Property And Casualty Insurance License Claims and Loss Settlement 2

Question 1

What is an 'independent adjuster' (IA)?

Accepted Answer

A freelance claims professional hired by insurers on a per-claim basis

Answer

An adjuster employed full-time by an insurance company

Answer

A public adjuster representing policyholders

Answer

A state-appointed claims arbitrator

Question 2

What is a 'first-party' claim?

Accepted Answer

A claim filed by the policyholder against their own insurance policy

Answer

A claim filed by an injured third party against the insured

Answer

A claim involving the insurer and a reinsurer

Answer

A claim filed by a government entity

Question 3

What is 'comparative negligence' and how does it affect claims?

Accepted Answer

Damages are reduced proportionally based on each party's percentage of fault

Answer

Each party pays their own damages regardless of fault

Answer

The party more than 50% at fault receives no recovery

Answer

Damages are split equally between all parties involved

Question 4

What is a 'coverage opinion' letter in liability claims?

Accepted Answer

A legal analysis by coverage counsel determining whether a policy covers a specific claim

Answer

A marketing letter explaining coverage options to prospects

Answer

A letter from the insured asking for claim status

Answer

A rate quote for adding coverage to a policy

Question 5

What does 'excess judgment' mean in liability insurance?

Accepted Answer

A court judgment against the insured that exceeds the policy's liability limits

Answer

A judgment awarded in excess of what the plaintiff asked for

Answer

Additional compensation awarded for punitive damages only

Answer

An overturned judgment from a lower court

Question 6

What is the 'right and duty to defend' in a liability policy?

Accepted Answer

The insurer's obligation to provide legal defense for covered claims, even if groundless

Answer

The insured's right to choose their own attorney at the insurer's expense

Answer

The insured's duty to file a legal response to all lawsuits

Answer

The insurer's right to settle claims without the insured's consent