NEW YORK ADJUSTER EXAM NEWEST 2024 (3 LATEST
VERSIONS) COMPLETE 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
Insurance - ANSWER: A method of handling pure risk, by spreading it over a large
number of similar individuals.
Law of Large Numbers - ANSWER: Insurers can calculate their probable losses and
establish premium rates that are accurate enough to cover claims, pay operating
expenses, and make a profit.
Principle of Indemnity - ANSWER: An insured who suffered a loss, should only be
restored to the approximate financial condition that existed prior to the loss, no
better and no worse.
Insurance Interest - ANSWER: A person must have a lawful, substantial, and
economic interest in the life, health, property, or object being covered under the
insurance contract.
Risk - ANSWER: The possibility that a loss might occur and is the reason that people
buy insurance.
Pure Risk - ANSWER: A situation where there is only the possibility of a loss, there is
never the possibility of a profit or financial gain.
Speculative Risk - ANSWER: A situation where either a profit or loss is possible.
Peril - ANSWER: Actual cause of a loss, for example, fire, windstorm or hail.
Hazard - ANSWER: A condition that increases the possibility, of severity of a loss.
Moral Hazard - ANSWER: A condition that increases the probability that a person will
intentionally cause, create, or inflate a loss.
Morale Hazard - ANSWER: A condition of inattention to, or disregard for one's own
life, health, property, or behavior, that increases the frequency or severity of a loss.
Risk Avoidance - ANSWER: Avoiding the hazard.
Transfer of Risk - ANSWER: A person can transfer their risk to an insurance company,
in exchange for paying a premium.
Contract - ANSWER: An agreement between two or more parties that is enforceable
by law.
, C.L.O.C. - ANSWER: Competent Parties/Capacity to Contract; Legal Purpose; Offer
and Acceptance; Consideration
D.I.C.E. - ANSWER: Declarations; Insuring Agreement; Conditions; Exclusions
Representation - ANSWER: Statements made on an application for insurance that are
true to the applicant's best knowledge and belief.
Misrepresentation - ANSWER: Untrue statements made by the insured or insurer,
usually at the time when an application is made.
Fraud - ANSWER: An intentional act designed to deceive and induce another party to
part with something of value.
Waiver - ANSWER: The intentional relinquishment if a known right, or intentional
conduct inconsistent with claiming a known right.
Estoppel - ANSWER: A legal doctrine that prevents or "stops" a party from
contradicting its own precious actions, if those actions have been reasonably relied
upon by another party.
Arbitration Clause - ANSWER: The process of bringing a contract dispute before an
objective third party for resolution.
Binder - ANSWER: Legal agreement that provides temporary evidence of insurance
coverage until a policy can be issued.
Deductible - ANSWER: Also known as self-insured retention. As the amount chosen
by the insured increases the premium decreases.
Pro-Rata Share - ANSWER: Each insurer pays its portion of the loss, proportional to
the percentage of coverage provided by that policy.
Admitted/Authorized - ANSWER: When an insurance company has received a
certificate of authority, they are considered to be "admitted" companies that are
authorized to conduct business in the state.
Nonadmitted/Unauthorized - ANSWER: When an insurance company does not have
a certificate of authority, they are "nonadmitted" companies that are "unauthorized"
to conduct business in the state.
Surplus Lines Companies - ANSWER: There are circumstances when a nonadmitted
company without a certificate of authority is permitted to conduct business within a
state.
VERSIONS) COMPLETE 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
Insurance - ANSWER: A method of handling pure risk, by spreading it over a large
number of similar individuals.
Law of Large Numbers - ANSWER: Insurers can calculate their probable losses and
establish premium rates that are accurate enough to cover claims, pay operating
expenses, and make a profit.
Principle of Indemnity - ANSWER: An insured who suffered a loss, should only be
restored to the approximate financial condition that existed prior to the loss, no
better and no worse.
Insurance Interest - ANSWER: A person must have a lawful, substantial, and
economic interest in the life, health, property, or object being covered under the
insurance contract.
Risk - ANSWER: The possibility that a loss might occur and is the reason that people
buy insurance.
Pure Risk - ANSWER: A situation where there is only the possibility of a loss, there is
never the possibility of a profit or financial gain.
Speculative Risk - ANSWER: A situation where either a profit or loss is possible.
Peril - ANSWER: Actual cause of a loss, for example, fire, windstorm or hail.
Hazard - ANSWER: A condition that increases the possibility, of severity of a loss.
Moral Hazard - ANSWER: A condition that increases the probability that a person will
intentionally cause, create, or inflate a loss.
Morale Hazard - ANSWER: A condition of inattention to, or disregard for one's own
life, health, property, or behavior, that increases the frequency or severity of a loss.
Risk Avoidance - ANSWER: Avoiding the hazard.
Transfer of Risk - ANSWER: A person can transfer their risk to an insurance company,
in exchange for paying a premium.
Contract - ANSWER: An agreement between two or more parties that is enforceable
by law.
, C.L.O.C. - ANSWER: Competent Parties/Capacity to Contract; Legal Purpose; Offer
and Acceptance; Consideration
D.I.C.E. - ANSWER: Declarations; Insuring Agreement; Conditions; Exclusions
Representation - ANSWER: Statements made on an application for insurance that are
true to the applicant's best knowledge and belief.
Misrepresentation - ANSWER: Untrue statements made by the insured or insurer,
usually at the time when an application is made.
Fraud - ANSWER: An intentional act designed to deceive and induce another party to
part with something of value.
Waiver - ANSWER: The intentional relinquishment if a known right, or intentional
conduct inconsistent with claiming a known right.
Estoppel - ANSWER: A legal doctrine that prevents or "stops" a party from
contradicting its own precious actions, if those actions have been reasonably relied
upon by another party.
Arbitration Clause - ANSWER: The process of bringing a contract dispute before an
objective third party for resolution.
Binder - ANSWER: Legal agreement that provides temporary evidence of insurance
coverage until a policy can be issued.
Deductible - ANSWER: Also known as self-insured retention. As the amount chosen
by the insured increases the premium decreases.
Pro-Rata Share - ANSWER: Each insurer pays its portion of the loss, proportional to
the percentage of coverage provided by that policy.
Admitted/Authorized - ANSWER: When an insurance company has received a
certificate of authority, they are considered to be "admitted" companies that are
authorized to conduct business in the state.
Nonadmitted/Unauthorized - ANSWER: When an insurance company does not have
a certificate of authority, they are "nonadmitted" companies that are "unauthorized"
to conduct business in the state.
Surplus Lines Companies - ANSWER: There are circumstances when a nonadmitted
company without a certificate of authority is permitted to conduct business within a
state.
