Property and Casualty Adjuster Exam Questions and Answers 100% pass

Property and Casualty Adjuster Exam Questions and Answers 100% pass Indemnity - Answer- Insured restored to approximate financial condition as before loss occurred, no better or worse Independent Adjuster - Answer- must represent more than 1 company Binder - Answer- Commits company to act as if the policy has been issued, temporary contract, initiate coverage, oral or written, expires when policy coverages begins Consideration - Answer- insurer's promise to provide indemnity in the event of a loss Hazards - Answer- Conditions that create or increase chance of loss Insurable interest - Answer- actual, lawful, and substantial economic interest; financial interest at the time of loss Insurer - Answer- company or person that provides insurance Material Misrepresentation - Answer- incorrect information given by the prospect/insured but when corrected does affect coverage; voids the contract Morale Hazard - Answer- carelessness or indifference to a loss, takes additional risks because she has insurance Physical Hazard - Answer- visible (ice on a sidewalk) Types of Hazards - Answer- Physical, Morale, and Moral Concealment - Answer- deliberately withholding material information from the insurer; will void coverage Direct Loss - Answer- immediate actual physical damage to tangible property Insurance - Answer- transfer of risk form one person or organization to an insurance company that accumulates funds (premiums) Law of Large Numbers - Answer- large number of homogenous or like exposure units to predict future losses accurately Misrepresentation - Answer- incorrect information given by the prospect/ insured that when corrected does not affect coverage Named Insured - Answer- 1st party to the contract Pure Risk - Answer- only the chance of loss and is insurable Package policy/ Multiline - Answer- property and liability policies together Consequential Loss - Answer- indirect loss; resulting from spoilage or temperature change Estoppel - Answer- involuntary relinquishment of a known right; if the agent says it is covered, it is covered, even when this is not the insurer's intent Indirect Loss - Answer- is an inability to use property as a result of a direct Insured - Answer- the claimant/ complaining party / who the insurer promises to protect in addition to the named insured Limit of Liability - Answer- maximum amount that can be paid for a covered loss Morale Hazard - Answer- E's carelessness or indifference to a loss, takes additional risks because she has insurance Peril - Answer- actual causes of loss identified in the policy; fire, wind, hail, collision Risk - Answer- chance / uncertainty of loss