NC Adjuster Exam Questions and Answers Solved Correctly

Utmost Good Faith - Both parties must act honest and openly in order for the contract to be valid. Adhesion - One party sets the terms for the contract; the other party may simply agree or disagree Unilateral - Only the insurer makes a promise to act; the insured can void contract at any time. Personal - The insured person is protected from loses not the personal property. Conditional - The insurer must only honor the contract if the insured meets certain conditions. Lavatory - The execution of the contract depends on an unknown future event. Conditions - List of requirements the insured must meet for coverage to apply. Declarations - Information that makes a policy unique to the insured. Exclusions - Causes of loss or items of property that are not covered by the policy. Endorsements - Add, reduce, or change the coverage of the policy in some way. Definitions - Explains exactly what specific words mean in the context of the policy. Insuring Agreement - Essence of the contract. Summarizes what the insurer will cover and how.Government vs Private insurance - Mandatory, run by the government, suited to needs of the general public. Offer insurance products based on customer preferences. Stock vs Mutual insurance - Publicly traded; stock holders participate in dividends. Policy holders participate in dividends. Reciprocal Insurer - group of people or organizations that insure each other. Re-insurer - insurance for insurers