Texas Insurance Adjuster Questions

Front 1

Stock Companies

Back 1

Owned by stockholders

Front 2

Mutual Companies

Back 2

Owned by policyholders

Front 3

Domestic Insurer

Back 3

An insurer that is incorporated under the laws of the state in which it conducts business.

Front 4

Foreign Insurer

Back 4

An insurer doing business in another state in which it is not incorporated

Front 5

Alien Insurer

Back 5

Insurers who are orginazed under the laws of one country but working in another country

Front 6

Lines of Insurance: How old is Ocean Marine?

Back 6

It is the oldest form of insurance.

Front 7

Elements of Legal Contract: What is offer?

Back 7

The offer in an insurance contract comes from our insureds

Front 8

Elements of Legal Contract: What is consideration?

Back 8

The insured pays the premium for the insurers promise to pay the claims

Front 9

Elements of Legal Contract: ALL PARTIES MUST BE COMPETENT

Back 9

In texas, must be at least 14 yrs of age.

Front 10

What is contract used for

Back 10

Must be used for legal purposes

Front 11

Contract of Adhesion

Back 11

In insurance, the insurer writes the contract and the insured "adhears" to it

Front 12

Aleatory Contract

Back 12

Insurance contracts are "one sided," because one party may receive much more in value than he or she gives under the contract

Front 13

Unilateral Contract

Back 13

Only the insurer promises to do anything further after the insured has paid the premium

Front 14

Conditional Contact

Back 14

Insurance contracts are conditional because when the loss occures, certain conditions must be met to make the contact legally enforceable.

Front 15

Declarations Page

Back 15

The information page that shows the parties insured, addresses, coverages, and premiums

Front 16

Supplementary Coverages

Back 16

Additional payments and coverage

Front 17

Exclusions

Back 17

Eliminates coverage in the insuring agreement

Front 18

Conditions

Back 18

Relates to duties of the insured and the obligations of the insurer

Front 19

Endorsements

Back 19

Amended terms of the contract

Front 20

Insurance Tearms and Definitions: RISK

Back 20

Is the uncertainty that one faces when a loss is possible

Front 21

Two types of Risk: First Type is SPECULATIVE RISK

Back 21

A form of gambling where you have a chance of a gain or loss

Front 22

Two types of Risk: Second Type is PURE RISK

Back 22

We only have a chance of a loss with no change for a gain

Front 23

What is an insurance contract?

Back 23

The legal agreements between the insurance company and the insured

Front 24

What is WE, US, and OUR, in an insurance contract mean?

Back 24

We, Us, and Our refers to the insurance company providing the insuracne contract

Front 25

What is You and Your in an insurance contract mean?

Back 25

You and Your refers to the names insurance who purchased the insuracne contact

Front 26

That is an insurer??

Back 26

Insurer is the insurance company that has agreed to provide services and cover losses

Front 27

What is an insured?

Back 27

Insured is the person or business that is covererd by the insurance company and will be indemnified in the event of a covered loss

Front 28

What is Idemnification?

Back 28

Indemnify means to restore a person or business to the economic condition that they were at just prior to a loss

Front 29

What is peril

Back 29

Peril is a cause of loss. I.E. Fire and lightning, Windstorn, hurricane, hail, vandalism, Riot, Civil Commotion, Sprinkler leackage, etc.

Front 30

What is Hazard?

Back 30

Hazard is any condition that increases the likelihood that a loss will occur. i.e. Storing 1000 gallons of gasoline in your garage, speeding, and drunk driving.