100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Insurance Adjusting- LA Questions and Answers (100% Pass) $13.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. Insurance Adjuster
  4.  
  5. Insurance Adjuster

Exam (elaborations)

Insurance Adjusting- LA Questions and Answers (100% Pass)
 6 views  0 purchase
  • Course
  • Insurance Adjuster
  • Institution
  • Insurance Adjuster

Adhesion Insurance policies are contracts of adhesion, which means that one party (the insurer) dictates the terms, and the other party (the inured) simply accepts or rejects them. One implication of this arrangement is that any ambiguities in the contract will be interpreted in the favor o...

[Show more]

Preview 4 out of 31  pages

Document information

  • October 12, 2024
  • 31
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • insurance adjusting la questions and answers 10
  • adhesion insurance policies are contracts of adh

Written for

  • Insurance Adjuster
  • Insurance Adjuster

Seller

avatar-seller
ExamArsenal

Reviews received

Content preview

1 | P a g e | © copyright 2024/2025 | Grade A+




Insurance Adjusting- LA Questions
and Answers (100% Pass)
Adhesion


✓ Insurance policies are contracts of adhesion, which means that one

party (the insurer) dictates the terms, and the other party (the inured)

simply accepts or rejects them. One implication of this arrangement is

that any ambiguities in the contract will be interpreted in the favor of

the insured; in this case, in favor of Stephen.




During a storm, lightning strikes a tree in Norman's back yard, causing it to fall

on his house and damage his roof. In this case, Norman's fallen tree is

considered:


✓ In this case, Norman's fallen tree would be considered a direct loss.




A(n) ________ is a bilateral statement that must be signed by the policyholder.

It says that the insurer may continue to investigate a claim or defend the

policyholder in court, but that it still keeps its right to deny coverage.


✓ reservation of rights




Which of the following is TRUE for tort law?




Master01 | October, 2024/2025 | Latest update

, 1 | P a g e | © copyright 2024/2025 | Grade A+

✓




A pre-defined monetary portion of an insurance claim paid by a policyholder

is a:


✓ a deductible.




Roxanne bought her 50" TV four years ago for $2,400. During a storm, her

house was struck by lightning and the current fried her TV. The TV depreciates

at $400 per year and a similar TV costs $1,200 today. Assuming Roxanne's

homeowners policy has a replacement cost endorsement for personal

property, how much can she expect to receive in indemnification for her

damaged TV?


✓ she will receive $1,200 for indemnification: the amount it would take to

replace the damaged television.




appraisal


✓ opposing parties each choose an appraiser, and then the two

appraisers decide on a third party, called an umpire. When at least

two of these three representatives agree on a settlement, their decision

is binding.




Master01 | October, 2024/2025 | Latest update

, 1 | P a g e | © copyright 2024/2025 | Grade A+

Sara's home was partially destroyed by a fire and she insists it will cost

$97,000 to repair the damage. However, after completing his investigation,

the adjuster determined the repairs could be done for $65,000. All attempts at

negotiation have failed. Even though it's risky to go to court, why might the

insurer decide to pursue that course of action?


✓ Despite the drawbacks of litigation, the insurer may decide to go to

court to avoid developing a reputation of being a pushover, which

could make future claims more difficult.




What is the main difference between a Full Release Settlement and a No

Release Settlement?


✓ In a Full Release Settlement, the claimant signs a release form giving

up the right to additional indemnification; in a No Release Settlement,

the claimant does not sign a release form.




Which of the following is NOT true of arbitration?


✓ Arbitrators often have more expertise than juries.




n insurer can use a Reservation of Rights letter to let the claimant know that

the adjuster will begin the claim process, but might deny coverage if it

becomes clear that the policy does not apply to the losses, or if the claim

was reported too late.


Master01 | October, 2024/2025 | Latest update

, 1 | P a g e | © copyright 2024/2025 | Grade A+

✓




Which of the following statements applies to actual cash value?


✓ Actual cash value generally reflects the fair market value of an item.




franchise deductible


✓ With a franchise deductible, the policyholder only pays for damages

that are less than his deductible. If the cost of damages equals or

exceeds his deductible, the insurer pays the full amount and the

policyholder pays nothing.




Jack's home is valued at $950,000. How much insurance does he need to

carry on his home in order to be fully insured under a typical insurance

policy?


✓ Jack must carry at least $760,000 (80% of the value of his home) in

insurance in order to be fully insured.




Joe is looking for information in his Standard Fire Policy, relating to policy

cancellation, assignment, and subrogation. In which section would he find

this information?


✓ Conditions



Master01 | October, 2024/2025 | Latest update

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 ExamArsenal. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83637 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$13.49
  • (0)
  Add to cart