PA TITLE LICENSE FULL GUIDE
QUESTIONS AND 100% VERIFIED
ANSWERS/GUARANTEED PASS!
Adverse Selection
- answers-Occurs when the only buyers of insurance are those expecting a loss.
Aleatory Contract
- answers-A contract that may be based on uneven terms which may or may not provide
more in benefits than premiums paid
Avoidance
- answers-The attempt to eliminate the chance of liability or loss by avoiding the activity
or circumstance in question
Concept of Concealment
- answers-The insurance company expects that no effort has been made to hide any
information or prevent the insurance company from having knowledge of the full picture
of the subject being underwritten.
Conditional Contract
- answers-An insurance policy is a conditional contract because in order for it to stay in
effect, it is conditioned upon the insured pay the premium and meet all the conditions
and stipulations in the title insurance policy.
For a contract to be binding
- answers-There must be an OFFER and an ACCEPTANCE and CONSIDERATION
Contract of Adhesion
- answers-Prepared by one party and offered to another on a take-it-or-leave it basis.
Court will rule in favor of the insured based on this.
Exposure
- answers-In insurance this is facing the possibility of loss
Expressed Authority
- answers-Specifically set authority given to an agent by an insurance company in the
agency agreement executed between the parties when the carrier appoints that agent
, Facultative Reinsurance
- answers-When a risk is ceded to a reinsurer outside of that which they normally do by
treaty
Fraud
- answers-Dishonest act which has the purpose of gaining an advantage or money
through illegal means. This is the largest problem in all fields of insurance.
Hazard
- answers-Term for those things that increase the likelihood or frequency of probable
loss or the severity of a loss
Implied Authority
- answers-Authority that is not expressed or written into the contract, but which the
agent is assumed to have in order to transact the business of insurance for the
principal.
Indemnity
- answers-The insured will be returned to approximately the same financial position after
the loss and payment by the insurance company as that person was in prior to the loss
Insurable Interest
- answers-A right, benefit, or advantage arising out of property that is of such nature that
it may properly be indemnified.
Directly Measureable
- answers-An element of an insurable risk is that it covers something Directly
Measureable
Law of Large Numbers
- answers-A principle stating that the larger the number of similar exposure units
considered, the more closely the losses reported will equal the underlying probability of
loss.
Peril
- answers-dangerous, hazardous, risky. The cause of loss in insurance
Principal
- answers-One who authorizes the agent to act in his/her behalf
Reinsurance Treaties
- answers-The policy amount is larger than the allowable limits, the insurer may assume
the "primary risk" and then purchase reinsurance, which is coverage from another
insurer. The reinsurer assumes the "secondary risk" under the reinsurance agreement.
QUESTIONS AND 100% VERIFIED
ANSWERS/GUARANTEED PASS!
Adverse Selection
- answers-Occurs when the only buyers of insurance are those expecting a loss.
Aleatory Contract
- answers-A contract that may be based on uneven terms which may or may not provide
more in benefits than premiums paid
Avoidance
- answers-The attempt to eliminate the chance of liability or loss by avoiding the activity
or circumstance in question
Concept of Concealment
- answers-The insurance company expects that no effort has been made to hide any
information or prevent the insurance company from having knowledge of the full picture
of the subject being underwritten.
Conditional Contract
- answers-An insurance policy is a conditional contract because in order for it to stay in
effect, it is conditioned upon the insured pay the premium and meet all the conditions
and stipulations in the title insurance policy.
For a contract to be binding
- answers-There must be an OFFER and an ACCEPTANCE and CONSIDERATION
Contract of Adhesion
- answers-Prepared by one party and offered to another on a take-it-or-leave it basis.
Court will rule in favor of the insured based on this.
Exposure
- answers-In insurance this is facing the possibility of loss
Expressed Authority
- answers-Specifically set authority given to an agent by an insurance company in the
agency agreement executed between the parties when the carrier appoints that agent
, Facultative Reinsurance
- answers-When a risk is ceded to a reinsurer outside of that which they normally do by
treaty
Fraud
- answers-Dishonest act which has the purpose of gaining an advantage or money
through illegal means. This is the largest problem in all fields of insurance.
Hazard
- answers-Term for those things that increase the likelihood or frequency of probable
loss or the severity of a loss
Implied Authority
- answers-Authority that is not expressed or written into the contract, but which the
agent is assumed to have in order to transact the business of insurance for the
principal.
Indemnity
- answers-The insured will be returned to approximately the same financial position after
the loss and payment by the insurance company as that person was in prior to the loss
Insurable Interest
- answers-A right, benefit, or advantage arising out of property that is of such nature that
it may properly be indemnified.
Directly Measureable
- answers-An element of an insurable risk is that it covers something Directly
Measureable
Law of Large Numbers
- answers-A principle stating that the larger the number of similar exposure units
considered, the more closely the losses reported will equal the underlying probability of
loss.
Peril
- answers-dangerous, hazardous, risky. The cause of loss in insurance
Principal
- answers-One who authorizes the agent to act in his/her behalf
Reinsurance Treaties
- answers-The policy amount is larger than the allowable limits, the insurer may assume
the "primary risk" and then purchase reinsurance, which is coverage from another
insurer. The reinsurer assumes the "secondary risk" under the reinsurance agreement.
