C110 Essentials of Loss Adjusting

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C110 Essentials of Loss Adjusting
2011-10-03 22:39:42
C110 Essentials Loss Adjusting

C110 Essentials of Loss Adjusting
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  1. Bad faith dealings may result in what type of damages?
  2. What are the 5 elements of a contract in common law provinces?
    • 1) Agreement
    • 2) Capacity to contract
    • 3) Consideration
    • 4) Genuine intention
    • 5) Legality of object

  3. What are the 4 elements of a contract in Quebec?
    • 1) Consents
    • 2) Capacity to contract
    • 3) Cause of contracts
    • 4) Object of contracts
  4. What are the 3 specific rules governing all insurance contracts?
    • 1) Principle of indemnity
    • 2) Insurable interest
    • 3) Utmost good faith
  5. What are some red-flag possibilities that an adjuster must examine?
    Misrepresentation, concealment, non-disclosure, and change in material risk
  6. What 3 questions must be reviewed when assessing INSURABLE INTEREST?
    • What property was damaged by an insured peril?
    • Is the property the subject matter of the insurance?
    • What is the insured's relationship to the property in law?
  7. Who may have insurable interest on a property?
    Agents, mortgagees, trustees, lessees, bailees, consignees, tenants, custodians, and lienholders may all have a direct interest in the preservation of property.
  8. It is up to the insured to prove their loss under the policy and to show that an insured peril was the proximate cause of the loss.

    Define proximate cause.
    Immediate and effective cause of loss. There must be an uninterrupted unfolding of events, without the intervention of another main cause.
  9. Proximate cause was defined by this case in which a lit firecracker was thrown numerous times causing injury to the last person. The person who threw first was deemed liable.
    Scott v. Shepherd (1773)
  10. Who usually represents an insurance company in a loss adjustment?

    Who might represent an insured?
    A salaried insurance employee or a hired independent adjuster represent the company.

    A public adjuster represents an insured.