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Adjuster Pro - Insurance adjuster test | Questions and Answers Verified 100% | Latest Update
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Adjuster Pro - Insurance adjuster test | Questions and Answers Verified 100% | Latest Update
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Adjuster Pro - Insurance adjuster test |Questions and Answers Verified 100% | Latest
Update
Insurable risk - ✔✔Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
Adequate Premiums - ✔✔Potential loss can't be too much for insurer to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
Difneable risk - ✔✔Insurer can define exact conditions under which the item is covered by
the policy
Item it's self is defineable
Item has precise value
Unexpected loss - ✔✔Unforeseeable
Unexpected
Reasonably unpreventable
Random in nature
Substantial loss - ✔✔Must cause substantial economic hardship
,Exclusions - ✔✔Insurer must be able to exclude large scale disasters and catastrophic events
Law of large numbers - ✔✔Insurer must be able to cover large numbers of similar risks
Spreads risk across more policies
Helps insurers predict losses more accurately
Similar risks can mean, cars houses, persons lives, similar business etc
Adverse Selection - ✔✔when someone buys health insurance because they know they will
probably file a claim
4 risk management techniques - ✔✔Avoidance
Reduction
Transference
Retention
Risk avoidance - ✔✔Eliminates risk by not taking action that involves risk
Risk reduction - ✔✔Taking measures to reduce risk that is involved
Also called risk mitigation
Risk Transference - ✔✔Management of sever risk by transferring risk to someone else
Most common example is Insurance
Risk retention - ✔✔Acknowledging the risks and preparing to handle the unexpected losses
as they occur
, Policy Period - ✔✔The time frame, beginning with the inception date to the expiration date,
during which insurance coverage applies.
Binder - ✔✔Providing temporary coverage until the policy is issued
Blanket coverage vs specific coverage - ✔✔Blankets cover more than one property, type of
property, or coverage under a single limit
Specific limits - limits that apply to on specific type of property
Representation - ✔✔Statement of fact
Missrepresentation - ✔✔A false, distorted or deceptive statements
Warranty - ✔✔Promise or garuntee certain conditions are met
Warranties are found on the conditions page
If policy holder breaks up warranty the insurer can deny coverage
Concealment - ✔✔Concealment is hiding the truth
Deliberately withholding information
Waiver - ✔✔Voluntarily surrender of a right, claim, or privilege
Expressed waiver - ✔✔In writing or signed
Implied waiver - ✔✔assumed based on actions
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