Texas Adjuster Study Guide with Complete Solution Already Passed

Texas Adjuster Study Guide with Complete Solution Already Passed perils -answer a cause of property losses under an insurance contract ex: windstorm, hurricane, explosion, collapse of building, vandalism, accidental discharge, and theft law of large numbers -answer a fundamental concept in statistics and probability that describes how the average of a randomly selected large sample from a population. it basically relies on the principle that the larger the pool, the more predictable the amount of losses will be in a given period principle of indemnity -answer is an insurance principle stating that an insured may not be compensated by insurance company in an amount exceeding the insured's economic loss. limits of liability -answer the maximum amount that an insurance policy will pay. it is specified on the policy declaration page. property insurance -answer coverage for real and personal property against loss or damage from perils insured against. loss settlement -answer the process used to determine the amount of the loss actual cash value -answer the value of the property based on the current cost to replace it minus depreciation. agreed value -answer the amount that the insured and insurer agree upon during the time of policy inception. replacement cost -answer the cost associated with replacing property at current market prices market value -answer the amount that the property is worth in a competitive market. this amount is accepted by the buyer and seller. tort -answer is a wrong that involves a breach of civil duty owed to someone else. this breach determines if that person is negligence. elements used to determine negligence -answer a duty owed, a duty breached, proximate cause, and damages methods to determine loss are: -answer acv, market value, replacement cost, agreed value casualty insurance -answer protects a person from financial loss arising from bodily injury or property damage to others hazard -answer is a situation that poses a level of threat to life, health, property, or environment. indirect loss -answer type of loss that does not result from direct damage of a covered cause of loss or peril but is instead a consequence of the direct damage loss. direct loss -answer direct physical loss to property insuring agreement -answer this section of the insurance policy specifies what the insurance will provide coverage for in exchange for premium payments by their customer. deductible -answer the amount the insured must pay in a loss before any payment is due from the insurance company. where is a homeowner percentage deductible always taken from? -answer coverage a structure policy limits of liability that is used on the declaration page. cancellation -answer is the termination of an insurance policy by either side and it must be done in writing liability -answer a person is legally liable for an accident if that person is found responsible for bodily injury or property damage to another party. negligence -answer the failure to exercise the care that a reasonably prudent person can be characterized by the average person. additional living expenses -answer charges covered by homeowners policy over and above policy holders customary living due to damage by a covered peril and makes the home temporary uninhabitable. exposure -answer the measure of the possibility of the loss insured -answer the party to an insurance arrangement that has an insurable interest in the property that is being insured.