Kentucky adjuster exam prep
, Insurance - ANSTransfers risk of financial losses from one party to another
Insured - ANSIndividual or organization that pays premiums in exchange for protection Insurer -
ANSCompany, group, or government agency offering financial protection
Insurance policy - ANSA legally binding contract in which the insurer agrees to take on specified risks in exchange
for the insured's premium.
Principle of indemnity - ANSRestoration to previous financial condition; no more, no less Four
Qualifications of a contract: - ANS-Agreement
-Consideration
-Competent parties
-Legal Purpose
Declarations - ANS- 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 - ANS- Not essential
- Defines terms used to write policy
Insuring Agreement - ANSWhat is covered, causes of loss covered, services provided, exclusions, max limit of
coverage
Conditions - ANSInsurer specifies any limits or qualifications the policyholder must meet Exclusions -
ANScommon: Earthquakes, flooding, war, nuclear hazards, intentional Endorsements - ANSAdditions to policy
Characteristics of Insurance contracts - ANS1. Personal Contract 2. Contract of Adhesion
3. Utmost Good Faith contract
4. Aleatory Contract
5 Unilateral Contract 6. Conditional Contract
Meanings of Risk - ANS- Potential for loss
-The insured item
, Insurance - ANSTransfers risk of financial losses from one party to another
Insured - ANSIndividual or organization that pays premiums in exchange for protection Insurer -
ANSCompany, group, or government agency offering financial protection
Insurance policy - ANSA legally binding contract in which the insurer agrees to take on specified risks in exchange
for the insured's premium.
Principle of indemnity - ANSRestoration to previous financial condition; no more, no less Four
Qualifications of a contract: - ANS-Agreement
-Consideration
-Competent parties
-Legal Purpose
Declarations - ANS- 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 - ANS- Not essential
- Defines terms used to write policy
Insuring Agreement - ANSWhat is covered, causes of loss covered, services provided, exclusions, max limit of
coverage
Conditions - ANSInsurer specifies any limits or qualifications the policyholder must meet Exclusions -
ANScommon: Earthquakes, flooding, war, nuclear hazards, intentional Endorsements - ANSAdditions to policy
Characteristics of Insurance contracts - ANS1. Personal Contract 2. Contract of Adhesion
3. Utmost Good Faith contract
4. Aleatory Contract
5 Unilateral Contract 6. Conditional Contract
Meanings of Risk - ANS- Potential for loss
-The insured item
