NY Independent Adjuster Exam Questions and Answers Graded A+
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Course
NY Independent Adjuster
Institution
NY Independent Adjuster
Dynamic Risk - ANSWER-Not insurable. Think COVID. Tech advances that might hurt your business.
Static risk - ANSWER-100 year flood, rare genetic illness , doesn't really change through time. Insurable
Pure risk - ANSWER-a risk that presents the chance of loss but no opportunity for gain
Sp...
Overinsurance - ANSWER-insurance that exceeds in amount the actual value of the
person or property insured or insurance in a greater amount than the insured can afford
Morale hazard - ANSWER-carelessness or indifference to a loss because of the
existence of insurance
Reinsurance - ANSWER-When an insurance company buys insurance for some if the
risks for which it has issued coverage
Elements of a valid contract - ANSWER-1. Capacity to contract 2. Legal purpose. 3.
Offer and acceptance. 4. Consideration.
The conditions section of the policy contains: - ANSWER-Duties of insured and
insurance company
Insuring agreements of insurance policy - ANSWER-Contains the insurer's promise to
pay in case of a loss.
Executory contract - ANSWER-An insurance contract outlines the duties of both the
insured and the insurance company, and states that those duties must be performed,
before the contract will be fully "executed". This means the contract is "executory".
, Arbitration clause - ANSWER-A clause in a contract that provides that, in the event of a
dispute, the parties will submit the dispute to arbitration rather than litigate the dispute in
court.
Assignment - ANSWER-The act of transferring to another all or part of one's rights
arising under a contract. Usually requires written consent of the insurance company.
Cancellation and nonrenewal - ANSWER-Cancelled midTerm on short rate (penalty) or
pro rata (no penalty) basis. Nonrenewal is at end of policy period.
A deductible is aka - ANSWER-Self-insured retention because insured pays for part of
loss
Endorsement or rider - ANSWER-Adds, deletes or modifies policy provisions, located
on dec page
Liberalization clause - ANSWER-A policy condition providing that if a policy form is
broadened at no additional premium, the broadened coverage automatically applies to
all existing policies of the same type.
Insured gets homeowners policy but it is used for business. States not used for
business. - ANSWER-Policy will be voided at inception because she made a material
misrepresentation on her application for insurance
a voided policy means - ANSWER-never really happened usually as a result of
misrepresentation such as telling a lie or partial truth
Public Law 15 - McCarran-Ferguson Act (1945) - ANSWER-Insurance should be
regulated by the states
The Commissioner does NOT have the power to - ANSWER-Write insurance laws but
does enforce those laws ; does not set rates, only approves or disapproves of them
National Association of Insurance Commissioners - ANSWER-Creates and maintains
model laws that establish standards for hoe insurance is offered and delivered. No legis
powers.
Surplus Lines Insurance - ANSWER-Insurance obtained from nonadmitted insurers
when protection is not available from admitted insurers. Premium tax added.
Guaranty Association - ANSWER-Established by each state to support insurers and
protect consumers in the case of insurer insolvency, guaranty associations are funded
by insurers through assessments. Prohibit insurer from ad that they are part of assoc.
Foreign insurer - ANSWER-An insurance company that is incorporated in another state.
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