2022 Texas Adjuster Study Guide 367 QUESTIONS ANSWERS ALL CORRECT

2022 Texas Adjuster Study Guide 367 QUESTIONS ANSWERS ALL CORRECT 1 / 31 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 STATISTICS AND 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. 5. PROPERTY INSURANCE: COVERAGE FOR REAL AND PERSONAL PROP￾ERTY AGAINST LOSS OR DAMAGE FROM PERILS INSURED AGAINST. 6. LOSS SETTLEMENT: THE PROCESS USED TO DETERMINE THE AMOUNT OF THE LOSS