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Mamas test State Farm Estimatics Exam
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Mamas test State Farm Estimatics Exam
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Mamas test State Farm Estimatics Examwhich 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
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
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.
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
endorsements - ANSWER add, reduce, or change the coverage of the policy in
some way
definitions - ANSWER explains exactly what specific words mean in the context of
the policy
insuring agreement - ANSWER the essence of the contract. often only a single
sentence
Xavier owns a small insurance company. recently the company won a bid to insure a
new housing development in Omaha, NE. his company can hangle any claims that
arise, but if a series of tornados were to tear through the area, destroying the entire
development, Xaviers company would be hit extremely hard financially. which type of
insurer could help Xaviers company protect itself the most from this potential loss? -
ANSWER a re-insurer
what type of insurance provider operates on a for-profit basis? - ANSWER mutual
insurance companies
what type of insurer sells shares to the public and is owned by its shareholders -
ANSWER a stock insurance company
publicly traded acme insurance is listed on the new York stock exchange, and would
therefore be considered - ANSWER a non-participating insurance company.
stock insurance companies - ANSWER always for profit, publicly traded, 'non-
participating' insurers: no dividends go to policy holders
mutual insurance company - ANSWER owned by policy holders (no shareholders),
elect board directors, participate in dividends
re-insurer - ANSWER an insurer that provides insurance for other insurers
reciprocal insurer - ANSWER a group of ppl or organizations that insure each other.
always non- profit.
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