USAA P&C Insurance Adjuster Exam
Questions With Verified Solutions
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
Insuring Agreement
Insurance Company's promise to pay. Tells us what peril/s the policy covers
Supplementary Payments
B.A.I.L.E.D
Bonds- (Max $250)
Aid- First aid expenses
Internet- Judgements in appeal
Loss of Earnings- Up to $250 per day in defending investigation claim
Expenses- Incurred by the insured to assist in defense of a claim
Defense Costs- Paid with no limit
Insurable Interest
The loss would cause you financial hardship
ISO
Insurance Services Office
Policy Territory
Where coverage applies. US, Canada, Puerto Rico
ACV
Replacement cost value - depreciation= Actual cash value
Replacement Cost Value
To insure for atleast 80% of the value of the property
Subrogation
The insured gives the insurer legal right to go after the party who was responsible for the insured's
loss
Questions With Verified Solutions
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
Insuring Agreement
Insurance Company's promise to pay. Tells us what peril/s the policy covers
Supplementary Payments
B.A.I.L.E.D
Bonds- (Max $250)
Aid- First aid expenses
Internet- Judgements in appeal
Loss of Earnings- Up to $250 per day in defending investigation claim
Expenses- Incurred by the insured to assist in defense of a claim
Defense Costs- Paid with no limit
Insurable Interest
The loss would cause you financial hardship
ISO
Insurance Services Office
Policy Territory
Where coverage applies. US, Canada, Puerto Rico
ACV
Replacement cost value - depreciation= Actual cash value
Replacement Cost Value
To insure for atleast 80% of the value of the property
Subrogation
The insured gives the insurer legal right to go after the party who was responsible for the insured's
loss
