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

Independent adjusters are self-employed or work for IA firms and are contracted by insurers to handle claims, particularly during catastrophes when staff adjusters are overwhelmed.

Question 2

What is a 'first-party' claim?

Accepted Answer

A claim filed by the policyholder against their own insurance policy

Answer

A first-party claim is made by the insured directly to their own insurer, such as a collision claim or a homeowners contents claim.

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

Under comparative negligence, a claimant's recovery is reduced by their percentage of fault; for example, if 20% at fault, they recover 80% of their damages.

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 coverage opinion is a formal written analysis, typically prepared by an attorney, that evaluates whether a liability policy's terms apply to a specific claim or lawsuit.

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

An excess judgment is a court verdict against the insured for an amount greater than the policy's liability limit, leaving the insured personally responsible for the difference.

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Practice Test

Property And Casualty Insurance License Claims and Loss Settlement 2