Ch 3 - Adjusting Loss - 18% of exam

Question 1

What is the responsibility of the insured under Minimizing the Loss?

Answer 1

To protect his/her property from further damage and to use reasonable efforts to fulfill this requirement.

Question 2

Balloon framed wall

Answer 2

framed wall, run the entire vertical length from the floor sill plate to the roof, found in pre-1940 construction.

Question 3

What’s the risk associated with balloon framed walls?

Answer 3

If a fire, spreads quickly, due to air gap inside wall. (IS THIS ALL NEED KNOW)

Question 4

Board foot

Answer 4

A unit of measure for lumber = to 1 in thick by 12 in wide by 12 in long. Examples 1 in by 12 in by 16 ft = 16 board feet. 2 in by 12 in by 16 ft = 32 board feet. (same size as ceramic tile cept 2 in thick. DON’T UNDERSTAND THIS EXAMPLE MATH)

Question 5

Drywall aka..

Answer 5

Gypsum wallboard, sheet rock, or plasterboard. Usually 1/2 in thick and 4 ft by 8 ft or 4 ft by 12 ft in size.

Question 6

Gross Area Method

Answer 6

used to determine sq footage of area to be serviced by a contractor. Calculate perimeter x height of room. Then ceiling length x width. Add them together. (Don’t deduct for openings.) (DOES THIS APPROACH INCLUDE THE FLOOR AREA, NO NEED TO DOUBLE THE CEILING SQ FT?)

Question 7

Linear foot

Answer 7

measure for lumber equal to 1 in thick x 12 in wide x 12 in long. ie: 1 in x 12 in x 16 ft = 16 board feet. (Is “BOARD FEET” A TYPO HERE? SHOULDN’T IT BE “LINEAR FEET”?)

Question 8

Rafter

Answer 8

Lumber used to support the roof sheeting & roof loads. Generally a 2 x 10’s & 2 x 12’s. Rafters of a flat roof called roof joists.

Question 9

Roll roofing

Answer 9

Asphalt roofing products manufactured in roll form. 36 in wide rolls with 108 sq ft of material.

Question 10

Sheet rock

Answer 10

manu panel made of gypsum plaster & encased in thin cardboard. Usually 1/2 in thick & 4 ft x 8 ft, or 4 ft x 12 ft.

Question 11

Yard of concrete

Answer 11

Unit for quoting concrete. One cubic yd is 3 ft x 3 ft x 3 ft in volume, or 27 cubic feet.

Question 12

Standard Adjusting Formula> Roofing

Answer 12

Measured by the square width x length of rafters of both sides, divided by 100 = the ## of squares. ie: 50 ft long x 20 ft rafters is 50 x 40 (20 x 2) = 2,000 sq feet, divided by 100 = 20 squares. 3 bundles of shingles to a square.

Question 13

Standard Adjusting Formula> Shingles

Answer 13

Avg. exposure of a shingle to weather is 5 inches.

Question 14

How is concrete measured?

Answer 14

measured by cubic yard. 3 ft wide x 3 ft long x 3 ft deep = 27 cubic feet, or 1 cubic yard.

Question 15

Do Ch 3 Practice Exam?

Answer 15

-

Question 16

3 categories of coverage

Answer 16

Dwelling (meaning the structure I think): full coverage amt is reimbursed, Personal property: 70% of coverage amt (ie: above ground pool), Other structures: 10% of coverage amt. (ie: inground pool?) (REVIEW EXAMPLES, LIST THEM HERE) - (In notes: blinds or external blinds?_

Question 17

Additional Living Expenses (ALE)

Answer 17

Will pay up to 10-30% of dwelling amt., depending upon the policy/provider. (ie: a swing set or trampoline could be covered.)

Question 18

Depreciation only applies to..

Answer 18

Personal property and dwellings. (CHECK THIS..DID I MAKE THIS UP)

Question 19

Test: If the mortgage co. requires full value coverage (meaning coverage on at least what is owed on the property..I THINK?) on a house where $80k is still owed, but the owner only has a policy for $40k of coverage, and a $20k verified loss occurs, what happens?

Answer 19

The mortgage company usually pays the owner $10k for the claim (and gets to keep the other $10k?) CHECK THIS

Question 20

Is a mortgage company requires “full value coverage”, is this always calculated by looking at the amount owed on the property to determine the minimum coverage amount? (It doesn’t involve the market value of the property, or does it?)

Answer 20

Check this.

Question 21

What is a waiver in the insurance business?

Answer 21

Insurer says “we will waive the right to record you, even though we normally would.”

Question 22

Estopple

Answer 22

Insurer sends letter: We think there’s fraud, so the claim is denied.

Question 23

How many Test Q’s from Ch 3?

Answer 23

? CHECK THIS!