STATE FARM ESTIMATICS EXAM 200 QUESTIONS WITH 100%
COMPLETE AND CORRECT ANSWERS/2023/A+ GRADE
which of the following refers to being restored to the
... [Show More] 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
STATE FARM ESTIMATICS EXAM 200 QUESTIONS WITH 100%
COMPLETE AND CORRECT ANSWERS/2023/A+ GRADE
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 exec [Show Less]