Auto Adjuster Exam 17-66 Questions And Answers!!.

A non-waiver agreement issued by an insurance company is: {Ans: A coverage issue.. Non-waiver agreements and reservation of rights letters both serve the following general purposes: 1. To advise the insured that any action taken by the insurance company in investigating the cause of loss or in ascertaining the amount of loss is not intended to waive or invalidate any policy condition, and 2. To clarify that the intent of the agreement is to permit an investigation of the claim and that neither the insured nor the insurer will thereby waive any respective rights or obligations.}Adverse selection occurs when: {Ans: Applicants are accepted by the insurer with little or no attention given to underwriting. . Insurers must carefully underwrite all risks to avoid being the victim of adverse selection which is the tendency of insureds with a greater-than-average chance of loss to purchase insurance. With adverse selection, the insurer is confronted with the probability of loss due to risks not factored in at the time of sale.}Which of the following would be considered "special damages?" {Ans: Medical expenses There are two types of damages for bodily injury claims - special damages and general damages. Special damages are