CT Adjuster Exam - Basic Terms and
Understandings Midterm Questions And
Already Passed Solutions.
HO-1 - Answer Basic named perils policy. Only covers 10 listen perils. RCV.
HO-2 - Answer Broad named perils policy. Covers dwelling & personal property. 16 named perils.
HO-3 - Answer Homeowners special form. Basic open perils policy. Dwelling - open peril, covers
everything except exclusions.
Contests - named peril.
HO-4 - Answer Renters policy. No coverage for dwelling, other structures or loss of use.
Personal property (amount that you specify.)
Liability (amount that you specify)
Medical payments to others (amount you specify)
Named peril policy
HO-5 - Answer Full open perils policy.
Dwelling - open peril
Contents - open peril
* exclusions may apply.
HO-6 - Answer Condo policy. Not responsible for exterior loss. Responsible for interiors walls, floors,
and ceilings as well as personal property. Have loss of use coverage. Does not have "other structures."
Named peril for dwelling, personal property, and loss of use.
HO-8 - Answer Basic market value policy. Only covers same 10 listed perils. ACV.
,Normally insures older homes that would be extremely difficult to replace if destroyed.
Accident and Occurrence - Answer A: unplanned, unexpected event
O: unexpected, recurrent, repeated exposure that over time causes illness or impairment to person.
Cancellation: Short Rate and Pro Rata - Answer SR: Insured canceled policy during period
PR: Insurer canceled policy during period.
Valued Policy Laws - Answer When policy written to cover any real property against loss by fire,
tornado, lightening and a total loss occurs, face value of coverage will be paid.
Other Methods of Loss Settlement Provisions:
Agreed Value
Stated Amount
Functional Replacement Cost - Answer Agreed Value - Insurer and insured agree with amount of
coverage provided.
Stated Amount - Generally used to cover classic autos
Functional Replacement Cost - values property at the cost
necessary to replace damaged or destroyed property with new property of unlike kind and quality. The
property performs the same general function allowing the insured to accomplish their business
objectives. Property replaced using functionally equivalent materials and products are less expensive
and often require a shorter replacement schedule
All provide max protection.
Limited of Liability - Answer -Max provided as stated in insurance contract
-Policy coverage limits
=Automatically restored following a loss
, Combined Single Limit: Amount paid per occurrence for covered bodily injury or property damage of
others.
Split Limit : Subsided into cov. limit for bodily injury pre person and per occurrence and separate limit for
prop. damage.
Aggregate Limits : Provide max limit of liability for total amount of losses occurring during pol per.
Supplementary Payments : Payments made in addition to limit of liability Examples: $250 for bail bonds,
premiums of bonds and release attachment.
Conditional - Answer Insurers promise/performance is conditional upon payment of premiums to keep
coverage
Both parties satisfy specific conditions for contract to be executed.
Personal - Answer Contract between insured and insurer (people)
Utmost Good Faith - Answer -Each party must tell the truth
-Insurer relies on insureds statements
-Insured relies on insurers promise
-If insured intentionally conceals info, contract may be void.
Representations - Answer Statements made by applicants recovered on application (if true).
Misrepresentations - Answer -Incorrect statements made by applicant
-Does NOT effect coverage unless fraudulent in nature.
Material Representation - Answer -Untrue statement that, had it been known to insurer at time of app,
would have resulted in denial.
-May result in void of policy.
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 TestSolver9. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
