Texas All lines adjuster license insurance terms and related concepts Chapter 1 study guide 2023/2024
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Texas all lines adjuster
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Texas All Lines Adjuster
Law of Large Numbers - answers the more examples used to develop any statistic, the more reliable the statistic will be
Underwriting - answers The process and insurance company uses to decide whether to except or reject an application for a policy insurance. underwriters evaluate the risk and ex...
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Texas All lines adjuster license insurance
terms and related concepts Chapter 1 study
guide 2023/2024
Law of Large Numbers - answers the more examples used to develop any statistic, the more reliable the
statistic will be
Underwriting - answers The process and insurance company uses to decide whether to except or reject
an application for a policy insurance. underwriters evaluate the risk and exposure of a potential
policyholders they decide how much coverage the policyholder should receive how much they should
pay for it or whether even to except the risk and insure them. underwriting involves measuring risk
exposure and determining the premium that needs to be charged to ensure that risk.
peril - answers A cause of property losses I.E, fire, lightning, explosion, windstorm, hurricane, collapse of
building, vandalism, accidental discharge, theft.
hazard - answers Is a situation that poses a level of threat to life, Heath, property, or environment.
Direct loss - answers Direct physical loss to property
Indirect loss - answers A loss that arises as a result of damage to property, other than the direct loss to
the property. If you own a taxi and someone totals out your taxi, you can't make money because you
can't drive your taxi for fares.
Principle of indemnity - answers Insurance will not pay more than the cost of the incident
Property insurance - answers Covers the loss of real and personal property from perils such as fire, theft,
windstorm
, Insuring Agreement - answers Summarizes the major promises of the insurer in exchange for premium
payments by their customer.
Deductible - answers Amount you must pay before you begin receiving any benefits from your insurance
company
Cancellation - answers Termination of an insurance policy by insurance company or insurer before the
renewal date. All notices must be done in writing.
Limit of Liability - answers The maximum amount for which an insurer is liable. The policy of declarations
specifies limits.
Loss settlement - answers The process used to determine the amount of the loss.
Methods used to settle losses - answers Actual cash value- value of the property, based on the current
cost to replace it, minus applicable depreciation.
Replacement cost- the cost associated with replacing property at current market prices.
Agreed value- the amount that the insured and insurer agree upon during the time of policy inception.
Market value- the amount the property is worth in a competitive market. This amount is accepted by
the buyer and seller.
Casualty insurance - answers Protects a person from financial loss arising from bodily injury or property
damage to others arising out of : ownership of property, operation of a motor vehicle, personal
activities, business activities, robbery, and Worker's comp.
liability - answers A person is legally liable for an accident if that person is found responsible for bodily
injury or property damage to another party. Usually based upon the negligent acts of that person.
negligence (n) - answers carelessness
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