IN Public Adjuster flashcards

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

Indiana public adjuster license

A credential issued by the Indiana Department of Insurance under IC 27-1-27.1 authorizing a person to represent insureds in first-party claims for compensation.

Disaster fee cap

Indiana limits public adjuster compensation to 10% of the amount recovered on a claim when a disaster or emergency has been declared.

Contract cancellation right

Indiana requires public adjuster contracts to disclose the insured's right to cancel within a statutory period, commonly three business days after signing.

Fiduciary duty

The public adjuster must act solely in the insured's interest, account for claim funds promptly, and disclose all compensation and conflicts.

Claim file documentation

Contemporaneous notes, photographs, measurements, correspondence, and settlement records that support the adjustment and demonstrate good-faith handling.

Insurance fraud

Intentional misrepresentation or exaggeration of a claim, such as inflated damages or altered invoices, subject to criminal and administrative penalties.

Insurable interest

A pecuniary relationship in which the insured suffers actual economic loss from damage to the property, required at the time of loss.

Coinsurance formula

Recovery equals carried insurance divided by required insurance, multiplied by the loss, capped at the policy limit.

Actual cash value

Replacement cost minus depreciation, reflecting the value of the property at the time of loss rather than the cost to replace it.

Appraisal provision

A dispute-resolution mechanism in which each party selects an appraiser and an umpire resolves differences when valuation is contested.

Open-perils coverage

A form covering all risks of direct physical loss unless specifically excluded, shifting the burden to the insurer to prove an exclusion applies.

Replacement cost coverage

Pays the cost to repair or replace with like kind and quality without depreciation, provided the insured repairs or replaces within the policy period.

Ordinance or law coverage

Pays increased costs to comply with building codes during repair, and is excluded unless added by endorsement.

HO-3 policy

A homeowners form covering the dwelling on an open-perils basis and personal property on a named-perils basis, the most common form.

HO-5 policy

A homeowners form covering both the dwelling and personal property on an open-perils basis, offering broader coverage than HO-3.

Scheduled personal property

An endorsement listing specific items such as jewelry or art for broader perils and higher limits than the standard contents coverage.

Business income coverage

Pays net income plus continuing normal operating expenses during the period of restoration after a covered loss.

Extra expense coverage

Pays costs to avoid or minimize business interruption, such as temporary relocation or expedited repairs, without requiring a suspension of operations.

Agreed value option

A commercial property provision that suspends the coinsurance requirement when the insured submits an accepted statement of values.

Inland marine coverage

Covers property in transit, property of others, and mobile property, generally on an open-perils basis without coinsurance.

Equipment breakdown coverage

Covers mechanical and electrical breakdown of machinery and equipment, a peril typically excluded by standard property policies.

Difference in conditions

A form filling gaps left by named-perils property policies, often adding flood and earthquake coverage.

Commercial general liability

A policy covering bodily injury, property damage, personal and advertising injury, and medical payments arising from the insured's operations.

Claims-made policy

A liability form requiring the claim to be reported during the policy period or an extended reporting period, unlike occurrence forms.

Additional insured endorsement

An endorsement extending liability coverage to another party, such as a landlord or general contractor, with scope varying by wording.

Proof of loss

A sworn statement from the insured detailing the amount claimed and supporting facts, reviewed by the adjuster before payment.

Reservation of rights

A letter preserving the insurer's coverage position when facts are uncertain, allowing continued investigation without waiving defenses.

Cause and origin investigation

The process of determining how and where a loss began, separating covered perils from excluded ones through physical and witness evidence.

Depreciation formula

Depreciation equals replacement cost minus salvage, divided by useful life, multiplied by age; subtracting it from replacement cost yields actual cash value.

Overhead and profit

A percentage added to estimates when three or more trades are involved or a general contractor is needed to coordinate the work.

Quantity takeoff

A measurement method calculating dimensions and quantities of damaged materials, multiplied by unit costs to produce the repair estimate.

Matching requirement

The principle that undamaged materials may need replacement to achieve a uniform appearance, depending on policy language and jurisdiction.