Louisiana Insurance Adjuster 2025/2026
Exam Questions and Answers | A+ Score
Assured
Lender Interest Provisions - 🧠ANSWER ✔✔Protects lender interest by allowing
the lender certain rights in the policy.
Coinsurance Penalty - 🧠ANSWER ✔✔A property insurance provision that
penalizes the insured's loss recovery if the limit of insurance purchased by the
insured is not equal to or greater than a specified percentage (commonly 80
percent) of the value of the insured property.
Underinsured - 🧠ANSWER ✔✔A situation resulting from a failure to carry enough
coverage on the value of a property, especially when there are coinsurance
implications.
Coinsurance - 🧠ANSWER ✔✔A type of insurance in which the insured pays a
share of the payment made against a claim.
,Franchise Deductible - 🧠ANSWER ✔✔A minimum amount of loss that must be
incurred before insurance coverage applies. A franchise deductible differs from an
ordinary deductible in that, once it is met, the entire amount of the loss is paid,
subject to the policy limit. Franchise deductibles can be stated either as a dollar
amount or as a percentage of the policy limit.
Percentage Deductible - 🧠ANSWER ✔✔Requires the insured party to pay a
deductible equal to the percentage of the value of the insured risk.
Fixed Deductible - 🧠ANSWER ✔✔One specific, predetermined amount that a
policyholder must pay out-of-pocket before he can be indemnified.
3 Typed of Deductibles - 🧠ANSWER ✔✔Fixed, Percentage, Franchise
Deductible - 🧠ANSWER ✔✔The amount the policyholder must pay out-of-pocket
before the insurer will pay for losses.
Replacement Cost (RC) - 🧠ANSWER ✔✔A method of valuation based on the cost
of replacing an item at current market price, regardless of depreciation.
Valued Policy - 🧠ANSWER ✔✔A valuation method that assigns a set of values to
each insured item. Value is determined prior to the issuance of policy. Avoids the
confusion of assessing appreciation or depreciation.
,Annual Depreciation Formula - 🧠ANSWER ✔✔Replacement Cost / the items
useful life
Accumulated Depreciation Formula - 🧠ANSWER ✔✔Items annual depreciation X
it's age
Depreciation - 🧠ANSWER ✔✔An items estimated loss of value due to wear, tear
and age.
Actual Cash Value - 🧠ANSWER ✔✔A valuation method that takes into account an
items depreciation.
Actual Cash Value (ACV) Formula - 🧠ANSWER ✔✔Replacement Cost (RC) -
depreciation
3 methods of Valuation - 🧠ANSWER ✔✔Actual Cash Value (ACV), Replacement
Cost (RC), Agreed Value (Valued Policy)
Valuation - 🧠ANSWER ✔✔The process of estimating what an item is worth.
Subrogation - 🧠ANSWER ✔✔The transfer of rights that allows the insurer to
recover it's losses after it has indemnified a policyholder.
Lender Interest - 🧠ANSWER ✔✔A lender's financial stake in an insured item.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Insurable Interest - 🧠ANSWER ✔✔Direct financial interest in protecting
something or someone.
Misrepresentation - 🧠ANSWER ✔✔A false, distorted, or deceitful statement of
fact or opinion even if made unintentionally.
Estoppel - 🧠ANSWER ✔✔Legal principle that prevents an insurer from denying
coverage if the insured has reasonable come to believe that he has such coverage,
based on the insurer's practices. Protects the insured.
Waiver - 🧠ANSWER ✔✔Voluntary surrender of a right, claim, or privilege.
Express Waiver - 🧠ANSWER ✔✔Voluntarily giving up rights, claims or privileges
through a written statement.
Implied Waiver - 🧠ANSWER ✔✔Voluntarily giving up rights, claims or privileges
implied from a person's conduct.
Concealment - 🧠ANSWER ✔✔Deliberately withholding relevant information.
Warranty - 🧠ANSWER ✔✔Promise or guarantee that certain conditions will be
met. Found on the Conditions page. If the policyholder breaks a Warranty, the
insurer can deny coverage.
Exam Questions and Answers | A+ Score
Assured
Lender Interest Provisions - 🧠ANSWER ✔✔Protects lender interest by allowing
the lender certain rights in the policy.
Coinsurance Penalty - 🧠ANSWER ✔✔A property insurance provision that
penalizes the insured's loss recovery if the limit of insurance purchased by the
insured is not equal to or greater than a specified percentage (commonly 80
percent) of the value of the insured property.
Underinsured - 🧠ANSWER ✔✔A situation resulting from a failure to carry enough
coverage on the value of a property, especially when there are coinsurance
implications.
Coinsurance - 🧠ANSWER ✔✔A type of insurance in which the insured pays a
share of the payment made against a claim.
,Franchise Deductible - 🧠ANSWER ✔✔A minimum amount of loss that must be
incurred before insurance coverage applies. A franchise deductible differs from an
ordinary deductible in that, once it is met, the entire amount of the loss is paid,
subject to the policy limit. Franchise deductibles can be stated either as a dollar
amount or as a percentage of the policy limit.
Percentage Deductible - 🧠ANSWER ✔✔Requires the insured party to pay a
deductible equal to the percentage of the value of the insured risk.
Fixed Deductible - 🧠ANSWER ✔✔One specific, predetermined amount that a
policyholder must pay out-of-pocket before he can be indemnified.
3 Typed of Deductibles - 🧠ANSWER ✔✔Fixed, Percentage, Franchise
Deductible - 🧠ANSWER ✔✔The amount the policyholder must pay out-of-pocket
before the insurer will pay for losses.
Replacement Cost (RC) - 🧠ANSWER ✔✔A method of valuation based on the cost
of replacing an item at current market price, regardless of depreciation.
Valued Policy - 🧠ANSWER ✔✔A valuation method that assigns a set of values to
each insured item. Value is determined prior to the issuance of policy. Avoids the
confusion of assessing appreciation or depreciation.
,Annual Depreciation Formula - 🧠ANSWER ✔✔Replacement Cost / the items
useful life
Accumulated Depreciation Formula - 🧠ANSWER ✔✔Items annual depreciation X
it's age
Depreciation - 🧠ANSWER ✔✔An items estimated loss of value due to wear, tear
and age.
Actual Cash Value - 🧠ANSWER ✔✔A valuation method that takes into account an
items depreciation.
Actual Cash Value (ACV) Formula - 🧠ANSWER ✔✔Replacement Cost (RC) -
depreciation
3 methods of Valuation - 🧠ANSWER ✔✔Actual Cash Value (ACV), Replacement
Cost (RC), Agreed Value (Valued Policy)
Valuation - 🧠ANSWER ✔✔The process of estimating what an item is worth.
Subrogation - 🧠ANSWER ✔✔The transfer of rights that allows the insurer to
recover it's losses after it has indemnified a policyholder.
Lender Interest - 🧠ANSWER ✔✔A lender's financial stake in an insured item.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Insurable Interest - 🧠ANSWER ✔✔Direct financial interest in protecting
something or someone.
Misrepresentation - 🧠ANSWER ✔✔A false, distorted, or deceitful statement of
fact or opinion even if made unintentionally.
Estoppel - 🧠ANSWER ✔✔Legal principle that prevents an insurer from denying
coverage if the insured has reasonable come to believe that he has such coverage,
based on the insurer's practices. Protects the insured.
Waiver - 🧠ANSWER ✔✔Voluntary surrender of a right, claim, or privilege.
Express Waiver - 🧠ANSWER ✔✔Voluntarily giving up rights, claims or privileges
through a written statement.
Implied Waiver - 🧠ANSWER ✔✔Voluntarily giving up rights, claims or privileges
implied from a person's conduct.
Concealment - 🧠ANSWER ✔✔Deliberately withholding relevant information.
Warranty - 🧠ANSWER ✔✔Promise or guarantee that certain conditions will be
met. Found on the Conditions page. If the policyholder breaks a Warranty, the
insurer can deny coverage.
