ID Public Adjuster flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Idaho public adjuster license

A license issued by the Idaho Department of Insurance allowing a person to represent insureds for compensation in negotiating property claims; requires exam, fingerprints, and prelicensing education.

Idaho Department of Insurance

The state agency that regulates insurance, licenses adjusters, enforces the Insurance Code, investigates complaints, and may impose fines, suspension, or revocation.

License renewal cycle

Idaho public adjuster licenses renew every two years; renewal requires continuing education, payment of fees, and accurate contact information, with late penalties for lapses.

Continuing education requirement

Idaho adjusters must complete approved CE hours, including ethics, before each renewal; certificates must be retained and produced if the Department audits the licensee.

Nonresident adjuster license

A license for adjusters residing outside Idaho; may be obtained through reciprocity or by meeting Idaho exam and background requirements when no reciprocal agreement applies.

Fingerprint background check

Idaho applicants submit fingerprints for a criminal history review; disqualifying convictions may bar licensure, and results are reviewed before the license is issued.

Unlicensed adjusting prohibition

Idaho law prohibits acting as a public adjuster without a valid license; violations may result in civil penalties, cease-and-desist orders, and criminal referral.

Insurable interest

A financial stake in the property or person insured such that loss causes economic harm; required at policy inception for property and at loss for life insurance.

Indemnity principle

Insurance restores the insured to approximately the pre-loss financial position, no better and no worse; actual cash value enforces indemnity, while replacement cost may exceed it.

Coinsurance formula

Payment equals the amount of insurance carried divided by the amount required, multiplied by the loss, capped at the policy limit; required amount is the coinsurance percentage times value.

Utmost good faith

Both parties must disclose material facts; concealment, misrepresentation, or breach of warranty can void coverage or reduce a claim under this principle.

Occurrence versus claims-made

Occurrence policies respond to injury during the policy period; claims-made policies respond to claims reported during the period, often with tail coverage for later reports.

Subrogation right

The insurer's right to pursue a responsible third party after paying a claim; the insured must not impair this right and may not recover twice for the same loss.

Policy declarations page

The section identifying the insured, covered property, policy limits, deductibles, and policy period; it is read together with the insuring agreement, conditions, and exclusions.

Replacement cost coverage

Pays to repair or replace damaged property with new materials of like kind and quality without deducting depreciation, typically after the insured completes repairs or replacement.

Actual cash value

Replacement cost minus depreciation; it reflects the property's value at the time of loss and is the default valuation method in many property policies.

Business income coverage

Replaces lost net income and continuing expenses during the period of restoration after a covered loss, often subject to a waiting period such as 72 hours.

Flood exclusion

Standard property policies exclude flood damage; separate NFIP or private flood coverage must be purchased, and water backup requires its own endorsement.

Proof of loss

A sworn statement by the insured stating the time, cause, and amount of loss; insurers may require it, and Idaho law sets timeframes for claim decisions and payment.

Duty to defend

The insurer's obligation to defend the insured against claims potentially within coverage, even if the suit is groundless or false; it is broader than the duty to indemnify.

Additional living expenses

Coverage for increased costs of temporary housing and meals while the dwelling is uninhabitable, subject to a time limit and a percentage of the dwelling limit.

Appraisal clause

A policy provision allowing either party to demand appraisal when the amount of loss is disputed; each selects an appraiser, who may choose an umpire to resolve differences.

Public adjuster contract

A written agreement signed by the insured that states the fee as a percentage of the settlement and identifies the claim and property; the insured must receive a copy.

Cancellation right

The insured may cancel a public adjuster contract within the statutory period after signing; the adjuster must disclose this right in writing.

Prohibited fee sharing

Public adjusters may not share compensation with unlicensed persons for soliciting or negotiating adjusting services; splitting fees with non-licensees is prohibited.

Conflict of interest disclosure

Adjusters must disclose financial interests in contractors or vendors and avoid representing both the insured and insurer on the same claim.

Unfair claims practices

Prohibited conduct includes misrepresenting policy provisions, failing to investigate promptly, and offering substantially less than a claim is worth without reasonable basis.

Disaster solicitation restrictions

Idaho restricts door-to-door canvassing during declared disasters or emergencies; adjusters may not misrepresent themselves as insurer or government representatives.

Record retention duty

Adjusters must keep claim files, contracts, correspondence, estimates, and settlement documents, and produce them to the Department during examinations or investigations.

Consumer complaint process

Consumers may file complaints with the Idaho Department of Insurance, which may investigate, mediate, and impose discipline including fines, suspension, or revocation.

Fiduciary handling of funds

Settlement funds must not be commingled with the adjuster's own funds; they should be handled according to the contract and applicable trust rules.

Truthful advertising requirement

Public adjuster advertising must be truthful, include the license number where required, and must not imply endorsement by the Department or government.