Kaplan Day 1 Flashcards
(297 cards)
1
Q
Does the TDI Commissioner write laws?
A
No. Insurance laws are written through legislation
2
Q
What does the TDI Commissioner do?
A
Makes rules and enforces laws
3
Q
What is TDI?
A
Texas Department of Insurance
4
Q
Who does the TDI oversee?
A
All things insurance related including customers.
5
Q
How often does the TDI Commissioner examine insurers?
A
at least once every 5 years
6
Q
Who pays for the examination by the TDI Commissioner?
A
The company being examined
7
Q
What does NAIC stand for?
A
National Association of Insurance Commissioners
8
Q
How many parties are there to an insurance contract?
A
- The first party which is the insured, and the second party which is the insurer
9
Q
How many days of notice are required before getting a temporary license?
A
5 days of notice to the Commissioner
10
Q
Why are emergency licenses issued?
A
Something happened to the normal adjusters
11
Q
What is another word for Casualty when related to insurance?
A
Liability
12
Q
What is the basis for rules and regulations in Texas?
A
The Texas Insurance Code
13
Q
How long is the term for Commissioner?
A
2 years
14
Q
Who appoints the Commissioner?
A
The Governor
15
Q
What are the 6 requirements to qualify for an Adjuster’s License?
A
- Be 18
- Be a citizen of Texas or approved by your home state
- If not a resident of the USA, in compliance with laws pertaining to your employment
- Trustworthy
- Sufficiently trained
- Passed an examination
16
Q
Who is excluded from taking the adjuster licensing exam?
A
- Persons holding Chartered Property and Casualty Underwriter designation (CPCU)
- Persons holding an Associate in Claims (AIC) designation
- Persons whose license has expired within a period of one year
17
Q
When does your adjusters license expire?
A
Every 2 years on your birthday Even year b-day = even year expiration. Odd year b-day = odd year expiration. So, first year licensed may be shorter or longer than 2 years until you get on cycle.
18
Q
What happens if your license is expired, but less than 90 days?
A
You can get your license renewed after paying the renewal fee plus 50% penalty
19
Q
What happens if your license is expired more than 90 days but less than 1 year?
A
You can get another license after paying the renewal fee plus 50% penalty, but you get an entirely new license which means your 20 years to no CE starts over.
20
Q
What happens if your license is expired more than one year?
A
You start over, including the exam as if you were never licensed.
21
Q
What is a certificate of authority (COA)?
A
Your license to do insurance related business
22
Q
What is an example of an unauthorized/non-admitted insurer?
A
One selling surplus lines
23
Q
Who do staff adjusters work for?
A
A company
24
Q
Who do Independent Adjusters work for?
A
1 or more companies
25
Who do public adjusters work for?
The insured
26
What are the three types of licenses?
Workers Compensation
Property and Casualty
All-lines
27
What is an Alien insurance company?
One organized and domiciled outside the USA
28
What is a foreign insurance company?
One that does business outside the state where it writes insurance
29
How many days do you have to notify the Commissioner of changes to your address, phone number change, arrests, etc?
30 days
30
What is the maximum fine the Commissioner can levy?
$25,000
31
How long must you keep your Continuing Education (CE) records?
4 years
32
How many hours of continuing education (CE) are required?
24
33
How many hours of CE must be in classroom or classroom equivalent?
12 (50%)
34
How many hours of CE must be ethics?
3
35
Who must administer courses taken outside the classroom?
Neutral third parties
36
What the the two entities that the Commissioner polices?
Insurance Companies
Insurance professionals
37
Are you a fiduciary as an adjuster?
Yes
38
How many days notice must the commissioner give the adjuster to challenge accusations?
10 days
39
What is material information ?
That which is so important that it determines whether someone is insured or not.
40
What is the Actual Cash Value formula?
Replacement Value MINUS Depreciation
41
What is replacement value?
The cost to replace it TODAY not what you paid.
42
How many parties are there when there is a dispute over an adjustment?
three. Umpire, Staff, Public
43
What is rebating?
Offering rebates if someone buys your insurance
44
What is twisting?
Using misrepresentation to create the need for new policies so you can collect more commission
45
What is fraud?
Intentional misrepresentation of a material fact
46
What are the potential penalities for committing insurance fraud?
-Fines
-10 years of prison
-Both
-15 years of prison if your act causes exceptional harm to the company you worked for.
47
Which personal auto policy covers loss of income?
Personal Injury Protection (PIP)
48
What is a Hazard?
Something that increases the likelihood that a peril will happen.
49
What percentage of coverage A is coverage B on an HO3 policy?
B is 10% of A
50
What is insurable interest, and when must it exist?
When money is invested in an item, an insurable interest must exist at the time of the loss.
51
What is the maximum amount an insured can collect on damaged trees?
Up to $500 per tree, shrub, and plant unless the damage was caused by hail, wind, or freezing.
52
What coverages are included in a Standard Fire Policy?
Property only. There is NO liability.
53
What is an example of a monoline policy?
Standard Fire Protection. Only insuring one thing, which is the property.
54
What determines if an adjuster should total a vehicle?
If the cost to fix the vehicle is greater than the cost to replace it.
55
What are the minimum split limits for automobile liability in Texas?
30/60/25
56
What is the maximum number of days a property can be vacant before some coverage is lost?
30 days for SFP, and 60 for others
57
Define Monoline coverage?
One line of insurance NOT package
58
14. My wife and I borrowed money from Mountain View Credit Union for our home. It is insured by SurePay insurance company. Out of these four entities, who does NOT have an insurable interest in the home?
The insurer
59
What is hanger-keepers coverage?
Liability for people who store airplanes
60
How many parties are there to a bond?
3. Principal, Obligee, and Surety
61
Who guarantees the actions of the principal?
the Surety
62
Who makes the promise on a bond?
The principal
63
What is the Bond Penalty?
What the surety pays the obligee in the event certain conditions aren't met.
64
What is Barratry?
Illegal activity by the captain or crew of a ship
65
What is hull coverage for Aviation and Ocean Marine insurance?
Comprehensive and Collision for the ship or plane
66
Commercial property insurance covers how much for an ATTACHED sign?
$2500
67
When would a homeowner use "loss of use"
When the home is unihabitable
68
What is Extra Expense concerning a commercial policy?
Expenses incured while the business is still open while repairs are being made.
69
When is business income claimed on a commercial policy?
When the business is closed during repairs.
70
What is an example of a premise liability claim?
Slip and fall claim, which is also the most common.
71
What is a Tort?
A civil wrong other than breach of contract.
72
What is article 21.21 of the Texas insurance code?
The section that deals with unlawful claims practices.
73
Can an insured buy back their totaled vehicle from the insurance company?
Yes
74
List the time constraints for response and payment for claims in Texas.
15 days to acknowledge to the claim
15 business days to decide to pay
5 business days to pay out
75
If someone comes from another state with less minimum liability requirements than Texas, what happens if they have an accident here?
It is covered to Texas's minimum requirements of 30/60/25
76
What is section 2 of the HO3 homeowners policy?
It covers liability:
BI or PD to someone else $100,000
Medical payments to others $1000
Supplementary
77
What is the purpose of coinsurance?
To encourage someone to insure to at least 80% of the replacement value
78
Who is the third party in a claim?
The person injured
79
Who regulates insurance law in Texas?
TDI
80
Do adjusters have to investigate claims before denying them?
Yes
81
What is misrepresentation?
Mistake or false statement that doesn't rise to the level of Material.
82
Define risk:
Possibility or Uncertainty you might incur a loss
83
What is bad faith?
NOT being honest
NOT cooperating
NOT fully disclosing
84
What is direct loss?
Actual physical damage to tangible property
85
What is the principle of indemnity?
You will be made whole again. No less, no more.
86
What is the most common percentage of co-insurance?
80%
87
What are the minimum liability requirements for auto insurance in Texas?
30/60/25 or 85,000 CSL
88
What are the minimum medical requirements for auto insurance in Texas?
-$500 per person
-PIP of $2500 per person + lost wages UNLESS you reject it in writing.
89
Do you have to have underinsured/uninsured coverage in Texas?
Yes, UNLESS you reject it in writing.
90
What is the deductible for U/U in Texas?
$250
91
What is the critical element to call something a "hit and run"
It must be seen
92
What is the maximum you can have for U/U?
Whatever you have in liability
93
What is a peril?
The CAUSE of the loss
94
What is the max amount an insurance company will pay out?
the limit of liability
95
What coverages are lost on an SFP after it is vacant for 30 days?
Burglar Damage
Water Damage
Vandalism
96
What questions help you determine if you need to use the formula on a co-insured building?
Do I have a total loss?
Have I met the co-insurance requirement?
97
What is the co-insurance formula?
The insurance had/The insurance you should have times the loss minus the deductible.
98
Home Owner's policies are allowed for home, and up to what type of multi-family building?
4 plex
99
How are other structures appurtnent to the main building covered in a home owners policy?
10% of the coverage on the dwelling
100
How is personal property covered on a home owners policy?
50% of the coverage of the dwelling if on premises AND
10% of the personal property, which is 10% of the 50% of the dwelling, if off premises (think vacationing)
101
For a homeowners policy, what does loss of use cover?
30% of the dwelling coverage
Fair rental value (think duplex tenants)
Additional living expenses (hotel)
102
What perils are covered with the SFP?
Fire, Lightning, Removal
103
For SFP, the acronym WC SHAVVER is used for endorsements. What does it stand for?
Wind
Civil Commotion
Smoke
Hail
Aircraft
Vehicle
Volcano
Explosions
Riot
V+tt = vandalism
104
What is a release?
Paper you sign saying you've been paid in full
105
When are the only times you can ask for tax returns?
Fire loss and claims related to income
106
When is an attorney not required to by provided by the insurer?
When the policy has been paid to its full limit.
107
For contracts, what does the acronym CLAC stand for?
Consideration
Legal Purpose
Agreement
Competent Parties
108
What is the exchange of value when referring to consideration?
The insured pays the premuim
The insurer promises to pay
109
What are the parts of an Agreement?
Offer which is the application
Acceptance which is the policy
110
What is the most common percentage of co-insurance?
40%
111
112
Where can an adjuster find perils in a policy?
DICEE: In the insuring agreement.
113
Which policy provision contains policy territory?
Conditions
114
What is the acronym for parts of a policy?
DICEE
Declerations
Insuring Agreement
Conditions/rules
Exclusions
Endorcements
115
What are the three things included in the Insuring agreement section of a policy?
Promise to Pay
Perils
Definitions
116
On a policy, what are the 6 P's included in the declerations?
Parties
Policy Period
Policy Limit
Property Description
Policy Number
Premium
117
What does the endorsements section do on a policy?
ADDS, TAKES AWAY, OR CHANGES. It is NOT used to cancel a policy
118
What is the D in DICEE
Declerations
119
What is the I in DICEEe
Insuring Agreement
120
What is the C in DICEE
Conditions
121
What are the E's in DICEE
Exclusions, Endorsements
122
What is Proximate Cause?
The first event in an unbroken chain of events and it is the root cause of the loss.
123
How much of the premium is returned if the insurance company cancels the policy?
100%
124
When the insured cancels a policy, the insurer keeps some of the premium. What is this called?
Short Rate Refund
125
A contract of adhesion is also known as what?
A take it or leave it policy because its written by the insurer and the customer either takes it or leaves it.
126
Aleatory Contract
Unequal Exchange
127
Unilateral Contract
Only enforceable upon ONE of the parties, the insurance company.
128
Conditional Contract
A contract that can be voided if all conditions aren't met
129
Personal Contract
A contract where PEOPLE are insured, not the property. Example is when you sell something, the insurance doesn't go with it.
130
What is utmost good faith?
Honesty
cooperation
full disclosure
131
What are reasonable expectations?
What an average person would infer from reading a policy.
132
Warranties are:
Guarantees, and they must be true at the time of the loss, or the policy is void.
133
What are representations?
Statements made by the prospective insured believed to be true
134
What is the definition of insurance?
The transfer of risk
135
What is risk?
The possibility or uncertainty of a loss
136
What is misrepresentation?
Incorrect information and when corrected, does not affect coverage
137
What is material misrepresentation?
Incorrect information that WILL affect policy coverage. Material misrepresentation voids the insurance contract
138
What is Concealment?
Deliberately withholding material information. This WILL void the contract
139
What is a waiver?
a voluntary relinquishment
140
What is Estoppel?
Involuntary reliquishment.
141
What is a binder?
Temporary insurance in Texas is good for 30 days unless it is canceled sooner by an underwriter. Can be oral or written.
142
When does a binder expire?
When the coverage begins.
143
What is a loss?
Reduction in value or an unintentional decline in value
144
What is direct loss?
Immediate actual physical damage to tangible property
145
What is an indirect loss?
A loss incurred as the result of a direct loss. The inability to use property as the result of the loss. Think cost of rental vehicles while your car is getting fixed.
146
What is consequential loss?
Indirect loss as the result of spoilage or temperature change.
147
What is liability loss?
Damage/injury claim that arises out of actions that cause loss to a third party.
148
What is speculative risk?
There is a chance of gain or loss, and it is NOT insurable. Think Gambling.
149
What is pure risk?
Involves only the chance of loss, and it is insurable.
150
What are perils?
The causes of loss (fire, wind, hail)
151
What are hazards?
Conditions that create or increase the chance of loss or contribute to the loss.
152
What are the three types of hazards?
Physical
Moral
Morale
153
What is a physical hazard?
a visible hazard
154
What is a moral hazard?
Hazards from intentional, dishonest, or illegal actions
155
What are morale hazards?
Hazards derivied from carlessness.
156
What is the law of large numbers used for?
to determine what premiums should be, and they are used by actuaries.
157
In addition to the named insured, the insurer also protects the_______.
Insured
158
What is insurable interest?
This means someone stands to lose financially, and it must exist at the time of the loss.
159
What is a resident relative?
Related to insured by blood, marriage, or adoption and lives in the insured's household. It can also be wards and foster children.
160
What is policy territory?
Where the coverage applies
161
If no territory is shown on a policy, the coverage is:
World wide
162
What is "payment of claim?"
Defines the method for calculating the statement.
163
Duties
This is what the insured must do in the event of a loss
164
What are subrogation rights?
Rights of the insurer to recover from an at-fault third party.
165
Subrogation rights and salvage rights belong solely to whom?
The insurance company
166
What is a liberalization clause?
The insurance company can increase your benefits without cost and without notifying you.
167
Every liability policy has a ____ to defend.
Duty to defend
168
What is the duty to defend?
The insurer must defend the insured against ALL claims.
169
When does the duty to defend end?
When the policy is paid out to its limit.
170
When is the only time an insurer must ask the insured's permission to settle?
When there is a consent to settle clause.
171
What is the pro-rata liability clause?
When more than one insurer pays, the bigger policy pays proportionally more than the smaller policy.
172
What is the pro-rata formula to determine how much each insurer pays?
Add the total coverage limits. Divide that company's limit by the total of all limits and then multiply it by the loss.
173
What is a concurrent policy?
Two different policies covering the same perils
174
What is a nonconcurent policy?
Two different policies insuring seperate perils
175
When multiple policies exist, the primary policy....
Pays first to its limit of liability or the amount of the loss.
176
When multiple polices exist, the excess policy....
pays after the limits of the primary coverage have been exhausted.
177
How much time does an insured have to sue an insurer?
within 2 years and one day of the loss
178
What are exclusions?
The section of the policy that lists what is not covered.
179
Are maintenance or warranty items insurable?
No
180
What is the acronym to remember supplementary payments?
BAILED
Bonds ($250 on bail bonds)
Aid-first aid
Interest on judgements
Loss of earnings up to $250 a day while defending/investigating claims
Expenses
Defense
181
What are the only perils covered by the SFP
Fire, Lightning, Removal
182
What type of policy is it when you combine a property line with a liability line?
Package policy or multiline policy
183
What is an example of a named peril policy?
SFP
184
What is the difference between VACANT and UNOCCUPIED?
Vacant means the premise is empty
Unoccupied means no one is home
185
What is it called when an insured leaves a partially damaged property with the insurance company and demands payment for total loss?
Abandonment
186
What are some of the requirements for an insured after a loss?
Immediate written notice
Protect from further damage
Separate damaged from undamaged
Provide proof of loss to insurer
Provide inventory to insurer (91 days)
Cooperate with insurer
187
What is the mortgagee protection clause?
It protects the mortgagee. Lein holders have the same protection.
Mortgagee=real property (house)
lienholder=personal property (car)
188
Mortgagee's can:
Submit claims
Has full right of recovery to mortgage amount
Has right to receive written notice of coverage cancellation (10 days Texas)
189
Can the mortgagee still collect on the policy if the insured burns their house down on purpose?
Yes
190
What is a Bailee?
Someone who has possession of an item for a purpose. Dry cleaning, vehicle repair, etc.
191
Can a Bailee benefit from your policies?
No, they must have their own insurance.
192
What is the coinsurance formula?
The insurance carried is divided by the insurance required, multiplied by the loss, less the deductible.
193
Supplementary payments are found on all of what type of policies?
Liability
194
What are the three ways to handle "other" insurance?
Primary & Excess (Auto only)
Pro-Rata
Equal shares
195
Whose insurance is always primary?
The owners. Never loan your vehicle!
196
What is Liability?
The legal obligation to pay for damages caused to another
197
What injuries are added to commercial policies?
Personal Injury
Advertising Injury
198
What is negligence?
Failure to do something that should have been done; failure to act reasonably and prudently.
199
What are the requirements for the level of negligence to be met?
Duty Owed
Duty Breached
Actual Loss
Proximate Cause
200
What are the two types of liability?
Criminal
Civl
201
What are the two types of torts?
Intentional
unintentional
202
What is contributory negligence?
if the injured contributed at all, they have no right to recover. This isn't used anymore.
203
What is comparative negligence?
This reduces the damages to the extent that the injured person's negligence contributed.
204
What is assumption of risk?
If an individual is aware of the risks involved and still chooses to expose himself, he has no right to recovery
205
What is an intervening cause?
Bars recovery from the original cause in a chain of events that leads to injury. Basically, it, it resets the chain of events
206
What is last clear chance?
If the injured party had a last clear chance to avoid the cause and loss and didn't exercise it, his loss was caused by his own fault.
207
Direct Liability
Did it yourself
208
Vicarious Liabilitiy
Responsible for action of minors and employees, bar liable for drunk patrons, etc.
209
Contractual Liability:
Insured assumes anothers liability under a written agreement
210
Absolute Liability
Liability without fault. Dut owed, duty breached
211
What are examples of absolute liability?
Swimming pool
Vicious Animals
Loaded firearms
212
What is strict liability?
Product defects, not negligence, like
defective tires
toys
legal drugs
213
How many parties are involved with liability insurance?
three
214
What is the difference between per period and per occurrence?
The period is the life of the policy, and the dollar amount continues to add up. Per occurrence is paid per event up to the limits, each time.
215
Does the insurance company pay punitive damages?
No
216
What are the two compensatory damages an insurer pays?
Special (actual monetary)
General (Non-economic like pain and suffering)
217
What is the definition of occurrence?
Accident or repeated exposure to harm or peril.
218
What are the three things found under the insuring agreement?
Promise to pay, Perils, and Definitions
219
Which policy provision contains the policy territory?
Conditions
220
What is a waiver?
Voluntary relinquishment
221
What is pro-rata liability?
Each company pays a proportionate share
222
Why are warranties important?
Because if they arent true at the time of the claim, the claim is denied
223
Where would an adjuster find the named insured on the contract?
In the declarations
224
What is subrogation?
The insuring company's legal right to collect from an at fault party
225
Who has the right of salvage and when is it used?
The insuring company. It is used when the cost of repairs is more than the value
226
In Texas, what is the minimum coverage required for combined single limit (CSL) policies?
$85,000
227
What is coverage A, B, and C in a commercial general liability (CGL) policy?
A: Bodily Injury/Property Damage
B: Personal Injury/Advertising Injury
C: Medical
228
Which homeowner policy has replacement cost on personal property?
HO5. All others are paid ACV
229
Which homeowners policy has coverage for theft?
All of them.
230
Is the dirt under a dwelling insurable?
NO
231
What is the Occurrence version of the Commercial General Liability Policy?
This is when the insurance company you had at the time of the occurrence , pays for the loss or occurrence
232
What is the claims version of the Commercial General Liability policy?
This is when your insurance company pays for the claim at the time of the claim regardless of who you were insured by at the time of the occurrence.
233
Does the commercial general liability policy cover fraud?
No. It is an illegal activity not covered by insurance.
234
Give an example of a completed operations claim:
Work completed poorly and later causes BI or PD
235
Strict liability applies to what?
Product defects
236
What type of policy contains supplementary payments?
Liability policies. All of them. Remember BAILED
237
What is coverage "A" in a dwelling on a homeowners policy?
The dwelling. Where the people live
238
What type of a bond would you want from a contractor?
Performance Bond
239
What coverage in the personal auto policy would pay for losses for which the insured is legally liable?
Liability
240
Does a garage policy cover workers compensation?
No. Workers Compensation must be a stand alone policy
241
What is the name of the coverage in a garage policy that is the bailee coverage?
Garage Keepers symbol 30.
242
What is the special limit on theft of firearms in a homeowners policy?
$2500
243
In Texas, workers compensation is_______
Elective
244
Define the pair and set clause.
If you have a pair or set of something, it will be paid: VALUE BEFORE LOSS MINUS THE VALUE AFTER THE LOSS = PAYOUT
245
What is the inchmaree clause?
When a ships captain makes an error in navigation causing a loss to the receiver of goods, the shipping company is responsible.
246
What is jettison?
Throw overboard
247
List some businesses not covered by a Business Owners Policy (BOP)
Auto, Manufacturing, Banks, Government buildings, places of amusement (Think big)
248
Which policy would best provide coverage for an expensive ring?
1. Scheduled personal property with a homeowners, subject to being one of the 1-9 categories
2. Personal article floater subject to being one of the 1-9 categories
3. Personal inland marine policy which covers ANY type of property.
249
Is an umbrella policy a primary or excess policy?
Normally excess, but it could become primary and you would then have to pay the self insured deductable
250
How old does a prospective adjuster have to be to get a license?
18
251
Give an example of a product claim
Toys painted with lead
252
A refinery would be covered by what type of policy in case of an explosion?
Commercial Package Policy (CPP)
253
How much additional coverage does a commercial property policy provide for debris removal if the policy limit has been exhausted?
$25,000
254
What conviction can get an adjuster license revoked?
Felony
255
A public adjuster represents who?
The insured
256
What is liquidated demand on a homeowners policy?
No deduction, no depreciation taken out when a total loss by fire occurs. The full limit of the policy is paid
Valued Polices:
Liquidated
Agreed Value
State Amount
257
What is Estoppel?
Involuntary Relinquishment
258
How often does an adjusters license renew?
Every two years, on your birthday, corresponding to the last digit of your birth year
259
What is removal coverage on a property policy?
Taking your undamaged stuff and putting it in storage to keep it from getting damaged while the building is repaired. Most policies say you have 30 days of storage unit, a DWELLING policy basic says you have 5
260
How long does an inusred have to return a sign, sworn, proof of loss back to the insurer?
91 days
261
If an adjuster license has lapsed for less than 90 days, what should the adjuster do to get it renewed?
Pay the fee, plus the 50% penalty. You will then keep your same license. Past 90 days you get a new license which resets the clock on your 20 years to no CE.
262
Define bodily injury
Accident, sickness, disease, death
263
Define property damage
Damage to your property, destruction of your property, or the loss of use of your property. Damage, destruction, loss of use
264
Define personal injury
Hurt feelings. Liable, slander, invasion of privacy
265
Define advertising injury
Same as personal injury, but you did it through advertising
266
A product liability claim must be filed in what countries to be covered by the policy?
USA or Canada. PRODUCTS automatically have worldwide coverage
267
What warranty is contained in the valuable papers and records floater?
"I will keep the valuable papers in a fireproof receptacle when not in use."
268
Define custodian
Someone who has control of company property on premises
269
How often must the insurance company be audited and who pays?
At least once every 5 years and the audited company pays
270
What is concealment?
Deliberately withholding material information
271
What is the minimum funeral benefit provided under personal injury protection?
$2500. PIP is used
272
Define replacement cost
The cost to replace the property TODAY not what you paid.
273
Where would an adjuster find the amount of insurance provided on a dwelling in the insurance contract?
Declarations
274
I don't allow customers to enter the work area of my tire repair store. What type of liability claim am I trying to avoid?
Premises
275
Define domestic insurer
Someone selling insurance in the state where they are licensed.
276
Define foreign insurer
Selling in another state
277
Define alien insurer
selling in another country
278
Who renders legal determination?
A judge
279
What warrants that punitive damages be awarded?
Gross negligence. Punitive is punishment
280
The more people I can evaluate the more accurate my predictions become is what?
The law of large numbers
281
How many companies can an independent agent represent?
1 or more
282
What are the four essential elements of a contract?
CLAC
Consideration
Legal Purpose
Agreement
Competent Parties
283
Shoud an adjuster ever complete a proof of loss form for a claimant?
No
284
What is the co-insurance formula
The amount of insurance I have divided by the amount required multiplied by the damages and then subtract the deductible.
285
Is collapse covered on a basic broad named peril policy?
No
286
How soon does an adjuster have to report an address change?
30 days
287
What are the main two reasons that claims are not paid?
No liable
Not adequate coverage
288
I own a bar. Does CGL cover anything?
No. Does not cover host liquor
289
Which one of these would have the most product liability? Real Estate Office, Restaurant, or Toy manufacturer.
Toy manufacturer.
290
What is a morale hazard?
Attitude of carelessness or indifference
291
What is speculative risk?
The chance of loss or gain and it is not insurable
292
Define Vacant
Empty. No people or property. 60 consecutive days you lose vandalism, burglary, and water damage coverage. 30 days for SFP
293
Define unocupied
No one is home
294
Is breakage covered by personal articles floater?
Yes if it is one of the 1-9 categories
295
The involuntary of waiving rights is what?
Estoppel
296
There must be evidence of what for a theft to be called a burglary?
Forced entry or Forced Exit
297
Can you purchase insurance to provide coverage for employee theft?
Yes
