Texas Adjuster Licensing Correct Questions & Answers

abandonment - ANSWERa term that applies to property and signifies both a relinquishing of it and the letting go of all legal rights to it, as well, with the intent to claim a total loss. Abandonment of property to an insurance company is something sinusoids are expressly prohibited from doing in most property policies. abandonment clauase - ANSWERa property policy provision that stipulate that the insurer need not accept any damaged property that the insured closes to relinquish absolute liability - ANSWERthe performance of an act so dangerous as to be sufficient to trigger liability regardless of the degree of negligence. triggering explosives is often used as an example. sending workers aloft for construction or repair at elevated heights is another. strict liability is another term that is sometimes used. accident - ANSWERan unforeseen, unintended, and unexpected event, which occurs suddenly and at a definite place. accounts receivable insurance - ANSWERpays for the cost of reconstructing accounts receivable records that have been damaged or destroyed by a covered peril. even more importantly, it covers any payments that cannot be collected because records cannot be reconstructed act of god - ANSWERacts of nature - the term was once widely used to distinguish between manmade events, such as fire, collision, and nature's rampages in wind and flood. active malfunction - in products insurance, a defect or malfunction in a product that damages the property of the user action over claim - ANSWERin workers compensation, a demand by a third party in a subrogation action suing for damages from the employer actual authority - ANSWERauthority that is an insurer intentionally give to the agent. actual cash value (ACV) - ANSWERa method for placing value on property as of the time of its loss or damage. ACV may be determined as replacement cost less depreciation. the market value of an item may be used to help determine actual cash value. contrasts with replacement costs actual cash value appraisal - ANSWERan appraisal to determine the actual cash value of a building and related personal property actual loss sustained - ANSWERa term used to distinguish from a valued form additional insured - ANSWERone who qualifies as insured under the terms of a policy even though not named as insured. officers of a corporation may be included as insureds under the term of a policy written in the name of a corporation additional insured endorsement - ANSWERan endorsement that conveys additional insured status on a party that otherwise is not insured on the policy additional living expense insurance - ANSWERthis coverage, found in homeowner forms, provides payment for extra expenses made necessary by the insured's inability to reside in the insured dwelling because of a covered loss - for example restaurant meals and hotel bills. the amount payable is the difference between normal household expenses and the increase