Insurance adjuster test | Questions and Answers
Verified 100% | Latest Update
Control of Property - ✔✔act of neglect by a person beyond the insured direction or control
will not affect the insured
Liberalization Clause - ✔✔A policy condition providing that if a policy form is broadened at
no additional premium, the broadened coverage automatically applies to all existing policies of
the same type.
Line of Coverage - ✔✔A particular risk or group of risks covered by an insurance policy
Monoline Policy - ✔✔A policy written separately as a single coverage. covers one entity
(stamp collection)
Dwelling Policy - ✔✔Policy that provides Property coverage to individuals and families.
Covers dwellings, other structures, personal property, and fair rental value. Some versions also
cover additional living expense. The unendorsed policy does not provide liability coverage.
unendorsed dwelling policy - ✔✔provides property coverage
insurable risk - ✔✔a pure risk that is faced by a large number of people and for which the
amount of the loss can be predicted
litagation - ✔✔legal action; a lawsuit
Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under the
policy, recover the amount paid from any party (other than the insured) who caused the loss or
is otherwise legally liable for the loss.
, Indemification - ✔✔the right of a partner to be reimbursed for expenditures incurred on
behalf of the partnership
Restoration - ✔✔the action of returning something to a former owner, place, or condition.
Estoppel - ✔✔occurs when a representation of fact made by one person to another person is
reasonably relied on by that person to such an extent that it would be inequitable to allow the
first person to deny the truth of the representation. ex.Estoppel protects the insured party from
an insurer who initially approves coverage, but then later denies coverage after the insured
pays for repairs.
formula for actual cash value? - ✔✔Replacement cost minus total depreciation
Moral Hazard - ✔✔Arises when people behave recklessly because they know they will be
saved if things go wrong
Fraternal Benefit Society - ✔✔An organization formed to provide insurance benefits for
members of an affiliated lodge, religious organization, or fraternal organization with a
representative form of government.
Contributory Negligence - ✔✔Insurer refuses to pay anything if the clamant was even
partially liable
Which of the following incidents would be a liability insurance policy cover? - ✔✔A man slips
inside a grocery store and injuries himself
While driving, sue looks down to adjust the radio and crashes the car into Jane's car, damaging
both cars and injuring herself. Which of the following statements applies to sue? - ✔✔Sue is
legally liable for the damages to Jane's car.
Verified 100% | Latest Update
Control of Property - ✔✔act of neglect by a person beyond the insured direction or control
will not affect the insured
Liberalization Clause - ✔✔A policy condition providing that if a policy form is broadened at
no additional premium, the broadened coverage automatically applies to all existing policies of
the same type.
Line of Coverage - ✔✔A particular risk or group of risks covered by an insurance policy
Monoline Policy - ✔✔A policy written separately as a single coverage. covers one entity
(stamp collection)
Dwelling Policy - ✔✔Policy that provides Property coverage to individuals and families.
Covers dwellings, other structures, personal property, and fair rental value. Some versions also
cover additional living expense. The unendorsed policy does not provide liability coverage.
unendorsed dwelling policy - ✔✔provides property coverage
insurable risk - ✔✔a pure risk that is faced by a large number of people and for which the
amount of the loss can be predicted
litagation - ✔✔legal action; a lawsuit
Subrogation - ✔✔The process by which an insurer can, after it has paid a loss under the
policy, recover the amount paid from any party (other than the insured) who caused the loss or
is otherwise legally liable for the loss.
, Indemification - ✔✔the right of a partner to be reimbursed for expenditures incurred on
behalf of the partnership
Restoration - ✔✔the action of returning something to a former owner, place, or condition.
Estoppel - ✔✔occurs when a representation of fact made by one person to another person is
reasonably relied on by that person to such an extent that it would be inequitable to allow the
first person to deny the truth of the representation. ex.Estoppel protects the insured party from
an insurer who initially approves coverage, but then later denies coverage after the insured
pays for repairs.
formula for actual cash value? - ✔✔Replacement cost minus total depreciation
Moral Hazard - ✔✔Arises when people behave recklessly because they know they will be
saved if things go wrong
Fraternal Benefit Society - ✔✔An organization formed to provide insurance benefits for
members of an affiliated lodge, religious organization, or fraternal organization with a
representative form of government.
Contributory Negligence - ✔✔Insurer refuses to pay anything if the clamant was even
partially liable
Which of the following incidents would be a liability insurance policy cover? - ✔✔A man slips
inside a grocery store and injuries himself
While driving, sue looks down to adjust the radio and crashes the car into Jane's car, damaging
both cars and injuring herself. Which of the following statements applies to sue? - ✔✔Sue is
legally liable for the damages to Jane's car.
