Question

1. What are the three steps the adjuster must take upon receipt of a new claim?

a.

b.

c.

2. Define the following methods used to determine the value of a property loss:

a. Replacement cost

b. Actual cash value

c. Agreed value

d. Functional replacement cost (use outside sources for this, many examples are online)

3. What is a bad faith claim?(a) Explain the consequences faced by an insurance company if they are accused of acting in bad faith. (b)

a.

b.

4. Explain why liability claims are more difficult to adjust than property claims.

5. Explain three procedures which insurance companies may modify when handling catastrophic losses.

a.

b.

c.

Answer 1

Answer:

1)

a.The more data you have about your harmed assets a depiction of the things.

b.The surmised date of procurement .

c.what it would cost to replace or repair the quicker your case for the most part can be settled.

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2)

a.Replacement cost:

It alludes to the value that if would cost to replace a current asset with a comparative asset at the current market cost.

b.Actual cash value:

It is the sum equivalent to the substitution or replacement cost minus devaluation of a harmed or stolen property at the time of the misfortune.

c.Agreed Value:

It is Usually an optional coverage on a property structure that gives a sum that the insured and insurer concur the property is worth.

d.Functional Replacement cost:

It characterizes Endorsement to mean the sum it would cost to replace or repair a harmed structure utilizing materials and techniques that are less expensive however practically identical to obsolete,antique or custom strategies or materials utilized initially.

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3)

Bad Faith Claim:

It is a grievous misnomer that is presumably liable for more confusion than comprehension between the bench and bar.

a.A insurer in a first party activity can't be subject for bad faith claim even its goal was to perniciously deny a case it knew to be genuine and worthy.

b.Bad faith claims wherein the insured covered by an approach giving advantages, for example,health or medical insurance or discharge coverage legitimately to the insured, has an option to look for extra contractual harms or damages for their insurer's breach of contract.

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4)

The Liability insurance claims agent's activity includes numerous aspects and jobs. As a specialist, an insurance contract master, and an individual of sympathy who satisfies the policy vows to safeguard and repay and insured.

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5)

a.It may not be secretly insured in light of difficulties in evaluating and valuing the hazard (Eg: Atomic danger).

b.It could be dependent upon adverse choice might be explicitly prohibited from coverage (Eg: Flood,cyclone)

c.An insurance agency may use interior models to decide if an event is a calamity or catastrophe as it identifies with its particular book of business regardless of whether the event has not been marked as a catastrohe for the business as a whole.

Note:

An Adjuster is an individual expertly prepared to evaluate the damage or harm.