TX ADJUSTER TEST
Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused
an insurance loss to the insured. This is done as a means of recovering the amount of the
claim paid by the insurance carrier to the insured for the loss. - correct answer-While
investigating a claim, you determine that the loss was caused by a defective mechanism in
the dishwasher. You would attempt to_________________________?
Appraisal - correct answer-What is the process when an insurer and an insured have a
dispute regarding the amount of damage?
Material Misrepresentation - correct
answer-__________________________________________________is a significant
misstatement in an application form. If a company had access to the correct information at
the time of application, the company might not have agreed to accept the application.
Age, Condition and Life Expectancy - correct answer-As an adjuster, you should base
depreciation on these three factors?
Umpire - correct answer-An_________________ is a person hired by the property owner to
settle the claim with insurance company on their behalf.
HO-A - correct answer-This type of policy provides coverage only for those perils that are
listed in the policy?
Additional Living Expenses - correct answer-_________________________ are extra
charges covered by homeowner's policies over and above the policyholder's customary
living expenses.
Occurrence - correct answer-_______________________is an event that results in an
insured loss/damages?
Actual Cash Value - correct answer-What is value of your property, based on the current cost
to replace it, minus depreciation?
Incurred Expenses - correct answer-Expenses that have already sustained and that have not
yet been paid are known as ____________________________________.
Declarations Page - correct answer-________________________________is the part of the
written insurance policy that states all the policy's specific's, including the name of the
policyholder, the type of property insured, the premiums, and the term limits for the
coverage.
Negligence - correct answer-What is the failure to use that degree of care which an ordinary
person of reasonable prudence would use under similar circumstances?
, Overhead and Profit - correct answer-______________________________is the amount of
money dedicated to a general contractor's cost of doing a business and earning a profit.
Third Party Loss - correct answer-____________________________is a situation involving
a person other than an insurer and the insured.
Reserves - correct answer-What is the amount representing actual or potential liabilities kept
by and insurer to cover debts to policyholder?
First Party Loss - correct answer-This loss involves only the insurer and the insured?
Liability - correct answer-What is the responsibility to another for one's negligence?
Severity - correct answer-_____________________ is the size of a loss, the extent of
damages.
Premium - correct answer-___________________________ is the amount paid by an
insured to an insurance company to obtain or maintain an insurance policy
Replacement Cost - correct answer-__________________________________is the cost
associated with replacing property at the current market price.
Policy Period - correct answer-The period of a policy is in force, from the beginning or
effective date to the expiration date is the ________________________________?
deductible - correct answer-The amount the insured must pay in a loss before any payment
is due is known as the ____________________________________.
Adjuster - correct answer-A person who investigates and settles insurance claims is the
______________________?
$5000.00 - correct answer-Mary Johnson has an HO-B policy. Her coverage A limit of liability
is $250,000 and her coverage B limit is $125,000. Her policy has a 2% deductible. What is
her deductible?
Coverage A - correct answer-If your policyholder has a 1% deductible, this percentage would
be taken from what coverage?
10% of COV B - correct answer-The Homeowner's policy provides coverage's for Personal
Property that is away from the residence premises. The total limit of liability for off premises
losses is ______________________________?
at the residence or elsewhere - correct answer-When handing a homeowner's content claim,
you should establish if the loss happened
__________________________________________ to help determine the total limit of
liability that will apply to the claim.
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