Progressive Claims Adjuster Texas Test with complete solutions

Progressive Claims Adjuster Texas Test with complete solutions What are the 4 qualities of insurance? {{Ans- 1. Agreements 2. Consideration 3. Competent Parties 4. Legal Purposes What is the principle of Indemnity? {{Ans- When a loss occurs, the insured should be restored to the approximate financial condition he was at before the loss occurred. He should not be better or worse off. What is a Premium? {{Ans- A Premium is a fee payed by the insured in exchange for the insurance policy What are the 6 characteristics of Insurance? {{Ans- 1. Personal contract (protects people not item. 2. Contract of adhesion (1 person-the insurer- dictates the terms) 3. Utmost Good Faith (applicants for insurance must be honest and upfront about risks to insurer) 4.Aleatory Contract- Execution of contract is based on future, unpredictable event 5. Unilateral (Only the insurer makes a promise to pay) 6. Conditional (The contract only performs when the outlined conditions are met ) What does contract of adhesion mean? {{Ans- The contract of adhesion is one of the 6 characteristics of insurance. It means that only the insurer dictates the terms of the agreement. The policyholder will be awarded if the terms are not clear. The contract should be interpreted as a reasonable person would interpret it. (This is the doctrine of reasonable expectation) What does "Aleatory Contract" mean? {{Ans- This definition is one of 6 characteristics of insurance contracts. It means that the execution of laid out contract is based on a future and unpredictable event occurring (You could pay premiums your whole life and never collect) What does "Personal Contract" mean? In regards to Insurance Characteristics- {{Ans- The first characteristic of Insurance. It means that the person, the insured, is protected from financial loss. The item itself is not the thing insured. What does "Utmost Good Faith" refer to? {{Ans- Utmost good faith is one of the 6 characteristics of insurance. It means that the applicant is required to provide exact and accurate information (IE a smoker must say he is smoker for health insurance. A DUI must be disclosed etc. ) The insurer can void the contract if you are found in violation of utmost good faith. What does "Unilateral" mean as one of the 6 characteristics of insurance? {{Ans- Unilateral refers to the fact that only the insured promises to pay and only the insured may cancel at any time. What does "Conditional" mean in regards to characteristics of insurance? {{Ans- Conditional is one of the 6 characteristics of insurance. This refers to the fact that there are outlined conditions in each policy that must be met in order for a payout to be received. (IE the damage done has to be covered by the policy etc) What are the 4 parts of an insurance policy? DICE {{Ans- Declarations page Insuring agreement Conditions Exclusions