Super-Duper Texas Adjuster License Test Review Questions 2023 with complete solution

Super-Duper Texas Adjuster License Test Review Questions 2023 with complete solution

Insurance History and Regulation: Insurance {{Correct Ans- Coverage by contract whereby one party undertakes to indemnity (hold harmless) or guarantee another against loss by a specified contingency or peril.

Insurance History and Regulation: NAIC {{Correct Ans- An organization whose purpose is to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States.

Protection of Consumer Interests: The Texas Department of Insurance (TDI) {{Correct Ans- Regulates the consumer interest in regard to insurance.

Protection of Consumer Interests: Head of the Texas Department of Insurance {{Correct Ans- Insurance Commissioner

Protection of Consumer Interests: Chapter 541 -Unfair and Deceptive Insurance Practices {{Correct Ans- was set up by the State of Texas to establish certain practices which constitute unfair and/or deceptive insurance acts.

Protection of Consumer Interests: Texas Insurance Code requires what within how many days of receipt of a claim that the insurer? {{Correct Ans- within 15 days 1) acknowledge receipt of a claim 2) begin investigation 3) request items from the claimant.

Insurance: What is the purpose of insurance? {{Correct Ans- to provide a way to spread risk over a large group of people

Insurance: Principle of Indemnity {{Correct Ans- IS AN INSURANCE PRINCIPLE STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. It is a principle that returns the insured to their previous financial condition.

Insurance: What are the two purposes of indemnity? {{Correct Ans- 1) to prevent the insured from profiting from a loss 2) to reduce moral hazard

Insurance: what is risk? {{Correct Ans- (1) the potential for a financial loss or the statistical chance of danger from exposure to a hazard or peril (2) the uncertainty about loss that exists whenever more than one outcome is possible

Insurance: Proximate Cause {{Correct Ans- is the first event in an uninterrupted chain of events that leads to a loss

Insurance: What are the 2 types of risk? {{Correct Ans- Speculative: affords the opportunity for gain as well as the possibility of loss

Pure: a risk where there is the potential of real loss due to exposure to a peril

Insurance: example of risk avoidance {{Correct Ans- to avoid risks associated with swimming pools, don't buy a home with a pool.

Insurance: example of risk reduction {{Correct Ans- to reduce fire damage, install a sprinkler system in home

Insurance: Example of risk retention {{Correct Ans- insurance company accepts risk when they've accepted the insured.

Insurance: example of risk transference {{Correct Ans- purchasing insurance, transfers the risk from insured to insurance company.

Insurance: what is a peril? {{Correct Ans- The actual cause of a loss.