State Farm Estimatics Exam Questions and Answers (latest 2023) (Verified Answers).

State Farm Estimatics Exam which of the following refers to being restored to the financial condition you were in before a loss? - Correct 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.. - Correct answer-principle of indemnity the transfer of risk from one party to another is called - Correct answer-insurance the principle of indemnity is designed to prevent - Correct 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 - Correct answer-premium insurance - Correct answer-transfers risk of financial losses from one party to another insured - Correct answer-individual or organization that pays premiums in exchange for protection insurer - Correct answer-company group or government agency offering financial protection insurance policy - Correct 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 - Correct answer-restoration to previous financial condition; no more, no less. what are the four qualifications of a contract - Correct answer-agreement, consideration, competent parties, and legal purpose. must be 18 years of age what is not a requirement for a legally binding contract - Correct answer-notarization when an insurer issues an insurance policy, the actual item, person or organization that is being insured is called the - Correct answer-the risk what is a reserve, in insurance terms - Correct answer-a pool of collected premiums that the insurer sets aside to pay claims aleatory - Correct answer-of or pertaining to accidental causes; of luck or chance; unpredictable unilateral - Correct answer-one-sided utmost good faith - Correct answer-both parties must act honestly and openly in order for the contract to be valid adhesion - Correct answer-one party sets the terms of the contract; the other may simply agree or not agree unilateral - Correct answer-only the insurer makes a promise to act; the insured can void contract at any time personal - Correct answer-the insured person is protected from losses, not the covered property. conditional - Correct answer-the insurer must only honor the contract if the insured meets certain conditions. aleatory - Correct 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 - Correct 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 - Correct 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 - Correct answer-toms financial interest in thee home what is not true about an aleatory contract - Correct answer-in an aleatory contract, the amount of benefit to the insured and insurer is equal. what does D.I.C.E stand for? - Correct 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? - Correct 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.' - Correct answer-conditions which of these causes of loss is least likely to be covered by a typical insurance policy? - Correct 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? - Correct answer-conditions conditions - Correct answer-lists requirements that the insured must meet for coverage to apply declarations - Correct answer-information that makes the policy unique to a specific insured. exclusions - Correct answer-causes of loss or items of property that are not covered by the policy endorsements - Correct answer-add, reduce, or change the coverage of the policy in some way