NJ Public Adjustment review questions
with correct answers
Public Adjuster License - CORRECT ANSWER✔✔-A solicitors/adjusters license is
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valid for two years and must be renewed every two years
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Public Adjuster Bond - CORRECT ANSWER✔✔-$10,000 bond is required for
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solicitors/adjusters
Proof of Loss - CORRECT ANSWER✔✔-documentation of loss required of a policy
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owner by an insurance company; must usually be filed within 60 days after the
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request of the insured or according to policy provision, 60 days after the date of
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loss
Loss to a Pair or Set - CORRECT ANSWER✔✔-(1) repair or replace any part to
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restore the pair or set to its value before the loss or
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(2) pay the difference between actual cash value before and after the loss
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Insurer - CORRECT ANSWER✔✔-company offering protection through the sale of
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an insurance policy to an insured
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Insured - CORRECT ANSWER✔✔-party covered by an insurance policy
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Policy Period - CORRECT ANSWER✔✔-the inception date and expiration date of
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the policy
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,Limit of Liability - CORRECT ANSWER✔✔-maximum amount of coverage available
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under a liability insurance policy
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Insurable Interest - CORRECT ANSWER✔✔-expectation of a monetary loss that
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can be covered by insurance. Owner of the property.
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Mortgage Clause - CORRECT ANSWER✔✔-attachment to a property insurance
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policy to protect the interest of the mortgage in the mortgaged property. If the
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property is damaged or destroyed the mortgage is indemnified up to his or her
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stated interest in the property.
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Market Value - CORRECT ANSWER✔✔-value of property as established by the
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price a willing buyer would pay for property purchased from a willing seller
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Agreed Value - CORRECT ANSWER✔✔-a stipulated agreement between the
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insurance company and the insured that the amount of insurance coverage under
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|the policy is sufficient to be in compliance with the coinsurance requirement.
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Depreciation - CORRECT ANSWER✔✔-actual or accounting recognition of the
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decrease in the value of a hard asset (property) over a period of time
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Recoverable Depreciation(Holdback) - CORRECT ANSWER✔✔-although
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replacement cost policies provide for replacement of damaged property at
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current prices, certain conditions must be met before you can collect the full
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amount for the loss. The insurance company will make an offer of settlement,
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then withhold a portion of the money until the repairs are actually made. You
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, must provide receipts showing that you incurred a cost of equal or greater than
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the offer of settlement in order for you to receive all of the holdback moneys.
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Non-Recoverable Depreciation - CORRECT ANSWER✔✔-actual cash value policies | | | | | | | |
state that an offer of settlement is based on the actual cash value of the property
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at the time of the loss, therefore, any depreciation applied because of age,
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deterioration, etc. is not recoverable. | | | |
Endorsement - CORRECT ANSWER✔✔-written agreement attached to a policy to
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add or subtract insurance coverage's. Once attached the endorsement takes
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precedence over the original provisions of the policy | | | | | | |
Chance of Loss - CORRECT ANSWER✔✔-chance that an event will occur
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Risk - CORRECT ANSWER✔✔-uncertainty of a financial loss-term used to
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designate an insured or a peril insured against
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Hazard - CORRECT ANSWER✔✔-a condition that may create or increase the
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chance of loss arising from a given peril
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Moral Hazard - CORRECT ANSWER✔✔-circumstance which increases the
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probability of loss because of an applicant's personal habits - circumstance that
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increases the probability of loss because of the insured's indifferent attitude. For
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example, if an insured leaves the doors unlocked and the windows open when
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leaving home |
with correct answers
Public Adjuster License - CORRECT ANSWER✔✔-A solicitors/adjusters license is
| | | | | | | | |
valid for two years and must be renewed every two years
| | | | | | | | | |
Public Adjuster Bond - CORRECT ANSWER✔✔-$10,000 bond is required for
| | | | | | | | | |
solicitors/adjusters
Proof of Loss - CORRECT ANSWER✔✔-documentation of loss required of a policy
| | | | | | | | | | | |
owner by an insurance company; must usually be filed within 60 days after the
| | | | | | | | | | | | | |
request of the insured or according to policy provision, 60 days after the date of
| | | | | | | | | | | | | | |
loss
Loss to a Pair or Set - CORRECT ANSWER✔✔-(1) repair or replace any part to
| | | | | | | | | | | | | | |
restore the pair or set to its value before the loss or
| | | | | | | | | | | |
(2) pay the difference between actual cash value before and after the loss
| | | | | | | | | | | |
Insurer - CORRECT ANSWER✔✔-company offering protection through the sale of
| | | | | | | | | |
an insurance policy to an insured
| | | | |
Insured - CORRECT ANSWER✔✔-party covered by an insurance policy
| | | | | | | |
Policy Period - CORRECT ANSWER✔✔-the inception date and expiration date of
| | | | | | | | | | |
the policy
|
,Limit of Liability - CORRECT ANSWER✔✔-maximum amount of coverage available
| | | | | | | | | |
under a liability insurance policy
| | | |
Insurable Interest - CORRECT ANSWER✔✔-expectation of a monetary loss that
| | | | | | | | | |
can be covered by insurance. Owner of the property.
| | | | | | | |
Mortgage Clause - CORRECT ANSWER✔✔-attachment to a property insurance
| | | | | | | | |
policy to protect the interest of the mortgage in the mortgaged property. If the
| | | | | | | | | | | | | |
property is damaged or destroyed the mortgage is indemnified up to his or her
| | | | | | | | | | | | | |
stated interest in the property.
| | | |
Market Value - CORRECT ANSWER✔✔-value of property as established by the
| | | | | | | | | | |
price a willing buyer would pay for property purchased from a willing seller
| | | | | | | | | | | |
Agreed Value - CORRECT ANSWER✔✔-a stipulated agreement between the
| | | | | | | | |
insurance company and the insured that the amount of insurance coverage under
| | | | | | | | | | |
|the policy is sufficient to be in compliance with the coinsurance requirement.
| | | | | | | | | | |
Depreciation - CORRECT ANSWER✔✔-actual or accounting recognition of the
| | | | | | | | |
decrease in the value of a hard asset (property) over a period of time
| | | | | | | | | | | | |
Recoverable Depreciation(Holdback) - CORRECT ANSWER✔✔-although
| | | | |
replacement cost policies provide for replacement of damaged property at
| | | | | | | | | |
current prices, certain conditions must be met before you can collect the full
| | | | | | | | | | | | |
amount for the loss. The insurance company will make an offer of settlement,
| | | | | | | | | | | | |
then withhold a portion of the money until the repairs are actually made. You
| | | | | | | | | | | | | |
, must provide receipts showing that you incurred a cost of equal or greater than
| | | | | | | | | | | | | |
the offer of settlement in order for you to receive all of the holdback moneys.
| | | | | | | | | | | | | |
Non-Recoverable Depreciation - CORRECT ANSWER✔✔-actual cash value policies | | | | | | | |
state that an offer of settlement is based on the actual cash value of the property
| | | | | | | | | | | | | | | |
at the time of the loss, therefore, any depreciation applied because of age,
| | | | | | | | | | | | |
deterioration, etc. is not recoverable. | | | |
Endorsement - CORRECT ANSWER✔✔-written agreement attached to a policy to
| | | | | | | | | |
add or subtract insurance coverage's. Once attached the endorsement takes
| | | | | | | | | |
precedence over the original provisions of the policy | | | | | | |
Chance of Loss - CORRECT ANSWER✔✔-chance that an event will occur
| | | | | | | | | |
Risk - CORRECT ANSWER✔✔-uncertainty of a financial loss-term used to
| | | | | | | | | |
designate an insured or a peril insured against
| | | | | | |
Hazard - CORRECT ANSWER✔✔-a condition that may create or increase the
| | | | | | | | | | |
chance of loss arising from a given peril
| | | | | | |
Moral Hazard - CORRECT ANSWER✔✔-circumstance which increases the
| | | | | | | |
probability of loss because of an applicant's personal habits - circumstance that
| | | | | | | | | | | |
increases the probability of loss because of the insured's indifferent attitude. For
| | | | | | | | | | | |
example, if an insured leaves the doors unlocked and the windows open when
| | | | | | | | | | | | |
leaving home |
