Texas Property and Casualty
Adjusters License Exam-Graded A
Risk - ANS-Uncertainty
Types of risk - ANS-Pure vs speculative
Pure not insured
Peril - ANS-Cause of loss- open vs named
Hazard - ANS-Types- physical , moral , morale
Indemnity - ANS-No gain
Subrogation - ANS-Insurance sues at fault party
Fiduciary - ANS-Responsible for property of others
Waiver - ANS-Insurance company voluntarily gives up a policy right
Warranty - ANS-Written into contract-a promise- if broken claim does not have to be
paid
Limit of liability - ANS-Max company pays
Law of numbers - ANS-Claims from a large number of homogenous risks more
predictable
Misrepresentation - ANS-Claims will still be paid
Ex. Wrong zip code reported
Concealment - ANS-Hiding the truth
Material misrepresentation - ANS-Company will not pay a claim
Elements of a legal contract - ANS-LACC - legal agreement between a insured over the
age of 18 , and an insurance company and they give each other something
Ex insured pays premium and insurance provides coverage
Named insured - ANS-Listed on the policy
, Insured - ANS-Defined in the policy (resident relative)
Parts of a policy - ANS-DICE
Declaration , insurance agreement (promise to pay), conditions ( duty of insured to
protect property from loss),endorsement (modifies or changes the contract)
Deductible - ANS-Paid by the insured
Other insurance Pro Rata - ANS-2 policies same about of coverage split losses 50/50
Coinsurance - ANS-80% min .
Appraisal - ANS-Disagree about money
Arbitration - ANS-Disagree about coverage
Removal - ANS-Protect against a sure loss ,30 days
Liberalization - ANS-Benefits all insured
Insurance interest - ANS-Owner , lender , worked on insured property but not yet paid
Direct loss - ANS-Immediate
Indirect loss - ANS-After the direct loss
Cannot happen with out direct loss
Ex. Hotel room needed after fire at a home
Salvage - ANS-What remains after direct loss
Total loss - ANS-Salvage value plus repair cost exceeds property value after repair
Partial loss - ANS-Not a total loss
Abandonment - ANS-Demanding total loss coverage for a partial loss
Named peril - ANS-List coverage perils
Open peril - ANS-All perils except for exclusions listed
New acquired personal property - ANS-Covered up to 10% of the limit for the personal
property currently insured , max limit of $100,000
Coverage is automatic and good for 30 days
Adjusters License Exam-Graded A
Risk - ANS-Uncertainty
Types of risk - ANS-Pure vs speculative
Pure not insured
Peril - ANS-Cause of loss- open vs named
Hazard - ANS-Types- physical , moral , morale
Indemnity - ANS-No gain
Subrogation - ANS-Insurance sues at fault party
Fiduciary - ANS-Responsible for property of others
Waiver - ANS-Insurance company voluntarily gives up a policy right
Warranty - ANS-Written into contract-a promise- if broken claim does not have to be
paid
Limit of liability - ANS-Max company pays
Law of numbers - ANS-Claims from a large number of homogenous risks more
predictable
Misrepresentation - ANS-Claims will still be paid
Ex. Wrong zip code reported
Concealment - ANS-Hiding the truth
Material misrepresentation - ANS-Company will not pay a claim
Elements of a legal contract - ANS-LACC - legal agreement between a insured over the
age of 18 , and an insurance company and they give each other something
Ex insured pays premium and insurance provides coverage
Named insured - ANS-Listed on the policy
, Insured - ANS-Defined in the policy (resident relative)
Parts of a policy - ANS-DICE
Declaration , insurance agreement (promise to pay), conditions ( duty of insured to
protect property from loss),endorsement (modifies or changes the contract)
Deductible - ANS-Paid by the insured
Other insurance Pro Rata - ANS-2 policies same about of coverage split losses 50/50
Coinsurance - ANS-80% min .
Appraisal - ANS-Disagree about money
Arbitration - ANS-Disagree about coverage
Removal - ANS-Protect against a sure loss ,30 days
Liberalization - ANS-Benefits all insured
Insurance interest - ANS-Owner , lender , worked on insured property but not yet paid
Direct loss - ANS-Immediate
Indirect loss - ANS-After the direct loss
Cannot happen with out direct loss
Ex. Hotel room needed after fire at a home
Salvage - ANS-What remains after direct loss
Total loss - ANS-Salvage value plus repair cost exceeds property value after repair
Partial loss - ANS-Not a total loss
Abandonment - ANS-Demanding total loss coverage for a partial loss
Named peril - ANS-List coverage perils
Open peril - ANS-All perils except for exclusions listed
New acquired personal property - ANS-Covered up to 10% of the limit for the personal
property currently insured , max limit of $100,000
Coverage is automatic and good for 30 days
