Adjuster Pro - Insurance Adjuster Test 2023

1 / 13

Adjuster Pro - Insurance Adjuster Test 2023

1.What is insurance?: protection against financial loss

2.what is a premium: a scheduled amount to be paid for an insurance

policy.

3.What are premiums used for: premiums are collected into a "pool" or

"reserve to pay out claimants when needed.

4.how can insurance companies afford to pay for an individuals

catastrophic loss?: the insurer collects premiums from all policy

holders and uses them to pay out the claims of a few.

5.what is Indemnity: payment for damages, that is not more or less

than the amount caused by the damage. 1 / 3

2 / 13

6.principle of idemnity: insurance will pay no more or less than the

actual financial loss suffered

7.indemnification may also include: repairs to

property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss

8.4 Parts of Legal Contract: 1. Agreement

2.Consideration 3.Competent Parties 4.Legal Purpose

9.legal contract - agreement: mutual intent by offeror and offeree

10.six special characteristics of insurance contracts: 1. Personal

2.adhesion 3.utmost good faith 4.aleatory 5.unilateral 6.conditional 11.what kind of contract is an insurance policy?: Personal contract 2 / 3

3 / 13

12.what is a contract of adhesion: the insured must accept the entire

contract with all of its terms and conditions

13.Utmost Good Faith: An obligation to act in complete honesty and to

disclose all relevant facts.

14.Aleatory Contract: a contract where the values exchanged may not

be equal but depend on an uncertain event

• / 3