Louisiana P&C Adjuster Exam Prep Questions and Correct Answers Series 204

What are the four requirements of a legally binding contract? Agreement, consideration, competent parties, legal purpose Jim applied for a homeowners policy with his agent, who gave him immediate temporary coverage. However, after checking Jim's background information, his agent discovers that Jim has been convicted of arson, so she declines his application. Which of the following best describes Jim's failure to mention his conviction during the application process? Concealment When an insured signs a document acknowledging that he gives up his right to a certain coverage, such as uninsured motorist coverage in an auto policy, this is called: an express waiver. Natalie's brakes have been squealing for several months. Every time she drives her car, she's reminded that she needs to have them replaced, but she forgets all about it as soon as she gets out of the car. Natalie's actions can be considered a: physical hazard. In an insurance contract, the policyholder gives the insurer _____, and the insurer gives the policyholder ______. premium payments; peace of mind Ronald always drives with his windows rolled down because he loves the feeling of the wind in his hair. However, he often forgets to roll his windows up when he gets out of the car. Of course, this behavior makes it easier for thieves to steal his belongings from the car, but Ronald can't help being forgetful. Ronald's behavior would be considered a: morale hazard. Skip's Convenience Store must agree to install and maintain an emergency shutoff system for its gas pumps in order to qualify for insurance coverage. Which of the following statements is true? This requirement is a warranty found in the conditions section of the policy. Insurance policies are aleatory contracts. This means: they depend on an unknown future event. In an insurance policy, where might one find the following statement? "The insured must make reasonable effort to protect the covered property from further damage." Conditions How