NC Adjuster Exam UPGRADE 2023 QUESTION AND CORRECT ANSWER

NC Adjuster Exam UPGRADE 2023 QUESTION AND CORRECT ANSWER Utmost Good Faith - CORRECT ANSWER-Both parties must act honest and openly in order for the contract to be valid. Adhesion - CORRECT ANSWER-One party sets the terms for the contract; the other party may simply agree or disagree Unilateral - CORRECT ANSWER-Only the insurer makes a promise to act; the insured can void contract at any time. Personal - CORRECT ANSWER-The insured person is protected from loses not the personal property. Conditional - CORRECT ANSWER-The insurer must only honor the contract if the insured meets certain conditions. Lavatory - CORRECT ANSWER-The execution of the contract depends on an unknown future event. Conditions - CORRECT ANSWER-List of requirements the insured must meet for coverage to apply. Declarations - CORRECT ANSWER-Information that makes a policy unique to the insured. Exclusions - CORRECT ANSWER-Causes of loss or items of property that are not covered by the policy. Endorsements - CORRECT ANSWER-Add, reduce, or change the coverage of the policy in some way. Definitions - CORRECT ANSWER-Explains exactly what specific words mean in the context of the policy. Insuring Agreement - CORRECT ANSWER-Essence of the contract. Summarizes what the insurer will cover and how. Government vs Private insurance - CORRECT ANSWER-Mandatory, run by the government, suited to needs of the general public. Offer insurance products based on customer preferences. Stock vs Mutual insurance - CORRECT ANSWER-Publicly traded; stock holders participate in dividends. Policy holders participate in dividends. Reciprocal Insurer - CORRECT ANSWER-group of people or organizations that insure each other. Re-insurer - CORRECT ANSWER-insurance for insurers Fraternal Benefit Society - CORRECT ANSWER-non profit mutual organization that will usually offer insurance benefits to members and their families. Risk Retention Group - CORRECT ANSWER-an alternative to traditional insurance, owned by its members; provides liability coverage for multiple companies in the same business. Risk - CORRECT ANSWER-1. potential for loss 2. the insured item Speculative Risk - CORRECT ANSWER-any risk in which gain is possible. Not insurable Pure risk - CORRECT ANSWER-any risk in which no gain is possible. Insurable Exposure - CORRECT ANSWER-The possibility or likelihood of damage or loss Hazard - CORRECT ANSWER-anything that increases exposure Peril - CORRECT ANSWER-The cause of damage or loss Loss - CORRECT ANSWER-Reduction in value expense caused by covered peril the amount an insurer pays to settle a claim Risk Avoidance - CORRECT ANSWER-eliminates risk Risk Reduction - CORRECT ANSWER-reduces or mitigates risk Risk Transference - CORRECT ANSWER-paying someone else to take the risk Risk Retention - CORRECT ANSWER-Accepts the risk Insurer - CORRECT ANSWER-Agency providing insurance Insured - CORRECT ANSWER-Person purchasing the policy First Named Insured - CORRECT ANSWER-First person or entity listed on the dec page Binder - CORRECT ANSWER-Temporary coverage until policy is issued. Representation - CORRECT ANSWER-A statement assumed to be true Misrepresentation - CORRECT ANSWER-False Statement Warranty - CORRECT ANSWER-Guarantee of action or condition Concealment - CORRECT ANSWER-Deliberately withholding pertinent information Waiver - CORRECT ANSWER-Relinquishing a right, claim, or privilege. Express Waiver - CORRECT ANSWER-written Implied Waiver - CORRECT ANSWER-assumed based on practice Estoppel - CORRECT ANSWER-The legal process of preventing one party from reclaiming a right that was waived. Moral Hazzard - CORRECT ANSWER-Deliberate, reckless behavior because of insurance coverage. Morale Hazzard - CORRECT ANSWER-Risky behavior because of the comfort of insurance coverage Legal Hazzard - CORRECT ANSWER-Increases chance of loss because of legal action Physical Hazzard - CORRECT ANSWER-Physical conditions that make losses more likely Fraud - CORRECT ANSWER-Using dishonesty to profit from an insurance policy Soft Fraud - CORRECT ANSWER-Exaggeration a claim Hard fraud - CORRECT ANSWER-deliberately causing or faking a loss Occurrence - CORRECT ANSWER-An event or circumstances that cause a loss