Thank you for allowing 1stCEU to assist you in your licensing needs. This course is designed to teach you the information necessary to pass a pre-licensing exam that is approved by the Texas Department of Insurance, to become a licensed All-Lines Insurance Adjuster for the state of Texas, as well as the reciprocal states that were listed in our introduction of this course.  Upon completion of the course, a 150 question exam, will be administered to you for the purpose of obtaining your All-Lines Adjusters license. Once you have completed the course and passed the exam with a score of at least 70%, we will promptly issue and mail a certificate of completion to you that must be submitted to the Texas Department of Insurance. Upon approval from the Texas Department of Insurance, a license will be issued to you by the state of Texas. Certain guidelines must be met by you in order for the Texas Department of Insurance (TDI) to issue a License to you. This information will be found in the packet that will be mailed to you along with your certificate of completion. Downloadable documents that are required by TDI are available to you by clicking on the Summary page. Throughout this course offering, you will be asked a series of questions that must be answered correctly in order to proceed to the next section. These questions are issued in multiple choice format and designed to assist you in preparing for the final exam that will be administered to you at the end of the course offering. With each 50 minutes that you study our online course, you will be given a 10 minute break to spend how ever you choose. Even in our live classroom setting, we take that opportunity to revitalize our senses in order to properly absorb such important information to come. We suggest that you do the same.  Shall we begin?

 

General Insurance Principals, Concepts, Key Terms Insurance is a social device for spreading the chance of financial loss among a large number of people. By purchasing insurance, a person shares risk with a group of others, reducing the individual’s potential for disastrous financial consequences. The risk management process involves identifying the loss exposures of the applicant and making decision on how to avoid those exposures. A peril is the cause of a loss. A hazard is a condition which increases the likelihood that a loss will occur.  Risk Management Key Terms Risk – The person or item that is considered the “insured”.  Exposure – State of being subject to the possibility of loss. In addition, it is the possibility of a loss due to one’s surroundings. Peril – Is the cause of loss. Loss – The basis for a claim for indemnity or damages under the terms of an insurance policy. Any reduction is the quality, quantity, or value of something insured.

 

There are basically four ways to manage risk, they are as follows:  1. Retain - i.e., when the insurer issues a policy, the insurer is assuming financial responsibility for an insured.  2. Reduce - i.e., by charging a higher cost to insured(s) involved in certain activities.  3. Avoid - i.e., occurs when the insurer declines a policy.  4. Transfer - i.e., accomplished by the use of reinsurance. There are two types of risk, only one of which can be covered by insurance. Speculative Risk - (such as gambling) creates a risk situation and offers the opportunity for gain as well as the possibility of loss. Insurance is not designed to protect against speculative risks. Pure Risk - The possibility of loss only; this is the type risk insurers accept. The purpose of insurance is to make a person whole again, to restore the insured to his or her original financial position. Insurance is not designed to provide a person with the opportunity of making a gain or profit.

 

Lowest Cost Insurance Company has many ways in which to handle a risk. John Jones is applying for insurance and has several past red flags that may or may not cause an insurer to want to do business with him. He had a heart attack four years ago. His doctors attributed the heart attack to his sudden weight gain and stress. Use this scenario to determine the various “Risk Management Terms and Techniques” Lowest Cost Insurance Company may use to review this potential policyholder?

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