NEW YORK INDEPENDENT GENERAL ADJUSTER EXAM PREP:
SERIES 17-70 | QUESTIONS AND ANSWERS | VERIFIED ANSWERS |
LATEST EXAM
Agreement - CORRECT ANSWER - One of the four requirements of a legally
binding contract. All parties agree to the terms of the contract.
Competence - CORRECT ANSWER - One of the four qualifications of a
legally binding contract. All parties must be competent with the necessary legal
and mental capacity.
Consideration - CORRECT ANSWER - One of the four qualifications of a
legally binding contract. All parties must bring something of value to the
contract.
Four requirements of a legal a contract - CORRECT ANSWER - agreement,
consideration, competent parties, legal purpose
Indemnification - CORRECT ANSWER - Reimbursement for a loss, which
leaves the claimant in the same financial position that she was in before the loss
Indemnify - CORRECT ANSWER - To restore by payment, repair, or
replacement
Indemnity Insurance - CORRECT ANSWER - Insurance that indemnifies loss
as opposed to liability
Insurance - CORRECT ANSWER - A financial device that transfers the risk of
unexpected, catastrophic loss from one party to another
,Insurance Company - CORRECT ANSWER - Company which sells insurance
policies to individuals or to other companies
Insurance policy - CORRECT ANSWER - A contract wherein an insured pays
premiums to an insurer in exchange for financial protection in the event of a
covered loss
Insured - CORRECT ANSWER - A person covered by an insurance policy
Insurer - CORRECT ANSWER - The person providing coverage to one or
more insureds
Loss - CORRECT ANSWER - Bodily injury, property damage, or damage
caused by the insured's negligent acts; loss is the basis for an insurance claim.
Loss can also mean the sum the insured will have to pay
Policyholder - CORRECT ANSWER - Also called the "insured", a
policyholder is a person who has purchased an insurance policy - or contract-
from an insurer.
Premium - CORRECT ANSWER - A scheduled an affordable fee, paid by the
policyholder to the insurer, in return for coverage.
Principle of Indemnity - CORRECT ANSWER - The principle that insurance
policies should provide a benefit no greater than the loss suffered by an insured.
Insured cannot profit from the loss.
Adhesion - CORRECT ANSWER - Characteristics of an insurance contract.
Means that one party (The insurer) sets the terms, and the other (the
policyholder) can "take it or leave it"
,Aleatory - CORRECT ANSWER - A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount
the insured will pay in premiums is unequal to the amount the insurer will pay
in the event of a loss.
Certificate of Insurance - CORRECT ANSWER - A legal document that
indicates that an insurance policy has been issued, and that states both the
amounts and types of insurance provided.
Conditions - CORRECT ANSWER - provisions in the policy that qualify or
place limitations on the insurer's promise to perform
Coverages - CORRECT ANSWER - The amount and extent of protection
provided by an insurance policy.
Declarations Page - CORRECT ANSWER - The basic information about a
policy:
Who - names of insurer and insured
What - description of insured property
Where - address and legal description of insured property
When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Definitions - CORRECT ANSWER - Clarifies terms used in the policy
Endorsement(s) - CORRECT ANSWER - An optional provision that can be
added to a policy to increase, reduce, or modify coverage for specific property
types or perils
, Exclusions - CORRECT ANSWER - A sections of an insurance policy that
reduces coverage by listing specific individuals, property, or perils that the
policy does NOT cover
Good Faith - CORRECT ANSWER - Acting honestly and fairly, with good
intentions and full disclosure.
Insuring Agreement - CORRECT ANSWER - The section of an insurance
policy containing the insurer's promise to pay, the description of coverage
provided and perils insured against.
Legal Purpose - CORRECT ANSWER - On of the four qualifications of a
legally binding contract. The purpose of the contract must be legal and not
against public policy.
Unilateral - CORRECT ANSWER - A characteristic of insurance contracts. It
means that only one of the parties (the insurer) makes a promise to perform. The
insurer is obligated to fulfill this promise, whereas the insured is free to void the
contract at any time.
Utmost Good Faith - CORRECT ANSWER - An obligation to act in complete
honesty and to disclose all relevant facts.
Six Characteristics of Insurance Contract - CORRECT ANSWER - 1. Personal
Contract
2. Contract of Adhesion
3. Utmost Good Faith Contract
4. Aleatory Contract
5. Unilateral Contract
6. Conditional Contract
SERIES 17-70 | QUESTIONS AND ANSWERS | VERIFIED ANSWERS |
LATEST EXAM
Agreement - CORRECT ANSWER - One of the four requirements of a legally
binding contract. All parties agree to the terms of the contract.
Competence - CORRECT ANSWER - One of the four qualifications of a
legally binding contract. All parties must be competent with the necessary legal
and mental capacity.
Consideration - CORRECT ANSWER - One of the four qualifications of a
legally binding contract. All parties must bring something of value to the
contract.
Four requirements of a legal a contract - CORRECT ANSWER - agreement,
consideration, competent parties, legal purpose
Indemnification - CORRECT ANSWER - Reimbursement for a loss, which
leaves the claimant in the same financial position that she was in before the loss
Indemnify - CORRECT ANSWER - To restore by payment, repair, or
replacement
Indemnity Insurance - CORRECT ANSWER - Insurance that indemnifies loss
as opposed to liability
Insurance - CORRECT ANSWER - A financial device that transfers the risk of
unexpected, catastrophic loss from one party to another
,Insurance Company - CORRECT ANSWER - Company which sells insurance
policies to individuals or to other companies
Insurance policy - CORRECT ANSWER - A contract wherein an insured pays
premiums to an insurer in exchange for financial protection in the event of a
covered loss
Insured - CORRECT ANSWER - A person covered by an insurance policy
Insurer - CORRECT ANSWER - The person providing coverage to one or
more insureds
Loss - CORRECT ANSWER - Bodily injury, property damage, or damage
caused by the insured's negligent acts; loss is the basis for an insurance claim.
Loss can also mean the sum the insured will have to pay
Policyholder - CORRECT ANSWER - Also called the "insured", a
policyholder is a person who has purchased an insurance policy - or contract-
from an insurer.
Premium - CORRECT ANSWER - A scheduled an affordable fee, paid by the
policyholder to the insurer, in return for coverage.
Principle of Indemnity - CORRECT ANSWER - The principle that insurance
policies should provide a benefit no greater than the loss suffered by an insured.
Insured cannot profit from the loss.
Adhesion - CORRECT ANSWER - Characteristics of an insurance contract.
Means that one party (The insurer) sets the terms, and the other (the
policyholder) can "take it or leave it"
,Aleatory - CORRECT ANSWER - A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount
the insured will pay in premiums is unequal to the amount the insurer will pay
in the event of a loss.
Certificate of Insurance - CORRECT ANSWER - A legal document that
indicates that an insurance policy has been issued, and that states both the
amounts and types of insurance provided.
Conditions - CORRECT ANSWER - provisions in the policy that qualify or
place limitations on the insurer's promise to perform
Coverages - CORRECT ANSWER - The amount and extent of protection
provided by an insurance policy.
Declarations Page - CORRECT ANSWER - The basic information about a
policy:
Who - names of insurer and insured
What - description of insured property
Where - address and legal description of insured property
When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Definitions - CORRECT ANSWER - Clarifies terms used in the policy
Endorsement(s) - CORRECT ANSWER - An optional provision that can be
added to a policy to increase, reduce, or modify coverage for specific property
types or perils
, Exclusions - CORRECT ANSWER - A sections of an insurance policy that
reduces coverage by listing specific individuals, property, or perils that the
policy does NOT cover
Good Faith - CORRECT ANSWER - Acting honestly and fairly, with good
intentions and full disclosure.
Insuring Agreement - CORRECT ANSWER - The section of an insurance
policy containing the insurer's promise to pay, the description of coverage
provided and perils insured against.
Legal Purpose - CORRECT ANSWER - On of the four qualifications of a
legally binding contract. The purpose of the contract must be legal and not
against public policy.
Unilateral - CORRECT ANSWER - A characteristic of insurance contracts. It
means that only one of the parties (the insurer) makes a promise to perform. The
insurer is obligated to fulfill this promise, whereas the insured is free to void the
contract at any time.
Utmost Good Faith - CORRECT ANSWER - An obligation to act in complete
honesty and to disclose all relevant facts.
Six Characteristics of Insurance Contract - CORRECT ANSWER - 1. Personal
Contract
2. Contract of Adhesion
3. Utmost Good Faith Contract
4. Aleatory Contract
5. Unilateral Contract
6. Conditional Contract
