North Carolina Property and Casualty Exam Terms |
Graded A+ | Verified Answers | Brand New Version!
Contract - (ANSWER)A legal agreement between two competent parties that
promises a certain performance in exchange for a certain consideration
Contracts must exhibit: - (ANSWER)Competent parties
Legal Purpose
Offer and Acceptance
Consideration
Principle of indemnity - (ANSWER)When a loss occurs, an individual should be
restored to the approximate financial condition he was in before the loss, no
more or no less
Aleatory - (ANSWER)A contract contingent on an uncertain event (A loss) that
provides for unequal transfer of value between two paries
Adhesion (Contracts) - (ANSWER)One party has greater power over the other
party in drafting the contract
Unilateral (Contracts) - (ANSWER)One Sided; Only the insurance company is
legally bound to perform its part of the agreement
,Contract of utmost good faith (Contracts) - (ANSWER)The truthfulness and
integrity of the applicant when providing information that leads to issuing a
policy.
Conditional (Contracts) - (ANSWER)A number of conditions that both the insured
and the insurer most follow by in order to keep the contract valid
Five parts of an insurance contract - (ANSWER)Declarations
Insuring Agreements
Conditions
Exclusions
Definitions
Declarations (Contain) - (ANSWER)Name of Insured
Address
Amount of Coverage
Description of Property
Perils covered
Insuring Agreements (Contain) - (ANSWER)Losses for which the insured will be
indemnified
What is covered
What perils covered
, Conditions (Contain) - (ANSWER)Responsibilities and obligations for both the
insurance company and the insured
Exclusions (Contain) - (ANSWER)Losses for which the insured is not covered
Definitions - (ANSWER)Meaning of certain terms used in the policy
Stock Company (Types of Insurance Companies) - (ANSWER)Sells stock to raise
money to operate the business, profits are returned to stock holders, not the
insureds
Mutual Company (Types of Insurance Companies) - (ANSWER)Insureds are also
owners of the company, profits are returned as dividends or discounts off future
payments
Reciprocal Company (Types of Insurance Companies) - (ANSWER)A
unincorporated group forms together and agrees to share the insurance
responsibly with all other members. Each insurers each other and share the losses
with each other
Attorney-at-fact - (ANSWER)Manager of a reciprocal company who is empowered
to handle all the business of said company
Graded A+ | Verified Answers | Brand New Version!
Contract - (ANSWER)A legal agreement between two competent parties that
promises a certain performance in exchange for a certain consideration
Contracts must exhibit: - (ANSWER)Competent parties
Legal Purpose
Offer and Acceptance
Consideration
Principle of indemnity - (ANSWER)When a loss occurs, an individual should be
restored to the approximate financial condition he was in before the loss, no
more or no less
Aleatory - (ANSWER)A contract contingent on an uncertain event (A loss) that
provides for unequal transfer of value between two paries
Adhesion (Contracts) - (ANSWER)One party has greater power over the other
party in drafting the contract
Unilateral (Contracts) - (ANSWER)One Sided; Only the insurance company is
legally bound to perform its part of the agreement
,Contract of utmost good faith (Contracts) - (ANSWER)The truthfulness and
integrity of the applicant when providing information that leads to issuing a
policy.
Conditional (Contracts) - (ANSWER)A number of conditions that both the insured
and the insurer most follow by in order to keep the contract valid
Five parts of an insurance contract - (ANSWER)Declarations
Insuring Agreements
Conditions
Exclusions
Definitions
Declarations (Contain) - (ANSWER)Name of Insured
Address
Amount of Coverage
Description of Property
Perils covered
Insuring Agreements (Contain) - (ANSWER)Losses for which the insured will be
indemnified
What is covered
What perils covered
, Conditions (Contain) - (ANSWER)Responsibilities and obligations for both the
insurance company and the insured
Exclusions (Contain) - (ANSWER)Losses for which the insured is not covered
Definitions - (ANSWER)Meaning of certain terms used in the policy
Stock Company (Types of Insurance Companies) - (ANSWER)Sells stock to raise
money to operate the business, profits are returned to stock holders, not the
insureds
Mutual Company (Types of Insurance Companies) - (ANSWER)Insureds are also
owners of the company, profits are returned as dividends or discounts off future
payments
Reciprocal Company (Types of Insurance Companies) - (ANSWER)A
unincorporated group forms together and agrees to share the insurance
responsibly with all other members. Each insurers each other and share the losses
with each other
Attorney-at-fact - (ANSWER)Manager of a reciprocal company who is empowered
to handle all the business of said company
