NJ property insurance exam 2023 with 100% correct answers

Abandonment the abdication of insured property into the hands of another, or into the possession of no one in particular accident an unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury. ACV. actual cash value the required amount to pay damages for property loss, which is calculated based on the property's current replacement value minus depreciation additional coverage A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium. additional insureds Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. Adhesion a contract offered on a take it or leave it basis by an insurer, in which the insured only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured Admitted Insurer An insurance company authorized and licensed to transact business in a particular state. Adverse Selection The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. agent An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Agreed Value A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written. aleatory 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. Alien Insurer An insurance company that is incorporated outside the United States.