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Adjusterpro: Chapter 1 All Sections Questions And Answers With Verified Solutions Rated A+
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Adjusterpro: Chapter 1 All Sections Questions And Answers With Verified Solutions Rated A+
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Adjusterpro: Chapter 1 All SectionsQuestions And Answers With Verified
Solutions Rated A+
Insurance - ANSWER✔✔ financial tool that protects individuals and organizations
from unforeseen and extraordinary financial losses by transferring risk to another
party
insured - ANSWER✔✔ individual or organization that pays premiums in exchange
for protection
insurer - ANSWER✔✔ Company, group, or government agency offering financial
protection
insurance policy - ANSWER✔✔ A legally binding contract that defines the
obligations of both the insured and the insurer.
Principle of Indemnity - ANSWER✔✔ Restoration to previous financial condition;
no more, no less
4 qualifications of a contract - ANSWER✔✔ 1. agreement
2. consideration
3. competent parties
4. legal purpose
indemnification - ANSWER✔✔ Putting the policyholder back in the same
financial condition he or she was in before a loss occurred
, reserve - ANSWER✔✔ pool of collected premiums that the insurer sets aside to
pay claims
Six special characteristics of insurance contracts - ANSWER✔✔ 1. Personal-it
protects the insured's financial interests, not the insured item itself.
2. Adhesion-since the insurer gets to set the terms of the contract, while the insured
must simply agree
3. Utmost good faith-requires complete honesty. Policy can be voided if this
principle is violated
4. aleatory-contract depends on an unknown event
5. unitlateral-only one party, the insurer, makes a promise to perform
6. conditional-it only kicks in when there is a covered loss and certain conditions
are met
Declarations Page - ANSWER✔✔ Provides a general overview of who the policy
covers. Aka the "dec page"
definitions page - ANSWER✔✔ not essential, but is common to most policies.
Defines the important terms in the policy
Insuring Agreeement - ANSWER✔✔ summarizes what the insurer will cover and
how
conditions section - ANSWER✔✔ qualifies or limits an insurer's promise to pay or
perform
exclusions section - ANSWER✔✔ specifically lists people, items, events, and
causes of loss that are not covered under the policy
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