NV Public Adjuster flashcards

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

Nevada Division of Insurance

State agency within the Department of Business and Industry that licenses producers, reviews policy forms and rates, investigates consumer complaints, and enforces the Nevada Insurance Code.

NRS Title 57

The portion of the Nevada Revised Statutes containing the insurance code, including producer licensing, trade practices, and property and casualty policy provisions.

Unfair claim practice

Under NRS 686A.310, conduct such as misrepresenting policy provisions, failing to act promptly on claims, or offering substantially less than the amount ultimately recovered.

Producer license renewal

Nevada licenses renew biennially at the end of the licensee's birth month, with continuing education hours due before renewal is granted.

Continuing education requirement

Nevada producers complete 30 hours per two-year term, including at least 3 hours of ethics, to maintain an active license.

Cancellation notice periods

Nevada generally requires 10 days' notice for cancellation due to nonpayment of premium and 30 days for other permitted cancellation reasons.

Public adjuster contract

A written agreement between the insured and the public adjuster stating services, compensation, and terms, required before the adjuster begins work on the claim.

Certificate of authority

The license document issued by the Division authorizing an insurer to transact specified lines of insurance business in Nevada.

HO-3 policy form

Homeowners form insuring the dwelling on an open peril basis and personal property on a named peril basis; the most common form for owner-occupied residences.

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 for age, wear, and obsolescence; the basis used when the policy does not provide replacement cost.

Coinsurance clause

A provision requiring insurance equal to a stated percentage of property value; a shortfall reduces the loss payment proportionally.

Mortgage clause

Provision giving the lender rights independent of the insured, including notice of cancellation and payment of loss to the extent of its interest.

Loss of use coverage

Pays additional living expenses or fair rental value when the dwelling is uninhabitable due to a covered loss, usually for a stated time period.

Business income coverage

Pays lost net income and continuing normal operating expenses during the period of restoration following a covered loss at the described premises.

Ordinance or law exclusion

Excludes the extra cost of rebuilding to current building codes unless the endorsement or increased limit is purchased.

Flood exclusion

Standard property forms exclude flood and surface water; coverage must be obtained through the NFIP or a separate private flood policy.

Proof of loss

A sworn statement from the insured detailing the amount claimed, usually due within 60 days of the insurer's written request.

Recoverable depreciation

The withheld portion of a replacement cost claim released after the insured completes repairs and submits documentation of the actual cost.

Scope of loss

An itemized estimate listing quantities, unit prices, labor, materials, overhead and profit, and sales tax required to restore the damaged property.

Appraisal clause

Policy provision allowing each party to select a competent appraiser, who together choose an umpire, to resolve valuation disputes without litigation.

Subrogation

The insurer's right to pursue a responsible third party after paying a claim, recovering from that party the amount paid to the insured.

First notice of loss

The initial report of a claim to the insurer, recording date, cause, location, and contact information, and starting the claim handling timeline.

Period of restoration

The time reasonably required to repair or replace damaged property with similar quality and capacity, ending when the property should be operational.

Salvage

Damaged property with residual value that the insurer may take, sell, or leave with the insured, with the proceeds reducing the claim payment.

Fiduciary duty

A producer's obligation to hold client funds in trust, act in the client's best interest, and remit money promptly to the proper party.

Rebating

Offering part of a commission or any inducement not stated in the policy as an incentive to buy insurance; prohibited as an unfair trade practice.

Twisting

Inducing a policyholder to lapse or surrender coverage through misrepresentation or incomplete comparison in order to sell another policy.

Commingling of funds

Mixing client or premium funds with the producer's own business or personal money, which is prohibited and can result in license action.

Conflict of interest

A situation where the adjuster's financial or personal interest in a vendor or outcome could bias the adjustment and must be disclosed or avoided.

Confidentiality obligation

The duty to protect personal and financial information learned during a claim and disclose it only as needed to adjust the claim or as required by law.

Licensee reporting duty

Producers must notify the Division of changes such as address, administrative actions, or criminal convictions within the time required by regulation.