Auto Adjuster Exam 17-66 Questions and Answers Proven 100%

Auto Adjuster Exam 17-66 Questions and Answers Proven 100% Which of the following would not be considered a "first party" coverage under the personal auto policy? - Liability Liability is considered to be "third party coverage." The other coverages pay the insured (the first party) under the policy. Which of the following would be considered "special damages?" - Medical expenses There are two types of damages for bodily injury claims - special damages and general damages. Special damages are those expenses to which one can apply a dollar amount such as medical bills, a rental car, travel expenses to a medical facility and loss of wages. General damages are the most difficult to adjust since they usually require negotiation or even court action for a final determination of the amount owed the claimant. General damages include disfiguration, pain and suffering, punitive damages, loss of consortium and loss of the quality of life. A non-waiver agreement issued by an insurance company is: - A coverage issue.. Non-waiver agreements and reservation of rights letters both serve the following general purposes: 1. To advise the insured that any action taken by the insurance company in investigating the cause of loss or in ascertaining the amount of loss is not intended to waive or invalidate any policy condition, and 2. To clarify that the intent of the agreement is to permit an investigation of the claim and that neither the insured nor the insurer will thereby waive any respective rights or obligations. Which of the following would NOT be covered under coverage C, the Uninsured and Underinsured Motorist Coverage? - Vehicles This coverage does not apply to physical damage to other vehicles. In some states the insured can elect to purchase uninsured motorist property damage coverage that would apply to the insured's vehicle. Special damages are those that the adjuster can assign a dollar amount such as medical expenses and loss of wages. General damages deal with soft tissue injuries or pain and suffering where the damages are usually determined at a later date and negotiated with the insured. The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all acts of terrorism if the act is committed as part of the course of a war declared by Congress with the exception of one line of insurance. Which of the following is the only line of insurance that would still be covered in case of a war? - Workers compensation. Workers compensation coverage is the only line of insurance covered by the Act in case of war. The Superintendent of Insurance may approve the employment, appointment or participation of any person whose license has been revoked. Karen Jones had her license revoked and filed an application for relicensing and has waited over 120 days without a response from the Insurance Department. What should or can she do? - Assume the relicensing is approved. If the application for a license has not been approved or disapproved within the 120 days the relicensing is considered approved. Adverse selection occurs when: - Applicants are accepted by the insurer with little or no attention given to underwriting. . Insurers must carefully underwrite all risks to avoid being the victim of adverse selection which is the tendency of insureds with a greater-than-average chance of loss to purchase insurance. With adverse selection, the insurer is confronted with the probability of loss due to risks not factored in at the time of sale.