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Super-Duper Texas Adjuster License Test Review-with 100% verified solutions -tutor verified
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Super-Duper Texas Adjuster License Test Review-with 100% verified solutions -tutor verified
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Super-Duper Texas Adjuster License Test Review-with100% verified solutions 2024-2025 -tutor verified
Insurance History and Regulation: Insurance
Coverage by contract whereby one party undertakes to indemnity (hold harmless) or guarantee another against loss by a specified contingency or
peril.
Insurance History and Regulation: NAIC
An organization whose purpose is to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States.
Protection of Consumer Interests: The T exas Department of Insurance (TDI)
Regulates the consumer interest in regard to insurance.
Protection of Consumer Interests: Head of the T exas Department of Insurance
Insurance Commissioner
Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive Insurance Practices
was set up by the State of T exas to establish certain practices which constitute unfair and/or deceptive insurance acts.
Protection of Consumer Interests: T exas Insurance Code requires what within how many days of receipt of a claim that the insurer?
within 15 days 1) acknowledge receipt of a claim 2) begin investigation 3) request items from the claimant. Insurance: What is the purpose of insurance?
to provide a way to spread risk over a large group of people
Insurance: Principle of Indemnity
IS AN INSURANCE PRINCIPLE STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. It is a principle that returns the insured to their previous financial condition.
Insurance: What are the two purposes of indemnity?
1) to prevent the insured from profiting from a loss 2) to reduce moral hazard
Insurance: what is risk?
(1) the potential for a financial loss or the statistical chance of danger from exposure to a hazard or peril (2) the uncertainty about loss that exists whenever more than one outcome is possible
Insurance: Proximate Cause
is the first event in an uninterrupted chain of events that leads to a loss
Insurance: What are the 2 types of risk?
Speculative: affords the opportunity for gain as well as the possibility of loss
Pure: a risk where there is the potential of real loss due to exposure to a peril
Insurance: example of risk avoidance
to avoid risks associated with swimming pools, don't buy a home with a pool.
Insurance: example of risk reduction to reduce fire damage, install a sprinkler system in home
Insurance: Example of risk retention
insurance company accepts risk when they've accepted the insured.
Insurance: example of risk transference
purchasing insurance, transfers the risk from insured to insurance company.
Insurance: what is a peril?
The actual cause of a loss.
Insurance: what are the two types of perils?
1) named peril -- specifies which perils are insured against 2) open peril / all risk peril -- insures against all perils unless specifically excluded in the policy
Insurance: 14 most common named perils
1. lightning/fire
2. sudden & accidental damage from smoke
3. explosions
4. windstorms, hurricane or hail
5. theft
6. vehicle damage
7. aircraft damage
8. vandalism/malicious mischief (V/MM)
9. falling objects
10. weight of snow, ice or sleet 11. sudden and accidental water damage from plumbing, heating, or A/C overflow
12. freezing damage to plumbing
13. riots
14. civil disobedience
Insurance: What is a hazard?
situations or behaviors that increase the risk of loss of property
Insurance: Name the three kinds of hazards and give an example of each
1) Physical -- large hole in the front yard where someone could step in and
hurt themselves
2) Morale -- leaving a home with the doors unlocked and the windows opened
3) Moral -- embezzlement
Insurance: List and define the 2 types of losses
1) Direct loss -- damage that is a direct result of a covered peril such as a fire destroying a home
2) Indirect loss -- consequential loss resulting indirectly from a direct loss due to a covered peril such as loss of business income or loss of use
Claims Adjuster: What is a Staff/Company Adjuster?
work for the insurance company such as State Farm and handle claims on behalf of the insurer; they are paid a salary with benefits.
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