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-They are endorsements to cover large, general losses. WHY: Additional coverages are limited endorsements for specific types of losses or expenses. A windstorm cuts the power supply of a wholesale butcher. To keep his inventory from spoiling, the butcher immediately runs to the store and rents generators to keep his freezersworking. Which of the following statements is TRUE?-Business Interruption coverage will indemnify the butcher for the extra expense, even if renting generators fails to keep the mean from spoiling -Business Interruption coverage will indemnify the butcher for the cost of the rentals, but only if he has to close the store for more than 15 minutes while picking them up.-Business Interruption coverage does not cover extra expenses, such as equipment rental.-Business Interruption coverage will indemnify the butcher for the cost of the rentals, but only of he succeeds in preserving his inventoryWHY: Business Interruption coverage will indemnify the insured for “Extra Expenses” if those extra expenses succeed in preventing further covered losses. 6-C Fiduciary Duty and Ethics 1. Fiduciary Duty and Ethics
-1.1 Introduction Notes: As an insurance adjuster, you wield a great deal of power, since it is up to you to determine the final amount of indemnification for a claim. Having this kind of power can make it difficult to make good decisions. You might be tempted to do what is in your own self-interest, rather than what is right. Adjusters, however, have an important responsibility towards the insurer, called a fiduciary duty, and are held to a standard of behavior which requires that they be honest and trustworthy at all times. In this chapter, we will briefly examine what it means to have a fiduciary duty, along with the other ethical responsibilities and challenges associated with being an adjuster. We will conclude the chapter with the "Adjusting Code of Ethics." This set of 15 rules should be your guide to help you make good decisions throughout your adjusting career.
-1.2 Fiduciary Duty Notes: An adjuster has an important obligation towards the insurer, called a Fiduciary Duty. A Fiduciary Duty is a legal relationship of confidence and trust between two parties. As the insurer's fiduciary agent, the adjuster makes financial decisions on behalf of the insurer. This means she must uphold the insurer's financial interests whenever handling a claim, and perform her job with honesty and utmost good faith at all times. At the same time, the adjuster must be honest in evaluating the losses of her claimants. She must determine whether their damages are covered by the insurance policy, and if so, exactly how much the insurer should pay.
-1.3 Liaison Notes: In an ideal world, claimants and insurers would always agree on a proper amount of indemnification due when damages occur; in the real world, however, this is rarely the case.