Podcast
Questions and Answers
What is primarily the focus of contract law as it relates to loss adjusters?
What is primarily the focus of contract law as it relates to loss adjusters?
- Interpretation of specific agreements between parties (correct)
- Duty of care owed to the principal
- The establishment of common law precedents
- Compliance with building codes and standards
Which law overrides common law when there is a conflict?
Which law overrides common law when there is a conflict?
- Case law
- Common law
- International law
- Statute law (correct)
What is a key responsibility of loss adjusters in relation to common law?
What is a key responsibility of loss adjusters in relation to common law?
- Exercising reasonable skill and care in their duties (correct)
- Making decisions without client consultation
- Fixed negotiations regardless of circumstances
- Determining the final outcome of insurance claims
Why is it important for loss adjusters to understand applicable statute laws?
Why is it important for loss adjusters to understand applicable statute laws?
What might necessitate modifications to the original design of repairs in older properties?
What might necessitate modifications to the original design of repairs in older properties?
What does the duty of care owed by loss adjusters include?
What does the duty of care owed by loss adjusters include?
Which of the following is NOT a responsibility of loss adjusters regarding settlements?
Which of the following is NOT a responsibility of loss adjusters regarding settlements?
How does the duty of care owed by loss adjusters to other parties differ from that owed to their principals?
How does the duty of care owed by loss adjusters to other parties differ from that owed to their principals?
What is the primary purpose of the Building Code in New Zealand?
What is the primary purpose of the Building Code in New Zealand?
Which of the following is a key component of contract law?
Which of the following is a key component of contract law?
Which act is aimed at protecting consumers from misleading practices by businesses?
Which act is aimed at protecting consumers from misleading practices by businesses?
Under the Building Act 2004, what is a critical outcome expected from building work?
Under the Building Act 2004, what is a critical outcome expected from building work?
What does the Commerce Act 1986 prohibit companies from doing?
What does the Commerce Act 1986 prohibit companies from doing?
Which principle is NOT typically outlined in the Privacy Principles of the Privacy Act 2020?
Which principle is NOT typically outlined in the Privacy Principles of the Privacy Act 2020?
What must adjusters operate under according to contract law?
What must adjusters operate under according to contract law?
The Consumer Guarantees Act 1993 is primarily designed to ensure which of the following?
The Consumer Guarantees Act 1993 is primarily designed to ensure which of the following?
What is the maximum timeframe for an insurer in Australia to decide on a claim after receiving all necessary information?
What is the maximum timeframe for an insurer in Australia to decide on a claim after receiving all necessary information?
What does the Fair Insurance Code in New Zealand primarily emphasize in its dealings with policyholders?
What does the Fair Insurance Code in New Zealand primarily emphasize in its dealings with policyholders?
How long does an insurer in New Zealand have to acknowledge receipt of a claim?
How long does an insurer in New Zealand have to acknowledge receipt of a claim?
Which of the following is NOT a requirement imposed by the General Insurance Code of Practice in Australia?
Which of the following is NOT a requirement imposed by the General Insurance Code of Practice in Australia?
What is one of the obligations of insurers when handling claims under the General Insurance Code of Practice?
What is one of the obligations of insurers when handling claims under the General Insurance Code of Practice?
Under the Fair Insurance Code, what may cause an insurer to take longer than 10 business days to evaluate a claim?
Under the Fair Insurance Code, what may cause an insurer to take longer than 10 business days to evaluate a claim?
What must members of a professional institute adhere to regarding their conduct?
What must members of a professional institute adhere to regarding their conduct?
Which organization has its own code known as the Charter of Objects and Professional Conduct?
Which organization has its own code known as the Charter of Objects and Professional Conduct?
Flashcards
General Insurance Code of Practice (Australia)
General Insurance Code of Practice (Australia)
Standards for general insurance industry in Australia, covering product sales, claims handling, complaints, timeframes, and obligations to vulnerable customers.
Claim Acceptance Timeframe (Australia)
Claim Acceptance Timeframe (Australia)
Insurers must decide whether to accept a claim within 10 business days of getting all the information, and make a final decision within four months of the initial claim.
External Expert Report Time (Australia)
External Expert Report Time (Australia)
Loss adjusters should submit reports within 12 weeks of being hired.
Fair Insurance Code (New Zealand)
Fair Insurance Code (New Zealand)
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Claim Acknowledgement Time (New Zealand)
Claim Acknowledgement Time (New Zealand)
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AICLA Charter
AICLA Charter
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Professional Codes of Conduct
Professional Codes of Conduct
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Timely Performance (Insurance)
Timely Performance (Insurance)
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Common Law
Common Law
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Statute Law
Statute Law
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Contract Law
Contract Law
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Loss Adjuster's Duty of Care
Loss Adjuster's Duty of Care
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Legislative Changes
Legislative Changes
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Claim Negotiation
Claim Negotiation
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Duty of Care to Insured
Duty of Care to Insured
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Building Codes Compliance
Building Codes Compliance
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Insurance Law Reform Act 1985
Insurance Law Reform Act 1985
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Privacy Act 2020
Privacy Act 2020
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Fair Trading Act 1986
Fair Trading Act 1986
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Consumer Guarantees Act 1993
Consumer Guarantees Act 1993
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Commerce Act 1986
Commerce Act 1986
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Building Code
Building Code
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Building Act 2004
Building Act 2004
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Study Notes
Loss Adjustment Law
- Loss adjusters need to be aware of various legal codes and practices affecting settlement negotiations.
- Three key areas of law are relevant:
- Common law: Based on precedents from court cases. Loss adjusters operate according to a standard of reasonable skill and care in their duties, owing a duty of care to the principal (often the insured)
- Statute law: Created by parliaments (or delegated authorities); overrides common law if conflicting. Laws can vary between states and countries. Each situation will have local/state/federal legislative considerations.
- Contract law: Focuses on interpreting specific agreements between parties involved. Procedures are usually outlined through contracts that detail adjuster duties.
Statute Law and Regulations
- Statute laws created by parliaments (often overriding common law) are important. Rules vary based on state/country.
- Different circumstances will have various legislative requirements and variations.
- Loss adjusters need to know which statutes apply to the situation under consideration.
Insurance Contracts Act 1984
- This Act regulates Australian insurance contracts, aiming for fair treatment of all parties by enforcing reasonable standards.
- Covers duties of "utmost good faith" expected between parties (honesty, fairness, transparency).
- Sections 12–14A in Part II outline the Duty of Utmost Good Faith in insurance contracts.
- Sections 20–22 address information disclosure responsibilities (different for consumer vs non-consumer contracts).
Competition and Consumer Act 2010
- This Act protects consumers' welfare, promoting fair competition.
Privacy Act 1988
- This Act regulates how organizations collect, use, and share personal information. It formalizes consumer rights regarding their information.
- The act dictates how organizations can collect, use, keep, secure, and disclose personal information.
Fair Trading Act 1986
- Illegal for businesses to mislead consumers, provide false information, or employ unfair practices.
Consumer Guarantees Act 1993
- Ensures a trading environment of trust between businesses and consumers.
- Provides guarantees when acquiring goods and services.
Commerce Act 1986
- This act prohibits anti-competitive agreements (companies colluding to fix prices).
- Illegal for companies to abuse a dominant market position.
Building Regulations
- Both local and national codes of practice (such as the National Construction Code).
- Building standards might need to comply with current rules rather than standards at the time of building construction.
Codes of Practice
- General insurance industry standards (e.g., how claims are handled) often exist for guiding the work of loss adjusters.
Professional and Representative Bodies
- Organizations like AICLA and ICNZ provide ethical guidelines and codes of conduct.
- Examples of requirements include avoiding conflicts of interest, acting honestly and fairly, maintaining professional conduct and protecting the good name of the organization.
Other Bodies (Australia/New Zealand)
- Organizations representing insurance/general industries like ICA or ICNZ.
- These organizations provide industry oversight, advise clients, handle claims and guide the industry.
- There may be particular bodies dealing with natural hazards.
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Description
Explore the essential legal frameworks surrounding loss adjustment, including common law, statute law, and contract law. This quiz helps loss adjusters understand their responsibilities and the legal context of their work, emphasizing the importance of skill and care in settlement negotiations.
