CT ADJUSTER PRE-LICENSING CHAPTER 1 THRU 7
Each of the following must be present in order for an insurance contract to be legal and
enforceable, EXCEPT
A: Offer
B: Acceptance
C: Competent underwriting
D: Legal Purpose - Answers - C: Competent underwriting (competent parties)
An offer and acceptance is also referred to as:
A: Illustration
B: Agreement
C: Adhesive contract
D: Aleatory contract - Answers - B: Agreement
An insurance contract is created by an insurer. Any ambiguities that appear in the future
will be decided by a court in favor of the insured since the policy is:
A: A contract of adhesion
B: An aleatory contract
C: A unilateral contract
D: A personal contract - Answers - A: A contract of adhesion
Which is true regarding the Fair Credit Reporting act
A: It permits insurers to deny invalid claims
B: It allows applicants to do a credit check on an insurer
C: It allows an applicant to receive a copy of the information contained in a consumer
report
D: It permits an insurer to cancel a policy for non payment of a premium - Answers - C:
It allows an applicant to receive a copy of the information contained in a consumer
report
A promise made in exchange for an act already performed describes:
A: Unilateral Contract
B: Bilateral contract
C: An executory contract
D: An executed contract - Answers - A: Unilateral Contract
An insurer which issues a policy after accepting an incomplete application has engaged
in
A: Parole evidence rule
,B: Waiver
C: Warranty
D: Conditional acceptance - Answers - B: Waiver
Ms Walters made an offer to an insurer. The insurer then counters the original offer.
This means the original offer has been:
A: Rejected
B: Accepted
C: Unilaterally assumed
D: Negotiated - Answers - A: Rejected
Which of the following parts of an insurance contract contains the nature of the
agreement between the insurer and the policy holder
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - B: Insuring Agreement
Which of the following is a generic section of an insurance contract but includes
different information in each individual policy
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - A: Declarations
Which of the following best describes when an insurer fails to enforce a provision in an
insurance policy
A: Concealment
B: Waiver
C: Adhesion
D: Fraud - Answers - B: Waiver
Which of the following bests describes the concept of insurance?
A: The transfer of rights of recovery
B: The transfer of rights and duties
C: The uncertainty concerning loss
D: The transfer of risk from one party to another - Answers - D: The transfer of risk
from one party to another
The Principal of Indemnity is best supported by which of the following?
, A: Nonrenewal Provision
B: Cancellation
C: Right of Salvage
D: Actual cash value - Answers - D: Actual cash value
Which of the following provides broader coverage for something not normally covered
by a property insurance policy
A: Appraisal
B: Depreciation
C: Extension of Coverage
D: Hazard - Answers - C: Extension of Coverage
Jim pays an annual premium of $800. The policy period is 1/1/13 to 1/1/14. The insurer
cancels the policy providing written notice to Jim as of m6/30/13. What will Jim receive?
A: A pro rata premium return of $800
B: A pro rate premium return of $400
C: A pro rata premium return of $300
D: A short rate premium return of $400 - Answers - B: A pro rate premium return of
$400
What is the primary obligation and responsibility of insurance companies?
A: To collect Premiums
B: To make a profit
C: To return all unearned premiums due an insured
D: To pay valid claims - Answers - D: To pay valid claims
Which of the following parts of an insurance contract identifies the perils covered
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - B: Insuring agreement
An insurance policy is comprised of 4 basic sections (DICE). which of the following
appears on the declarations page
A: Perils
B: Type of property covered
C: Obligation of the insurer
D: Property not covered - Answers - B: Type of property covered
Each of the following must be present in order for an insurance contract to be legal and
enforceable, EXCEPT
A: Offer
B: Acceptance
C: Competent underwriting
D: Legal Purpose - Answers - C: Competent underwriting (competent parties)
An offer and acceptance is also referred to as:
A: Illustration
B: Agreement
C: Adhesive contract
D: Aleatory contract - Answers - B: Agreement
An insurance contract is created by an insurer. Any ambiguities that appear in the future
will be decided by a court in favor of the insured since the policy is:
A: A contract of adhesion
B: An aleatory contract
C: A unilateral contract
D: A personal contract - Answers - A: A contract of adhesion
Which is true regarding the Fair Credit Reporting act
A: It permits insurers to deny invalid claims
B: It allows applicants to do a credit check on an insurer
C: It allows an applicant to receive a copy of the information contained in a consumer
report
D: It permits an insurer to cancel a policy for non payment of a premium - Answers - C:
It allows an applicant to receive a copy of the information contained in a consumer
report
A promise made in exchange for an act already performed describes:
A: Unilateral Contract
B: Bilateral contract
C: An executory contract
D: An executed contract - Answers - A: Unilateral Contract
An insurer which issues a policy after accepting an incomplete application has engaged
in
A: Parole evidence rule
,B: Waiver
C: Warranty
D: Conditional acceptance - Answers - B: Waiver
Ms Walters made an offer to an insurer. The insurer then counters the original offer.
This means the original offer has been:
A: Rejected
B: Accepted
C: Unilaterally assumed
D: Negotiated - Answers - A: Rejected
Which of the following parts of an insurance contract contains the nature of the
agreement between the insurer and the policy holder
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - B: Insuring Agreement
Which of the following is a generic section of an insurance contract but includes
different information in each individual policy
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - A: Declarations
Which of the following best describes when an insurer fails to enforce a provision in an
insurance policy
A: Concealment
B: Waiver
C: Adhesion
D: Fraud - Answers - B: Waiver
Which of the following bests describes the concept of insurance?
A: The transfer of rights of recovery
B: The transfer of rights and duties
C: The uncertainty concerning loss
D: The transfer of risk from one party to another - Answers - D: The transfer of risk
from one party to another
The Principal of Indemnity is best supported by which of the following?
, A: Nonrenewal Provision
B: Cancellation
C: Right of Salvage
D: Actual cash value - Answers - D: Actual cash value
Which of the following provides broader coverage for something not normally covered
by a property insurance policy
A: Appraisal
B: Depreciation
C: Extension of Coverage
D: Hazard - Answers - C: Extension of Coverage
Jim pays an annual premium of $800. The policy period is 1/1/13 to 1/1/14. The insurer
cancels the policy providing written notice to Jim as of m6/30/13. What will Jim receive?
A: A pro rata premium return of $800
B: A pro rate premium return of $400
C: A pro rata premium return of $300
D: A short rate premium return of $400 - Answers - B: A pro rate premium return of
$400
What is the primary obligation and responsibility of insurance companies?
A: To collect Premiums
B: To make a profit
C: To return all unearned premiums due an insured
D: To pay valid claims - Answers - D: To pay valid claims
Which of the following parts of an insurance contract identifies the perils covered
A: Declarations
B: Insuring agreement
C: Conditions
D: Exclusions - Answers - B: Insuring agreement
An insurance policy is comprised of 4 basic sections (DICE). which of the following
appears on the declarations page
A: Perils
B: Type of property covered
C: Obligation of the insurer
D: Property not covered - Answers - B: Type of property covered
