KENTUCKY ADJUSTER EXAM PREP EXAM QUESTIONS WITH COMPLETE VERIFIED ANSWERS LATEST UPDATES
Insurance
Transfers risk of financial losses from one party to another
Insured
Individual or organization that pays premiums in exchange for protection
Insurer
Company, group, or government agency offerin...
KENTUCKY ADJUSTER EXAM PREP EXAM QUESTIONS WITH
COMPLETE VERIFIED ANSWERS LATEST UPDATES
Insurance
Transfers risk of financial losses from one party to another
Insured
Individual or organization that pays premiums in exchange for protection
Insurer
Company, group, or government agency offering financial protection
Insurance policy
A legally binding contract in which the insurer agrees to take on specified risks in
exchange for the insured's premium.
Principle of indemnity
Restoration to previous financial condition; no more, no less
Four Qualifications of a contract:
-Agreement
-Consideration
-Competent parties
-Legal Purpose
Declarations
- Makes contract specific to the policy holder
-Always establishes first section
- Names, Policy #, Location and description of item, value of item, dates of policy,
amount and limit of coverage, deductible, premium
Definitions
- Not essential
- Defines terms used to write policy
Insuring Agreement
, What is covered, causes of loss covered, services provided, exclusions, max limit of
coverage
Conditions
Insurer specifies any limits or qualifications the policyholder must meet
Exclusions
common: Earthquakes, flooding, war, nuclear hazards, intentional
Endorsements
Additions to policy
Characteristics of Insurance contracts
1. Personal Contract 2. Contract of Adhesion
3. Utmost Good Faith contract
4. Aleatory Contract
5 Unilateral Contract 6. Conditional Contract
Meanings of Risk
- Potential for loss
-The insured item
Categories of Risk
- Speculative= any risk in which gain is possible. Not insurable
- Pure Risk= any risk which no gain is possible
Risk Management Techniques
Risk Avoidance- Eliminates Risks
Risk Reduction- Reduces or mitigates risk
Risk Transference- Paying someone to take on risk
Risk Retention- Assumes or accepts risk
Binder
Temp. coverage until policy is issued
Estoppel
Principle holding that if insurer accepts a practice for a time, it cannot later refuse
coverage because of that practice.
Occurence
Event or circumstance that causes a loss
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