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CHAPTER 3/TERMS - TEXAS ALL LINES EXAM QUESTIONS
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -76 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Bid Bonds
Answer:
Used as a promise to accept a bid if awarded to a company and to guarantee that a performance bond will be obtained prior to commencement of a job.
Question 2: Insurer
Answer:
An organization that provides insurance products.
Question 3: Endorsement
Answer:
A written agreement attached to the policy expanding or limiting the benefits otherwise payable under the policy.
Question 4: Insured
Answer:
A person or organization covered by an insurance policy.
Question 5: Principal
Answer:
The entity that has agreed to fulfill an obligation.
Question 6: Fidelity Bonds
Answer:
Bonds that protect an employer for losses by the employee.
Question 7: Hazard
Answer:
A condition that enhances the chance of a loss.
Question 8: Adjuster
Answer:
An individual who investigates or adjusts losses on behalf of either an insurer or self-insured, or any person who supervises the handling of claims.
Question 9: Proof of Loss (POL)
Answer:
A statement made regarding the extent of the claim; it may be requested in accordance with the conditions of the policy.
Question 10: Law of Large Numbers
Answer:
A mathematical concept used by insurance companies that works upon the principle that the more times an event is repeated, the more predictable the outcome of a specified event.
Question 11: Independent Adjuster
Answer:
An individual who contracts with an adjusting/staffing firm as an independent contractor and handles claims for insurance companies.
Question 12: Provider
Answer:
An individual or organization offering continuing education courses for licenses and/or pre-licensing instruction for adjusters.
Question 13: Inland Marine
Answer:
A type of insurance associated with the risks or perils of transportation.
Question 14: Field Adjuster
Answer:
An insurance adjuster who works primarily outside of an office and often meets personally with the public.
Question 15: Reservation of Rights
Answer:
A letter sent by the insurance company to avoid "waiver and estoppels" of a right to deny a claim while permitting the insurance company to make an investigation into the circumstances of the claim.
Question 16: Abandonment
Answer:
The relinquishing ownership of damaged property to the insurence company on a partial loss.
Question 17: Contract
Answer:
A reciprocal agreement.
Question 18: Insurable Interest
Answer:
Proof that someone stands to lose financially.
Question 19: Coverage
Answer:
Specific protection for an insured under an insurance policy.
Question 20: Assumption of Liability
Answer:
The act of taking responsibility through agreement for something that person may not be legally liable.
Question 21: Direct Damage
Answer:
A loss covered by a specific named peril.
Question 22: Agent
Answer:
An individual who sells insurance, either an independent agent who represents many insurance companies or an exclusive agent who only represents one insurance company.
Question 23: Estimates
Answer:
An approximate calculation of amount, extent, quantity, magnitude, position, degree or worth of something.
Question 24: Indemnification
Answer:
Legal term applying to third party claims meaning "to pay back or to make whole."
Question 25: Exclusions
Answer:
A loss or risk that the policy does not cover.
Question 26: Trespasser
Answer:
Someone who intrudes on the privacy or property of another without permission.
Question 27: Underwriting
Answer:
To access the eligibility of a customer to receive their products, decide how much coverage the client should receive, and how much they should pay for it.
Question 28: Non-Recoverable Depreciation (NRD)
Answer:
The depreciation from the total Replacement Cost due to age, use, an condition. The resulting dollar amount is Actual Cash Value.
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