loss paid by the policy holder Direct Damage a loss covered by a specific named peril Endorsement a written agreement attached Estimates an approximate calculation of amount, extent, quanti