Review for property and casualty adjuster exam Questions and Answers 100% Pass

Review for property and casualty adjuster exam Questions and Answers 100% Pass What is a hazard? - Answer- Something that increases the chance of a loss How many of hours of ethics - Answer- 3 An insurance contract has how many parties? - Answer- 2 parties 1. List the time restraints for response and payment of claims in Texas: - Answer- - 15 days to acknowledge claim - 5 days to pay if adjuster takes responsibility - 15 day extension for all weather related damage - 15 days to affirm or deny claim Who is the third party in a claim? - Answer- someone not insured under insured policy Who regulates insurance law in Texas? - Answer- TDI, The department, The commissioner Do adjusters have to investigate claims before denying - Answer- yes What is misrepresentation? - Answer- Incorrect information given by insured Define risk: - Answer- the risk of loss What is the principle of indemnity? - Answer- Promise that if there is a loss insured will be restored to pre loss conditions What is a direct loss? - Answer- loss of tangible property What is subrogation? - Answer- Assume the right from insured to collect damages from another party What is article 21.21? - Answer- Deceptive trade practices ACT Can an insured buy back his totaled vehicle from the insurer? - Answer- yes What's the formula for ACV? - Answer- Replacement cost-depreciation=ACV Define the Appraisal process? - Answer- Insured and insurer get appraisals to determine the cost of the settlement When would the appraisal process be appropriate? - Answer- Insured and insurer cannot agree on a settlement What is insurable interest? - Answer- Any actual lawful and substantial economic interest in the safety or preservation of the subject of the insurance from loss What coverages are included in a Standard Fire Policy? - Answer- Fire lightening and removal of property What determines if an adjuster should total a vehicle? - Answer- Repair cost is more than the value of the Car What is the maximum number of days a property can be vacant before coverage ceases? SFP? - Answer- 60 days or 30 for SFP Define monoline coverage: - Answer- purchase of a single line of coverage Define tort - Answer- Civil wrong that does not breach contact What is the purpose of co-insurance? - Answer- Encourage insured to purchase at least 80% of repair cost What is arbitration? - Answer- Settle disputes between insurer and insured in front of a retired judge What is bad faith? - Answer- Breach of implied duty of good faith What is the most common coinsurance percentage? - Answer- 80 where can an adjuster find perils covered in an insurance policy? - Answer- Insuring agreement what policy provision contains the policy territory? - Answer- conditions Define Waiver - Answer- voluntarily giving up a legal right under a contract What is pro rata liability? How is it applied? - Answer- Two or more policies that are insuring the same building, used to ensure larger policy pays their proportional share of the damage what is a warranty and why is it important to an insured and an insurer? - Answer- Requirements to ensure coverage, if breached the coverage will be voided Where would an adjuster find the named insured in an insurance contract? - Answer- Declarations page Who has the right to slavage? - Answer- Insurer