Contact for further consultation
NYS Independent
Adjusters License -
Auto Damage and
Theft Comprehensive
Questions (Frequently
Tested)with Verified
Answers Graded A+
, Contact for further consultation
1. four general rules all contracts must follow (AND acronym to
remember it by) Answer: CLOC:
-competency of both parties
-legality in purpose
-otter and acceptance
-considerations (something of value)
2. how are insurance contracts' legality ensured? Answer: by being closely
monitored by state insurance departments
3. four PARTS of an insurance contract (AND acronym to remember it
by) Answer: DICE Answer:
-declarations
-insuring agreement
-conditions
-exclusions
4. what do the Declarations of an insurance contract identify
Answer: -insured name and address
-subject of insurance
, Contact for further consultation
-policy period
-premiums and rate
-list of coverages, etc
5. what is an Insuring Agreement in an insurance contract Answer:
language that provides a policy's coverage (aka Answer: promise of the insurer)
6. what are the Conditions in an insurance contract Answer: describes rights
and duties of both parties in an insurance contract
7. what are Exclusions in an insurance contract Answer: things excluded from
the contract
8. what is a Warranty in terms of insurance contracts? Give an
example. Answer: basically the promises that something will occur (in order to meet
conditions of coverages)
ex Answer: A burglar alarm must be maintained at all times (warranty) in order for a crime policy to
continue coverages (conditions). Without the alarm, the policy's conditions are not being met and thus is
liable to be denied coverage should a loss occur
9. what is a representation regarding insurance contracts Answer: a
statement of fact (misrepre-
sentation is a false statement)
, Contact for further consultation
10. what is concealment regarding insurance contracts? Answer: hiding
any truth from the insurer that could alter the coverages provided by the insurer
11. what could be the result of misrepresentation and
concealment regarding insurance contracts? Answer: voiding insurance
coverage
12. what is a binder in terms of insurance contracts Answer: a temporary
contract pending issuance of the entire policy
13. what is a certificate of insurance Answer: documents that demonstrates proof of
liability coverage
14. what is an endorsement regarding insurance contracts Answer: a
modification to underlying coverage
15. what is a waiver (regarding insurance contracts) Answer:
relinquishment or abandonment of a known right
16. what is an estoppel and what does it do? Give an example.
(regarding insurance contracts) Answer: a doctrine that basically says once youve
done/said something/waived a right, you cannot backtrack and do something else
ex Answer: if an insured pays late on their premium and the insurer accepts it. THEN the insured sutters a
NYS Independent
Adjusters License -
Auto Damage and
Theft Comprehensive
Questions (Frequently
Tested)with Verified
Answers Graded A+
, Contact for further consultation
1. four general rules all contracts must follow (AND acronym to
remember it by) Answer: CLOC:
-competency of both parties
-legality in purpose
-otter and acceptance
-considerations (something of value)
2. how are insurance contracts' legality ensured? Answer: by being closely
monitored by state insurance departments
3. four PARTS of an insurance contract (AND acronym to remember it
by) Answer: DICE Answer:
-declarations
-insuring agreement
-conditions
-exclusions
4. what do the Declarations of an insurance contract identify
Answer: -insured name and address
-subject of insurance
, Contact for further consultation
-policy period
-premiums and rate
-list of coverages, etc
5. what is an Insuring Agreement in an insurance contract Answer:
language that provides a policy's coverage (aka Answer: promise of the insurer)
6. what are the Conditions in an insurance contract Answer: describes rights
and duties of both parties in an insurance contract
7. what are Exclusions in an insurance contract Answer: things excluded from
the contract
8. what is a Warranty in terms of insurance contracts? Give an
example. Answer: basically the promises that something will occur (in order to meet
conditions of coverages)
ex Answer: A burglar alarm must be maintained at all times (warranty) in order for a crime policy to
continue coverages (conditions). Without the alarm, the policy's conditions are not being met and thus is
liable to be denied coverage should a loss occur
9. what is a representation regarding insurance contracts Answer: a
statement of fact (misrepre-
sentation is a false statement)
, Contact for further consultation
10. what is concealment regarding insurance contracts? Answer: hiding
any truth from the insurer that could alter the coverages provided by the insurer
11. what could be the result of misrepresentation and
concealment regarding insurance contracts? Answer: voiding insurance
coverage
12. what is a binder in terms of insurance contracts Answer: a temporary
contract pending issuance of the entire policy
13. what is a certificate of insurance Answer: documents that demonstrates proof of
liability coverage
14. what is an endorsement regarding insurance contracts Answer: a
modification to underlying coverage
15. what is a waiver (regarding insurance contracts) Answer:
relinquishment or abandonment of a known right
16. what is an estoppel and what does it do? Give an example.
(regarding insurance contracts) Answer: a doctrine that basically says once youve
done/said something/waived a right, you cannot backtrack and do something else
ex Answer: if an insured pays late on their premium and the insurer accepts it. THEN the insured sutters a
