Exam (elaborations)
NJ Property license 1 Questions and Answers Graded A+
- Course
- Institution
NJ Property license 1
[Show more]
Content preview
NJ Property license 1What are the methods of managing risk? - answer Avoidance, transfer, sharing,
retention, reduction
What is the fee a person pays an insurance company to receive coverage? - answer
Premium
Self -insuring is typically used for what type of insurance? - answer Workers
compensation
A tornado that destroys a property would be an example of what? - answer Peril
A state-issued document empowering an insurance company to become an admitted
insurer is called what? - answer Certificate of Authority
Why are the three types of hazards? - answer Physical, moral, and morale
The reduction, decrease, or disappearance of value of the person or property insured in
a policy is known as what? - answer Loss
Insurers are classified according to their domicile. What are the three types of insurers?
- answer Domestic, foreign, and alien
A person who does not lock the doors to his or her house shows an indifferent attitude.
What type of hazard does this represent? - answer Morale
A situation in which a person can experience only a loss and no gain presents what type
of risk? - answer Pure risk
What are the four elements of an insurance contract? - answer Agreement (offer and
acceptance), consideration, competent parties, and legal purpose
What type of insurer is formed under the laws of another state? - answer Foreign
What are the five characteristics of an ideally insurable risk? - answer Loss must be 1)
due to chance 2) definite and measurable, 3) statistically predictable, 4) not
catastrophic, and 5) coverage cannot be mandatory.
What law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated? - answerLaw of large numbers
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now