N.C. Claims Adjuster Exam Latest 2023
Rated A+
Inception/Expiration Date ✔✔an insurance policy covers the insured starting at 12:01am on the
day on which coverage begins and expires at 12:01am on the expiration day of
...
N.C. Claims Adjuster Exam Latest 2023
Rated A+
Inception/Expiration Date ✔✔an insurance policy covers the insured starting at 12:01am on the
day on which coverage begins and expires at 12:01am on the expiration day of the policy.
Occurrence Date ✔✔Date of which the loss occurred
Identification of parties involved ✔✔The loss report should include the names and addresses of
the parties involved in the loss, the names and addresses of any injured person(s) and the names
and addresses of any witness(s).
Policy Form/Number ✔✔Identifies the type of coverage purchased (policy form) and the policy
number for the particular policy purchased by the insured.
Description of the Loss ✔✔Information concerning how, when and where the accident or loss
happened is an essential element in any loss report.
Coverage ✔✔Shows the type of coverage(s) purchased as well as the limits of coverage
purchased.
Damages - Special Compensatory damages ✔✔Are amounts paid to compensate the plaintiff for
direct expenses such as medical treatment, lost wages (both past and future), funeral expenses
and rehabilitation expenses required because of bodily injury. Special damages are paid for
losses that can be determined and documented. They are often referred to as "out-of-pocket"
expenses.
Damages - General Compensatory Damages ✔✔Are paid for losses that cannot be specifically
measured and itemized in order to compensate the plaintiff for things such as pain and suffering,
loss of the use of an arm or leg, loss of vision, physical disfigurement and/or loss of consortium.
Damages - Punitive Damages ✔✔Are typically awarded to the plaintiff in addition to
compensatory damages when the defendants conduct has been especially malicious. Punitive
damages are awarded to punish the defendant and to deter others from engaging in similar
actions.
Unfair Claims Settlement Practices ✔✔1. Knowingly misrepresenting relevant facts or policy
provisions relating to the coverage at issue. 2. Failing to acknowledge with reasonable
promptness communications pertaining to claims. 3. Failing to adopt and implement reasonable
standards for the prompt investigation of claims. 4. Arbitrary and unreasonable refusal to pay
claims. 5. Failing to affirm or deny coverage of claims within a reasonable time after proof of
loss has been completed. 6. Not attempting in good faith to make prompt, fair and equitable
claims settlement when the insurer's liability has become reasonably clear. 7. Compelling
insureds to institute suits to recover amounts due under a policy by offering substantially less to
settle immediately. 8. Attempting to settle claims for less than the amount for which a reasonable
person would believe one was entitled based on written or printed advertising material
accompanying or made a part of an application. I. Attempting settlement of claims on the basis
of applications that were altered without notice to knowledge of or consent of insureds.
Total Losses on Motor Vehicles/Miscellaneous Provisions ✔✔1. If the insurer and the claimant
are unable to reach an agreement as to the value of the vehicle, the insurer shall base any further
settlement offer not only on the published regional average value of similar vehicles, but also on
the value of the vehicle in the local market. 2. Local market value shall be determined by using
either the local price of a comparable vehicle or if no comparable vehicle can be found,
quotations from at least two qualified dealers within the local market area. Additionally, if the
claimant represents that the vehicle was in better than average condition, the insurer shall give
due consideration to the condition of the claimant's vehicle prior to the accident. 3. When a
motor vehicle is damaged in an amount which equals or exceeds 75 percent of the preaccident
actual cash value, an insurer shall "total loss" the vehicle by paying the claimant the preaccident
value and in return, receiving possession of the legal title for salvage purposes. 4. The insurer
will be responsible for all reasonable towing and storage charges until three days after the owner
and the storage facility are notified in writing that the insurer will no longer reimburse the owner
or storage facility for storage charges. 5. Loss and claims payments shall be mailed or otherwise
delivered within 10 business days after the claim is settled.
After Market Parts ✔✔An after market part is any part made by a non original manufacturer.
Speculative Risk ✔✔When there is a chance of gain as well as a chance of loss. Insurance is not
intended to protect against this type of risk.
Pure Risk ✔✔When there is a chance of loss only.
Insurable Risk ✔✔One that an insurance company is willing to accept.
Characteristics of Insurable Risk ✔✔1. Low probability of loss occurring, 2. Less than
catastrophic results, 3. The loss must be measurable, 4. The loss must be significant, 5. The loss
must be accidental and unintended.
Probability ✔✔Measures the chance of an event occurring, it is the measure of uncertainty (risk).
Law of Large Numbers (Law of Averages) ✔✔Mathematical principle that makes it possible to
predict future losses based upon prior experience.
Spread of Risk (Geographic Dispersion) ✔✔Also used to decrease loss probability. This process
involves spreading the company's policies (exposures) over a broad geographical area in order to
avoid large losses in the vent of a catastrophic event. An example is a hurricane.
Adverse Selection ✔✔Adverse selection occurs when insureds with a high risk of loss attempt to
purchase insurance and are successful in obtaining insurance.
Perils ✔✔Are the actual cause of loss such as a fire, theft, wind, hail, etc.
Hazards ✔✔Increase the probability of a peril occurring. Bald tires on an automobile increase
the chance of a wreck happening. The tires are the hazard, the wreck is the peril.
Property Insurance ✔✔Indemnified (repays) a person or business with an interest in the physical
integrity of tangible property for its loss or the loss of income produced by that property.
Casualty Insurance ✔✔Provides protection to meet the unexpected costs imposed by law due to
acts that have caused bodily injury or property damage to another individual. Included isn't he
field of casualty (liability) insurance are automobile, crime and surety bonds.
Private or Voluntary Insurance ✔✔Portion of the insurance industry where individuals seek
coverage to meet recognized needs. These coverages are neither required nor made available by
government. An example would be collision insurance in a personal automobile insurance
policy.
Social Insurance ✔✔Programs either required or made available by government.
Reinsurance ✔✔Filed of the industry where insurers sell portions of their individual contracts of
insurance to other companies. This activity helps with the spread of risk and/or improves cash
positions by lowering reserve requirements for these contracts. Insurance companies also
purchase reinsurance to protect themselves in case of catastrophic losses.
Capital Stock Companies ✔✔Proprietary companies that are in business to make a profit for
their stockholders. These companies are owned by stockholders who retain management
responsibility through the selection of a Board of Directors. Profits are paid to the stockholders
in the form of a commercial stock dividend that is fully taxable to the stockholder.
Mutual Insurance Companies ✔✔Are owned by their policyholders. Each policyholder "owns" a
part of the company equal to their proportionate share of the company's total insurance in force.
The policyholders select a board of directors who appoint
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