USAA P&C INSURANCE ADJUSTER
EXAM WITH COMPLETE ANSWERS
{GUARANTEED A+}
Perils - ✔✔Causes of loss identified in the policy (Fire, lightening, internal
explosion ,Wind, Hail, Collision)
Hazard - ✔✔Condition that create or increases the chance or loss or
contributes to the loss
Physical Hazard - ✔✔Visible ( operational features of a risk)
Moral Hazard - ✔✔Intentional dishonesty or illegal actions of a person
(arson)
Morale Hazard - ✔✔Carelessness or indifference ( attitude). Takes
additional risks (negligence)
Pure Risk - ✔✔Chance of loss. Insurable
Law of Large Numbers - ✔✔Law of average. Helps predict future losses
accurately (sets pricing for insurance)
, Speculative Risk - ✔✔Chance of gain/loss. NOT Insurable (gambling)
The 4 Parts of an Insurance Contract - ✔✔D.I.C.E
Declarations,
Insuring Agreement,
Conditions,
Exclusions
Declarations - ✔✔Who is insured (dec sheet) Contains:
Policy Number, Premium, Term (Period of Coverage), Policy Limits,
Person/Property
Risk - ✔✔The chance of loss or uncertainty of loss
Direct Loss - ✔✔Immediate actual physical damage to tangible property
Indirect Loss - ✔✔Inability to use property as a result of direct Loss ( loss
of use)
Conditions - ✔✔Duties or responsibility of both the insured & insurer
Primary Policy - ✔✔This policy pays FIRST.
Excess Policy - ✔✔This policy pays AFTER primary has been exhausted
Pro Rata - ✔✔Applies when both polices are primary, they will pay on a
proportional basis (bigger policy pays more) Equal limits 50/50
EXAM WITH COMPLETE ANSWERS
{GUARANTEED A+}
Perils - ✔✔Causes of loss identified in the policy (Fire, lightening, internal
explosion ,Wind, Hail, Collision)
Hazard - ✔✔Condition that create or increases the chance or loss or
contributes to the loss
Physical Hazard - ✔✔Visible ( operational features of a risk)
Moral Hazard - ✔✔Intentional dishonesty or illegal actions of a person
(arson)
Morale Hazard - ✔✔Carelessness or indifference ( attitude). Takes
additional risks (negligence)
Pure Risk - ✔✔Chance of loss. Insurable
Law of Large Numbers - ✔✔Law of average. Helps predict future losses
accurately (sets pricing for insurance)
, Speculative Risk - ✔✔Chance of gain/loss. NOT Insurable (gambling)
The 4 Parts of an Insurance Contract - ✔✔D.I.C.E
Declarations,
Insuring Agreement,
Conditions,
Exclusions
Declarations - ✔✔Who is insured (dec sheet) Contains:
Policy Number, Premium, Term (Period of Coverage), Policy Limits,
Person/Property
Risk - ✔✔The chance of loss or uncertainty of loss
Direct Loss - ✔✔Immediate actual physical damage to tangible property
Indirect Loss - ✔✔Inability to use property as a result of direct Loss ( loss
of use)
Conditions - ✔✔Duties or responsibility of both the insured & insurer
Primary Policy - ✔✔This policy pays FIRST.
Excess Policy - ✔✔This policy pays AFTER primary has been exhausted
Pro Rata - ✔✔Applies when both polices are primary, they will pay on a
proportional basis (bigger policy pays more) Equal limits 50/50
