GA Insurance Adjuster Course Questions
with solved solutions
Six Special Characteristic of Insurance Contracts - ANSWER>>Personal, Adhesion,
Utmost Good Faith, Aleatory, Unilateral, Condition
Coverage F - ANSWER>>Medical Payments
Umbrella - ANSWER>>An umbrella policy provided liability coverage over and
above the normal or base limits of liability in a policy. An umbrella policy is a type
of excess policy
Risk Transference - ANSWER>>Management of severe risk by transferring the risk
of another party
Risk Avoidance - ANSWER>>Eliminates risk by not taking an action that involves
risk
B.O.P. - ANSWER>>Business Owner Package
C.P.P - ANSWER>>Commercial Package Policies
Representation - ANSWER>>A statement of a fact
Misrepresentation - ANSWER>>A false, distorted, or deceitful statement of fact or
opinion, even if made unintentionally
Personal Contract - ANSWER>>Protects the policyholder from financial losses. It
does not protect property from becoming damaged. Coverage the follows the
person, not the property.
,Adhesion Contract - ANSWER>>The insurer is responsible for the term of the
contract. The insured has no say in wording. Courts favor the insured in the event
of an ambiguity.
Utmost Good Faith Contract - ANSWER>>Applicants are expected to be
completely honest about the risk to the insurer. The insurer must rely on
applicants to conceal or misrepresent pertinent facts.
Aleatory Contract - ANSWER>>Policy holder could pay more in premiums than
they ever get for claims, or insurer could pay more in claims than it recieves.
60 - ANSWER>>A discovery from commercial crime policy can apply to losses
discovered during the policy as well as up to many days after his expiration date.
Reciprocal Insurer - ANSWER>>An unincorporated organization of subscriber that
operates through an attorney in fact to provide insurance benefits for its
members
Risk Reduction "Risk Mitigation" - ANSWER>>Taking measures to reduce the risk
involved in an action
Risk Retention - ANSWER>>Acknowledging the risk and preparing to handle
unexpected losses that may occur.
Coverage B - ANSWER>>Detached Private Structures
Coverage D - ANSWER>>Loss of use; Fair Rental Value, Additional living expenses
Conditional Contract - ANSWER>>The insurer only has to perform if certain
conditions are met.
Unilateral Contract - ANSWER>>The insurer has an obligation to pay for covered
losses. The insured has no obligation.
, Concealment - ANSWER>>Deliberately withholding relevant information
Binder - ANSWER>>Temporary coverage for an insurance applicant until the
policy is issued
$500 - ANSWER>>Personal Article Floater have the amount of______deductible
Morale Hazard - ANSWER>>Takes place when insured acts differently because of
the comfort that insurance protection provides.
Surety - ANSWER>>Guarantees to pay obligee if principal defaults
Indemnitor - ANSWER>>Fourth Party to a surety bond who agrees to reimburse
the surety for losses sustained if the principal defaults
Suretyship - ANSWER>>An arrangement between three parties in which one party
promises to perform for another party, and a third party guarantees they will
fulfill that premise
Doctrine of Reasonable Expectations - ANSWER>>The contract should be
interpreted as a reasonable person would interpret it
Coverage C - ANSWER>>personal property
HO-3 (special form) - ANSWER>>covers the dwelling and other structures on a
risk-of-direct-physical loss basis. All direct physical losses are covered except
those losses specifically excluded. Personal property is covered on a named perils
basis
HO-2 (broad form) - ANSWER>>covers the dwelling, other structures, and
personal property on a named perils basis
with solved solutions
Six Special Characteristic of Insurance Contracts - ANSWER>>Personal, Adhesion,
Utmost Good Faith, Aleatory, Unilateral, Condition
Coverage F - ANSWER>>Medical Payments
Umbrella - ANSWER>>An umbrella policy provided liability coverage over and
above the normal or base limits of liability in a policy. An umbrella policy is a type
of excess policy
Risk Transference - ANSWER>>Management of severe risk by transferring the risk
of another party
Risk Avoidance - ANSWER>>Eliminates risk by not taking an action that involves
risk
B.O.P. - ANSWER>>Business Owner Package
C.P.P - ANSWER>>Commercial Package Policies
Representation - ANSWER>>A statement of a fact
Misrepresentation - ANSWER>>A false, distorted, or deceitful statement of fact or
opinion, even if made unintentionally
Personal Contract - ANSWER>>Protects the policyholder from financial losses. It
does not protect property from becoming damaged. Coverage the follows the
person, not the property.
,Adhesion Contract - ANSWER>>The insurer is responsible for the term of the
contract. The insured has no say in wording. Courts favor the insured in the event
of an ambiguity.
Utmost Good Faith Contract - ANSWER>>Applicants are expected to be
completely honest about the risk to the insurer. The insurer must rely on
applicants to conceal or misrepresent pertinent facts.
Aleatory Contract - ANSWER>>Policy holder could pay more in premiums than
they ever get for claims, or insurer could pay more in claims than it recieves.
60 - ANSWER>>A discovery from commercial crime policy can apply to losses
discovered during the policy as well as up to many days after his expiration date.
Reciprocal Insurer - ANSWER>>An unincorporated organization of subscriber that
operates through an attorney in fact to provide insurance benefits for its
members
Risk Reduction "Risk Mitigation" - ANSWER>>Taking measures to reduce the risk
involved in an action
Risk Retention - ANSWER>>Acknowledging the risk and preparing to handle
unexpected losses that may occur.
Coverage B - ANSWER>>Detached Private Structures
Coverage D - ANSWER>>Loss of use; Fair Rental Value, Additional living expenses
Conditional Contract - ANSWER>>The insurer only has to perform if certain
conditions are met.
Unilateral Contract - ANSWER>>The insurer has an obligation to pay for covered
losses. The insured has no obligation.
, Concealment - ANSWER>>Deliberately withholding relevant information
Binder - ANSWER>>Temporary coverage for an insurance applicant until the
policy is issued
$500 - ANSWER>>Personal Article Floater have the amount of______deductible
Morale Hazard - ANSWER>>Takes place when insured acts differently because of
the comfort that insurance protection provides.
Surety - ANSWER>>Guarantees to pay obligee if principal defaults
Indemnitor - ANSWER>>Fourth Party to a surety bond who agrees to reimburse
the surety for losses sustained if the principal defaults
Suretyship - ANSWER>>An arrangement between three parties in which one party
promises to perform for another party, and a third party guarantees they will
fulfill that premise
Doctrine of Reasonable Expectations - ANSWER>>The contract should be
interpreted as a reasonable person would interpret it
Coverage C - ANSWER>>personal property
HO-3 (special form) - ANSWER>>covers the dwelling and other structures on a
risk-of-direct-physical loss basis. All direct physical losses are covered except
those losses specifically excluded. Personal property is covered on a named perils
basis
HO-2 (broad form) - ANSWER>>covers the dwelling, other structures, and
personal property on a named perils basis
