CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing
Test Exam with questions and answers 100%Correctly verified
answers latest update 2024/2025 RATED A+
Insurance - CORRECT ANSWERS Financial tool that protects
individuals and organizations from unforeseen and extraordinary
financial losses by transferring risk to another party
Principle of Indemnity - CORRECT ANSWERS Restoration to
approximate previous financial condition; no more no less
To prevent an insured from making a profit on a loss - CORRECT
ANSWERS The purpose of the principle of indemnity
The fee paid by the insured in exchange for an insurace policy -
CORRECT ANSWERS Which of the following best describes
premium?
A pool of collected premiums that insurer sets aside to pay claims -
CORRECT ANSWERS What is a reserve in terms of insurance?
Repairs to property
Reimbursement for additional living expenses
Rental cars, hotels
Costs directly associated with a loss, as allowed under the policy -
CORRECT ANSWERS Indemnification may include payment for :
Agreement
, CHAPTER 1 Alabama P&C, WC, & Crop Adjuster Pre-Licensing
Test Exam with questions and answers 100%Correctly verified
answers latest update 2024/2025 RATED A+
Consideration
Competent Parties
Legal Purpose - CORRECT ANSWERS 4 Qualifications of a
contract:
Personal
Adhesion
Utmost good faith
Aleatory
Unilateral
Condition - CORRECT ANSWERS 6 Characteristics of Insurance
Contracts
Personal Contract - CORRECT ANSWERS What characteristic
contract protects the policyholder from financial losses, covers the
person not the property,
Contract of Adhesion - CORRECT ANSWERS The insurer is
responsible for the wording of the contract
The insured has no say in the meaning
Courts favor the insured in the event of ambiguity
Contract of Utmost good faith - CORRECT ANSWERS Applicants
are expected to be completely honest about the risk to the insurer
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