DE Public Adjuster flashcards
DE Public Adjuster · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Public adjuster defined
- A licensed person who, for compensation, represents the insured in negotiating a first-party property claim against an insurer, including preparing and presenting the claim.
- Delaware licensing authority
- The Delaware Department of Insurance, led by the Insurance Commissioner, issues adjuster licenses and enforces the state Insurance Code.
- Surety bond requirement
- A bond posted as a condition of licensure that protects policyholders from financial harm caused by an adjuster's dishonest or improper conduct.
- Pre-licensing education
- Required coursework completed before sitting for the adjuster examination, covering policy, claims, and Delaware law topics.
- Nonresident reciprocity
- A process allowing a licensed adjuster from another state to obtain a Delaware license based on the home-state license and good standing.
- Fee splitting prohibition
- A rule barring public adjusters from sharing compensation with unlicensed persons or paying commissions to anyone for claim referrals.
- Continuing education cycle
- Hours of approved instruction, including ethics and law topics, that must be completed each renewal period to keep the license active.
- Insuring agreement
- The policy section that states what perils or causes of loss are covered and the property or interests protected under the contract.
- Exclusion analysis order
- Coverage is tested by insuring agreement, then exclusions, then exceptions to exclusions, then conditions, with the insured bearing the initial burden.
- Replacement cost
- The amount needed to repair or replace damaged property with new property of like kind and quality, without deduction for depreciation.
- Actual cash value
- Replacement cost of damaged property minus depreciation, reflecting the property's value in its pre-loss condition.
- Coinsurance penalty
- A reduction in recovery applied when the limit carried is less than the required percentage of value, calculated by the coinsurance formula.
- Business income coverage
- Coverage for lost net income and continuing normal operating expenses during the period of restoration following covered physical damage.
- Ordinance or law coverage
- Endorsement paying increased costs of complying with current building codes during repair, which is otherwise excluded under the base policy.
- Proof of loss
- A sworn statement by the insured setting out the amount claimed and supporting facts, submitted within the policy's stated deadline.
- Unit-cost estimating
- Building a damage estimate from line items for labor, materials, and equipment quantities, then adding overhead and profit where appropriate.
- Recoverable depreciation
- Withheld depreciation released to the insured after repair or replacement is completed and documented, up to the replacement cost basis.
- Claim file documentation
- Photographs, measurements, readings, weather records, receipts, and bids retained to support each conclusion reached during adjustment.
- Appraisal provision
- A contractual process where each party selects an appraiser to resolve disputes about the amount of loss, not questions of coverage.
- Settlement negotiation record
- A dated log of offers, counteroffers, and the basis for each figure, preserving the record for appraisal or litigation.
- Period of restoration
- The time reasonably required to repair or replace damaged property with due diligence, ending when operations resume at the premises.
- Unfair claim settlement practice
- Misrepresenting policy provisions, failing to act promptly on communications, or refusing to pay without a reasonable investigation.
- Commissioner authority
- Power to examine licensees, issue orders, impose fines, suspend or revoke licenses, and order restitution for violations.
- Rate and form filing
- The requirement that insurers submit policy forms and rates for regulatory review, with conflicting mandatory provisions unenforceable.
- Guaranty association
- A statutory mechanism that pays covered claims of insolvent insurers up to specified limits, protecting policyholders and claimants.
- Administrative hearing
- A proceeding before the Department of Insurance to adjudicate alleged violations, followed by judicial review after remedies are exhausted.
- Fiduciary duty
- The public adjuster's obligation to act in the insured's best interest, disclosing conflicts and avoiding self-dealing in the claim.
- Written adjuster contract
- A required agreement stating compensation, scope of services, and the insured's statutory right to cancel within the stated period.
- Disaster solicitation limits
- Restrictions on soliciting victims at a loss site or during a declared emergency, prohibiting unsolicited door-to-door approaches.
- Client fund handling
- A rule requiring claim settlement funds to be kept separate from the adjuster's own funds, barring commingling of client money.
- Confidentiality duty
- The obligation to protect the insured's personal and financial information, disclosing it only as necessary to adjust the claim.
- Deceptive practice
- Misrepresenting the adjuster's authority, the insurer's obligations, or a claim's value, exposing the licensee to discipline.