4/5/25, 6:42 CT Adjuster Licensing- CH 1 |
PM
CT ADJUSTER LICENSING- CH 1 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
A valid offer and unconditional acceptance must be present in order for the
Agreement
contract to be enforceable.
IN order for the agreement to be binding, both parties must provide each other
Consideration
with something of value.
The parties arriving at an agreement must possess the legal capacity to enter
Legal Capacity
into that contract. (Competent Parties)
Legal Purpose A contract must be created with the public interest in mind.
According to the Law of Contracts, Agreement, Consideration, Competent Parties, and Legal Purpose
elements that must be present in order for
any contract to be legal and enforceable
include:
Contract language is developed by one party- The Insurer. Act in exchange for a
Unilateral Contract (Characteristics of an Promise or a promise in exchange for an act already performed. For example,
Insurance Contract) The promise of an insurer to pay a claim in exchanged for the insured paying
the
premium.
Contract is Drafted by the insurer and accepted by an applicant. Since the insurer
Adhesion (Characteristics of an drafts the language of the contract, any language that is confusing, unclear
Insurance Contract) or ambiguous that later becomes apparent my be decided by a court in favor of
the person that did not draft the language.
One party may recover more in value than he or she has parted with, based
Aleatory (Characteristics of an upon a possible future event. For example the potential value (claim payment)
Insurance Contract) received by the insured is generally greater than the value (premiums) received
by the
insurer.
Its Function is conditional upon the performance of the parties arriving at an
Conditional (Characteristics of an agreement. It requires both the insured and the insurer to satisfy specific
Insurance Contract) conditions in order for the contract to be executed. For example, the insurer
promise to pay claims is conditional upon the payment of premiums.
The Contract is between and insurer and a named insured ( Person), even though
Personal (Characteristics of an Insurance
it provides coverage for a home or car, the agreement is between a company and
Contract)
a person.
An obligation to act with complete honesty and to disclose all relevant facts.
Utmost Good Faith (Characteristics of an
In other words, each party must tell the truth. Insurer relies on the statements of
Insurance Contract)
the insured and the insured relies on the promise made by the insurer.
Representations statements made by the applicant for insurance
An incorrect statement made by the applicant- simply a false act. Generally do
Misrepresentation
not affect coverage unless they are Fraudulent in nature.
A statement that, if discovered, would alter the underwriting decision of the
Material Misrepresentation
insurance company. For example, rejection of the application.
A statement made by the applicant/insured that is totally and unequivocally true.
Statements made by the applicant that are recorded on the application are
warranty representations are not warranties. Such representations then become a
warranty when it becomes part of the contract- a promise made by the insured
upon which the coverage is based.
Concealment is the failure to disclose material facts. Fraud is committed when
Concealment and Fraud an individual intentionally and deliberately deceives another one. Concealment
may be fraudulent if it is intentional.
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3
PM
CT ADJUSTER LICENSING- CH 1 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
A valid offer and unconditional acceptance must be present in order for the
Agreement
contract to be enforceable.
IN order for the agreement to be binding, both parties must provide each other
Consideration
with something of value.
The parties arriving at an agreement must possess the legal capacity to enter
Legal Capacity
into that contract. (Competent Parties)
Legal Purpose A contract must be created with the public interest in mind.
According to the Law of Contracts, Agreement, Consideration, Competent Parties, and Legal Purpose
elements that must be present in order for
any contract to be legal and enforceable
include:
Contract language is developed by one party- The Insurer. Act in exchange for a
Unilateral Contract (Characteristics of an Promise or a promise in exchange for an act already performed. For example,
Insurance Contract) The promise of an insurer to pay a claim in exchanged for the insured paying
the
premium.
Contract is Drafted by the insurer and accepted by an applicant. Since the insurer
Adhesion (Characteristics of an drafts the language of the contract, any language that is confusing, unclear
Insurance Contract) or ambiguous that later becomes apparent my be decided by a court in favor of
the person that did not draft the language.
One party may recover more in value than he or she has parted with, based
Aleatory (Characteristics of an upon a possible future event. For example the potential value (claim payment)
Insurance Contract) received by the insured is generally greater than the value (premiums) received
by the
insurer.
Its Function is conditional upon the performance of the parties arriving at an
Conditional (Characteristics of an agreement. It requires both the insured and the insurer to satisfy specific
Insurance Contract) conditions in order for the contract to be executed. For example, the insurer
promise to pay claims is conditional upon the payment of premiums.
The Contract is between and insurer and a named insured ( Person), even though
Personal (Characteristics of an Insurance
it provides coverage for a home or car, the agreement is between a company and
Contract)
a person.
An obligation to act with complete honesty and to disclose all relevant facts.
Utmost Good Faith (Characteristics of an
In other words, each party must tell the truth. Insurer relies on the statements of
Insurance Contract)
the insured and the insured relies on the promise made by the insurer.
Representations statements made by the applicant for insurance
An incorrect statement made by the applicant- simply a false act. Generally do
Misrepresentation
not affect coverage unless they are Fraudulent in nature.
A statement that, if discovered, would alter the underwriting decision of the
Material Misrepresentation
insurance company. For example, rejection of the application.
A statement made by the applicant/insured that is totally and unequivocally true.
Statements made by the applicant that are recorded on the application are
warranty representations are not warranties. Such representations then become a
warranty when it becomes part of the contract- a promise made by the insured
upon which the coverage is based.
Concealment is the failure to disclose material facts. Fraud is committed when
Concealment and Fraud an individual intentionally and deliberately deceives another one. Concealment
may be fraudulent if it is intentional.
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