Exam (elaborations)
Texas All Lines Adjuster Exam Questions and Complete Solutions Graded A+
- Course
- Institution
Texas All Lines Adjuster Exam Questions and Complete Solutions Graded A+
[Show more]
Content preview
Texas All LinesAdjuster Exam
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,Law of Large Numbers - Answer: Decribes how the average of a randomly selected large sample of
population is likely to be close to the average of the whole population
Underwriting - Answer: The process insurance company uses to decide whether to accept or reject
application for a policy. Decides how much coverage policy holder should receive, pay, or whether even
to accept risk & insure them. Involves measuring risk exposure & determining the premium that needs
to be charged to insure risk.
Peril - Answer: A cause of property losses. Ex: Fire/ lightning, explosion, windstorm, hurricane, collapse
of building, vandalism, accidental discharge, & theft
Hazard - Answer: A situation that poses a level of threat to life, health, property, or environment. Most
hazards are dormant or potential, with only a theoretical risk of harm; however once becomes "active,"
it can create emergency situation
Direct Loss - Answer: Direct physical loss to property
Indirect Loss - Answer: 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. Ex: If grocery store burns to ground
from fire, that is direct loss. However, the income lost because of store could not operate, is the indirect
loss
Principle of Indemnity - Answer: An insurance principle stating that an insured may not be
compensated by insurance company in an amount exceeding the insured economic loss
Property Insurance - Answer: Insurance coverage for real & personal property against loss or damage
from perils insured against
Insuring Agreement - Answer: This section of insurance policy specifies what the insurance will provide
coverage for in exchange for premium payments by their customer
Deductible - Answer: The amount the insured must pay in a loss before any payment is due from the
insurance company. Deductible is applied per occurrence. Can be very large in Texas. Typical
, homeowners policy is a percentage deductible. (If percentage deductible, percentage always taken from
Coverage A)
Cancellation - Answer: Termination of an insurance policy by the insurance company or insured before
renewal date. Either side can cancel policy. All notices of cancellation must be done in writing
Limit of Liability (LOL) - Answer: The maximum amount an insurance policy will pay. Specified on Policy
Declarations page
Loss Settlement - Answer: Process used to determine amount of loss
Actual Cash Value (ACV) - Answer: Value of property based on the current cost to replace, minus
application depreciation
Replacement Cost - Answer: Cost associated with replacing property at current market prices
Agreed Value - Answer: Amount that the insured & insurer agree upon during the time of policy
inception
Market Value - Answer: Amount that property is worth in a competitive market. Amount is accepted by
the buyer and seller
Casualty Insurance - Answer: Protects a person from financial loss arising from bodily injury or property
damage to others Ex: ownership of property, operation of motor vehicle, personal activities, business
activities, burglary, robbery, theft, workers comp. injuries, and malpractice
Liability - Answer: A person is legally liable for an accident if that resin is found responsible for bodily
injury or property damage to another party. Usually based upon negligent acts of that person
Negligence - Answer: The failure to exercise the care that a reasonably prudent person would exercise
in similar circumstances. "Reasonably prudent person" is "the average person"
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now