Texas All Lines Insurance Adjuster Test Questions and Correct Answers

Define Accident - An unforeseen, unintended even; something unexpected Define Additional Living Expenses - Extra charges covered by homeowner's policies over and above the policyholder's customary living expenses due to damage by a covered peril that makes the home temporarily uninhabitable. Define Actual Cash Value - The value of your property, based on the current cost to replace it minus depreciation. Define Adjuster - A person who investigates and settles insurance claims. Define Continuing Education Requirement - State level requirement that insurance licensees periodically complete a minimum number of house of insurance related education in order to be eligible for license renewal. How many hours of CE and how often does Texas require? - 30 hours every 2 years. Depreciation is based on what three things? - Age, Condition and Life Expectancy Define Exclusion - Provision in an insurance policy that indicates what is denied coverage. Examples of Exclusion are... - Wear and Tear, Rust, Rot, Contamination, Mechanical Breakdown Define HO-B - A type of Homeowner's policy that provides coverage to Coverage A for All Risks of Physical Loss, unless specifically excluded and to Coverage B on a Named Peril basis. Expenses that have already been sustained and that have not yet been paid, I.E. Additional Living Expenses. - Incurred Expense Define Overhead and Profit - The amount of money dedicated to a general contractor's cost of doing business and earning a profit. The industry standard is 10% and 10%. Liability - Responsibility to another for one's negligence. You ran a red light and hit another vehicle. You're responsible because you failed to stop. For you to be liable, you have to be negligent. Loss Payee - The party to whom money or insurance proceeds is to be paid in the event of a loss, i.e. the mortgagee on real property, refers to mortgage clause that says the insurance company has to protect the mortgage company. When Coverage 'A' claim is above a certain threshold, typically $5k, the mortgage company must be on the check. Non-Renewal - A decision by an insurance company not to renew a policy Flood Policy has four sections... - Dwelling, Contents, Debris Removal and Increased Cost of Complaince Dwelling (Flood Insurance) - The main structure and dwelling extensions and additions to the building are covered. The 10% other structure coverage limit automatically applies to flood policies.