KY Public Adjuster key terms

A license issued by the Kentucky Department of Insurance that authorizes an individual or business entity to transact a specific class of insurance business in the state.

The credential a person must hold to negotiate or settle a first-party property claim on behalf of an insured for compensation, obtained by passing an exam and meeting state requirements.

The legal obligation to act in the insured's best interest and to handle claim funds or settlement proceeds with honesty and care, never using them for personal benefit.

A fee arrangement in which the public adjuster is paid a percentage of the settlement amount the insured ultimately recovers, subject to statutory caps.

A written agreement that must be signed by the insured before the adjuster provides services, disclosing fees, duties, cancellation rights, and the adjuster's authority to act.

The insured's legal ability to cancel a public adjuster agreement within a stated period after signing, without penalty or obligation to pay fees.

Prohibited insurer conduct such as misrepresenting policy provisions, unreasonable delay, failing to investigate promptly, or offering far less than the claim is worth.

An insurer's failure to deal fairly and in good faith with its insured, often shown by unreasonable denial or delay of a valid claim, exposing the insurer to extra-contractual damages.

A financial stake in the property or person insured such that the policyholder suffers a genuine economic loss if the covered event occurs.

The core idea that insurance restores the insured to roughly the same financial position held before a loss, neither enriching nor punishing the policyholder.

The mutual duty of insurer and insured to deal honestly, disclosing material facts that would affect the other party's decision to issue or accept the policy.

A false statement of fact on an application that would have changed the insurer's decision to issue coverage or the premium charged, potentially allowing rescission.

A valuation method that pays the cost to replace damaged property minus depreciation, reflecting the property's worth at the time of loss.

The amount needed to repair or rebuild damaged property with new materials of like kind and quality, without deducting for depreciation, often subject to policy limits.

The reduction in value of property from age, wear, use, or obsolescence, used to convert replacement cost into actual cash value.

A property policy provision requiring the insured to carry coverage equal to a stated percentage of the property's value or face a reduced claim payment.

A property policy in which the insurer and insured set a fixed value for the insured property in advance, eliminating the coinsurance penalty and depreciation disputes.

The amount of a covered loss the insured must absorb before the insurer begins paying, often stated as a flat dollar figure or a percentage of the dwelling limit.

The maximum amount an insurer will pay for a covered loss under a given coverage part, as stated on the declarations page.

Coverage that pays the extra cost of temporary housing and living costs above normal expenses when a covered peril makes the home uninhabitable.

Homeowners coverage that reimburses increased living costs and lost fair rental value when a covered loss renders the residence premises unfit to occupy.

Commercial coverage that replaces lost net income and continuing normal operating expenses during the period a business is shut down by a covered property loss.

The timeframe, beginning with the loss and ending when the property is repaired or replaced with reasonable speed, during which business income losses are measured.

Commercial coverage that pays costs a business incurs to continue operations and reduce downtime after a covered loss, beyond normal operating expenses.

Coverage that pays the added cost of rebuilding to current building codes, such as upgraded electrical or accessibility requirements triggered by a covered loss.

A property policy that covers only the specific causes of loss listed in the form, leaving the insured to prove the loss resulted from one of them.

A property policy covering all risks of direct physical loss except those expressly excluded, shifting the burden to the insurer to prove an exclusion applies.

The obligation of a party to prove a fact in dispute, such as the insured showing a covered loss occurred or the insurer showing an exclusion bars coverage.

A sworn statement the insured submits to the insurer detailing the amount, date, and circumstances of a claim, usually required within a set deadline.

A policy provision allowing the insured and insurer to each hire a competent appraiser when they disagree on the amount of loss, with an umpire resolving differences.

The insurer's right, after paying a claim, to pursue the party who caused the loss to recover the amount paid, standing in the insured's shoes.

Damaged property that retains some value after a loss; the insurer may take title to it or the insured may keep it with its value deducted from the settlement.

Failure to exercise the degree of care a reasonable person would use under similar circumstances, forming the basis of most liability claims.

The legal responsibility of a property owner or occupier for injuries suffered by people on the property due to unsafe conditions or inadequate maintenance.

Homeowners coverage that pays sums the insured becomes legally obligated to pay because of bodily injury or property damage caused by an occurrence on or off the premises.

A doctrine that reduces a claimant's recovery in proportion to the claimant's own share of responsibility for the injury or damage.

A segregated bank account in which a public adjuster deposits client funds or settlement proceeds, keeping them separate from the adjuster's own money.

A detailed written inventory of damaged property and the repair or replacement work needed, used to support and negotiate the claim amount.

An improvement that increases property value beyond its pre-loss condition, which insurers typically exclude from settlement so the insured does not profit from a loss.