REAL REAL Texas Adjuster Study GuideTexas Adjuster Study Guide Texas Adjuster Study Guide Texas Adjuster Study Guide Texas Adjuster Study Guide 2023
... [Show More] -2024/ 367 QUESTIONS AND ANSWERS 367 QUESTIONS AND ANSWERS 367 QUESTIONS AND ANSWERS367 QUESTIONS AND ANSWERS 367 QUESTIONS AND ANSWERS
1. perils: a cause of property losses under an insurance con- tract ex: windstorm, hurricane, explosion, collapse of build- ing, vandalism, accidental discharge, and theft
2. law of large numbers: a fundamental concept in statistics and probability that describes how the average of a random- ly selected large sample from a population. it basically re- lies on the principle that the larger the pool, the more pre- dictable the amount of losses will be in a given period
3. principle of indemnity: is an insurance principle stating that an insured may not be compensated by insurance company in an amount exceeding the insured's economic loss.
4. limits of liability: the maximum amount that an insurance pol- icy will pay. it is specified on the policy declaration page.
5. property insurance: coverage for real and personal prop- erty against loss or damage from perils insured against.
6. loss settlement: the process used to determine the amount of the loss
7. actual cash value: the value of the property based on the current cost to replace it minus depreciation.
8. agreed value: the amount that the insured and insurer agree upon during the time of policy inception.
9. replacement cost: the cost associated with replacing prop- erty at current market prices
10. market value: the amount that the property is worth in a competitive market. this amount is accepted by the buyer and seller.
11. tort: is a wrong that involves a breach of civil duty owed to someone else. this breach determines if that person is neg- ligence.
12. elements used to determine negligence: a duty owed, a duty breached, proximate cause, and damages
13. methods to determine loss are:: acv, market value, replace- ment cost, agreed value
14. casualty insurance: protects a person from financial loss arising from bodily injury or property
2 / 31
damage to others
15. hazard: is a situation that poses a level of threat to life, health, property, or environment.
16. indirect loss: type of loss that does not result from di- rect damage of a covered cause of loss or peril but is instead a consequence of the direct damage loss.
17. direct loss: direct physical loss to property
18. insuring agreement: this section of the insurance policy specifies what [Show Less]