Insurance Adjuster Regulations and Liability Quiz

IRA typically oversees and regulates insurance adjusters' activities.

Insurance adjusters primarily investigate insurance claims to determine validity and compensation.

Deductibles in insurance are designed to allocate risk between the insurer and the insured party.

Staff adjusters are employed directly by insurance companies to handle claims on their behalf.

Insurance adjuster licenses are issued to regulate and ensure competency in the insurance industry.

Liability in insurance refers to legal accountability for actions or failures to act.

Denying all claims is not a standard step in the insurance adjusting process, which focuses on investigating and settling claims.

Subrogation allows insurers to pursue reimbursement from third parties who are responsible for a loss covered by insurance.

Bad faith refers to an insurer's failure to meet its contractual duties to the insured, often resulting in legal action.

Actual cash value in insurance refers to the current market worth of damaged property, accounting for depreciation.

Indemnification in insurance refers to the compensation paid by the insurer to cover losses as per the policy terms.

Public adjusters are hired by policyholders to negotiate and settle insurance claims with insurers on their behalf.

The principle of indemnity in insurance ensures that the insured is reimbursed for losses suffered, without profiting from them.

Rescission in insurance involves the cancellation of an insurance policy retroactively, often due to misrepresentation or non-disclosure.

Concurrent causation refers to instances where multiple factors contribute to a single loss covered by insurance, complicating claims assessment.