Texas All-Lines Adjuster Pre-licensing Correct 100%

Common Policy Provisions - Answer insurance policies are standardized forms, most created by ISO (Insurance Services Office) or AAIS (American Association of Insurance Services). the provisions are within the policies established terms of the agreement Cancellation and Nonrenewal Condition - Answer sets rights and duties of both insurer and insured if either cancels, policyholder can cancel anytime without notice, insurer's right to cancel is subject to the state insurance laws, insurer must generally provide written notice for cancellation or non renewal, and the insurer can cancel with few days' notice for non-payment of premiums Unearned Premiums - Answer policyholder pays premium before receiving full coverage, if policy is canceled early then insurer must pay back the money received for coverage it never gave, and insurer counts unearned premiums amount liabilities Changing a Policy - Answer policy changes added by endorsement and agreed upon by both insurer and insured Liberalization Clause - Answer if insurer broadens policy coverage in course of business, policies already issued must include this increase if the change occurred during the policy period (or even shortly before) or if it did not raise the policy premium Policy Rescission - Answer declaring that the policy was never a valid agreement. this can only be done under certain circumstances such as material, intentional, or fraudulent misrepresentation Assignment Provision - Answer policy is non-transferable unless insurer agrees. an exception is death - if an insured passes then the coverage transfers to the decedent's legal representative Additional Insured - Answer person or organization that is added to the policy at the First Named Insured's request and who benefits from the policy (but not making any changes) Other Insurance/Apportionment Clause - Answer how the policy will respond if insured risk is covered by 2 or more policies. all enforces principle of indemnity by keeping people from "double recovering" on a loss Primary VS Excess Policies - Answer Primary policies pay up to the limit, regardless of presence of another policy. Excess policies only pays once the primary policy's limits ave been exhausted Contribution of Equal Shares - Answer each policy pays an equal share of the loss up to the lowest policy limit, then process repeats until loss is paid in full or all policy limits have been reached Pro Rata - Answer policies that split the loss based on percentage of coverage each policy provides Nonconcurrency - Answer the situation where two of more parties covering the same risk have different inception and expiration dates Overinsurance - Answer the amount of insurance covering a risk which exceeds the insurable value of that risk. The insurer will only pay up to the insurable risk, and any fraudulent intents will void the contract Restoration/Non-reduction of limits - Answer common options are to restore limits to the original level, loss does not reduce limits at all, total loss payout ends policy coverage and excess premiums are returned to insured Legal Action Against an Insurer - Answer Sets requirements the insured must meet before suing the insurer. Insured must comply with all policy obligations, and an insurer cannot be held liable for damages that the policy does not cover or pay for damages above the policies coverage limits TexasSure - Answer a financial responsibility verification system, intended to lower the number of uninsured motorists in Texas, pulls information from the DPS and TxDMV - among others What are the uninsured motorist penalties? - Answer if insurance lapses (even for just 1 day): 1st offense: $175-$350 fine 2nd offense: $350-$1,000 fine, driver's license suspended, vehicle impounded