Oklahoma Insurance Adjuster Exam Prep Questions and Answers (Graded A+)

Insurance - ANSWER-Transfers risk from one party to another. pool or reserve - ANSWER-collected premiums to cover losses/claims Indemnity - ANSWER-restoration to previous financial condition Four essential elements of a contract - ANSWER-agreement, consideration, competent parties, legality When may a policy be terminated? - ANSWER-revoking the offer, rejecting the offer, time lapse, or termination by operation of law Termination by Operation of Law - ANSWER-happens when one or both parties die or become disabled, contract becomes illegal, or when the subject matter is destroyed (ex. car totaled) Personal Contract - ANSWER-An agreement between an insurance company and an individual that states that insurance policies cover the individual's insurable interest. It covers the person, not the object.