Latest Adjuster Licensing Class 100% SOLUTION REVISED 2024

The amount the insured must pay in a loss before any payment is due is known as? - ANSWER Deductible What is a partial legal defense that reduces the amount of damages that a person can recover based upon the amount that this person's own negligence contributed to the loss - ANSWER Comparative Negligence What is a situation involving a person other than an insured? - ANSWER Third Party Loss The part of the insurance policy that details the rights and duties of the insured and the insurance company in the policy? - ANSWER Conditions An event that results in an insured loss and damages? - ANSWER Occurrence What is the value of your property, based on the current cost to replace it minus depreciation? - ANSWER Actual Cash Value Mary has a Homeowner's policy. Her Coverage A limit of liability is $250,000 and her Coverage B limit of liability is $125,000. Her policy has a 2% deductible. What is her deductible? - ANSWER $5,000 What is the type of negotiation that is also sometimes called positional or hard- bargaining negotiation? - ANSWER Distributive What is the responsibility to another for one's negligence? - ANSWER Liability What is the failure to use that degree of care which an ordinary person of reasonable prudence would use under similar circumstances? - ANSWER Negligence What is the intentional misrepresentation of a material fact that may void a contract? - ANSWER Fraud What is the process when an insurer and an insured have a dispute regarding the amount of the damage? - ANSWER Appraisal This type of Auto Coverage pays for your damages if you were involved in a hit and run: - ANSWER Uninsured Motorist What is the cost associated with replacing property at current market prices? - ANSWER Replacement Cost What is the period a policy is in force, from the beginning or effective date to the expiration date? - ANSWER Policy Period What is making an oral or written statement that is false or maliciously critical of, or derogatory to, the financial condition of any insurer that is calculated to injure any person engaged in the insurance business? - ANSWER Defamation If the insurer needs additional time to evaluate and investigate a claim, they can request how many additional days? - ANSWER 45 Calendar Days When deciding to issue or to decline a standard fire, homeowners or farm policy, an insurer may not consider a ____________________ as a basis for declination? - ANSWER Customer Inquiry What time requirements does the policyholder have to complete the requirements that the insurer has requested? - ANSWER No Time Requirements What must an insurer provide for the declination, cancellation, or nonrenewal of an insurance policy? - ANSWER Written Statement Once the insurer receives all of the information that they have requested from the policyholder, the insurer must review the claim, and accept or reject it within how many days? - ANSWER 15 Business Days Once the insurer accepts or rejects the claim, they have how long to pay the claim or issue the full or partial denial of the claim? - ANSWER 5 Business Days An insurer may refuse to renew a policy if the insurer has mailed notice of nonrenewal to the insured at least _______ days before the policy's expiration date? - ANSWER 30