Exam (elaborations)
LA Claims Adjuster Property and Causality Practice Exam 1 Solved Correctly To Score A+
- Course
- Institution
LA Claims Adjuster Property and Causality Practice Exam 1 Solved Correctly To Score A+
[Show more]
Content preview
Name: Score:90 Multiple choice questions
Definition 1 of 90
-the transfer of rights that allows the insurer to recover its losses after it indemnified a
policyholder
-when a policyholder is indemnified for a loss , she may no longer collect payment for that loss
form anyone else. She has transferred this right to the insurer.
-only applies to the amount the insurer pays
-the policyholder still has the right to demand payment from the guilty party for any damages that
exceed the indemnity.
6 Conditions of Insurable Risk
Definable Risk
Subrogation
Morale Hazard
Representation
Definition 2 of 90
-is filed by the policyholder against his/her own insurance policy
-must be paid by policyholder own insurance
-is filed against an insurance policy by anyone other than the person named on the policy.
First Party Claim
Types of Insurance
Reciprocal Insurance
Exposure
Insurer
,Definition 3 of 90
-applicants are expected not to withhold any information or the contract can be voided
Types of Insurance
Private Non-Commercial Insurance
6 Characteristics of a Contract:
Personal
6 Characteristics of a Contract:
Conditional
6 Characteristics of a Contract:
Utmost Good Faith
Definition 4 of 90
a claim filed against the insurance policy by someone who is not on the policy
Third-Party Claim
Cross Claim
Fraud
First-party Claim
,Definition 5 of 90
-when a policyholder intentionally tries to get money from the insurance company
-results from the policyholder's conscious decision
-involves reckless behavior because of the financial security offered by insurance
-is a type of "behavioral hazard."
Hazard
Physical Hazard
Moral Hazard
Indirect Loss
Definition 6 of 90
-reduction in value of an insured item
-financial loss due to an occurrence or accident
-for insurers: the amount paid out in a claims settlement
examples:
1) reduction in Dan's car after an accident
2) medical bills for Dan's injured wrist
3) what the insurer has to pay Dan for his property damage and injury
Loss
Morale Hazard
Binder
Proximate Cause
, Term 7 of 90
Risk Management Techniques
(ways for insurers to safely take risk)
Risk Retention
-requiring policyholder to pay higher premiums
-requiring building upgrades for safety and less chance of damage.
-providing less coverage
-the insurer only has to perform if certain conditions are met
Retention=Acceptance
-Insurer accepts the risk and issues a policy
-located in a particular state, abide by state laws
Definition 8 of 90
-the actual cause of loss or damage; what people buy insurance to protect themselves against
ex: lightning, fire, flood, vandalism
Insurance Policies can be:
-named peril- lists each peril that is covered
-all peril (Open peril)- covers all perils except those specifically excluded
Peril
Warranty
Subrogation
Binder
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 stuuviaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now