Texas Adjusters School (Questions with 100% correct answers)

Law of Large Numbers correct answers A statistical concept that describes how the average of a randomly selected large sample from a population is likely to be close to the average of the whole population Underwriting correct answers The process an insurance company uses to decide whether to accept or reject an application for a policy. Peril correct answers A cause of property losses.. Fire/Lightning, explosion, windstorm, hurricane Hazard correct answers A situation that poses a level of threat to life, health, property, or environment Direct Loss correct answers Direct physical loss to property Indirect Loss correct answers Type of loss that does not result from direct damage of a covered cause of loss or peril Principle of Indemnity correct answers Is an insurance principle stating that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss Casualty Insurance correct answers Protects a person from financial loss arising from bodily injury or property damage to others Tort correct answers a wrong that involves a breach of a civil duty owed to someone else Comparative Negligence correct answers A partial legal defense that reduces the amount of damages that a person can recover based upon the amount that this person's own negligence contributed to the loss Contributory Negligence correct answers A law defense where a person's own negligence contributed to the harm that he or she sustained Coinsurance Clause correct answers A provision requiring a specified amount of insurance based on the value of the insured property Concealment correct answers The act of purposefully not reporting information that would affect the issuance or rate of an insurance contract