Learn: Public Adjuster Exam | Quizlet

Public Adjuster

Person, partnership, that represents the public as an adjuster of claims

Days to rescind a contract

3 calendar days

Public Adjuster minimum standards

Title must read Public Adjuster contract

Name phone number address and business name of Adjuster

Address of the insured and name

Percentage of the payments received

execution date and signatures

right to cancel

How can an adjuster collect his fee?

a percentage of each check, not the lump sum

Are late fees or collection costs prohibited?

Yes

Refund payments, return instruments, and take necessary actions under contract

15 working days

Notify an insurer of contract execution, communicate in writing, reply to written communication from an insurer

2 business days

Acknowledge receipt of a claim

10 working days

Provide claim forms and reasonable assistance

10 working days

Respond to an insurance department inquiry

15 working days

Complete investigation

30 working days

accept or deny a claim after proof of loss is executed

15 working days

Elements of a contract

Agreement, Consideration, Competent Parties, Legal purpose

Contract of Adhesion

No opportunity to change, must be adhered to

Aleatory Contracts

Based upon the occurrence of a future event of unequal bargaining value

Personal Contract

Highest degree of good faith

Unilateral contract

Act exchanged for a promise

Conditional Contract

contingent upon certain acts by the insured

Ambiguities

not being clear, goes against the insurance company

Indemnity

Principle of restoring the extent of the loss

Subrogation

going after the third party's negligence

Material misrepresentation

can reject coverage

Warranties

Affirmative, Promissory, Implied

Insurable interest

Interest in property that may cause one the probability of financial loss

Hazards

Physical, Moral, and Morale

PIGA Act

300,000 per claim and 10k per policy

Death of insured

180 days after death or after the policy ends

Short rate

Insured cancels

Pro Rate

Insurer cancels

Flat rate

neither exchanged

Dwelling Policy(Owner occupied)

Nonpayment and Material Mis 30 days

Dwelling and commercial(Nonowner occupied)

Nonpayment and material mis 15 days, underwriting 60 days

Specified(Named Perils)

Covered, Ex. Fire and lightning

Special Form(Open Perils)

Not covered, Ex. Wear and Tear

Direct loss

Fire and vandalism

Indirect loss

Renting another place to live

ACV

Replacement cost minus depreciation

RCV

cost to replace with like, kind and quality at todays replacement cost

FRC

replace damaged with functional equivalent

Market Value

based upon free market conditions

Agreed value

insured and insurer agree to amount of coverage to be written for the policy term

Stated amount

least of (1) Stated amount, (2) ACV, (3) cost of repair

Frame construction

Wood

Masonry Construction

Brick, concrete

Joisted masonry

Walls masonry, floor wood

Noncombustible

Metal

Masonry noncombustible

Walls masonry, floor noncomb

Contributory Negligence

Both negligent and guilty

Comparative negligence

percentage of negligence

Parts of Policy structure

Definitions, Declaration page, Insuring agreement, conditions, exclusions, endorsements

Policy periods

12 to 6 months

Deductibles

Dollar, percentage, and time deductible

Pro Rata

prorates loss payments among policies that are concurrent

Primary coverage

Pays first

excess coverage

pays after primary

Coinsurance

Requires insured to carry insurance coverage to a specified percentage

Blanket insurance

provided to all locations

Occupancy

Contents but no people

Vacancy

No content and no people

Percentage building must be rented

31%

Assignment

prohibited unless agreed with insured

Waiver

voluntary relinquishment

Personal property is adjusted on a .....

ACV basis

Buildings are adjusted on a ....

Replacement cost without depreciation

3rd party provisions

Standard Mortgage Clause, Loss Payment clause, No benefit to bailee

Dwelling policy provides insurance for residential properties up to..

4 units occupied by no more than 5 roomers

Basic form

Covers named perils and is the most basic and standard

Broad form

has additional perils such as weight of snow,

Special form

all coverage unless specifically excluded

coverage A

covers the dwelling

Coverage B

other structures

Coverage C

Personal Property

Coverage D

fair rental value

Coverage E

additional living expense

General exclusions

ordinance by law, earth movement, water damage, power failure, neglect, war, nuclear, intentional loss, gov't action

Exclusions for A and B

Weather, acts or decisions, and faulty planning

Policy endorsements

Increase in insurance, broad theft coverage, construction, special provisions

Homeowners policy

owner occupied private residential exposures, covers direct loss of A, B, and C

Homeowner form HO 00 02 or Broad form

written on a replacement cost basis, must have 80% value

Homeowner form HO 00 03 or Special form

covers all perils unless specifically excluded, personal property is covered on a named peril basis

HO 00 04 or Tenants policy

written to insure personal property

HO 00 06 or Condo policy

unit owners offered broad from named peril coverage

HO 00 08

modified named peril coverage. for older homes, functional replacement cost basis

Homeowner Property coverages A-D

Dwelling, other, personal prop, loss of use. Additional coverages such as debris removal and repairs and glass clean up included

Homeowner policy concepts

Same as dwelling

Scheduled Personal Property Endorsement

have values in excess of the policy limit, no deductible.

Commercial Policy components

Declarations, conditions, interline endorsements, two or more coverage parts

Commercial Prop Forms A-C

Buildings, Business prop, personal prop, and then different extensions and endorsements

Limits of insurance

special sublimit apply to Debris removal and outdoor signs

Losses up to 2,500 will be covered based upon a...

Replacement cost

Builders risk form

provides coverage to builders under construction

Business Income Coverage

provides income to business in event of loss. 50% coinsurance provision

Maximum period of indemnity

120 days, has monthly limit of indemnity too

Business income endorsements

Contributing, recipient, leader, and manufacturing locations

Commercial property is insured on a...

replacement cost basis

Farm coverage A-G

Dwelling, other structures, personal prop, loss of use, farm personal prop, unscheduled farm personal prop, barns and outbuildings

Livestock coverage forms

covers animals on farm

Inland marine coverage forms

provide coverage for anything that may be transported

6 Inland Marine Coverage Forms

Accounts Receivable form, commercial articles form, equipment dealers form, jewelers block form, signs form, valuable papers form

Buisnessowners policy is used to insure..

Small to medium sized business market