NEW HAMPSHIRE ADJUSTER EXAM PREP:
SERIES 12-75 QUESTIONS WITH CORRECT
UPDATED ANSWERS GRADED A++
•
1. Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to
!@#$%^
pay for specified losses in exchange for premiums &
C. An individual or organization that pays premiums in exchange for
financial protection
D. A company, group, or government agency offering financial
protectionANSWERS C. An individual or organization that pays premiums in
exchange for financial protection
2. What are the four requirements of a legally binding contract?
A. Agreement, consideration, character, signatures
B. Authority, character, competent parties, legal purpose
C. Authority, consideration, signatures, legal purpose
D. Agreement, consideration, competent parties, legal purposeANSWERS D.
Agreement, consideration, competent parties, legal purpose
3. Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as low as
possible, so he decides not to include uninsured motorist coverage on his
policy. His agent has him sign a document giving up his right to this coverage.
What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiverANSWERS B. An express waiver
,4. An economic device used to protect against the risk of realizing unforeseen
and extraordinary financial loss is calledANSWERS
A. Risk avoidance
B. Insurance
C. Indemnification
D. SubrogationANSWERS B. Insurance
5. Tom purchases a new car from his local car dealer. He also decides to
get insurance coverage that will pay to repair the car if he were to get into
an accident. This is because tom wants to protectANSWERS
A. His own financial interest in the car
B. Other drivers on the road
,C. His insurance company's profit margins
D. Any passengers who ride in his carANSWERS A. His own financial interest
in the car
6. Skip's Convenience Store must agree to install and maintain an emergency
shutoff system for its gas pumps in order to qualify for insurance coverage.
Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the policy
B. This requirement is a warranty found in the conditions section of the policy
C. This requirement is a warranty found in the declarations section of
the policy
D. This requirement is a representation found in the declarations section of
the policyANSWERS B. This requirement is a warranty found in the conditions
section of the policy
7. In an insurance contract, the policyholder gives the insurer , and the
insurer gives the policyholder .
A. Covered property; a risk pool
B. Premium payments; peace of mind
C. Peace of mind; risk
D. A surety; premium paymentsANSWERS B. Premium payments; peace of
mind
8. When an insured signs a document acknowledging that he gives up his right
to a certain coverage, such as uninsured motorist coverage in an auto policy,
this is calledANSWERS
A. An express waiver
B. An implied waiver
, C. A warranty
D. An estoppelANSWERS A. An express waiver
9. Sandra rear-ended Randy's car when he stopped quickly for a yellow
light that she was sure they were both going to make. The damage was
minor, but Sandra was worried her premiums would increase if the
accident was reported, so she gave Randy $500 in an effort to keep it just
between the
Two of them. However, Randy filed the claim with his insurance company an
received a settlement check for $750. What has Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimizationANSWERS C. The principle of indemnity
SERIES 12-75 QUESTIONS WITH CORRECT
UPDATED ANSWERS GRADED A++
•
1. Which of the following best defines "insured"?
A. Transfer of the risk of financial loss from one party to another
B. A legally binding contract in which the insurance company agrees to
!@#$%^
pay for specified losses in exchange for premiums &
C. An individual or organization that pays premiums in exchange for
financial protection
D. A company, group, or government agency offering financial
protectionANSWERS C. An individual or organization that pays premiums in
exchange for financial protection
2. What are the four requirements of a legally binding contract?
A. Agreement, consideration, character, signatures
B. Authority, character, competent parties, legal purpose
C. Authority, consideration, signatures, legal purpose
D. Agreement, consideration, competent parties, legal purposeANSWERS D.
Agreement, consideration, competent parties, legal purpose
3. Darnell is applying for auto insurance with his agent. Currently, he only
wants to get a minimal amount of coverage to keep his premiums as low as
possible, so he decides not to include uninsured motorist coverage on his
policy. His agent has him sign a document giving up his right to this coverage.
What is this called?
A. A warranty
B. An express waiver
C. A binder
D. An implied waiverANSWERS B. An express waiver
,4. An economic device used to protect against the risk of realizing unforeseen
and extraordinary financial loss is calledANSWERS
A. Risk avoidance
B. Insurance
C. Indemnification
D. SubrogationANSWERS B. Insurance
5. Tom purchases a new car from his local car dealer. He also decides to
get insurance coverage that will pay to repair the car if he were to get into
an accident. This is because tom wants to protectANSWERS
A. His own financial interest in the car
B. Other drivers on the road
,C. His insurance company's profit margins
D. Any passengers who ride in his carANSWERS A. His own financial interest
in the car
6. Skip's Convenience Store must agree to install and maintain an emergency
shutoff system for its gas pumps in order to qualify for insurance coverage.
Which of the following statements is true?
A. This requirement is a binder found in the conditions section of the policy
B. This requirement is a warranty found in the conditions section of the policy
C. This requirement is a warranty found in the declarations section of
the policy
D. This requirement is a representation found in the declarations section of
the policyANSWERS B. This requirement is a warranty found in the conditions
section of the policy
7. In an insurance contract, the policyholder gives the insurer , and the
insurer gives the policyholder .
A. Covered property; a risk pool
B. Premium payments; peace of mind
C. Peace of mind; risk
D. A surety; premium paymentsANSWERS B. Premium payments; peace of
mind
8. When an insured signs a document acknowledging that he gives up his right
to a certain coverage, such as uninsured motorist coverage in an auto policy,
this is calledANSWERS
A. An express waiver
B. An implied waiver
, C. A warranty
D. An estoppelANSWERS A. An express waiver
9. Sandra rear-ended Randy's car when he stopped quickly for a yellow
light that she was sure they were both going to make. The damage was
minor, but Sandra was worried her premiums would increase if the
accident was reported, so she gave Randy $500 in an effort to keep it just
between the
Two of them. However, Randy filed the claim with his insurance company an
received a settlement check for $750. What has Randy violated?
A. The principle of insurable interest
B. The principle of subrogation
C. The principle of indemnity
D. The principle of loss minimizationANSWERS C. The principle of indemnity
