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Louisiana Insurance Adjuster 2023/2024 exam questions and answers
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Louisiana Insurance Adjuster 2023/2024exam questions and answers
Lender Interest Provisions - Answer-Protects lender interest by allowing the lender
certain rights in the policy.
Coinsurance Penalty - Answer-A property insurance provision that penalizes the
insured's loss recovery if the limit of insurance purchased by the insured is not equal to
or greater than a specified percentage (commonly 80 percent) of the value of the
insured property.
Underinsured - Answer-A situation resulting from a failure to carry enough coverage on
the value of a property, especially when there are coinsurance implications.
Coinsurance - Answer-A type of insurance in which the insured pays a share of the
payment made against a claim.
Franchise Deductible - Answer-A minimum amount of loss that must be incurred before
insurance coverage applies. A franchise deductible differs from an ordinary deductible
in that, once it is met, the entire amount of the loss is paid, subject to the policy limit.
Franchise deductibles can be stated either as a dollar amount or as a percentage of the
policy limit.
Percentage Deductible - Answer-Requires the insured party to pay a deductible equal to
the percentage of the value of the insured risk.
Fixed Deductible - Answer-One specific, predetermined amount that a policyholder must
pay out-of-pocket before he can be indemnified.
3 Typed of Deductibles - Answer-Fixed, Percentage, Franchise
Deductible - Answer-The amount the policyholder must pay out-of-pocket before the
insurer will pay for losses.
Replacement Cost (RC) - Answer-A method of valuation based on the cost of replacing
an item at current market price, regardless of depreciation.
Valued Policy - Answer-A valuation method that assigns a set of values to each insured
item. Value is determined prior to the issuance of policy. Avoids the confusion of
assessing appreciation or depreciation.
Annual Depreciation Formula - Answer-Replacement Cost / the items useful life
Accumulated Depreciation Formula - Answer-Items annual depreciation X it's age
,Depreciation - Answer-An items estimated loss of value due to wear, tear and age.
Actual Cash Value - Answer-A valuation method that takes into account an items
depreciation.
Actual Cash Value (ACV) Formula - Answer-Replacement Cost (RC) - depreciation
3 methods of Valuation - Answer-Actual Cash Value (ACV), Replacement Cost (RC),
Agreed Value (Valued Policy)
Valuation - Answer-The process of estimating what an item is worth.
Subrogation - Answer-The transfer of rights that allows the insurer to recover it's losses
after it has indemnified a policyholder.
Lender Interest - Answer-A lender's financial stake in an insured item.
Insurable Interest - Answer-Direct financial interest in protecting something or someone.
Misrepresentation - Answer-A false, distorted, or deceitful statement of fact or opinion
even if made unintentionally.
Estoppel - Answer-Legal principle that prevents an insurer from denying coverage if the
insured has reasonable come to believe that he has such coverage, based on the
insurer's practices. Protects the insured.
Waiver - Answer-Voluntary surrender of a right, claim, or privilege.
Express Waiver - Answer-Voluntarily giving up rights, claims or privileges through a
written statement.
Implied Waiver - Answer-Voluntarily giving up rights, claims or privileges implied from a
person's conduct.
Concealment - Answer-Deliberately withholding relevant information.
Warranty - Answer-Promise or guarantee that certain conditions will be met. Found on
the Conditions page. If the policyholder breaks a Warranty, the insurer can deny
coverage.
4 Qualifications of a Legal Contract - Answer-1.) Agreement 2.) Consideration 3.)
Competent Parties 4.) Legal Purpose
Claims Process - Answer-1.) Filing a Claim 2.) Acknowledgement 3.) Investigation 4.)
Evaluation 5.) Adjustment
, Third Party Claim - Answer-A claim filed against an insurance policy by anyone other
than the person named on that policy.
First Party Claim - Answer-A claim filed by the policyholder against his or her own
insurance policy.
Claimant - Answer-Someone who has filed a claim.
Claim - Answer-A demand for payment in accordance with the terms of an insurance
policy.
Indirect Loss - Answer-An economic loss that results from a direct loss. i.e. renting a
hotel room until home is repaired
Direct Loss - Answer-Loss incurred due to direct damage to property.
Proximate Cause - Answer-Active, direct, and efficient cause of loss that sets in motion
an unbroken chain of events which bring about damage, destruction, or injury without
the intervention of a new and independent force.
Original Occurrence - Answer-Causes damage that then leads to more damage.
Occurrence - Answer-An event, incident, or condition that causes damage.
Soft Fraud - Answer-Exaggerating a claim to inflate the indemnity. AKA Opportunistic
Fraud
Hard Fraud - Answer-Deliberately planning or faking a loss.
Fraud - Answer-The act of deliberately perverting, altering or misrepresenting the truth
or willfully deceiving an insurer in order to realize financial gain. Considered a Moral
Hazard. Can be "Hard" or "Soft"
Physical Hazard - Answer-A physical condition that increases the chance of loss.
Types of Physical Hazards - Answer-Environmental, Material, Operational,
Occupational
Moral Hazard - Answer-A subjective hazard that tends to increase the probable
frequency or severity of loss due to an insured peril. Results from a policyholder's
conscious decision. Involves reckless behavior because of the financial security offered
by insurance. Is a type of behavioral hazard.
Morale Hazard - Answer-Implies a certain indifference to loss simply because of the
existence of insurance. Results from a policyholder's unconscious changes in behavior.
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