2022 Texas Adjuster Study Guide| 367 QUESTIONS| ANSWERS ALL CORRECT

2022 Texas Adjuster Study Guide| 367 QUESTIONS| ANSWERS ALL CORRECTPERILS Correct Answer: A CAUSE OF PROPERTY LOSSES UNDER AN INSURANCE CONTRACT EX: WINDSTORM, HURRICANE, EXPLOSION, COLLAPSE OF BUILDING, VANDALISM, ACCIDENTAL DISCHARGE, AND THEFT LAW OF LARGE NUMBERS Correct Answer: A FUNDAMENTAL CONCEPT IN STATISTICS AND PROBABILITY THAT DESCRIBES HOW THE AVERAGE OF A RANDOMLY SELECTED LARGE SAMPLE FROM A POPULATION. IT BASICALLY RELIES ON THE PRINCIPLE THAT THE LARGER THE POOL, THE MORE PREDICTABLE THE AMOUNT OF LOSSES WILL BE IN A GIVEN PERIOD PRINCIPLE OF INDEMNITY Correct Answer: IS AN INSURANCE PRINCIPLE STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. LIMITS OF LIABILITY Correct Answer: THE MAXIMUM AMOUNT THAT AN INSURANCE POLICY WILL PAY. IT IS SPECIFIED ON THE POLICY DECLARATION PAGE. PROPERTY INSURANCE Correct Answer: COVERAGE FOR REAL AND PERSONAL PROPERTY AGAINST LOSS OR DAMAGE FROM PERILS INSURED AGAINST. LOSS SETTLEMENT Correct Answer: THE PROCESS USED TO DETERMINE THE AMOUNT OF THE LOSS ACTUAL CASH VALUE Correct Answer: THE VALUE OF THE PROPERTY BASED ON THE CURRENT COST TO REPLACE IT MINUS DEPRECIATION. AGREED VALUE Correct Answer: THE AMOUNT THAT THE INSURED AND INSURER AGREE UPON DURING THE TIME OF POLICY INCEPTION. REPLACEMENT COST Correct Answer: THE COST ASSOCIATED WITH REPLACING PROPERTY AT CURRENT MARKET PRICES MARKET VALUE Correct Answer: THE AMOUNT THAT THE PROPERTY IS WORTH IN A COMPETITIVE MARKET. THIS AMOUNT IS ACCEPTED BY THE BUYER AND SELLER. TORT Correct Answer: IS A WRONG THAT INVOLVES A BREACH OF CIVIL DUTY OWED TO SOMEONE ELSE. THIS BREACH DETERMINES IF THAT PERSON IS NEGLIGENCE. ELEMENTS USED TO DETERMINE NEGLIGENCE Correct Answer: A DUTY OWED, A DUTY BREACHED, PROXIMATE CAUSE, AND DAMAGES METHODS TO DETERMINE LOSS ARE: Correct Answer: ACV, MARKET VALUE, REPLACEMENT COST, AGREED VALUE CASUALTY INSURANCE Correct Answer: PROTECTS A PERSON FROM FINANCIAL LOSS ARISING FROM BODILY INJURY OR PROPERTY DAMAGE TO OTHERS HAZARD Correct Answer: IS A SITUATION THAT POSES A LEVEL OF THREAT TO LIFE, HEALTH, PROPERTY, OR ENVIRONMENT. INDIRECT LOSS Correct Answer: TYPE OF LOSS THAT DOES NOT RESULT FROM DIRECT DAMAGE OF A COVERED CAUSE OF LOSS OR PERIL BUT IS INSTEAD A CONSEQUENCE OF THE DIRECT DAMAGE LOSS. DIRECT LOSS Correct Answer: DIRECT PHYSICAL LOSS TO PROPERTY INSURING AGREEMENT Correct Answer: THIS SECTION OF THE INSURANCE POLICY SPECIFIES WHAT THE INSURANCE WILL PROVIDE COVERAGE FOR IN EXCHANGE FOR PREMIUM PAYMENTS BY THEIR CUSTOMER. DEDUCTIBLE Correct Answer: THE AMOUNT THE INSURED MUST PAY IN A LOSS BEFORE ANY PAYMENT IS DUE FROM THE INSURANCE COMPANY. WHERE IS A HOMEOWNER PERCENTAGE DEDUCTIBLE ALWAYS TAKEN FROM? Correct Answer: COVERAGE A STRUCTURE POLICY LIMITS OF LIABILITY THAT IS USED ON THE DECLARATION PAGE. CANCELLATION Correct Answer: IS THE TERMINATION OF AN INSURANCE POLICY BY EITHER SIDE AND IT MUST BE DONE IN WRITING LIABILITY Correct Answer: A PERSON IS LEGALLY LIABLE FOR AN ACCIDENT IF THAT PERSON IS FOUND RESPONSIBLE FOR BODILY INJURY OR PROPERTY DAMAGE TO ANOTHER PARTY. NEGLIGENCE Correct Answer: THE FAILURE TO EXERCISE THE CARE THAT A REASONABLY PRUDENT PERSON CAN BE CHARACTERIZED BY THE AVERAGE PERSON. ADDITIONAL LIVING EXPENSES Correct Answer: CHARGES COVERED BY HOMEOWNERS POLICY OVER AND ABOVE POLICY HOLDERS CUSTOMARY LIVING DUE TO DAMAGE BY A COVERED PERIL AND MAKES THE HOME TEMPORARY UNINHABITABLE. EXPOSURE Correct Answer: THE MEASURE OF THE POSSIBILITY OF THE LOSS