New York Independent General Adjuster Exam Series 17-70
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questions with verified detailed solutions || || || ||
Agreement - ✔✔One of the four requirements of a legally binding contract. All parties agree
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to the terms of the contract.
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Competence - ✔✔One of the four qualifications of a legally binding contract. All parties
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must be competent with the necessary legal and mental capacity.
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Consideration - ✔✔One of the four qualifications of a legally binding contract. All parties
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must bring something of value to the contract.
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Four requirements of a legal a contract - ✔✔agreement, consideration, competent parties,
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legal purpose
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Indemnification - ✔✔Reimbursement for a loss, which leaves the claimant in the same || || || || || || || || || || || || ||
financial position that she was in before the loss
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Indemnify - ✔✔To restore by payment, repair, or replacement
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Indemnity Insurance - ✔✔Insurance that indemnifies loss as opposed to liability
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Insurance - ✔✔A financial device that transfers the risk of unexpected, catastrophic loss
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from one party to another
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Insurance Company - ✔✔Company which sells insurance policies to individuals or to other
|| || || || || || || || || || || || ||
companies
,Insurance policy - ✔✔A contract wherein an insured pays premiums to an insurer in
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exchange for financial protection in the event of a covered loss
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Insured - ✔✔A person covered by an insurance policy
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Insurer - ✔✔The person providing coverage to one or more insureds
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Loss - ✔✔Bodily injury, property damage, or damage caused by the insured's negligent acts;
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loss is the basis for an insurance claim. Loss can also mean the sum the insured will have to
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pay
Policyholder - ✔✔Also called the "insured", a policyholder is a person who has purchased
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an insurance policy - or contract-from an insurer.
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Premium - ✔✔A scheduled an affordable fee, paid by the policyholder to the insurer, in
|| || || || || || || || || || || || || || ||
return for coverage. || ||
Principle of Indemnity - ✔✔The principle that insurance policies should provide a benefit
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no greater than the loss suffered by an insured. Insured cannot profit from the loss.
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Adhesion - ✔✔Characteristics of an insurance contract. Means that one party (The insurer)
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sets the terms, and the other (the policyholder) can "take it or leave it"
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Aleatory - ✔✔A contract in which participating parties exchange unequal amounts.
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Insurance contracts are aleatory in that the amount the insured will pay in premiums is
|| || || || || || || || || || || || || || ||
unequal to the amount the insurer will pay in the event of a loss.
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,Certificate of Insurance - ✔✔A legal document that indicates that an insurance policy has
|| || || || || || || || || || || || || ||
been issued, and that states both the amounts and types of insurance provided.
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Conditions - ✔✔provisions in the policy that qualify or place limitations on the insurer's
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promise to perform || ||
Coverages - ✔✔The amount and extent of protection provided by an insurance policy.
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Declarations Page - ✔✔The basic information about a policy: || || || || || || || ||
Who - names of insurer and insured
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What - description of insured property
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Where - address and legal description of insured property
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When - effective and expiration dates.
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How Much - limits of coverage, deductible, premium
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Definitions - ✔✔Clarifies terms used in the policy || || || || || || ||
Endorsement(s) - ✔✔An optional provision that can be added to a policy to increase, || || || || || || || || || || || || || ||
reduce, or modify coverage for specific property types or perils
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Exclusions - ✔✔A sections of an insurance policy that reduces coverage by listing specific
|| || || || || || || || || || || || || ||
individuals, property, or perils that the policy does NOT cover
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Good Faith - ✔✔Acting honestly and fairly, with good intentions and full disclosure.
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Insuring Agreement - ✔✔The section of an insurance policy containing the insurer's
|| || || || || || || || || || || ||
promise to pay, the description of coverage provided and perils insured against.
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, Legal Purpose - ✔✔On of the four qualifications of a legally binding contract. The purpose
|| || || || || || || || || || || || || || ||
of the contract must be legal and not against public policy.
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Unilateral - ✔✔A characteristic of insurance contracts. It means that only one of the parties
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(the insurer) makes a promise to perform. The insurer is obligated to fulfill this promise,
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whereas the insured is free to void the contract at any time.
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Utmost Good Faith - ✔✔An obligation to act in complete honesty and to disclose all
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relevant facts. ||
Six Characteristics of Insurance Contract - ✔✔1. Personal Contract
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2. Contract of Adhesion
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3. Utmost Good Faith Contract
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4. Aleatory Contract
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5. Unilateral Contract
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6. Conditional Contract
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Fraternal Benefits Societies - ✔✔Non-profit, mutual aid organizations that engage primarily
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in charitable of benevolent activities. Thy offer their members insurance against death,
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disease, and disability. Also known as Fraternal Associations.
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Government Insurance - ✔✔An insurance program where risks are transferred to a|| || || || || || || || || || || ||
government agency. Also known as social insurance. Government insurance usually exists
|| || || || || || || || || || ||
in situations where the exposure to loss is too high for private insurers to reliably insure
|| || || || || || || || || || || || || || || ||
risks.
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questions with verified detailed solutions || || || ||
Agreement - ✔✔One of the four requirements of a legally binding contract. All parties agree
|| || || || || || || || || || || || || ||
to the terms of the contract.
|| || || || || ||
Competence - ✔✔One of the four qualifications of a legally binding contract. All parties
|| || || || || || || || || || || || || ||
must be competent with the necessary legal and mental capacity.
|| || || || || || || || ||
Consideration - ✔✔One of the four qualifications of a legally binding contract. All parties
|| || || || || || || || || || || || || ||
must bring something of value to the contract.
|| || || || || || ||
Four requirements of a legal a contract - ✔✔agreement, consideration, competent parties,
|| || || || || || || || || || || ||
legal purpose
||
Indemnification - ✔✔Reimbursement for a loss, which leaves the claimant in the same || || || || || || || || || || || || ||
financial position that she was in before the loss
|| || || || || || || ||
Indemnify - ✔✔To restore by payment, repair, or replacement
|| || || || || || || ||
Indemnity Insurance - ✔✔Insurance that indemnifies loss as opposed to liability
|| || || || || || || || || ||
Insurance - ✔✔A financial device that transfers the risk of unexpected, catastrophic loss
|| || || || || || || || || || || || ||
from one party to another
|| || || ||
Insurance Company - ✔✔Company which sells insurance policies to individuals or to other
|| || || || || || || || || || || || ||
companies
,Insurance policy - ✔✔A contract wherein an insured pays premiums to an insurer in
|| || || || || || || || || || || || || ||
exchange for financial protection in the event of a covered loss
|| || || || || || || || || ||
Insured - ✔✔A person covered by an insurance policy
|| || || || || || || ||
Insurer - ✔✔The person providing coverage to one or more insureds
|| || || || || || || || || ||
Loss - ✔✔Bodily injury, property damage, or damage caused by the insured's negligent acts;
|| || || || || || || || || || || || || ||
loss is the basis for an insurance claim. Loss can also mean the sum the insured will have to
|| || || || || || || || || || || || || || || || || || ||
pay
Policyholder - ✔✔Also called the "insured", a policyholder is a person who has purchased
|| || || || || || || || || || || || || ||
an insurance policy - or contract-from an insurer.
|| || || || || || ||
Premium - ✔✔A scheduled an affordable fee, paid by the policyholder to the insurer, in
|| || || || || || || || || || || || || || ||
return for coverage. || ||
Principle of Indemnity - ✔✔The principle that insurance policies should provide a benefit
|| || || || || || || || || || || || ||
no greater than the loss suffered by an insured. Insured cannot profit from the loss.
|| || || || || || || || || || || || || ||
Adhesion - ✔✔Characteristics of an insurance contract. Means that one party (The insurer)
|| || || || || || || || || || || || ||
sets the terms, and the other (the policyholder) can "take it or leave it"
|| || || || || || || || || || || || ||
Aleatory - ✔✔A contract in which participating parties exchange unequal amounts.
|| || || || || || || || || || ||
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
|| || || || || || || || || || || || || || ||
unequal to the amount the insurer will pay in the event of a loss.
|| || || || || || || || || || || || ||
,Certificate of Insurance - ✔✔A legal document that indicates that an insurance policy has
|| || || || || || || || || || || || || ||
been issued, and that states both the amounts and types of insurance provided.
|| || || || || || || || || || || ||
Conditions - ✔✔provisions in the policy that qualify or place limitations on the insurer's
|| || || || || || || || || || || || || ||
promise to perform || ||
Coverages - ✔✔The amount and extent of protection provided by an insurance policy.
|| || || || || || || || || || || ||
Declarations Page - ✔✔The basic information about a policy: || || || || || || || ||
Who - names of insurer and insured
|| || || || || ||
What - description of insured property
|| || || || ||
Where - address and legal description of insured property
|| || || || || || || ||
When - effective and expiration dates.
|| || || || ||
How Much - limits of coverage, deductible, premium
|| || || || || || ||
Definitions - ✔✔Clarifies terms used in the policy || || || || || || ||
Endorsement(s) - ✔✔An optional provision that can be added to a policy to increase, || || || || || || || || || || || || || ||
reduce, or modify coverage for specific property types or perils
|| || || || || || || || ||
Exclusions - ✔✔A sections of an insurance policy that reduces coverage by listing specific
|| || || || || || || || || || || || || ||
individuals, property, or perils that the policy does NOT cover
|| || || || || || || || ||
Good Faith - ✔✔Acting honestly and fairly, with good intentions and full disclosure.
|| || || || || || || || || || || ||
Insuring Agreement - ✔✔The section of an insurance policy containing the insurer's
|| || || || || || || || || || || ||
promise to pay, the description of coverage provided and perils insured against.
|| || || || || || || || || || ||
, Legal Purpose - ✔✔On of the four qualifications of a legally binding contract. The purpose
|| || || || || || || || || || || || || || ||
of the contract must be legal and not against public policy.
|| || || || || || || || || ||
Unilateral - ✔✔A characteristic of insurance contracts. It means that only one of the parties
|| || || || || || || || || || || || || ||
(the insurer) makes a promise to perform. The insurer is obligated to fulfill this promise,
|| || || || || || || || || || || || || || || ||
whereas the insured is free to void the contract at any time.
|| || || || || || || || || || ||
Utmost Good Faith - ✔✔An obligation to act in complete honesty and to disclose all
|| || || || || || || || || || || || || || ||
relevant facts. ||
Six Characteristics of Insurance Contract - ✔✔1. Personal Contract
|| || || || || || || ||
2. Contract of Adhesion
|| || ||
3. Utmost Good Faith Contract
|| || || ||
4. Aleatory Contract
|| ||
5. Unilateral Contract
|| ||
6. Conditional Contract
|| ||
Fraternal Benefits Societies - ✔✔Non-profit, mutual aid organizations that engage primarily
|| || || || || || || || || ||
in charitable of benevolent activities. Thy offer their members insurance against death,
|| || || || || || || || || || || || ||
disease, and disability. Also known as Fraternal Associations.
|| || || || || || ||
Government Insurance - ✔✔An insurance program where risks are transferred to a|| || || || || || || || || || || ||
government agency. Also known as social insurance. Government insurance usually exists
|| || || || || || || || || || ||
in situations where the exposure to loss is too high for private insurers to reliably insure
|| || || || || || || || || || || || || || || ||
risks.
