Adjuster Pro – Insurance adjuster test Questions
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What is insurance? – correct answer ✅protection against financial loss
what is a premium – correct answer ✅a scheduled amount to be paid for an
insurance policy.
What are premiums used for – correct answer ✅premiums are collected into
a “pool” or “reserve to pay out claimants when needed.
how can insurance companies afford to pay for an individuals catastrophic
loss? – correct answer ✅the insurer collects premiums from all policy
holders and uses them to pay out the claims of a few.
what is Indemnity – correct answer ✅payment for damages, that is not
more or less than the amount caused by the damage.
principle of idemnity – correct answer ✅insurance will pay no more or less
than the actual financial loss suffered
indemnification may also include – correct answer ✅repairs to property
Adjuster Pro – Insurance adjuster test Questions
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reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract – correct answer ✅1. Agreement
- Consideration
- Competent Parties
- Legal Purpose
legal contract – agreement – correct answer ✅mutual intent by offeror and
offeree
six special characteristics of insurance contracts – correct answer ✅1.
Personal - adhesion
- utmost good faith
- aleatory
- unilateral
Adjuster Pro – Insurance adjuster test Questions
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- conditional
what kind of contract is an insurance policy? – correct answer ✅Personal
contract
what is a contract of adhesion – correct answer ✅the insured must accept
the entire contract with all of its terms and conditions
Utmost Good Faith – correct answer ✅An obligation to act in complete
honesty and to disclose all relevant facts.
Aleatory Contract – correct answer ✅a contract where the values exchanged
may not be equal but depend on an uncertain event
Unilateral Contract – correct answer ✅insurance agrees that they must pay
in event of a claim. the insured can stop paying premiums at any point.
only the insurer has promised to perform an action.
Adjuster Pro – Insurance adjuster test Questions
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Conditional Contract – correct answer ✅A type of an agreement in which
both parties must perform certain duties and follow rules of conduct to
make the contract enforceable.
Acronym for the four sections of an Insurance policy – correct answer ✅DICE
D – declarations page
I – Insuring Agreement
C- Conditions
E – Exclusions
Decelerations section – correct answer ✅Always the first section –
establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
Deductible
Premium