Insurance adjuster exam

Which of the following statements regarding actual cash value is FALSE?

Actual cash value is always beneficial to a policyholder

Which of the following statements is NOT true of the "give and take" nature of the negotiation process?

Flexibility of the negotiation and causes frustration

Flora is driving in the rain when she skids off the road and slams into Cam's billboard, totalling her car and causing $2,000 in damage to the billboard. Flora has an auto policy with ABC Insurance. Cam files a third-party claim and ABC Insurance pays him $1,500 for the billboard. Which of the following is TRUE?

Flora will file a first party claim for the damage to her car, and Cam will file a third-party claim for the damage to his billboard.

Mark belongs to a non-profit organization that engages in charitable activities and provide mark with a death and disability insurance coverage to what kind of coverage do mark belong?

Fraternal Benefit Society

Ricky was watching a baseball game at XYZ Stadium, when the railing on which he was leaning gave way and he fell two stories. As a result of his fall, Ricky broke his back and is now paralyzed from the waist down. Ricky sued the owners of XYZ Stadium and was awarded $150,000 to cover his medical bills and $2.5 million in __________ because of the permanent nature of his injury.

General Damages

This agent works for only one insurer, and supervises and trains other agents.

General agents

Jim is currently working on a property damage claim, gathering evidence, reviewing police reports, and interviewing witnesses. In which stage of the claim adjusting process is Jim currently working?

In investigation

susan calls herself an insurance broker. she sells multiple lines of insurance from a variety of insurance companies. what type of agent i susan?

Independent sales agent

Jim is out turkey hunting on a private ranch when he hears some movement in the brush. Assuming it's a turkey, Jim raises his shotgun and fires. Unfortunately for Jim, he has not taken a turkey, but has severely injured one of the landowner's calves instead. Jim is responsible for the cost of the calf because he acted with:

plaintiff

Tim is the plaintiff in a case involving an auto accident. To recover monies he feels are due him, Tim produces documents to prove he had to pay over $55,000 in medical bills. If the court were to award Tim $55,000, the damages would be classified as:

Special Damages

jim has a liability insurance policy with three limits: one for the maximum amount of bodily injury per person, one for the maximum amount of bodily injury for all persons, and one for the maximum amount of property damage. each of these limits apply to any one occurrence. what type of limits does jim's policy have?

Split limits

Janes are salaried employee of XYZ insurance. Working out of a regional office, Jane is sent to deal with some of the most difficult claims in her area. What kind of adjust is Jane?

Staff adjuster

Sally throws a cigarette butt into Neal's dumpster, starting a fire on Neal's property that costs him $10,000. Neal files a claim with his insurer. The insurer pays Neal and then demands $10,000 from Sally to pay for the loss she caused. What gives the insurer the right to collect payment from Sally?

Subrogation

Which of the following statement apply to Subrogation?

Subrogation prevent injured person from collecting twice on the same damages. A claimant forfeits his right to seek restitution to the insurer. Subrogation transfers a portion of the right of the claimant to the insurer.

While driving, Sue looks down to adjust the radio and crashes the car into jane's car, damaging both cars and injuring herself

Sue is legally liable for the damages for jane's car

janes husband was killed when an improperly pressurized gas container exploded as he was transporting it. jane can collect damages under:

The Wrongful Death Act

When an insurer assigns an adjuster to the claim, which of the following best describes the adjuster's role in relation to the claimant?

The adjuster acts as a liaison between the claimant and the insurer

Which of these scenarios is not an example of indemnification

When trying to renew her dog license, Ellen has to pay a penalty to the city for letting its rabies vaccination lapse

Kevin has a homeowners policy with replacement cost valuation and a coverage limit of $90,000 for his personal property. Three years ago, Kevin purchased a sofa and loveseat for $1,000 and $500 respectively. Both pieces of furniture depreciate at $100 per year. A house fire damaged many of Kevin's belongings, including the sofa and loveseat, which now cost $1,200 and $700 to purchase today. Ignoring any deductibles, how much will Kevin's insurer give him for the damaged sofa and loveseat?

$1,900

roxanne's house is struck by lightning during a thunderstorm, which results in $10,000 in covered damage to the structure and $2,800 in covered damage to her personal property. roxanne's homeowners policy has a fixed deductible of $1,200. how much can she expect to receive in her settlement from her insurer for this claim?

$11,600

Driving home one night, Jeff runs a red light and crashes into another car, injuring all three passengers: Clair, John, and Richard. Clair suffered $25,000 in injuries, John $45,000, and Richard suffered the most at $62,000. Assuming Jeff liability policy limits are set at 50/150/75, how much, if any, will Jeff be required to pay for the passengers' injuries?

$12,000

Jerry is using an expensive video recorder near the family pool when he slips and falls in, destroying the camera. Jerry bought the camera three years ago for $4,000, and it depreciates at $500 per year. A new, similar camera costs $5,000 today. Assuming the loss is covered, if Jerry had a replacement cost policy, how much would Jerry's insurer indemnify Jerry for the destroyed camera?

$5000

In order to be considered fully insured, Nikki must have at least 480,000 limits on her homeowner's policy. Assuming her insurer imposes the standard coinsurance requirement, what is the value of Nikki's home?

$600,000

John has purchased a homeowners insurance policy with a percentage deductible based on the total limit of insurance for his home. John insures his home for $600,000, and the policy includes a 3% deductible. A huge thunderstorm passes through one night and blows the roof off his house. The insurance company estimates that covered damage totals $80,000. How much indemnification should John expect for the losses to his roof?

$62,000

George owns a shipping company that transports goods all over the world. While sailing across the Atlantic, a might storm gathers, and his vessels sustains $700,000 worth of damage. Assuming the ship had a$550,000 franchise deductible, how much of the damages would George's policy cover?

$700,000

Sue decides to get a valued insurance policy on her antique car. She and her insurance company agree to a value of $85,000. Three years later, the car is destroyed when a tree falls on it in a parking lot. The car depreciates at $2,000 a year, and its replacement cost is $100,000. Ignoring any deductible, how much can Sue expect her insurer to indemnify her?

$85,000

Jim applies for a homeowner's policy with his agent, who gives him immediate temporary coverage. However, after checking Jims's background information, the agent discovers application. What type of coverage did jim have declined his application?

A binder

Which of the following best defines "insurer"?

A company, group, or government agency offerer financial protection

What is the primary distinguishing characteristic of a contract of adhesion?

A contract of adhesion implies an unequal balance power in the creation of the contract

which of the following best describes a fraternal benefits society?

A fraternal benefit society is a social organization based around common interests and beliefs

Fred has decided to store his fuel tanks inside his garage where he builds automobiles. To the insurer, the fuel tanks would be considered:

A hazard

Which of the following incident would liability insurance policy cover?

A man slips in grocery store and injures himself

What is the reserve in insurance term?

A pool of collected premiums that the insurers sets aside to pay claims

Xavier owns a small insurance company. Recently the company won a bid to insure a new housing development in Omaha, NE. His company can handle any claims that arise, but if a series of tornados were to tear through the area and destroy the entire development, Xavier's company would suffer financially. Which type of insurer could help Xavier's company protect itself the most from this potential loss?

A re-insurer

A reservation of right letter must include all of the following EXCEPT:

A reminder that there will be a default judgement if the policy holder does not respond

Harold wants to buy an insurance policy for his home in Atlanta. The insurance company writes him a policy. To the insurance company Harold's home is considered

A risk

Which of the following is not an insurable risk?

A small town

Which of the following is most likely a third-party claim?

A woman files an insurance claim when she is injured by an employee at a local bar.

Adam is shopping for a car in a local automobile dealership. While visiting the showroom, he trips over a rug that has folded over and breaks his arm in the fall. Which of the following is true?

Adam may file a third-party claim with a dealership's insurance company.

Allen is adjusting an auto claim on behalf of ABC Insurance, which has given Allen $5,000 in draft authority. The total damages in the auto claim come to $7,200. Which of the following is true?

Allen can adjust the claim, but ABC insurance must write the settlement check.

Which of the following statements is false?

An agent always has a fiduciary duty to defend the claimant.

Which of the following statements about arbitration is TRUE?

An arbitrator makes a legally binding decision based upon the evidence.

which of the following best describes insurance?

An economic device used to protect against the risk of unforeseen and extraordinary financial loss

Which of the following is not qualification of an insurable risk?

An insurable risk must have guarantee protection from damage

Which of the following statements is not true of an insurance adjuster?

An insurance adjuster receives her authority to sell products on behalf of the insurer through a written contract

nick is watching a high-stakes football game at his local sports bar. after the referees make a disputable call, a fight breaks out and amid the fans at the bar. nick eagerly joins the fray and smashes a beer stein over the head of a rival fan, who suffers severe cuts and a concussion as a result. nick's action might be described as:

An intentional tort

sam was tired if the neighbor's trees along the fence line poking through the fence and dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the neighbor's tree. sam's neighbor was upset and sues him for the damages. sam's actions could be classified as:

An international tort

an item's replacement cost divided by the number of years of its expected or useful life is its:

Annual depreciation

After her business suffered damage in a fire, Jane filed a claim with Acme Insurance, which dispatched Bob to adjust it, even though he was not allowed to adjust commercial claims. He investigated Jane's losses and submitted his estimate to Acme Insurance, which issued her a settlement check based on that estimate. Bob had _______ because Acme Insurance accepted his estimate and paid Jane's claim.

Apparent authority

Arlene's house suffered structural damage in an earthquake last year, but her policy does not cover earthquake damage, so Arlene never got it fixed. When a tornado rips through her neighborhood, it causes some roof damage totalling $2,000, and Arlene sees an opportunity in the situation. She files a claim for the roof damage, but also claims that the tornado caused the structural damage to her house that was actually caused by the earthquake last year. Which of the following statements is true?

Arlene has committed soft fraud

Bobby just purchased an insurance policy for his home from XYZ Insurance. Which of the following would be a reason this policy may not be legally binding?

Bobby has been diagnosed as mentally incompetent

Which of the following is considered a speculative risk?

Buying a lottery ticket

Sarah is playing with a basketball on the stairs at Bob's house. In doing so, she trips, falls, and breaks her leg. She files a claim against Bob's insurance company for her injuries. The adjuster determines that Sarah was 50% partially responsible for her own injuries, and therefore should only receive indemnification for 50% of her medical bills. What defense of the claim is the adjuster using?

Comparative negligence

knowingly preventing disclosure of materially relevant fact is an insurance case is called:

Concealment

Josephine's gas station suffered severe damage when one of the fuel tanks caught fire and exploded. After completing his inspection, the adjuster determines that Josephine's claim is not covered because she did not have automatic shut-offs for the fuel tanks. If this safety measure was in fact required in order for coverage to apply, where might Josephine find it in the policy?

Condition

When Sandra files a claim with XYZ insurance after a hailstorm, an adjuster come out to inspect the damages. He tells Sandra he will evaluate her claim and will get back to her promptly. Which of the following items will the adjuster NOT take into account while evaluating Sandra's claim?

Coverage limits

In which section of the policy might you find the following statement? "Property Address: 246 Rosemead Drive."

Declarations

Ben is an adjuster with XYZ insurance and is currently working on a claim. He has already called the claimant and had just finished preparing all the paperwork needed to move forward with the claim. What is the next step for Ben?

Determine whether the claimant has an insurable interest in the damaged property

What is the first step of evaluation process of claim?

Determining time and cost of repairs

Chandler is a photographer who is taking pictures at a reenactment of the Battle of Gettysburg, when Harper (Union Cavalry) crashes through the brush and into Chandler, breaking both his arms and his camera. In court, Chandler demands payment not only for his medical bills and broken camera, but for future lost business; now that he is unable to take pictures for the next 6 months, his clients are moving on and entering into contracts with other photographers. When Chandler speaks of this total amount of all damages that have resulted and will result from Harper's mistake, he is referring to:

Diminution of value

Charlottes's just turned 16 and got his driver's license. She wants him to be covered, so she added him to his auto insurance policy. Where would this addition be founded in Charlotte's policy?

Endorsements

Janelle wants to change her coverage for personal property in her homeowner's policy from ACV replacement cost. She visits her local insurance agent and asks him to make this change to her policy while keeping all the other details the same. Which section of her policy would the agent use to make this change?

Endorsements

Mark wants to add "towing and labor costs" coverage to his auto insurance policy. Under which part of the policy would he add this coverage?

Endorsements

Which of the following statements about the principles of estoppel is TRUE?

Estoppel protects the insured party from an insurer who initially approves coverage, but then later denies coverage after the insured pays for repairs

Jim is working on a claim. Currently, he is applying all financial provisions of the policy, including the policy limits, coinsurance, valuation, and deductibles. In which stage of the claims process is Jim currently working?

Evaluation

Sam works on commission only, selling only insurance products from XYZ Insurance. What type of agent is sam.

Exclusive Agent

james signed a contract with XYZ insurance that enables him to sell insurance policies and collect premiums on their behalf. what authority has james been granted?

Express authority

In which report to the principal would an adjuster include all witness statements and other supporting statements and other supporting evidence, in addition to the total settlement amount?

Final report

Which of the following statements is about a morale hazard is FALSE?

It is a result of unconscious behaivor

When recording breaking-breaking rainfall causes severe flooding in Jaine's hometown, Jaine's rental property suffers extensive damage. Which of the following is indirect loss?

Jaine loses a month of rental income when her tenant moves out while repairs are made to the home.

joe's homeowners policy has a single limit of $150,000 for bodily injury liability coverage. one day, joe's friend was injured in an accident on joe's property, and the medical bills came to $15,000, which were covered by joe's homeowner's policy. which of the following is TRUE?

Joe's policy still has $150,000 available bodily injury liability coverage.

While out driving, Jacob doesn't stop at a stop sign hits Josefina, whose resulting injuries cost $15,000. If Josefina's insurance policy pays first and maxes out at 10,000 of coverage, which of the following is TRUE?

Josefina has the right to collect the remaining $5000 from Jacob or Jacob's insurer

Which of the following is an example of moral hazard?

Ken lights a candle, sets it right next to the window draperies and leaves the house to go to work.

Which of these is NOT typically excluded from coverage in a property insurance policy?

Lightning

Sally's home in Roswell burns to the ground after lightning Strike. Sally has a homeowner's policy that covers lightning damage. The insurance company now views Sally's house as a:

Loss

Which of the following statements about insurable interest is FALSE?

Maintain property values allows your neighbors to have insurable interest in your house

Matt offers to lend Shawn his truck so he can pick up some stones for his landscaping project. Matt tells Shawn, "Don't worry, my truck is insured." What is matt really saying?

Matt's financial interests in the truck is protected, should covered loss occurred

Bob recently had a fire totally destroy his auto servicing garage. When an adjuster come to investigate the fire, he can ask whether bob had any large containers of fuel in the garage. Bob did store two large containers of fuel in the garage but, he knows that, if the refuel company finds out, they will not indemnify him and he will be financially ruined. Bob tells the adjuster "No." Which of the following best describes bobs statement to the adjuster?

Misrepresentation

Lucy has experience on an expensive necklace she likes to wear it to work every day. After work, she takes it off a leave it in the car's cupholder so she can put it back on in the morning on her way to work. Lucy's behavior would be considered a:

Morale hazard

Which of the following is NOT a duty of captive agent?

Negotiating settlements

Jim is currently working on a liability claim and has completed his investigation. He presents his findings to the claimant, who disagrees with the settlement offer. Into which stage of the adjusting process is Jim about to enter?

Negotiation and Resolution

Of the following adjuster duties, which would be the first?

Open lines of communication

During a violet summer storm in Tulsa, a bolt of lightning hit Mr.Jones' house damaging a large protection on the roof. In this case, the insurer call the lightning bolt a:

Peril

Which of the following is NOT one of the typical duties of the insured after a loss?

Provide a loss estimate from an appraiser

What kind of adjuster represents the insured rather than the insurer?

Public adjuster

eileen has been the victim of libel & slander. she decides to take the culprit to court and is awarded damages. which type of damages best describes those awarded to eileen?

Punitive Damages

What is the formula for cash value?

Replacement cost minus total deprecation

When an applicant for homeowners' insurance lists the address, size, and description of his home he is providing?

Representation

Which of the following is not a risk management technique?

Risk equality

Amy needs more floor space in her antique furniture store, so she buys a storage building 3 miles away. She is worried about keeping the furniture in the storage building safe, so she puts in an alarm system and smoke detectors. By purchasing the alarm system and smoke detectors, Amy is practicing:

Risk reduction

Which of the following statements about risk retention groups is FALSE?

Risk retention groups must be license in every state in which they operate

Greg has two limits listed on his homeowners policy for liability coverage: one for bodily injury and one for property damage. Each limit applies on a per occurrence basis. What type of limits are these?

Single limits

Which of the following is not true about an insurance policy?

The concept of utmost good faith only applies to the insured

which of the following best describes premium?

The fee paid by the insured in the exchange for an insurance policy

How can insurance companies afford to pay for an individual's catastrophic loss?

The insurer collects premiums from all policyholders and pools to pay the claims of the few

ABC Masonry, Inc. has an aggregate liability policy with limits of 100,000/300,000. One day, an accident at a construction site leads to $150,000 in damage to public property. Assuming the cause of loss is covered under ABC Masonry's liability policy, how will this claim be paid?

The insurer pays $100,000; the aggregate limit is now $200,000; and ABC Masonry must pay $50,000.

Jason's auto policy states that the insurer may cancel coverage if a premium is more than 30 days late. However, Jason is currently more than 30 days late, and has been so five times in the last year, and his insurer has done nothing about it. When Jason gets into an accident and files a claim, which of the following is most likely to happen?

The insurer will pay the claim because of the implied waiver they have made by not canceling the Jason's policy the previous times he was late with his payments.

Which of the following statements best describes the law of large numbers?

The larger the number of units insured, the more accurately the insurer predict the number of claims from that group.

Which of the following best describes the insurance concept of "exposure"?

The possibility of damage or loss

A power surge sparks an electrical fire in an office building. The electrical fire triggers the automatic sprinklers system. The water from the sprinklers soaks the carpet and shorts-out all the computers, causing thousands of dollars in damage. What is the proximate cause of the lost?

The power surges

Which of the following does not apply to the adjuster's responsibility of reports to the principal?

The reports should include advice on how to get out of paying covered claims.

Adam has a treacherous drive to work every day. Not only does he have to drive down the pothole-strewn access road to the highway, but he also must traverse several icy bridges on the way to work. Why does the insurance company call these hazards "physical hazards"?

The roads prevent a physical condition that increases the chance of a loss

Why might an insurer send a claimant a Reservation of rights letter?

To let the claimant, know that there dispute coverage

Tom decides to purchase an insurance policy to protect his home. According to the definition of insurance of personal property, which of the following most accurately describes what tom's insurance actually protects?

Tom's financial interest in the home

In tort law, a person or entity that commits an act of wrongdoing or negligence that leads to damages to a third party known as:

Tortfeasor

During a storm, lighting strikes a tree in Harry's yard and starts a fire that spreads to his shed where he keeps all his equipment for his land scaping business. In addition to the shed, Harry has to pay for all new equipment for his landscaping business. The cost to replace the equipment would be considered:

a direct loss

SureTrust Insurance was founded and operates in Texas. In Texas, SureTrust is considered:

a domestic insurer

An insurance claim is essentially:

a formal request to settle the damage

Edward is a member of the Knights of Columbus, a religious group dedicated to voluntary service to the benefit of society. He also recently purchased a $100,000 life insurance policy from the organization. This was possible because the Knights of Columbus is:

a fraternal benefit society

Joe's driveway has a very steep grade with several sharp turns, and it gets very muddy during rains. To an insurance company, Joe's driveway might be considered:

a hazard

James and Eric want to play a prank on Bob for Halloween. They dress up like headless horsemen and throw ignited Jack O'Lanterns at his house. Unfortunately, one of the inflamed pumpkins catches the porch on fire, causing $3,500 in damages. Bob doesn't find this tomfoolery very entertaining and sues both James and Eric for the cost of the repairs. In court, James and Eric would be:

a joint of tortfeasor

The claim evaluation includes all of the following EXCEPT:

acknowledgment of the claim

The condition page in an insurance contract may allow a lender all of the following provisions EXCEPT:

allowing the lender to cancel the insurance policy any time

A legally binding contract where the risk of financial loss is transferred in exchange for premiums is called

an insurance policy

Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home, causing extensive damage to the East wall and roof. As a result, Sandra and her family must move into a hotel until the repairs are completed. The cost of staying in a hotel is:

an occurrence

An "occurrence" is defined as:

an unexpected event that causes loss.

Sam is a claimant seeking damages from XYZ Insurance. The XYZ adjuster comes to meet with Sam to hear the circumstances of her injury. The adjuster determines that Sam played an active role in her own injuries, and therefore XYZ Insurance will pay her nothing at all for her injuries. What defense is the adjuster using?

contributory negligence

Risk avoidance is a risk management technique that:

eliminates risk

An insurer that adheres to the laws of state but is located outside of that state called an a(n) ____________________ insurer

foreign

From a legal standpoint, when a policyholder files a claim against her insurance policy, she is essentially submitting a:

formal request to settle the damage

Mental anguish would be an example of:

general damages

Strict Liability:

holds a person liable for his actions regardless of how much care he demostrates

if covered by insurance policy, an insured may be indemnified for all the following except:

home remodels

_________ authority is what the public reasonably believes the agent has, based on the agent's representations.

implied

William is wearing an ABC Insurance jacket and has an ABC Insurance sign over his rented office. The walk-in customer could reasonably believe that he has the authority to write an insurance contract because of his:

implied authority

A "scheduled payment release" is a settlement option most commonly used:

in workers compensation claim

which of the following referred to being restored to the financial condition you were in before a loss?

indemnification

Driving home after a 14-hour shift, Sam falls asleep at the wheel and plows into Sandra's home, causing extensive damage to the East wall and roof. As a result, Sandra and her family must move into a hotel until the repairs are completed. The cost of staying in a hotel is:

indirect loss

Direct finincal interest in protecting something or someone is called:

insurable interest

A few weeks go Christorpher's garage was destroyed in an out of this world motorist. Fortunately, the motorist had sufficient liability insurance to cover the damages. However, the insurance insists that Christorpher's garage is wort far less than the appraisals he received from the contractors. Christorpher and the insurer have gone back and forth in negotiations for weeks, making little headway. Christorpher decides it's time to:

issue a complaint against the policyholder

Which of the following is not an requirement for a legally binding contract

it must be a notarized document

Which of the following is true about the partial release settlement option?

it's also called "payment to property damage: Bodily injury Pending"

Bill is preparing to meet with a claimant to negotiate a settlement. He combs his hair, polishes his shoes, and iron his business casual's clothes. Bill is hoping this will help him with negotiations process by:

making a good first impression

John owes a lot more on his car than it is worth. He figures he would be better off if he burned the car and collected an insurance settlement. He has someone set fire to his garage to destroy the car. John's behavior would be considered a:

moral hazard

Lewis owns a computer store, and he spends many hours a day on the sales floor demonstrating his products to customers. He often gets very animated when showing the electronics and, although he does not intend for anything bad to happen, he doesn't worry too much about handling them carefully, since he knows that his insurance policy will cover any damages. This behavior would be called a:

morale hazard

Cindy holds an insurance policy from Sine Nomine Insurance. This is not a publicly traded company, and Cindy can participate in the election of the board, receiving dividends if the company does well. Sine Nomine Insurance could be best described as a:

mutual insurance

A non-waiver agreement:

needs to be signed by that policyholder in order to be valid

A captive insurance company:

operate to an attorney-in-fact to provide insurance benefits for its members

A insurance adjuster will do all of the following thing regarding a claim EXCEPT:

protect the insurer from the claim

The statute of limitations is intended to:

restrict the amount of time claimant has to file a lawsuit

Six Stars Development Company has just been offered a great deal on ten large properties in Las Vegas. The economy in Las Vegas has been declining recently, but the CEO of Six Stars expects it to recover soon. This could be an exceptional opportunity for Six Stars, but it's also pretty risky. Ultimately, the Six Stars executive team decides not to purchase the properties. This is an example of:

risk transference

When responding to a claim, the adjuster's primary motivation should be:

settle the claim quickly and fairly litigation

Which of the following is NOT a characteristic of social programs

social insurance programs are for-profit programs

surplus lines insurance is property and casualty insurance:

sold by nonadmitted insurers who are not licensed to do business in the state

In an insurance policy, abandonment clause:

states that insured is prohibited from forcing the insurer to take possession of the damage property.

A __________ is a law set forth by a governing body such as a state or city.

statutory law

Frank purchases an automobile policy from publicly-traded XYZ Insurance. He pays regular monthly premiums, and also purchases stock in XYZ and receives dividends when the company turns a profit. From which type of company has Frank purchased insurance?

stock insurer

Julie is a hand model. A month ago, she got into a car accident. As a result of her accident, she suffered a small, permanent scar across her hand, causing her to be unable to perform her job. Julie's damages for the loss of future employment opportunities would be classified as:

tangible damages

An adjuster acts as an agent for the insurer. As such, it is essential that the adjuster understands:

that her words or actions may bind the insurance company

The term "Jurisdiction" means:

the authority of a court or judge to hear a case and to make a judgement

In investigation, "critical evidence" could include all of the following, EXCEPT:

the claimant premium payment history

According to the inspection and survey provision:

the insured must allow the insurer to inspect the insured premises at any time.

Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his insurance company and $4,000 from the other driver. By receiving a profit from the loss, Mark could be in violation of:

the principle of indemnity

purpose of principle of indemnity

to prevent the insured from profiting from the loss

Lee was watching out his kitchen window and saw his neighbor, Sam, reach across the fence with a pole saw and cut down one of Lee's trees. When the tree fell, it landed on Lee's gazebo and damaged it. Lee is furious and sues Sam for the damages. When they go to court, LEE is considered the:

tortfeasor

vicarious liability _______________ negligence

transfers

A reciprocal insurer is:

unincorporated organization of subscribers that operates through an attorney-in-fact to provide insurance benefits for its members

An insurance applicant revealing his convictions for drunk driving to an insurer is an example of:

utmost good faith

Jane's shed burns to the ground during a tornado, when the high winds break a wall of the shed, knocking over a lantern inside. What is the proximate cause of the loss?

wind

A risk a retention group can provide all of the following kinds of insurance EXCEPT:

worker compensation