Claims Adjuster Academy Chapter 3 Demo

The loss ratio adds loss adjustment expenses to incurred losses:

(INCURRED LOSSES + LOSS ADJUSTMENTS EXPENSES) DIVIDED BY EARNED PREMIUM) X 100% = LOSS RATIO

Determination of Liability For first-party losses, adjusters determine the amount of damages after verifying coverage and the initial assessment. For liability claims, adjusters focus on determining liability, or establishing legal fault, along with determining damages. Tort A tort is a wrongful act or omission, other than a breach of contract, which causes harm and might lead to a civil lawsuit for damages. A person or an organization that commits a tort is

called a tort-feasor. Classes of Torts

Negligence- Negligence refers to torts that occur when a person fails to use the proper safeguards for the safety of another person on his or her property. Negligence is the most significant area of tort law for adjusters.

Strict Liability- Strict Liability (or absolute liability) often arises from ultra-hazardous operations.

Intentional Torts- Intentional torts occur when the tort-feasor purposefully harms another person through his or her actions. Contractual Liability Contractual Liability- Arises when someone’s rights are violated under the terms of a contract. Contractual Assumptions of Liability- As a condition of a business contract, a party often agrees to assume financial responsibility for liabilities imposed by law on another party. Warranties A warranty is a contractual promise that accompanies the sale of a product. Express warranties are promises made orally or in writing by the manufacturer or retailer. An implied warranty is not specifically expressed, but a purchaser could reasonably infer that the warranty exists. Adjusters encounter warranties when they are handling product liability claims.

NOTHING GIVES ONE PERSON SO MUCH ADVANTAGE OVER ANOTHER AS TO REMAIN ALWAYS COOL AND UNRUFFLED UNDER ALL CIRCUMSTANCES.