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Claims Adjuster Exam Rated 100% Correct!!

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Claims Adjuster Exam Rated 100% Correct!! Insurance ✔✔-an economic device used to protect against extreme unforeseen loss - the transfer of risk from one party to another Premium ✔✔-the ... fee paid by the insured in exchange for insurance Principle of Indemnity ✔✔-the insurer should be restored to where they were before the incident -no profit can be made Idemnification ✔✔-to compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person 4 Elements of a Legal Contract ✔✔-Agreement- signature or handshake -Consideration- money exchange -Competent Parties-18 yrs. old, sober, sane -Legal Purpose-no contracts for money laundering Insured ✔✔individual who pays premiums in exchange for protection -can be a person, person's or an organization - "You," "Your," or "Your's" (if the insured is a group it is important to list the "first named insured,"- because that is the only one that can authorize changes to the policy) Insurer ✔✔-company or group offering insurance -can be a government organization -terms- "We," "Us," and "Our 6 Characteristics of a Contract: Personal ✔✔-protects the person (insured) from loss -does not protect property from becoming damaged -coverage follows the person not the property 6 Characteristics of a Contract: Adhesion ✔✔-one party dictates terms -the insured has no power to write the contract -courses will favor the insured in a case of ambiguity 6 Characteristics of a Contract: Utmost Good Faith ✔✔-applicants are expected not to withhold any information or the contract can be voided 6 Characteristics of a Contract: Aleatory ✔✔-depending on a unknown future event -Insurer only has to pay in and when covered losses occur 6 Characteristics of a Contract: Unilateral ✔✔-only the insurer make an obligation to pay for covered losses 6 Characteristics of a Contract: Conditional ✔✔-the insurer only has to perform if certain conditions are met Policy Sections Declarations Page ✔✔-makes contract specific to the policy holder Includes: -Name of both parties -Policy Number -Location & Description of Item -Value of Insured Item -Value of item dates - Amount & Limit of Coverage -Deductible -Premium Policy Sections Definitions ✔✔-it is not technically essential -need to know info. or language used in the contract Policy Sections Insuring Agreement ✔✔summarizes: -what is covered -which losses are covered -maximum limit of policy -the core of the contract -often one sentence [Show More]

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