While investigating a claim, you determine that the loss was caused by a defective mecha-
nism in the dishwasher. You would attempt to_________________________? - ANSWER
Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused
an insurance loss to the insured. This is done as a means of recovering the amount of the
claim paid by the insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of
damage? - ANSWER Appraisal
__________________________________________________is a significant misstatement in
an application form. If a company had access to the correct information at the time of appli-
cation, the company might not have agreed to accept the application. - ANSWER Material
Misrepresentation
As an adjuster, you should base depreciation on these three factors? - ANSWER Age, Con-
dition and Life Expectancy
An_________________ is a person hired by the property owner to settle the claim with in-
surance company on their behalf. - ANSWER Umpire
This type of policy provides coverage only for those perils that are listed in the policy? - AN-
SWER HO-A
_________________________ are extra charges covered by homeowner's policies over and
above the policyholder's customary living expenses. - ANSWER Additional Living Ex-
penses
1
, _______________________is an event that results in an insured loss/damages? - AN-
SWER Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation? -
ANSWER Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________. - ANSWER Incurred Expenses
________________________________is the part of the written insurance policy that states
all the policy's specific's, including the name of the policyholder, the type of property in-
sured, the premiums, and the term limits for the coverage. - ANSWER Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable pru-
dence would use under similar circumstances? - ANSWER Negligence
______________________________is the amount of money dedicated to a general contrac-
tor's cost of doing a business and earning a profit. - ANSWER Overhead and Profit
____________________________is a situation involving a person other than an insurer and
the insured. - ANSWER Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover
debts to policyholder? - ANSWER Reserves
This loss involves only the insurer and the insured? - ANSWER First Party Loss
What is the responsibility to another for one's negligence? - ANSWER Liability
_____________________ is the size of a loss, the extent of damages. - ANSWER Severity
2
nism in the dishwasher. You would attempt to_________________________? - ANSWER
Subrogate Subrogation is the right for an insurer to legally pursue a third party that caused
an insurance loss to the insured. This is done as a means of recovering the amount of the
claim paid by the insurance carrier to the insured for the loss.
What is the process when an insurer and an insured have a dispute regarding the amount of
damage? - ANSWER Appraisal
__________________________________________________is a significant misstatement in
an application form. If a company had access to the correct information at the time of appli-
cation, the company might not have agreed to accept the application. - ANSWER Material
Misrepresentation
As an adjuster, you should base depreciation on these three factors? - ANSWER Age, Con-
dition and Life Expectancy
An_________________ is a person hired by the property owner to settle the claim with in-
surance company on their behalf. - ANSWER Umpire
This type of policy provides coverage only for those perils that are listed in the policy? - AN-
SWER HO-A
_________________________ are extra charges covered by homeowner's policies over and
above the policyholder's customary living expenses. - ANSWER Additional Living Ex-
penses
1
, _______________________is an event that results in an insured loss/damages? - AN-
SWER Occurrence
What is value of your property, based on the current cost to replace it, minus depreciation? -
ANSWER Actual Cash Value
Expenses that have already sustained and that have not yet been paid are known as
____________________________________. - ANSWER Incurred Expenses
________________________________is the part of the written insurance policy that states
all the policy's specific's, including the name of the policyholder, the type of property in-
sured, the premiums, and the term limits for the coverage. - ANSWER Declarations Page
What is the failure to use that degree of care which an ordinary person of reasonable pru-
dence would use under similar circumstances? - ANSWER Negligence
______________________________is the amount of money dedicated to a general contrac-
tor's cost of doing a business and earning a profit. - ANSWER Overhead and Profit
____________________________is a situation involving a person other than an insurer and
the insured. - ANSWER Third Party Loss
What is the amount representing actual or potential liabilities kept by and insurer to cover
debts to policyholder? - ANSWER Reserves
This loss involves only the insurer and the insured? - ANSWER First Party Loss
What is the responsibility to another for one's negligence? - ANSWER Liability
_____________________ is the size of a loss, the extent of damages. - ANSWER Severity
2
