GA Insurance Adjuster Course Exam
Study Guide Solutions
Six Special Characteristic of Insurance Contracts - ANSWER✔✔-Personal,
Adhesion, Utmost Good Faith, Aleatory, Unilateral, Condition
Coverage F - ANSWER✔✔-Medical Payments
Umbrella - ANSWER✔✔-An umbrella policy provided liability coverage
over and above the normal or base limits of liability in a policy. An
umbrella policy is a type of excess policy
Risk Transference - ANSWER✔✔-Management of severe risk by
transferring the risk of another party
Risk Avoidance - ANSWER✔✔-Eliminates risk by not taking an action that
involves risk
B.O.P. - ANSWER✔✔-Business Owner Package
C.P.P - ANSWER✔✔-Commercial Package Policies
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,Representation - ANSWER✔✔-A statement of a fact
Misrepresentation - ANSWER✔✔-A false, distorted, or deceitful statement
of fact or opinion, even if made unintentionally
Personal Contract - ANSWER✔✔-Protects the policyholder from financial
losses. It does not protect property from becoming damaged. Coverage the
follows the person, not the property.
Adhesion Contract - ANSWER✔✔-The insurer is responsible for the term
of the contract. The insured has no say in wording. Courts favor the
insured in the event of an ambiguity.
Utmost Good Faith Contract - ANSWER✔✔-Applicants are expected to be
completely honest about the risk to the insurer. The insurer must rely on
applicants to conceal or misrepresent pertinent facts.
Aleatory Contract - ANSWER✔✔-Policy holder could pay more in
premiums than they ever get for claims, or insurer could pay more in
claims than it recieves.
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,60 - ANSWER✔✔-A discovery from commercial crime policy can apply to
losses discovered during the policy as well as up to many days after his
expiration date.
Reciprocal Insurer - ANSWER✔✔-An unincorporated organization of
subscriber that operates through an attorney in fact to provide insurance
benefits for its members
Risk Reduction "Risk Mitigation" - ANSWER✔✔-Taking measures to
reduce the risk involved in an action
Risk Retention - ANSWER✔✔-Acknowledging the risk and preparing to
handle unexpected losses that may occur.
Coverage B - ANSWER✔✔-Detached Private Structures
Coverage D - ANSWER✔✔-Loss of use; Fair Rental Value, Additional
living expenses
Conditional Contract - ANSWER✔✔-The insurer only has to perform if
certain conditions are met.
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, Unilateral Contract - ANSWER✔✔-The insurer has an obligation to pay for
covered losses. The insured has no obligation.
Concealment - ANSWER✔✔-Deliberately withholding relevant
information
Binder - ANSWER✔✔-Temporary coverage for an insurance applicant
until the policy is issued
$500 - ANSWER✔✔-Personal Article Floater have the amount
of______deductible
Morale Hazard - ANSWER✔✔-Takes place when insured acts differently
because of the comfort that insurance protection provides.
Surety - ANSWER✔✔-Guarantees to pay obligee if principal defaults
Indemnitor - ANSWER✔✔-Fourth Party to a surety bond who agrees to
reimburse the surety for losses sustained if the principal defaults
Suretyship - ANSWER✔✔-An arrangement between three parties in which
one party promises to perform for another party, and a third party
guarantees they will fulfill that premise
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Study Guide Solutions
Six Special Characteristic of Insurance Contracts - ANSWER✔✔-Personal,
Adhesion, Utmost Good Faith, Aleatory, Unilateral, Condition
Coverage F - ANSWER✔✔-Medical Payments
Umbrella - ANSWER✔✔-An umbrella policy provided liability coverage
over and above the normal or base limits of liability in a policy. An
umbrella policy is a type of excess policy
Risk Transference - ANSWER✔✔-Management of severe risk by
transferring the risk of another party
Risk Avoidance - ANSWER✔✔-Eliminates risk by not taking an action that
involves risk
B.O.P. - ANSWER✔✔-Business Owner Package
C.P.P - ANSWER✔✔-Commercial Package Policies
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,Representation - ANSWER✔✔-A statement of a fact
Misrepresentation - ANSWER✔✔-A false, distorted, or deceitful statement
of fact or opinion, even if made unintentionally
Personal Contract - ANSWER✔✔-Protects the policyholder from financial
losses. It does not protect property from becoming damaged. Coverage the
follows the person, not the property.
Adhesion Contract - ANSWER✔✔-The insurer is responsible for the term
of the contract. The insured has no say in wording. Courts favor the
insured in the event of an ambiguity.
Utmost Good Faith Contract - ANSWER✔✔-Applicants are expected to be
completely honest about the risk to the insurer. The insurer must rely on
applicants to conceal or misrepresent pertinent facts.
Aleatory Contract - ANSWER✔✔-Policy holder could pay more in
premiums than they ever get for claims, or insurer could pay more in
claims than it recieves.
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,60 - ANSWER✔✔-A discovery from commercial crime policy can apply to
losses discovered during the policy as well as up to many days after his
expiration date.
Reciprocal Insurer - ANSWER✔✔-An unincorporated organization of
subscriber that operates through an attorney in fact to provide insurance
benefits for its members
Risk Reduction "Risk Mitigation" - ANSWER✔✔-Taking measures to
reduce the risk involved in an action
Risk Retention - ANSWER✔✔-Acknowledging the risk and preparing to
handle unexpected losses that may occur.
Coverage B - ANSWER✔✔-Detached Private Structures
Coverage D - ANSWER✔✔-Loss of use; Fair Rental Value, Additional
living expenses
Conditional Contract - ANSWER✔✔-The insurer only has to perform if
certain conditions are met.
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, Unilateral Contract - ANSWER✔✔-The insurer has an obligation to pay for
covered losses. The insured has no obligation.
Concealment - ANSWER✔✔-Deliberately withholding relevant
information
Binder - ANSWER✔✔-Temporary coverage for an insurance applicant
until the policy is issued
$500 - ANSWER✔✔-Personal Article Floater have the amount
of______deductible
Morale Hazard - ANSWER✔✔-Takes place when insured acts differently
because of the comfort that insurance protection provides.
Surety - ANSWER✔✔-Guarantees to pay obligee if principal defaults
Indemnitor - ANSWER✔✔-Fourth Party to a surety bond who agrees to
reimburse the surety for losses sustained if the principal defaults
Suretyship - ANSWER✔✔-An arrangement between three parties in which
one party promises to perform for another party, and a third party
guarantees they will fulfill that premise
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