TEXAS ALL LINE ADJUSTER COMPLETE TEST

TEXAS ALL LINE ADJUSTER COMPLETE TEST Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid by the insurance carrier to the insured for the loss. - CORRECT ANSWER-While investigating a claim, you determine that the loss was caused by a defective mechanism in the dishwasher. You would attempt to_________________________? Appraisal - CORRECT ANSWER-What is the process when an insurer and an insured have a dispute regarding the amount of damage? Material Misrepresentation - CORRECT ANSWER- __________________________________________________is a significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. Age, Condition and Life Expectancy - CORRECT ANSWER-As an adjuster, you should base depreciation on these three factors? Umpire - CORRECT ANSWER-An_________________ is a person hired by the property owner to settle the claim with insurance company on their behalf. HO-A - CORRECT ANSWER-This type of policy provides coverage only for those perils that are listed in the policy? Additional Living Expenses - CORRECT ANSWER-_________________________ are extra charges covered by homeowner's policies over and above the policyholder's customary living expenses. Occurrence - CORRECT ANSWER-_______________________is an event that results in an insured loss/damages? Actual Cash Value - CORRECT ANSWER-What is value of your property, based on the current cost to replace it, minus depreciation? Incurred Expenses - CORRECT ANSWER-Expenses that have already sustained and that have not yet been paid are known as ____________________________________. Declarations Page - CORRECT ANSWER-________________________________is the part of the written insurance policy that states all the policy's specific's, including the name of the policyholder, the type of property insured, the premiums, and the term limits for the coverage. Negligence - CORRECT ANSWER-What is the failure to use that degree of care which an ordinary person of reasonable prudence would use under similar circumstances? Overhead and Profit - CORRECT ANSWER-______________________________is the amount of money dedicated to a general contractor's cost of doing a business and earning a profit. Third Party Loss - CORRECT ANSWER-____________________________is a situation involving a person other than an insurer and the insured. Reserves - CORRECT ANSWER-What is the amount representing actual or potential liabilities kept by and insurer to cover debts to policyholder? First Party Loss - CORRECT ANSWER-This loss involves only the insurer and the insured? Liability - CORRECT ANSWER-What is the responsibility to another for one's negligence? Severity - CORRECT ANSWER-_____________________ is the size of a loss, the extent of damages. Premium - CORRECT ANSWER-___________________________ is the amount paid by an insured to an insurance company to obtain or maintain an insurance policy Replacement Cost - CORRECT ANSWER-__________________________________is the cost associated with replacing property at the current market price. Policy Period - CORRECT ANSWER-The period of a policy is in force, from the beginning or effective date to the expiration date is the ________________________________? deductible - CORRECT ANSWER-The amount the insured must pay in a loss before any payment is due is known as the ____________________________________. Adjuster - CORRECT ANSWER-A person who investigates and settles insurance claims is the ______________________? $5000.00 - CORRECT ANSWER-Mary Johnson has an HO-B policy. Her coverage A limit of liability is $250,000 and her coverage B limit is $125,000. Her policy has a 2% deductible. What is her deductible? Coverage A - CORRECT ANSWER-If your policyholder has a 1% deductible, this percentage would be taken from what coverage? 10% of COV B - CORRECT ANSWER-The Homeowner's policy provides coverage's for Personal Property that is away from the residence premises. The total limit of liability for off premises losses is ______________________________? at the residence or elsewhere - CORRECT ANSWER-When handing a homeowner's content claim, you should establish if the loss happened __________________________________________ to help determine the total limit of liability that will apply to the claim. $14,220 - CORRECT ANSWER-Your policyholder has a Homeowner's Policy with the following limits on it COV A limit is $158,000 COV B limit is $90,000 His home has a detached garage. His home and detached garage were completely destroyed in a fire loss. What is the maximum that he can receive for his detached garage? $15,800 MINUS A 1% DEDUCTIBLE= Total Loss is $4950.00 less 1% deductible OF $85,000 = $850.00 = $4100.00 - CORRECT ANSWER-COV A limit is $85,000 COV B limit is $ 46,000Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Golf Clubs $1,500, Shoes $600, Luggage $400, Loss is $7850 is the total loss. 1% of COV A =$750.00 Amount to be paid is $7100.00 - CORRECT ANSWER-COV A limit is $75,000 COV B limit is $36,000 Your policyholder lives in Houston, Texas. While on vacation in Detroit, Michigan someone steals the following items from his house in Houston. How much will you pay for this loss? Electronics $1,600, Clothing $850, Business Laptop $3000 ONLY PAYS $2500, Music CD's $500, Golf Clubs $1,500, Shoes $900 1. Money or Bank Cards 2. Valuable Papers, deeds, stamps BULLIONS etc. 3. Jewelry Watches or furs - CORRECT ANSWER-Name 3 things that are subject to "Special Limits of Liability" under the HO-B Coverage A - CORRECT ANSWER-Under a HO-B policy, the dwelling/structure is covered for what types of losses? Coverage B - CORRECT ANSWER-Under a HO-B policy, the contents are covered under what Coverage? 1)Fire and Lightening, 2) Sudden and Accidental Damage from Smoke, 3) Windstorm , Hurricanes and Hail, 4)Explosion 5) Aircraft 6) Vandalism and Malicious Mischief 7) Riot and Civil Commotion 8) Collapse of a building, or part of a building 9) accidental discharge overflow of water or Steam form plumbing, heating, air conditioning, system or household appliance 10) Falling objects, 11) Freezing, 12) theft or attempted theft - CORRECT ANSWER-List the 12 named perils that contents are covered for under the HO-B? $250 - CORRECT ANSWER-What is the maximum amount for coverage for a covered loss to a tree? Not Covered Found on HO-B PG 2 Under Property - CORRECT ANSWER-Your policyholder sustained a theft loss. His roommate's personal laptop, plasma television and Sony stereo were all stolen. What are you going to tell him regarding his roommate's property? (Explain your answer and cite where you found it in the policy) personal property contained in a building unless direct force of wind or hail makes an opening in a roof or wall and rain, snow, sand or dust enters through this opening and causes the damage. - CORRECT ANSWER-Under Section I Exclusions, what does Exclusions c. (3). Say? NO. She is OVER 21. - CORRECT ANSWER-Your aunt is caring for a 22 year old female. Is this 22 year old female an Insured under the HO-B policy? $0 not covered - CORRECT ANSWER-Your policyholder misplaced his watch somewhere in his house. The watch costs $800. How much are you going to pay him? Floods are not covered - CORRECT ANSWER-During the storm, your policyholder's dwelling sustained 12ft of flood water. He provides you with receipts for his Additional Living Expenses. The expenses are all reasonable. What do you tell the policyholder? $0 not covered Found in SECTION 1 Exclusions C1 - CORRECT ANSWER-During a recent windstorm, your policyholder's cloth awning sustains damage. The damage to the cloth awning is $400. How much can you pay for the cloth awning? Not GO!! - CORRECT ANSWER-While working on a claim with an approved vendor, he invites you to the Cowboys game. What should you do? Professionally - CORRECT ANSWER-When dealing with a customer, you should always behave_________________