covered by other insurance (boiler and machinery) - ANSWERSwindstorm or hail
explosion
fire or combustion explosion
internal furnace explosion
social insurance - ANSWERSnon profit, mandatory participation, benefits prescribed by the law, designed to meet general needs of the public, gov. has ...
AZ adjusterpro exam Questions &
Answers
covered by other insurance (boiler and machinery) - ANSWERSwindstorm or hail
explosion
fire or combustion explosion
internal furnace explosion
social insurance - ANSWERSnon profit, mandatory participation, benefits prescribed by
the law, designed to meet general needs of the public, gov. has monopoly
Private Insurers - ANSWERSsells insurance based on consumer preferences, offers a
wide variety of insurance products, typically exists to benefit a group or profit, insured
party voluntarily participates
Stock Insurance Companies - ANSWERSalways for profit, usually publicly-traded,
stockholders provide capital and participate in profits or losses, non-participating
insurers: no dividends go to policyholders
Mutual Insurance Companies - ANSWERSowned by policyholders (no shareholders),
policyholders elect board of directors
participating insurers: policyholders participate in dividends
Reciprocal Insurers - ANSWERSa group of people or organizations that insure each
other, unincorporated, non-profit, operated by attorney-in-fact, members pay into
individual accounts, cost of claims shared by the whole group
Surplus Lines - ANSWERSpeople can get surplus lines when they are denied coverage
by standard insurers for multiple reasons
Surplus (Excess) Lines Insurance - ANSWERSis a last resort, is not available in the
standard market and must meet certain conditions
Blanket coverage vs. specific limits - ANSWERSBlanket coverage "blankets" more than
one property, type of property, or coverage under a single limit. Specific limits are limits
that apply to one specific type of property
Estoppel - ANSWERSA legal principle that prohibits a party from asserting a claim or
right that is inconsistent with that party's past statement or conduct on which another
party has detrimentally relied. A estoppel is a type of implied waiver
,6 Qualifications of Insurable Risk - ANSWERS1.) Adequate Premiums 2.) Definable
Risk 3.) Unexpected Losses 4.) Substantial losses 5.) Exclusions 6.) Law of Large
Numbers
Adequate Premiums - ANSWERSInsurance must be able to cover claims with premium
incomes
Exclusions - ANSWERSThe insurer must exclude coverage for large-scale disasters
and catastrophic events
Proximate cause - ANSWERSwhen there is a unbroken chain of events between an
occurrence and a loss, then that occurrence is the proximate cause of the loss.
original occurrence - ANSWERScauses damage that leads to more damage meaning-
that the original occurrence is the proximate cause of the loss
First party claim - ANSWERSa claim made by the policyholder on her own policy
Third party claim - ANSWERSa claim made by anyone other than the policyholder
5 steps to the claims process - ANSWERS1. Claimant contacts insurer and files the
claim
2. The insurer acknowledges the claim and requests all items necessary to prove the
loss
3. The adjuster investigates the claim and determines whether it is valid
4. If the claim is valid, the adjuster evaluates the claim
5. Insurer accepts or rejects the claim
Vicarious Liability - ANSWERSthe transfer of negligence from one party to another
4 elements of negligence - ANSWERS1. defendant has legal duty to act or not act in a
prescribed matter
2. defendant failed to act accordingly (breach of duty)
3. plaintiff suffered actual loss or injury due to defendants action/inaction
4. loss of injury to plaintiff was a direct result of breach of duty of the defendant
3 Degrees of Liability - ANSWERS1.)Full Liability - The insured party is 100% at fault for
damages to a third party.
2.)Partial Liability - the insured party is only partially at fault or shares fault with a third
party.
3.)No Liability - the insured party has 0% or no liability in the damage to a third party.
Assumption of Risk - ANSWERSthe claimant knew he had the potential to experience
damage or risk
, Contributory Negligence - ANSWERScan be understood as, "if you hadn't played part in
the negligence, you would not have experience's the damages" therefore you get no
indemnification
Comparative Negligence - ANSWERSan adjuster may seek to suggest a claimant was
a % responsible and the policy holder a percentage responsible for damages
Reservation of rights or non waiver agreement is issued when... - ANSWERSthe case
may not fall under the items of the insurance policy
special damages - ANSWERSA form of compensatory damages that awards a sum of
money for specific, identifiable expenses associated with the injured person's loss, such
as medical expenses, repair bills, or lost wages
general damages - ANSWERScompensatory damages determined by the court and
awarded for intangible. emotional losses that are not quantifiable
punitive damages - ANSWERSmoney awarded to punish bad and shocking misconduct
such as intentional acts like slander, fraud, violence, oppression, or recklessness
Statue of limitations - ANSWERSa law limiting the amount of time an injured party has
to file a complaint after an occurrence
Discovery Rule - ANSWERSstatues of limitations run from when a injury is, or should
have been, discovered
wrongful death act - ANSWERSLaw that defines the rights of individuals who are
associated with someone who was killed because of a negligent act.
Waiver of Sovereign Immunity - ANSWERSsovereign immunity: law that restricts people
from suing governmental entities
waiver of sovereign immunity: law that allows individuals to sue governmental entities
for damage in certain cases
Masonry Construction - ANSWERSa construction method of building structures with
individual units laid in, and bound together, by mortar
Drywall - ANSWERStype of wall covering is compromised of a panel of gypsum plaster
pressed between two thick sheets of paper
Basic types of foundation used in dwelling construction - ANSWERSpost and beam,
crawl space, slab
How many squares of siding would be needed to cover an exteriro wall measuring 9
feet tall and 40 feet long (360 sq.ft.) with 3 windows measuring 20 sq.ft. each? -
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