NJ Public Adjustment review Exam Questions &
Answers | 100% Verified solutions |Questions with
Correct Answers 2025 latest update!!
Public Adjuster License - (ANSWER)A solicitors/adjusters license is valid for two
years and must be renewed every two years
Public Adjuster Bond - (ANSWER)$10,000 bond is required for solicitors/adjusters
Proof of Loss - (ANSWER)documentation of loss required of a policy owner by an
insurance company; must usually be filed within 60 days after the request of the
insured or according to policy provision, 60 days after the date of loss
Loss to a Pair or Set - (ANSWER)(1) repair or replace any part to restore the pair
or set to its value before the loss or
(2) pay the difference between actual cash value before and after the loss
Insurer - (ANSWER)company offering protection through the sale of an insurance
policy to an insured
Insured - (ANSWER)party covered by an insurance policy
Policy Period - (ANSWER)the inception date and expiration date of the policy
,Limit of Liability - (ANSWER)maximum amount of coverage available under a
liability insurance policy
Insurable Interest - (ANSWER)expectation of a monetary loss that can be covered
by insurance. Owner of the property.
Mortgage Clause - (ANSWER)attachment to a property insurance policy to
protect the interest of the mortgage in the mortgaged property. If the property is
damaged or destroyed the mortgage is indemnified up to his or her stated
interest in the property.
Market Value - (ANSWER)value of property as established by the price a willing
buyer would pay for property purchased from a willing seller
Agreed Value - (ANSWER)a stipulated agreement between the insurance
company and the insured that the amount of insurance coverage under the policy
is sufficient to be in compliance with the coinsurance requirement.
Depreciation - (ANSWER)actual or accounting recognition of the decrease in the
value of a hard asset (property) over a period of time
Recoverable Depreciation(Holdback) - (ANSWER)although replacement cost
policies provide for replacement of damaged property at current prices, certain
conditions must be met before you can collect the full amount for the loss. The
insurance company will make an offer of settlement, then withhold a portion of
the money until the repairs are actually made. You must provide receipts showing
, that you incurred a cost of equal or greater than the offer of settlement in order
for you to receive all of the holdback moneys.
Non-Recoverable Depreciation - (ANSWER)actual cash value policies state that an
offer of settlement is based on the actual cash value of the property at the time of
the loss, therefore, any depreciation applied because of age, deterioration, etc. is
not recoverable.
Endorsement - (ANSWER)written agreement attached to a policy to add or
subtract insurance coverage's. Once attached the endorsement takes precedence
over the original provisions of the policy
Chance of Loss - (ANSWER)chance that an event will occur
Risk - (ANSWER)uncertainty of a financial loss-term used to designate an insured
or a peril insured against
Hazard - (ANSWER)a condition that may create or increase the chance of loss
arising from a given peril
Moral Hazard - (ANSWER)circumstance which increases the probability of loss
because of an applicant's personal habits - circumstance that increases the
probability of loss because of the insured's indifferent attitude. For example, if an
insured leaves the doors unlocked and the windows open when leaving home
Answers | 100% Verified solutions |Questions with
Correct Answers 2025 latest update!!
Public Adjuster License - (ANSWER)A solicitors/adjusters license is valid for two
years and must be renewed every two years
Public Adjuster Bond - (ANSWER)$10,000 bond is required for solicitors/adjusters
Proof of Loss - (ANSWER)documentation of loss required of a policy owner by an
insurance company; must usually be filed within 60 days after the request of the
insured or according to policy provision, 60 days after the date of loss
Loss to a Pair or Set - (ANSWER)(1) repair or replace any part to restore the pair
or set to its value before the loss or
(2) pay the difference between actual cash value before and after the loss
Insurer - (ANSWER)company offering protection through the sale of an insurance
policy to an insured
Insured - (ANSWER)party covered by an insurance policy
Policy Period - (ANSWER)the inception date and expiration date of the policy
,Limit of Liability - (ANSWER)maximum amount of coverage available under a
liability insurance policy
Insurable Interest - (ANSWER)expectation of a monetary loss that can be covered
by insurance. Owner of the property.
Mortgage Clause - (ANSWER)attachment to a property insurance policy to
protect the interest of the mortgage in the mortgaged property. If the property is
damaged or destroyed the mortgage is indemnified up to his or her stated
interest in the property.
Market Value - (ANSWER)value of property as established by the price a willing
buyer would pay for property purchased from a willing seller
Agreed Value - (ANSWER)a stipulated agreement between the insurance
company and the insured that the amount of insurance coverage under the policy
is sufficient to be in compliance with the coinsurance requirement.
Depreciation - (ANSWER)actual or accounting recognition of the decrease in the
value of a hard asset (property) over a period of time
Recoverable Depreciation(Holdback) - (ANSWER)although replacement cost
policies provide for replacement of damaged property at current prices, certain
conditions must be met before you can collect the full amount for the loss. The
insurance company will make an offer of settlement, then withhold a portion of
the money until the repairs are actually made. You must provide receipts showing
, that you incurred a cost of equal or greater than the offer of settlement in order
for you to receive all of the holdback moneys.
Non-Recoverable Depreciation - (ANSWER)actual cash value policies state that an
offer of settlement is based on the actual cash value of the property at the time of
the loss, therefore, any depreciation applied because of age, deterioration, etc. is
not recoverable.
Endorsement - (ANSWER)written agreement attached to a policy to add or
subtract insurance coverage's. Once attached the endorsement takes precedence
over the original provisions of the policy
Chance of Loss - (ANSWER)chance that an event will occur
Risk - (ANSWER)uncertainty of a financial loss-term used to designate an insured
or a peril insured against
Hazard - (ANSWER)a condition that may create or increase the chance of loss
arising from a given peril
Moral Hazard - (ANSWER)circumstance which increases the probability of loss
because of an applicant's personal habits - circumstance that increases the
probability of loss because of the insured's indifferent attitude. For example, if an
insured leaves the doors unlocked and the windows open when leaving home
