Auto Claims Adjuster Test Units 1-3 Questions With 100% Correct Answers 2024, Exams of Advanced Education

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Auto Claims Adjuster Test Units 1-3 Questions With 100% Correct Answers 2024 what is the definition of insurance? - Correct Answer-in case stuff happens what is the McCarren-Ferguson Act of 1945? - Correct Answer-Insurance is recognized as federal commerce The department of Insurance in Texas is also known as? - Correct Answer-T.D.I The Department The Commissioner What is the TDI responsible for? - Correct Answer-Enforcing insurance policy in the state of Texas The commissioner is appointed every? - Correct Answer-2 years Who appoints the commissioner in texas? - Correct Answer-Governor of Texas Definition of Insurance Adjuster - Correct Answer-A person who handles claims or investigates/adjusts losses on behalf of either the insurer or the self-insured Definition of Staff Adjuster - Correct Answer-Works for 1 company Definition of independent Adjuster - Correct Answer-Works for multiple companies Definition of Public Adjuster - Correct Answer-Works on behalf of the public When are Temporary Licenses Issues? - Correct Answer-In times of emergency In order to deal with Work related claims - Correct Answer-You need a Workmens Comp license In order to deal with property and casualty claims - Correct Answer-You need a Property and Casualty license In order to do both Workmens Comp and PnC Claims you need - Correct Answer-All lines license What is a certification of admittance in Texas? - Correct Answer-A document issued by the TDI that states you can do insurance business in the State of Texas What are the characteristics of a Domestic insurance Company? - Correct Answer- Organized, admitted, and Writing insurance policy in Texas What is an example of a Domestic Insurance Company? - Correct Answer-USAA What are characteristics of a Foreign Insurance Company? - Correct Answer-Reside outside of Texas What is an example of a Foreign Insurance Company? - Correct Answer-Progressive What is an example of a Alien Insurance Company? - Correct Answer-Zurich What are some characteristics of a Alien Insurance Company? - Correct Answer-Reside outside of the United States. What does T.I.C stand for? - Correct Answer-Texas Insurance Code Who is the CEO of the Texas Department of Insurance is also known as? - Correct Answer-Chief Executive officer What are the qualifications to obtain an insurance license in Texas? - Correct Answer- Must be 18 Citizen of Texas or approved by your home state Comply with all Federal laws Trustworthy Sufficient Training or experience Must pass Insurance Exam In order to Obtain an Insurance License you must first - Correct Answer-Obtain certificate Complete minimum of 40hrs of training 90% attendance in training When does your Insurance license expire? - Correct Answer-every two years What are the responsibilities of The Commissioner? - Correct Answer-Ensures that everyone practicing insurance in the state of Texas is in compliance with the T. I. C. What do all practicing insurance companies need to have to do business in Texas? - Correct Answer-Certificate of Authority What is surplus line insurance? - Correct Answer-non-admitted or approved by the TDI, but get special permission to do work in Texas How often does The Commissioner Audit insurance companies? - Correct Answer-Once Every 5 years unless they are new to Texas Characteristics of Bad Faith Claims? - Correct Answer-Insurer does not abide by the TIC bad faith can apply to all contracts Extracontractual damages are awarded on bad faith claims How long do Adjusters get to acknowledge a claim? - Correct Answer-15 days How long do Adjusters get to launch an investigation on a claim? - Correct Answer-15 days How long do adjusters get to request all important information regarding the claim? - Correct Answer-15 days How long do Adjusters get to affirm or deny a claim? - Correct Answer-15 days or longer if submitted for a time extension How long do adjusters get to pay off a claim after we accept responsibility? - Correct Answer-5 days What is the Definition of a Business Day? - Correct Answer-All days that are not a weekend or state recognized holiday. G.A Stowers furniture Company V American Indemnity was significant because? - Correct Answer-Established the concept of bad faith claims Stowers Doctrine only appears when - Correct Answer--covered under policy -demand is in the policy limit - if more was awarded then a letter of excess needs to be sent What is something that adjusters Do Not Do? - Correct Answer-pass down legal determination What is Prompt Payment of Claims? - Correct Answer-claim is made by insured or policy holder. Must be paid by the insured or their beneficiary What is a claimant? - Correct Answer-Person who files a claim what is a Notice of Claim? - Correct Answer-Notification of claimant submitting a claim What does the Receipt of Notice of Claim have to include? - Correct Answer-- Acknowledge receipt of claim -commence any investigation of claim -Any requests of the claimant What does a notice of Rejection of a claim have to include? - Correct Answer-15 days to acknowledge the claim explain why we are denying coverage (no later than 30 days) How much interested do damages accrue if past the 60 day mark? - Correct Answer- 18% What is the time extension for weather related damages? - Correct Answer-15 days What are some elements of a contract? - Correct Answer-Remember CALC -Competent Parties -Agreement -Legal Purposes Only -Consideration What is a contract of Adhesion? - Correct Answer-A contract drafted by the Insurer that will not be negotiated What is a aleatory contract? - Correct Answer-Values that are exchanged are not equal What is a unilateral contract? - Correct Answer-a contract that includes the exchange of a promise for an act What is a conditional contract? - Correct Answer-voided if policy conditions arent met Relating to contracts, what are resonable expectations ? - Correct Answer-Average person can understand terms of contract what is a warrenty in an insurance contract? - Correct Answer-statements to do or not to do certain things, are written out in policy What is Material Misrepresentation? - Correct Answer-incorrect information that DOES AFFECT coverage In insurance, what does concealment mean? - Correct Answer-Deliberately withholding MATERIAL information in insurance, what is fraud? - Correct Answer-Intentional deceit to gain Financially In insurance, what is a waiver? - Correct Answer-Voluntarily relinquishment of a known right What is estoppel? - Correct Answer-Involuntary relinquishment of rights What is Principle Indemnity? - Correct Answer-Restoration of Insured to pre-loss conditions In insurance, what is a Binder? - Correct Answer-TEMPORARY insurance contract that is issued during the verification process? In insurance, how do we define a Loss? - Correct Answer-the reduction of tangible property in insurance, how do we define a direct loss? - Correct Answer-inability to use property due to physical damage in insurance, how do we define an indirect loss? - Correct Answer-inability to utilize property In insurance, how do we define a consequential loss? - Correct Answer-Resulting from a spoilage or temperature change In insurance, how do we define a liability? - Correct Answer-Damages or injury that is due to insureds' actions Which comes first, a Direct loss or an Indirect loss? - Correct Answer-Direct loss always comes first In insurance, how do we define risk? - Correct Answer-this is the chance at a loss in insurance, how do we define a speculative risk? - Correct Answer-Has a chance at a loss or a gain, these cannot be insured In insurance, how do we define a Pure Risk? - Correct Answer-only a chance of loss, these can be insured in insurance, how do we define perils? - Correct Answer-Causes of loss in insurance, how do we define a hazard? - Correct Answer-Conditions to increase the chance at a loss what is a physical hazard? - Correct Answer-these types of hazards can be seen What is a MORAL hazard? - Correct Answer-intentional, dishonest, or illegal actions what is a MORALE hazard? - Correct Answer-Consists of carelessness or indifference that individuals have because they are covered by insurance and protected from loss.