Claims Adjuster Academy Chapter 3 Demo

The amount paid by each company is determined by adding the limits of all policies that cover the loss, then dividing the limit of the first policy by the total amount of insurance available. The figure that results is multiplied by the amount of the loss to determine that policy’s payment amount. Limits of Liability Each policy or coverage part will have a declarations section for listing the limits of liability. Different forms may use different wording – limit of insurance, amount of insurance, and limit of

Liability mean the same thing. Vacancy or Un-occupancy Vacant- The absence of both people and property from the premises.

Unoccupied- The absence of people. Named Insured Provisions Duties After Loss- Condition found in property-casualty policies that explain the insured’s responsibilities after a loss occurs. Assignment- Condition in insurance policies that specifies that the policy cannot be transferred to another unless the company consents to the transfer in writing. Abandonment- A condition often contained in property insurance policies that states that the insured cannot abandon damaged property to the insurer and demand to be reimbursed for its full value. Insurer Provisions Liberalization- Condition found in property insurance contracts that provides that if a law is passed that broadens coverage under a policy form or endorsement without requiring an additional premium, then all existing similar policy endorsements will be construed to contain broadened coverage. Subrogation- The transfer to the insurance company of the insured’s right to collect damages from another party. Salvage- Damaged property that can be retrieved and reconditioned then sold to reduce an insured loss.

3.5 TEXAS LAWS, REGULATIONS AND REQUIRED PROVISIONS