Texas All lines adjuster license insurance terms
and related concepts Chapter 1 Exam LATEST
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS)
Law ,.of ,.Large ,.Numbers ,.- ,.(correct ,.answer) ,.-
the ,.more ,.examples ,.used ,.to ,.develop ,.any ,.statistic, ,.the ,.more ,.reliable ,.the ,.statistic ,.will ,.be
Underwriting ,.- ,.(correct ,.answer) ,.-
The ,.process ,.and ,.insurance ,.company ,.uses ,.to ,.decide ,.whether ,.to ,.except ,.or ,.reject ,.an ,.application ,.fo
r ,.a ,.policy ,.insurance. ,.underwriters ,.evaluate ,.the ,.risk ,.and ,.exposure ,.of ,.a ,.potential ,.policyholders ,.the
y ,.decide ,.how ,.much ,.coverage ,.the ,.policyholder ,.should ,.receive ,.how ,.much ,.they ,.should ,.pay ,.for ,.it ,.o
r ,.whether ,.even ,.to ,.except ,.the ,.risk ,.and ,.insure ,.them. ,.underwriting ,.involves ,.measuring ,.risk ,.exposur
e ,.and ,.determining ,.the ,.premium ,.that ,.needs ,.to ,.be ,.charged ,.to ,.ensure ,.that ,.risk.
peril ,.- ,.(correct ,.answer) ,.-
A ,.cause ,.of ,.property ,.losses ,.I.E, ,.fire, ,.lightning, ,.explosion, ,.windstorm, ,.hurricane, ,.collapse ,.of ,.building
, ,.vandalism, ,.accidental ,.discharge, ,.theft.
hazard ,.- ,.(correct ,.answer) ,.-
Is ,.a ,.situation ,.that ,.poses ,.a ,.level ,.of ,.threat ,.to ,.life, ,.Heath, ,.property, ,.or ,.environment.
Direct ,.loss ,.- ,.(correct ,.answer) ,.-Direct ,.physical ,.loss ,.to ,.property
Indirect ,.loss ,.- ,.(correct ,.answer) ,.-
A ,.loss ,.that ,.arises ,.as ,.a ,.result ,.of ,.damage ,.to ,.property, ,.other ,.than ,.the ,.direct ,.loss ,.to ,.the ,.property. ,.
If ,.you ,.own ,.a ,.taxi ,.and ,.someone ,.totals ,.out ,.your ,.taxi, ,.you ,.can't ,.make ,.money ,.because ,.you ,.can't ,.dr
ive ,.your ,.taxi ,.for ,.fares.
Principle ,.of ,.indemnity ,.- ,.(correct ,.answer) ,.-
Insurance ,.will ,.not ,.pay ,.more ,.than ,.the ,.cost ,.of ,.the ,.incident
, Property ,.insurance ,.- ,.(correct ,.answer) ,.-
Covers ,.the ,.loss ,.of ,.real ,.and ,.personal ,.property ,.from ,.perils ,.such ,.as ,.fire, ,.theft, ,.windstorm
Insuring ,.Agreement ,.- ,.(correct ,.answer) ,.-
Summarizes ,.the ,.major ,.promises ,.of ,.the ,.insurer ,.in ,.exchange ,.for ,.premium ,.payments ,.by ,.their ,.custo
mer.
Deductible ,.- ,.(correct ,.answer) ,.-
Amount ,.you ,.must ,.pay ,.before ,.you ,.begin ,.receiving ,.any ,.benefits ,.from ,.your ,.insurance ,.company
Cancellation ,.- ,.(correct ,.answer) ,.-
Termination ,.of ,.an ,.insurance ,.policy ,.by ,.insurance ,.company ,.or ,.insurer ,.before ,.the ,.renewal ,.date. ,.All ,
.notices ,.must ,.be ,.done ,.in ,.writing.
Limit ,.of ,.Liability ,.- ,.(correct ,.answer) ,.-
The ,.maximum ,.amount ,.for ,.which ,.an ,.insurer ,.is ,.liable. ,.The ,.policy ,.of ,.declarations ,.specifies ,.limits.
Loss ,.settlement ,.- ,.(correct ,.answer) ,.-The ,.process ,.used ,.to ,.determine ,.the ,.amount ,.of ,.the ,.loss.
Methods ,.used ,.to ,.settle ,.losses ,.- ,.(correct ,.answer) ,.-
Actual ,.cash ,.value- ,.value ,.of ,.the ,.property, ,.based ,.on ,.the ,.current ,.cost ,.to ,.replace ,.it, ,.minus ,.applicabl
e ,.depreciation.
Replacement ,.cost- ,.the ,.cost ,.associated ,.with ,.replacing ,.property ,.at ,.current ,.market ,.prices.
Agreed ,.value- ,.the ,.amount ,.that ,.the ,.insured ,.and ,.insurer ,.agree ,.upon ,.during ,.the ,.time ,.of ,.policy ,.inc
eption.
Market ,.value- ,.the ,.amount ,.the ,.property ,.is ,.worth ,.in ,.a ,.competitive ,.market. ,.This ,.amount ,.is ,.accepte
d ,.by ,.the ,.buyer ,.and ,.seller.
Casualty ,.insurance ,.- ,.(correct ,.answer) ,.-
Protects ,.a ,.person ,.from ,.financial ,.loss ,.arising ,.from ,.bodily ,.injury ,.or ,.property ,.damage ,.to ,.others ,.aris
ing ,.out ,.of ,.: ,.ownership ,.of ,.property, ,.operation ,.of ,.a ,.motor ,.vehicle, ,.personal ,.activities, ,.business ,.acti
vities, ,.robbery, ,.and ,.Worker's ,.comp.
liability ,.- ,.(correct ,.answer) ,.-
A ,.person ,.is ,.legally ,.liable ,.for ,.an ,.accident ,.if ,.that ,.person ,.is ,.found ,.responsible ,.for ,.bodily ,.injury ,.or ,.p
roperty ,.damage ,.to ,.another ,.party. ,.Usually ,.based ,.upon ,.the ,.negligent ,.acts ,.of ,.that ,.person.
negligence ,.(n) ,.- ,.(correct ,.answer) ,.-carelessness
