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LOUISIANA INSURANCE ADJUSTER EXAM QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation
Question 1: Accumulated Depreciation Formula
Answer:
Items annual depreciation X it's age
Question 2: Claimant
Answer:
Someone who has filed a claim.
Question 3: Common Law
Answer:
Based on court decisions and customs when statutory law does not provide an answer.
Question 4: Tort
Answer:
Any civil wrong doing, whether intentional or unintentional.
Question 5: Tortfeasor
Answer:
The person who commits a tort. AKA as the defendant.
Question 6: 3 Degrees of Liability
Answer:
1.)Full Liability - The insured party is 100% at fault for damages to a third party.
2.)Partial Liability - the insured party is only partially at fault or shares fault with a third party.
3.)No Liability - the insured party has 0% or no liability in the damage to a third party.
Question 7: Insured
Answer:
The person or organization that pays the premiums for financial protection
Question 8: Split Limit Liability Insurance
Answer:
Establishes three different maximum limits (bodily injury per person/bodily injury multiple persons/property damage) on how much the policy will pay out. i.e. 50/100/50
Question 9: Negligence
Answer:
Failure to use a reasonable degree of care in a particular situation; includes both wrongful acts and acts of omission.
Question 10: Estoppel
Answer:
Legal principle that prevents an insurer from denying coverage if the insured has reasonable come to believe that he has such coverage, based on the insurer's practices. Protects the insured.
Question 11: Insurable Interest
Answer:
Direct financial interest in protecting something or someone.
Question 12: Annual Depreciation Formula
Answer:
Replacement Cost / the items useful life
Question 13: Settlement
Answer:
An agreement between a claimant and an insurer. Must be reached in good faith, avoids the courtroom
Question 14: Fixed Deductible
Answer:
One specific, predetermined amount that a policyholder must pay out-of-pocket before he can be indemnified.
Question 15: Warranty
Answer:
Promise or guarantee that certain conditions will be met. Found on the Conditions page. If the policyholder breaks a Warranty, the insurer can deny coverage.
Question 16: Types of Physical Hazards
Answer:
Environmental, Material, Operational, Occupational
Question 17: Coinsurance Penalty
Answer:
A property insurance provision that penalizes the insured's loss recovery if the limit of insurance purchased by the insured is not equal to or greater than a specified percentage (commonly 80 percent) of the value of the insured property.
Question 18: Representation
Answer:
A statement of fact.
Question 19: Speculative Risk
Answer:
Any risk in which gain is possible (not insurable) i.e. buying a lottery ticket, investing in the stock market
Question 20: Pure Risk
Answer:
Any risk which no gain is possible (insurable)
Question 21: Occurrence
Answer:
An event, incident, or condition that causes damage.
Question 22: Default Judgement
Answer:
If the defendant does not answer a complaint in a timely manner, he will pay the full amount of requested damages without a trial.
Question 23: Risk Management
Answer:
The practice of identifying and analyzing loss exposure and taking steps to minimize the financial impact of the risks they impose.
Question 24: Risk Reduction
Answer:
Measures to reduce the frequency or severity of losses. AKA Loss Control i.e. requiring policy holders to pay higher premiums, requiring building upgrades for safety and less chance of damage, providing less coverage
Question 25: Policy Period
Answer:
Dates in which the policy is in effect. Runs from the inception date to the expiration date.
Question 26: 3 methods of Valuation
Answer:
Actual Cash Value (ACV), Replacement Cost (RC), Agreed Value (Valued Policy)
Question 27: Named Peril Policy
Answer:
List each Peril that is covered.
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