Claims Adjuster Exam 1
Actual Cash Value (ACV) correct answers Cost to replace property with new property
of like kind and quality less depreciation.
Combined Single Limit correct answers One limit per occurrence is what we pay up to
Split limit correct answers What we pay up to per person and per occurrence
Deductible correct answers What the customer will have to pay; we cover everything
else
Declarations Page (Dec Page) correct answers The basic information about a policy:
Who - names of insurer and insured
What - description of insured property
Where - address and legal description of insured property
When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Depreciation correct answers Amount taken off for wear and tear
Earned Premium correct answers The amount of the premium for which the policy
protection has been given.
Risk correct answers A chance or uncertainty of loss
endorsement correct answers Something you can add/change on policy; car, kid, etc
lapse correct answers The insured did not pay so is not covered; will effect renewal
Named driver exclusion correct answers Excluded from coverage and covered cars;
cannot drive as they would be considered 1st party coverage
Coverage A correct answers Building and structures
Coverage B correct answers Other structures (such as a detached garage, workshop,
swimming pools, fences and gazebos)
Coverage C correct answers personal property
Coverage D correct answers Loss of use
Coverage E correct answers personal liability
, Coverage F correct answers Medical Payments
Personal Umbrella Policy correct answers provides protection against a catastrophic
lawsuit or judgment
What is covered through PUP? correct answers Liability (property damage and bodily
injury [excess])
Other- Personal Injury (libel & slander)
Dwelling Components correct answers Construction of dwelling
inflation protection correct answers A rider in some insurance policies that
automatically raises the benefit amount or the maximum daily or annual payments,
based on the rate of inflation, in order to ensure that the amount of coverage remains
adequate over time.
Market Value correct answers the price at which property would sell
named peril basis correct answers Covered for everything named on policy
open peril basis correct answers It's covered for any loss unless it is specifically
excluded
Replacement Cost correct answers The cost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation.
Scheduled Personal Property correct answers endorsement - provides broader
coverage for personal jewelry, furs, cameras, musical instruments, silverware, fine arts,
golf equipment, and stamp/coin collections. must be insured on full value basis.
Special Limit correct answers Covered up to a certain amount
unscheduled personal property correct answers Property not specifically listed in the
policy
bodily injury liability correct answers insurance that covers physical injuries caused by a
vehicle accident for which you are responsible
property damage liability correct answers insurance that protects a driver against
claims if the insured's car damages someone else's property and the insured is at fault
comprehensive correct answers Covers theft, hitting an animal, weather, fire, etc.
Collision correct answers Hitting something; colliding with another object or people
Actual Cash Value (ACV) correct answers Cost to replace property with new property
of like kind and quality less depreciation.
Combined Single Limit correct answers One limit per occurrence is what we pay up to
Split limit correct answers What we pay up to per person and per occurrence
Deductible correct answers What the customer will have to pay; we cover everything
else
Declarations Page (Dec Page) correct answers The basic information about a policy:
Who - names of insurer and insured
What - description of insured property
Where - address and legal description of insured property
When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Depreciation correct answers Amount taken off for wear and tear
Earned Premium correct answers The amount of the premium for which the policy
protection has been given.
Risk correct answers A chance or uncertainty of loss
endorsement correct answers Something you can add/change on policy; car, kid, etc
lapse correct answers The insured did not pay so is not covered; will effect renewal
Named driver exclusion correct answers Excluded from coverage and covered cars;
cannot drive as they would be considered 1st party coverage
Coverage A correct answers Building and structures
Coverage B correct answers Other structures (such as a detached garage, workshop,
swimming pools, fences and gazebos)
Coverage C correct answers personal property
Coverage D correct answers Loss of use
Coverage E correct answers personal liability
, Coverage F correct answers Medical Payments
Personal Umbrella Policy correct answers provides protection against a catastrophic
lawsuit or judgment
What is covered through PUP? correct answers Liability (property damage and bodily
injury [excess])
Other- Personal Injury (libel & slander)
Dwelling Components correct answers Construction of dwelling
inflation protection correct answers A rider in some insurance policies that
automatically raises the benefit amount or the maximum daily or annual payments,
based on the rate of inflation, in order to ensure that the amount of coverage remains
adequate over time.
Market Value correct answers the price at which property would sell
named peril basis correct answers Covered for everything named on policy
open peril basis correct answers It's covered for any loss unless it is specifically
excluded
Replacement Cost correct answers The cost to repair or replace property using new
materials of like kind and quality with no deduction for depreciation.
Scheduled Personal Property correct answers endorsement - provides broader
coverage for personal jewelry, furs, cameras, musical instruments, silverware, fine arts,
golf equipment, and stamp/coin collections. must be insured on full value basis.
Special Limit correct answers Covered up to a certain amount
unscheduled personal property correct answers Property not specifically listed in the
policy
bodily injury liability correct answers insurance that covers physical injuries caused by a
vehicle accident for which you are responsible
property damage liability correct answers insurance that protects a driver against
claims if the insured's car damages someone else's property and the insured is at fault
comprehensive correct answers Covers theft, hitting an animal, weather, fire, etc.
Collision correct answers Hitting something; colliding with another object or people
