,Insurance - CORRECT ANSWERS-Transfer of risk from one person or organization to
an insurance company
What is Indemnity? - CORRECT ANSWERS-The principle to restore the insured to the
pre-loss economic or financial condition.
Law of Large numbers - CORRECT ANSWERS-Mathematical principle used by
insurers to predict losses to charge the appropriate premiums
Insurable Interest - CORRECT ANSWERS-Proof that someone stands to lose
financially if a loss occurs; must exist at the time of the loss in property and casualty
insurance
Binder - CORRECT ANSWERS-Temporary insurance contract; commits the company
to act as if a policy has been issued
Peril - CORRECT ANSWERS-Cause of loss
Direct Loss - CORRECT ANSWERS-Immediate actual physical damage to tangible
property
Indirect loss - CORRECT ANSWERS-Inability to use property as a result of a direct loss
Risk - CORRECT ANSWERS-Chance of loss; uncertainty of loss
Speculative Risk - CORRECT ANSWERS-Involves the simultaneous chance of gain or
loss: is not insurable
Physical Hazard - CORRECT ANSWERS-Visible condition that increases the chance of
loss
Morale Hazard - CORRECT ANSWERS-Attitude of carelessness or indifference to loss
Insurer - CORRECT ANSWERS-The insurance company (a.k.a. second party to the
contract)
Named Insured - CORRECT ANSWERS-A party named on the declarations who is
purchasing the insurance policy (a.k.a. first party to the contract)
Insured - CORRECT ANSWERS-Who the insurer promises to protect in addition to the
named insured
, Limit of Liability - CORRECT ANSWERS-The maximum amount that can be paid for a
covered loss
Consideration - CORRECT ANSWERS-An exchange of value between parties to a
contract
Waiver - CORRECT ANSWERS-The voluntary relinquishment of a known right
What is Estopple? - CORRECT ANSWERS-When an agent tells an insured/makes the
statement there is coverage for a loss when there is no such coverage, then the insurer
is prevented from denying the claim as a result of what precedent?
Concealment - CORRECT ANSWERS-Insured or prospect deliberately withholding
material information from the insurer, this voids coverage
Material Misrepresentation - CORRECT ANSWERS-Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - CORRECT ANSWERS-A written condition in the policy that must be true at
the time of the loss
Texas Department of Insurance - CORRECT ANSWERS-In Texas, the insurance
industry is regulated by the
Commissioner - CORRECT ANSWERS-The (_______) is appointed by the governor
and heads the Texas Department of Insurance
Adjuster - CORRECT ANSWERS-According to the Texas Insurance Code, any person
who investigates or adjusts losses, or any person who supervises the handling of claims
must be licensed as an (_______________)
A Staff Adjuster - CORRECT ANSWERS-A (_____) is on the payroll of an insurance
company and is paid a salary or by the hour
Independent Adjuster - CORRECT ANSWERS-A (___) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - CORRECT ANSWERS-A (__) works on behalf of the insured in
negotiating a claim settlement. In Texas a (______) requires another separate license
called a "public adjusters license".
Insurance Agent - CORRECT ANSWERS-Persons marketing (Selling) insurance
products are called (___)
Alien Insurer - CORRECT ANSWERS-An insurer organized and domiciled outside the
United States is called an (_____)
an insurance company
What is Indemnity? - CORRECT ANSWERS-The principle to restore the insured to the
pre-loss economic or financial condition.
Law of Large numbers - CORRECT ANSWERS-Mathematical principle used by
insurers to predict losses to charge the appropriate premiums
Insurable Interest - CORRECT ANSWERS-Proof that someone stands to lose
financially if a loss occurs; must exist at the time of the loss in property and casualty
insurance
Binder - CORRECT ANSWERS-Temporary insurance contract; commits the company
to act as if a policy has been issued
Peril - CORRECT ANSWERS-Cause of loss
Direct Loss - CORRECT ANSWERS-Immediate actual physical damage to tangible
property
Indirect loss - CORRECT ANSWERS-Inability to use property as a result of a direct loss
Risk - CORRECT ANSWERS-Chance of loss; uncertainty of loss
Speculative Risk - CORRECT ANSWERS-Involves the simultaneous chance of gain or
loss: is not insurable
Physical Hazard - CORRECT ANSWERS-Visible condition that increases the chance of
loss
Morale Hazard - CORRECT ANSWERS-Attitude of carelessness or indifference to loss
Insurer - CORRECT ANSWERS-The insurance company (a.k.a. second party to the
contract)
Named Insured - CORRECT ANSWERS-A party named on the declarations who is
purchasing the insurance policy (a.k.a. first party to the contract)
Insured - CORRECT ANSWERS-Who the insurer promises to protect in addition to the
named insured
, Limit of Liability - CORRECT ANSWERS-The maximum amount that can be paid for a
covered loss
Consideration - CORRECT ANSWERS-An exchange of value between parties to a
contract
Waiver - CORRECT ANSWERS-The voluntary relinquishment of a known right
What is Estopple? - CORRECT ANSWERS-When an agent tells an insured/makes the
statement there is coverage for a loss when there is no such coverage, then the insurer
is prevented from denying the claim as a result of what precedent?
Concealment - CORRECT ANSWERS-Insured or prospect deliberately withholding
material information from the insurer, this voids coverage
Material Misrepresentation - CORRECT ANSWERS-Insured or prospect giving incorrect
material information to the insurer, this voids coverage
Warranty - CORRECT ANSWERS-A written condition in the policy that must be true at
the time of the loss
Texas Department of Insurance - CORRECT ANSWERS-In Texas, the insurance
industry is regulated by the
Commissioner - CORRECT ANSWERS-The (_______) is appointed by the governor
and heads the Texas Department of Insurance
Adjuster - CORRECT ANSWERS-According to the Texas Insurance Code, any person
who investigates or adjusts losses, or any person who supervises the handling of claims
must be licensed as an (_______________)
A Staff Adjuster - CORRECT ANSWERS-A (_____) is on the payroll of an insurance
company and is paid a salary or by the hour
Independent Adjuster - CORRECT ANSWERS-A (___) handles claims for one or more
insurance companies and receives a fee based on time and expense.
Public Adjuster - CORRECT ANSWERS-A (__) works on behalf of the insured in
negotiating a claim settlement. In Texas a (______) requires another separate license
called a "public adjusters license".
Insurance Agent - CORRECT ANSWERS-Persons marketing (Selling) insurance
products are called (___)
Alien Insurer - CORRECT ANSWERS-An insurer organized and domiciled outside the
United States is called an (_____)
