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Texas Claims Adjuster Licensing > Midterm Review > Flashcards

Midterm Review Flashcards

0
Q

What is a hazard?

A

Any condition that increases the chance of loss or frequency or severity of a loss

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1
Q

What is insurance?

A

Protection against certain losses by transferring risks from individuals to a group

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2
Q

What is the formula for Actual Cash Value (ACV)

A

Replacement value - depreciation

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3
Q

What is an Open/All Policy?

A

Covers all perils except those excluded

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4
Q

What is named/specific policy?

A

Only covers perils listed in policy

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5
Q

Where would one find the term insured?

A

Definitions section of policy

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6
Q

Where would you find the “who” and “what” that are insured?

A

Decelerations section of policy

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7
Q

Where would you find the promise to pay?

A

The insuring agreement section of policy

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8
Q

Where would you find the limitations to coverage?

A

Exclusions section of policy

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9
Q

What is an insurable interest?

A

A financial interest or ownership at the time of loss

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10
Q

What are the four parts of a contract?

A

Consideration
Legal purpose
Agreement
Competent parties

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11
Q

In the insurance contract, what does agreement represent?

A

Offer is when the person submits the application

Acceptance is when the insurance company offers a policy

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12
Q

What coverages are only available as an endorsement to BAP?

A

PIP and Uninsured

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13
Q

Where would you find the coverage extension Transportation Expenses?

A

Comprehensive

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14
Q

What is he difference between Medical Payments and PIP?

A

Medical pays $500, does not cover lost income
PIP pays $2,500 80% of actual income lost or reimbursement of essential services

Both are per person and 3 year time limit to report

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15
Q

What is the difference between newly acquired replacement vehicle and newly acquired additional vehicle?

A

Newly acquired replacement vehicle - the most broadest coverage transfers for 30 days then drops to liability

New acquired additional vehicle, no coverage after 30 days

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16
Q

What is the only coverage that can be rejected with an option form?

A

PIP/Medical

Uninsured

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17
Q

What is a garage keepers policy?

A

Physical damage to property you don’t own but that you have care, custody or control of is covered under this type of policy.

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18
Q

What is the deductible for Uninsured Motorist?

A

$250

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19
Q

Define negligence

A

Failure to exercise the standard of care required by law to protect others from harm

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20
Q

What is subrogation?

A

Insurance company’s right to go after the truly negligent party after a claim is paid

Prevents someone from being paid by the insurance company and the negligent party.

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21
Q

What is the difference between accident and occurrence?

A

An accident is a single event, normally sudden and unexpected
An occurrence is a single event that can occur over a period of time

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22
Q

What is the controlled business law?

A

25% or more has to come from general public

75% can come from whoever you want

23
Q

What are the CE requirements for a PCA?

A

30 CE hours every 2 years

24
Q

What is a domestic insurer?

A

An insurer who is in the same state that they are incorporate and formed in

25
Q

Who is a foreign insurer?

A

An insurer in a different state than the one they are incorporated in

26
Q

Who is an alien insurer?

A

An insurer from a different country

27
Q

What is the Texas Property & Casualty Guaranty Association?

A

Provides for:
25K in unpaid premiums
300K in unpaid claims
Covers workers compensation at 100%

28
Q

Under a PAP, if I hit a tree or other object, what physical damage coverage would pay?

A

Collision

29
Q

If I hit an animal, what physical damage coverage pays?

A

You can chose between comprehensive or collision

30
Q

What physical damage coverage pays in the case of a hurricane?

A

Comprehensive

31
Q

What is defamation?

A

Publishing false information in order to hurt someone

32
Q

What is rebating?

A

Inducing someone to buy a policy by offering something of value

33
Q

What is representation?

A

Statement

34
Q

What is a hazard?

A

Something that increases the chance of a loss

35
Q

What is risk?

A

Chance of loss

36
Q

What is peril?

A

An event that causes a loss

37
Q

A temporary emergency license is issued for his long?

A

3 months / 90 days

38
Q

Licenses renew every

A

2 years

39
Q

Misrepresentation is

A

Telling a lie

40
Q

Who holds a company appointment?

A

Property casualty agent (PCA)

41
Q

How soon must a claim to the Texas Property and Casualty Guaranty Association must be made?

A

30 days

42
Q

Who does an agent represent?

A

Insurance company

43
Q

Who does the broker represent?

A

The policyholder

44
Q

When must a licensed agent report of change of address?

A

Immediately

45
Q

What is twisting?

A

Giving a misleading comparison to the insured to induce them to buy

46
Q

What type of insurance company is the policyholder considered an owner with the right to vote and share in profits?

A

Mutual company

47
Q

What is indemnity?

A

The principle that an insured should be restored to approximately the same financial condition after a loss as before the loss

48
Q

What is an indirect loss?

A

Loss and result of a direct loss

Example is the hotel costs after a house fire

49
Q

What is the only Insurable risk?

A

Pure risk

50
Q

Concealment

A

Failure to disclose a known truth

51
Q

Appraisal

A

Provides a means to settle the amount of loss when the insured and insurance company can’t agree

52
Q

What does a binder do?

A

Provides temporary protection for the insured between the time the application is made and the policy is issued or the binder expires

53
Q

What is a deductible?

A

Insured must pay a certain amount for each loss incurred under the policy

54
Q

Consequential loss

A

An additional loss that results from a direct loss

55
Q

What are supplementary payments?

A

Payable in addition to policy limits
Covers defense costs
Work cost if required to be in court
Bail

Texas Claims Adjuster Licensing (12 decks)

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