Key Legal and Insurance Concepts

Consideration in Legal Terms

• Definition: Something of value given in exchange for a promise.
• Correct Option: B. Consideration

Ocean Marine Policy: Particular Average

• Definition: A loss that may occur during ocean transportation.
• Characteristics: Not covering entire cargo value, involves partial loss.

Types of Adjusters

• Public Adjuster: Hired by the insured.
• Independent Adjusters: Not directly employed by insurance companies.

Auto Insurance Coverage

• Coverage Start Date: Begins from the date specified in the policy.
• Scenario: Paul is not protected as the coverage starts on August 18th, not on the date of payment.

Indemnity in Insurance

• Definition: Compensation for damages equal to the amount of damage, neither more nor less.

Revoking an Adjuster's License

• Conditions: Not until a hearing is held.

Insurance Policy Structure

• Sections NOT Included: Grocery store (C is incorrect).

Appraiser Limitations

• Not Permitted Task: Appraising betterment of a vehicle.

Insurance Adjuster Essentials

• Not Essential: Commercial driver's license.

Representation of Hazards

• Not a Hazard: Fire that destroys personal property is a result, not a potential hazard.

Utmost Good Faith

• Definition: Responsibility to act honestly and provide all relevant facts.

Law of Large Numbers

• Concept: Combining multiple risks into a single group reduces uncertainty and loss.

Terrorist Act Classification

• Definition: Violent act dangerous to human life and property.

Business Owners Policy (BOP)

• Not Protected by BOP: Credit Union.

Errors and Omissions Insurance

• Not Eligible: Dentists.

Revoking Insurance Policy

• Condition Not Applicable: The age of the insured.

Contacting for Insurance Issues

• Action: Contact the state insurance commissioner.

Mutual Agreement

• Concept: Agreement between offeror and offeree.

Policy Components

• Insuring Agreement: Includes commitments provided by insurer.

Public Adjusters Compensation

• Typical Basis: Fee basis, usually around 10%.

Employer Liability

• Type: Vicarious liability through employees.

Duration for Insurer's Record Request

• Allowed Duration: Three years.

Policy Limits

• Definition: Cap on insurance coverage for a policy period.

Immediate Contact Rule

• Requirement: Insurer must acknowledge claim receipt within 15 days.

Contract Types

• Insurance Policy: Typically a unilateral contract.

Damage Coverage for Rental Car in NY

• Correct Option: Must be purchased from rental agency.

Insurance Regulation Oversight

• Regulatory Body: State Department of Insurance.

Auto Policy Coverage

• Covered Event: Lightning is covered under other than collision.

Homeowner's Insurance

• Typical Coverage: Fire damage is covered.

Texas Insurance Law

• Non-Required Action Within 15 Days: Payment of settlement amount.

Policy Writing Definitions

• Key Section: Definition section for essential terminology.

Independent Adjusters Categories

• Excluded Category: Public adjuster.

Declaratory Decision Provider

• Provider: The court.

Insurance Contract Responsibility

• Maximum Responsibility: Policy limits.

Settlement for Misplaced Items

• Possible Offer: Pay a portion of the total value.

Post-Loss Obligations

• Not Required: Being unbothered or forcing payment.

Characteristics of Insurance Contracts

• Exclusion: None of the mentioned options are non-characteristics.

Purpose of Premiums

• Primary Use: Fund operations and create a pool.

Terrorism Risk Insurance Act

• Coverage Requirement: Losses over five million dollars.

Medical Payment Protection

• Non-Qualified: Tenants under HO policy.

Severe Storm Adjusters

• Typically Handled By: Independent adjusters.

Reservation of Rights Letter

• Primary Reason: Insured isn't required to sign it.

Catastrophic Loss Coverage

• Coverage Method: Insurer collects premiums from all policyholders.

Reducing Small Claims

• Technique: A deductible.

Liberalization Clause

• Purpose: Automatically update policy if coverage scope expands.

Medical Payments Claim Deadline

• Timeframe: Three years.