CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answ, Exams of Nursing

Download CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answ and more Exams Nursing in PDF only on Docsity! CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Insurance - CORRECT ANSWERS Financial tool that protects individuals and organizations from unforeseen and extraordinary financial losses by transferring risk to another party Principle of Indemnity - CORRECT ANSWERS Restoration to approximate previous financial condition; no more no less To prevent an insured from making a profit on a loss - CORRECT ANSWERS The purpose of the principle of indemnity The fee paid by the insured in exchange for an insurace policy - CORRECT ANSWERS Which of the following best describes premium? A pool of collected premiums that insurer sets aside to pay claims - CORRECT ANSWERS What is a reserve in terms of insurance? Repairs to property Reimbursement for additional living expenses Rental cars, hotels Costs directly associated with a loss, as allowed under the policy - CORRECT ANSWERS Indemnification may include payment for : Agreement Consideration Competent Parties Legal Purpose - CORRECT ANSWERS 4 Qualifications of a contract: Personal Adhesion Utmost good faith Aleatory CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Unilateral Condition - CORRECT ANSWERS 6 Characteristics of Insurance Contracts Personal Contract - CORRECT ANSWERS What characteristic contract protects the policyholder from financial losses, covers the person not the property, Contract of Adhesion - CORRECT ANSWERS The insurer is responsible for the wording of the contract The insured has no say in the meaning Courts favor the insured in the event of ambiguity Contract of Utmost good faith - CORRECT ANSWERS Applicants are expected to be completely honest about the risk to the insurer The insurer must reply on the applicants not to conceal or misinterpret pertinent facts Aleatory - CORRECT ANSWERS depending on an unknown future event. Neither party can know future losses Declarations Page Insuring Agreement Conditions Exclusions - CORRECT ANSWERS An insurance contract has 4 essential parts: Declarations Page - CORRECT ANSWERS Makes contracts specific to the policy holder It establishes: name of both parties, policy number, location and description, value of insured item, dates of policy, amount of limit and coverage, deductible, premium Insuring Agreement - CORRECT ANSWERS Summarizes : what is covered, CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ provide to some type of insurance to members typically consist of people who share religions, ethnicities, employment etc Fraternal Benefit Society Insurance - CORRECT ANSWERS Used to fund altruistic activities, must be assessable by law members are both providers and recipients if claims payment ability is impaired, members help pay the difference captive insurers - CORRECT ANSWERS Created by businesses in order to retain risk Exist to provide insurance only to their "parent" company All profits belong to the parent company Permitted in some states Risk Retention Groups - CORRECT ANSWERS members must be involved in similar business endeavors, need not be licensed in multiple states Domestic Insurer - CORRECT ANSWERS located in a particular state, abides by that state's laws Foreign Insurer - CORRECT ANSWERS Obeys a state's or U.S. laws, but can be located elsewhere Alien Insurer - CORRECT ANSWERS Obeys laws of another country altogether Reciprocal Insurer - CORRECT ANSWERS group of people or organizations that insure each other Re-insurer - CORRECT ANSWERS an insurer that provides insurance for other insurers CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing Test Exam with questions and answers 100%Correctly verified answers latest update 2024/2025 RATED A+ Fraternal Benefit Society - CORRECT ANSWERS A nonprofit mutual aid organization that will usually offer insurance benefits to members and their families Risk Retention Group - CORRECT ANSWERS an alternative to traditional insurance, owned by its members; provides liability coverage for multiple companies in the same business an unincorporated organization of subscribers that operates through an attorney-in fact to provide insurance benefits for its members - CORRECT ANSWERS A Reciprocal insurer is: workers compensation - CORRECT ANSWERS A Risk retention group can provide all of the following kinds of insurance EXCEPT