North Carolina Property and Casualty Exam Terms Questions and Answers

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North Carolina Property and Casualty Exam Terms Questions and Answers Contract ✔✔A legal agreement between two competent parties that promises a certain performance in exchange for a certain co... nsideration Contracts must exhibit: ✔✔Competent parties Legal Purpose Offer and Acceptance Consideration Principle of indemnity ✔✔When a loss occurs, an individual should be restored to the approximate financial condition he was in before the loss, no more or no less Aleatory ✔✔A contract contingent on an uncertain event (A loss) that provides for unequal transfer of value between two paries Adhesion (Contracts) ✔✔One party has greater power over the other party in drafting the contract Unilateral (Contracts) ✔✔One Sided; Only the insurance company is legally bound to perform its part of the agreement Contract of utmost good faith (Contracts) ✔✔The truthfulness and integrity of the applicant when providing information that leads to issuing a policy. Conditional (Contracts) ✔✔A number of conditions that both the insured and the insurer most follow by in order to keep the contract valid Five parts of an insurance contract ✔✔Declarations Insuring Agreements Conditions Exclusions Definitions Declarations (Contain) ✔✔Name of Insured Address Amount of Coverage Description of Property Perils covered Insuring Agreements (Contain) ✔✔Losses for which the insured will be indemnified What is covered What perils covered Conditions (Contain) ✔✔Responsibilities and obligations for both the insurance company and the insured Exclusions (Contain) ✔✔Losses for which the insured is not covered Definitions ✔✔Meaning of certain [Show More]

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