REAL Texas Adjuster Study Guide/ 367 QUESTIONS AND ANSWERS.

REAL Texas Adjuster Study Guide2023- 2024/ 367 QUESTIONS AND ANSWERS 1. perils: a cause of property losses under an insurance con- tract ex: windstorm, hurricane, explosion, collapse of build-ing, vandalism, accidental discharge, and theft 2. law of large numbers: a fundamental concept in statisticsand probability that describes how the average of a random-ly selected large sample from a population. it basically re- lies on the principle that the larger the pool, the more pre-dictable the amount of losses will be in a given period 3. principle of indemnity: is an insurance principle stating that an insured may not be compensated by insurance company in an amount exceeding the insured's economic loss. 4. limits of liability: the maximum amount that an insurance pol- icy will pay. it is specified on the policy declaration page