Workers Comp

Question 1

A claims adjuster can avoid the appearance of providing legal counsel if communications with an insured are

Answer 1

limited to the wording of the policy

To avoid practicing law, a claims adjuster’s communications with an insured that deal with coverage issues should be limited to the wording of the policy and the insured’s claim.

Question 2

At what intervals during the first six months of a claim are claim status reports required?

Answer 2

30-, 90-, and 180-day increments

Question 3

What does an insurance company require from an insured before it will determine whether the policy covers a loss?

Answer 3

Proof of loss statement

An insured’s Proof of Loss statement is required by an insurance company before it will determine whether the policy covers the loss.

Question 4

Why does an adjuster collect information about a claim?

Answer 4

To help the insurer resolve the claim.
The adjuster collects information, facts, documents, etc., that the adjuster believes are essential to bringing the claim to resolution.

Question 5

Which factor does an adjuster NOT consider when accounting for depreciation in the adjustment of a claim?

Answer 5

loss of value for accounting purposes

The depreciation used is true depreciation, not depreciation for accounting purposes. True depreciation must consider physical deterioration, functional obsolescence, economic obsolescence due to causes independent of the property, effective age as compared with other properties considering renovations and reconstruction, and future life expectancy.

Question 6

Which of the following is NOT considered when calculating true depreciation for actual cash value?

1 Physical deterioration.
2 Economic obsolescence due to causes independent of the property.
3 Functional obsolescence.
4 Market speculation.

Answer 6

Market speculation. Market speculation is not a factor in calculating true depreciation for actual cash value purposes.