State Farm Estimatics Exam Questions and Answers (2022/2023) (Verified Answers)

State Farm Estimatics Exam Questions and Answers (2022/2023) (Verified Answers) which of the following refers to being restored to the financial condition you were in before a loss? - Correct answer-indemnification mark incurred 8000$ damage to his car in an accident. he received 8000$ from his insurance company and 4000$ from the other driver. by receiving a profit from the loss, Mark is in violation of.. - Correct answer-principle of indemnity the transfer of risk from one party to another is called - Correct answer-insurance the principle of indemnity is designed to prevent - Correct answer-keeps the insured from making a profit from an insured loss. the fee paid by the insured in exchange for an insurance policy is called a - Correct answer-premium insurance - Correct answer-transfers risk of financial losses from one party to another insured - Correct answer-individual or organization that pays premiums in exchange for protection insurer - Correct answer-company group or government agency offering financial protection insurance policy - Correct answer-a legally binding contract in which the insurer agrees to take on specified risks in exchange for the insured's premiums principle of indemnity - Correct answer-restoration to previous financial condition; no more, no less. what are the four qualifications of a contract - Correct answer-agreement, consideration, competent parties, and legal purpose. must be 18 years of age what is not a requirement for a legally binding contract - Correct answer-notarization when an insurer issues an insurance policy, the actual item, person or organization that is being insured is called the - Correct answer-the risk what is a reserve, in insurance terms - Correct answer-a pool of collected premiums that the insurer sets aside to pay claims aleatory - Correct answer-of or pertaining to accidental causes; of luck or chance; unpredictable unilateral - Correct answer-one-sided utmost good faith - Correct answer-both parties must act honestly and openly in order for the contract to be valid adhesion - Correct answer-one party sets the terms of the contract; the other may simply agree or not agree 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 losses, not the covered property. conditional - Correct answer-the insurer must only honor the contract if the insured meets certain conditions. aleatory - Correct answer-the exectution of the contract depends on an unknown future event.