1|Pag e
STATE FARM ESTIMATICS EXAM|| ALL
QUESTIONS AND 100% CORRECT ANSWERS
ALREADY GRADED A+|| LATEST AND COMPLETE
UPDATE 2024-2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!!
which of the following refers to being restored to the financial condition you were
in before a loss? - ANSWER: indemnification
mark incurred 8000$ damage to his car in an accident. he received 8000$ from his
insurance company and 4000$ from the other driver. by receiving a profit from the
loss, Mark is in violation of.. - ANSWER: principle of indemnity
the transfer of risk from one party to another is called - ANSWER: insurance
the principle of indemnity is designed to prevent - ANSWER: keeps the insured
from making a profit from an insured loss.
the fee paid by the insured in exchange for an insurance policy is called a -
ANSWER: premium
insurance - ANSWER: transfers risk of financial losses from one party to another
insured - ANSWER: individual or organization that pays premiums in exchange
for protection
insurer - ANSWER: company group or government agency offering financial
protection
,2|Pag e
insurance policy - ANSWER: a legally binding contract in which the insurer
agrees to take on specified risks in exchange for the insured's premiums
principle of indemnity - ANSWER: restoration to previous financial condition; no
more, no less.
what are the four qualifications of a contract - ANSWER: agreement,
consideration, competent parties, and legal purpose. must be 18 years of age
what is not a requirement for a legally binding contract - ANSWER: notarization
when an insurer issues an insurance policy, the actual item, person or organization
that is being insured is called the - ANSWER: the risk
what is a reserve, in insurance terms - ANSWER: a pool of collected premiums
that the insurer sets aside to pay claims
aleatory - ANSWER: of or pertaining to accidental causes; of luck or chance;
unpredictable
unilateral - ANSWER: one-sided
utmost good faith - ANSWER: both parties must act honestly and openly in order
for the contract to be valid
adhesion - ANSWER: one party sets the terms of the contract; the other may
simply agree or not agree
,3|Pag e
unilateral - ANSWER: only the insurer makes a promise to act; the insured can
void contract at any time
personal - ANSWER: the insured person is protected from losses, not the covered
property.
conditional - ANSWER: the insurer must only honor the contract if the insured
meets certain conditions.
aleatory - ANSWER: the exectution of the contract depends on an unknown future
event.
an insurance applicat revealing his convictions for drunk driving to an insurer is an
example of - ANSWER: utmost good faith.
tom purchases a new car from his local car dealer. he also decides to get insurance
coverage that will pay to repair the car if he were to get into an accident. this is
because tom wants to protect - ANSWER: his own financial interest in the car.
tom decides to purchase an insurance policy to protect his home. according to the
definition of a personal contract, which of the following most accurately describes
what tomes insurance actually protects - ANSWER: toms financial interest in thee
home
what is not true about an aleatory contract - ANSWER: in an aleatory contract, the
amount of benefit to the insured and insurer is equal.
, 4|Pag e
what does D.I.C.E stand for? - ANSWER: declarations page (and definitions),
insuring agreement, conditions and exclusions (and endorsements)
'we will provide the insurance described in this policy in return for the premium
and compliance with all applicable provisions of this policy.' in which section of
the insurance policy might this statement be found? - ANSWER: insuring
agreement
in which section of the policy might you find the following statement ? 'damage to
insured property must be reported within 15 days of the damaging occurrence.' -
ANSWER: conditions
which of these causes of loss is least likely to be covered by a typical insurance
policy?
- ANSWER: nuclear hazard
edna loses some of her property in a hailstorm. when an adjuster comes to
investigate the loss, he gives an estimate that edna thinks is far too lowl. as
negotiations continue, neither edna nor the adjuster will budge. where in Ednas
policy would you find the procedure to follow in this situation? - ANSWER:
conditions
conditions - ANSWER: lists requirements that the insured must meet for coverage
to apply
declarations - ANSWER: information that makes the policy unique to a specific
insured.
exclusions - ANSWER: causes of loss or items of property that are not covered by
the policy
STATE FARM ESTIMATICS EXAM|| ALL
QUESTIONS AND 100% CORRECT ANSWERS
ALREADY GRADED A+|| LATEST AND COMPLETE
UPDATE 2024-2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!!
which of the following refers to being restored to the financial condition you were
in before a loss? - ANSWER: indemnification
mark incurred 8000$ damage to his car in an accident. he received 8000$ from his
insurance company and 4000$ from the other driver. by receiving a profit from the
loss, Mark is in violation of.. - ANSWER: principle of indemnity
the transfer of risk from one party to another is called - ANSWER: insurance
the principle of indemnity is designed to prevent - ANSWER: keeps the insured
from making a profit from an insured loss.
the fee paid by the insured in exchange for an insurance policy is called a -
ANSWER: premium
insurance - ANSWER: transfers risk of financial losses from one party to another
insured - ANSWER: individual or organization that pays premiums in exchange
for protection
insurer - ANSWER: company group or government agency offering financial
protection
,2|Pag e
insurance policy - ANSWER: a legally binding contract in which the insurer
agrees to take on specified risks in exchange for the insured's premiums
principle of indemnity - ANSWER: restoration to previous financial condition; no
more, no less.
what are the four qualifications of a contract - ANSWER: agreement,
consideration, competent parties, and legal purpose. must be 18 years of age
what is not a requirement for a legally binding contract - ANSWER: notarization
when an insurer issues an insurance policy, the actual item, person or organization
that is being insured is called the - ANSWER: the risk
what is a reserve, in insurance terms - ANSWER: a pool of collected premiums
that the insurer sets aside to pay claims
aleatory - ANSWER: of or pertaining to accidental causes; of luck or chance;
unpredictable
unilateral - ANSWER: one-sided
utmost good faith - ANSWER: both parties must act honestly and openly in order
for the contract to be valid
adhesion - ANSWER: one party sets the terms of the contract; the other may
simply agree or not agree
,3|Pag e
unilateral - ANSWER: only the insurer makes a promise to act; the insured can
void contract at any time
personal - ANSWER: the insured person is protected from losses, not the covered
property.
conditional - ANSWER: the insurer must only honor the contract if the insured
meets certain conditions.
aleatory - ANSWER: the exectution of the contract depends on an unknown future
event.
an insurance applicat revealing his convictions for drunk driving to an insurer is an
example of - ANSWER: utmost good faith.
tom purchases a new car from his local car dealer. he also decides to get insurance
coverage that will pay to repair the car if he were to get into an accident. this is
because tom wants to protect - ANSWER: his own financial interest in the car.
tom decides to purchase an insurance policy to protect his home. according to the
definition of a personal contract, which of the following most accurately describes
what tomes insurance actually protects - ANSWER: toms financial interest in thee
home
what is not true about an aleatory contract - ANSWER: in an aleatory contract, the
amount of benefit to the insured and insurer is equal.
, 4|Pag e
what does D.I.C.E stand for? - ANSWER: declarations page (and definitions),
insuring agreement, conditions and exclusions (and endorsements)
'we will provide the insurance described in this policy in return for the premium
and compliance with all applicable provisions of this policy.' in which section of
the insurance policy might this statement be found? - ANSWER: insuring
agreement
in which section of the policy might you find the following statement ? 'damage to
insured property must be reported within 15 days of the damaging occurrence.' -
ANSWER: conditions
which of these causes of loss is least likely to be covered by a typical insurance
policy?
- ANSWER: nuclear hazard
edna loses some of her property in a hailstorm. when an adjuster comes to
investigate the loss, he gives an estimate that edna thinks is far too lowl. as
negotiations continue, neither edna nor the adjuster will budge. where in Ednas
policy would you find the procedure to follow in this situation? - ANSWER:
conditions
conditions - ANSWER: lists requirements that the insured must meet for coverage
to apply
declarations - ANSWER: information that makes the policy unique to a specific
insured.
exclusions - ANSWER: causes of loss or items of property that are not covered by
the policy
