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2023 Texas Adjuster Study Guide (Complete)
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2023 Texas Adjuster Study Guide (Complete)
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2023 Texas Adjuster Study Guide (Complete)Perils ✔️ans -a cause of property losses under an insurance contract ex:
windstorm, hurricane, explosion, collapse of building, vandalism, accidental
discharge, and theft
Law of large numbers ✔️ans -a fundamental concept in statistics and
probability that describes how the average of a randomly selected large
sample from a population. It basically relies on the principle that the larger
the pool, the more predictable the amount of losses will be in a given period
Principle of indemnity ✔️ans -is an insurance principle stating that an
insured may not be compensated by insurance company in an amount
exceeding the insured's economic loss.
Limits of liability ✔️ans -the maximum amount that an insurance policy
will pay. It is specified on the policy declaration page.
Property insurance ✔️ans -coverage for real and personal property
against loss or damage from perils insured against.
Loss settlement ✔️ans -the process used to determine the amount of the
loss
Actual cash value ✔️ans -the value of the property based on the current
cost to replace it minus depreciation.
Agreed value ✔️ans -the amount that the insured and insurer agree upon
during the time of policy inception.
Replacement cost ✔️ans -the cost associated with replacing property at
current market prices
Market value ✔️ans -the amount that the property is worth in a
competitive market. This amount is accepted by the buyer and seller.
Tort ✔️ans -is a wrong that involves a breach of civil duty owed to
someone else. This breach determines if that person is negligence.
,Elements used to determine negligence ✔️ans -a duty owed, a duty
breached, proximate cause, and damages
Methods to determine loss are: ✔️ans -acv, market value, replacement
cost, agreed value
Casualty insurance ✔️ans -protects a person from financial loss arising
from bodily injury or property damage to others
Hazard ✔️ans -is a situation that poses a level of threat to life, health,
property, or environment.
Indirect loss ✔️ans -type of loss that does not result from direct damage of
a covered cause of loss or peril but is instead a consequence of the direct
damage loss.
Direct loss ✔️ans -direct physical loss to property
Insuring agreement ✔️ans -this section of the insurance policy specifies
what the insurance will provide coverage for in exchange for premium
payments by their customer.
Deductible ✔️ans -the amount the insured must pay in a loss before any
payment is due from the insurance company.
Where is a homeowner percentage deductible always taken from? ✔️ans -
coverage a structure policy limits of liability that is used on the declaration
page.
Cancellation ✔️ans -is the termination of an insurance policy by either
side and it must be done in writing
Liability ✔️ans -a person is legally liable for an accident if that person is
found responsible for bodily injury or property damage to another party.
Negligence ✔️ans -the failure to exercise the care that a reasonably
prudent person can be characterized by the average person.
,Additional living expenses ✔️ans -charges covered by homeowners policy
over and above policy holders customary living due to damage by a covered
peril and makes the home temporary uninhabitable.
Exposure ✔️ans -the measure of the possibility of the loss
Insured ✔️ans -the party to an insurance arrangement that has an
insurable interest in the property that is being insured.
Insurer ✔️ans -insurance company
Loss history ✔️ans -is the insured history of losses with other companies.
Insurance company views this as indication of insured propensity for a claim
in future.
Notice of loss ✔️ans -notice required by the insurance company
immediately after an incident. Policy holder responsibility after a loss
Depreciation ✔️ans -act of lowering an item due to value wear and tear it
is based on age, condition, and life expectancy.
Punitive damage ✔️ans -the amount awarded by the court which is
intended to reform or deter the defendant from engaging in similar conduct in
the future
Comparative negligence ✔️ans -is 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 ✔️ans -is a law defense where a person
negligence contributed to the harm that he or she sustained
Assumption of risk ✔️ans -a doctrine under which a plaintiff may not
recover for injuries or damage suffered from risks he or she knows of and has
voluntarily assumed
Adverse selection ✔️ans -the tendency of insured's who present a higher
probability of loss to purchase or renew insurance more often than those who
present a lower probability
, Attractive nuisance ✔️ans -a dangerous place, condition, or object that is
particularly attractive to children.
Accident ✔️ans -unforeseen, unintended event, something unexpected
Occurrence ✔️ans -an event that results in an insured loss which results in
bodily injury or damages
Betterment ✔️ans -improvement of property that puts it in a better
condition than it was before the occupancy or loss
All risk insurance ✔️ans -"open perils" insurance - protecting the insured
from loss arising from any peril other than those perils specifically excluded
by name
Appraisal ✔️ans -is a form of dispute resolution that occurs when there is
a dispute between the insured and the insurance company regarding the
amount of the claim or loss. Both parties hire an appraisal and if cant decide
then they will hire an umpire
Breach of contract ✔️ans -the failure to comply with terms or conditions
of an insurance policy that may result in restricted coverage or void the policy.
Bodily injury ✔️ans -physical pain, illness or any impairment of physical
condition
Concealment ✔️ans -the withholding of known facts which, if material, can
void a contract or not pay out on claims related to that material information
Damages ✔️ans -the amount claimed by or awarded to an injured party as
compensation for liability owing to bodily injury or property damage
Fraud ✔️ans -intentional lying or misrepresentation by policy holder or
claim adjusters of a material fact in order to inflate a claim payment or receive
a claim payment that would otherwise not be paid or void the contract
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