NC adjuster Exam Questions And Answers Verified 100% Correct

NC adjuster Exam Questions And Answers Verified 100% Correct Indirect loss - ANSWERYou lose money (income) you incur additional expenses as a result of a direct loss. (don't pay a deductible) Direct loss - ANSWERActual loss of home, contents (pay a deductible) Replacement Cost (co-insurance - ANSWERloss of real property (house), it's a partial loss and replaced with like kind like quality (does NOT deduct depreciation) New for Old Functional Replacement - ANSWERproduct no longer is available, (8 track for a cd player) Salvage Value (SFP) - ANSWERparts value sold after a total loss by insurance company Accident - ANSWEROne time event with a KNOWN PLACE and a KNOWN TIME. Occurrence - ANSWERA type of accident that occurs over a period of time. (hurricane) Personal Injury - ANSWERDefame character, falsely arrested Commercial General Liability - ANSWERPolicies offer liability coverage for the commercial risk that does not qualify for coverage under another commercial multi-line form. (Automatically covers personal injury liability) Absolute Wind Hail Storm coverage - ANSWERThe only endorsement that takes away coverage. Beach Plan - ANSWERIncludes wind and hail. Binder - ANSWERYour covered, may be written or oral Certificate of Insurance - ANSWERProof of written insurance Prudent Person Rule - ANSWERWhat would a normal person do if in the same situation. How many do you have to report a proof of loss unless you ask for an extension from he insurance company - ANSWER60 days. Concealment - ANSWERFailure to state the entire truth (ex. mentions 2 of the four accidents they had within a year) Agent - ANSWER-Are representatives of the insurer (insurance company) -Are given binding authority -Operate on behalf of the company Brokers - ANSWER-Representatives of the insured (customer) (they shop the market on behalf of the client) - must post a bond not less than $15,000 Fiduciary - ANSWERa relationship developed when and individual place trust in someone else to perform certain duties or actions (agent, insured relationship) An Agent can be held liable for? - ANSWERa. The agent has breached their authority b. The agent represents an incompetent principal c. The agent commits a civil tort or a crime. Agents duties to principal (insurance company) - ANSWERa. loyalty b. Obedience c. Use of reasonable care d. Accurate accounting e. Communication of information held by the agent to the company. Errors and Omissions (E&C) - ANSWERAgents purchase this insurance to protect them in case they make an error or omission through negligence or lack of knowledge. Conditions - ANSWER(behaviors) states the rules of conduct for both the insured and insurer (ex premium payments) Exclusions - ANSWERlist perils not covered in policy Insuring Agreements (Insuring Clause) - ANSWERStates the perils in the contract and insurers responsibility to pay claims in the even a covered peril occurs. Underwriting - ANSWER(quality control department of the insurance company. They select applications that the company wishes to insure using standards established by the company, but always guarding against adverse selections (risk) Loss ratios - ANSWERDetermines by dividing the losses (claims) of the company by the premiums collected. Determines whether a company has had a loss or profit Competent Parties - ANSWER-Minors -Mentally Infirm -Persons under the influence of drug or alcohol Legal Object - ANSWERContracts must fulfill a legal purpose in order to be enforced. Offer and Acceptance Agreement - ANSWERThe offer is made by the proposed insured. The acceptance occurs when he policy is issued. However a company can rate-up a substandard risk (counter-offer) Consideration - ANSWERThis is the exchange of something of value by both parties. applicant submits a premium in exchange for the company's promise to pay if a particular peril occurs. Co-insurance Clause (replacement) - ANSWERAre included in most commercial property coverage forms. The purpose is to encourage the name insured t carry insurance to value (only for partial losses) The maximum time between renewal periods - ANSWER7 years Transportation Expenses - ANSWERarise out of the total theft of a covered auto or loss of use expenses arising out of the total theft of a non-owned auto will be provided if Other Than Collision coverage is purchased. -beginning 48 hours aft the theft -$15 per day up to 450 per loss General Provisions - ANSWERaddresses issues such as bankruptcy of the insured, legal action , change of premiums for misrepresentation, subrogation and assignment. Uninsured Motorist Coverage (UM) - ANSWER(Pays BI and PD except for hit and run BI only) person does not have auto insurance. 100 dollar deductible Underinsured Motorist Coverage (UIM) - ANSWER(Pays BI only) At fault person does not have enough insurance -must be included on policies with liability limits greater than 30/60 Physical Damage (collision) - ANSWERPays for the repairs to the insured vehicle for damage caused by colliding with another object or because of an upset (car in ditch) The Insured's Duties - ANSWERAfter a loss or accident include providing prompt notice, cooperating in investigations and defense efforts, submitting a proof of loss, promptly