ADJUSTER PRO - INSURANCE ADJUSTER TEST EXAM

PDF Download

ADJUSTER PRO - INSURANCE ADJUSTER TEST EXAM

QUESTIONS

Qs and Ans Expert- Explanation

This Exam contains:

-Guarantee passing score -99 Questions and Answers -format set of multiple-choice -Expert- Explanation

Question 1: Moral hazard

Answer:

Results from the policy holders deliberate decision Involves reckless behavior because of the financial security offered by insurance Is a type of behavioral hazard

Question 2: Reciprocal Insurers

Answer:

Unincorpo Non profit Ope by attorney in fact Members pay into individual accounts Cost of claims shared by whole groups

Question 3: Risk

Answer:

Potential for financial loss An insured item

Question 4: Evaluating exposure

Answer:

Expressed in dollars or units Determining factor in issuing a policy and setting a premium

Question 5: Hard and soft fraud

Answer:

Hard fraud - planning or faking a loss Soft fraud - exaggerating a claim to inflate the indemnity

Question 6: Occurrence as proximate cause

Answer:

The original occurrence causes damage that leads to more damage

Question 7: what is Indemnity

Answer:

payment for damages, that is not more or less than the amount caused by the damage.

Question 8: acknowledgement

Answer:

Insurer require by law to respond Begin investigating all pertinent facts and issues

Question 9: Two types of risk

Answer:

Pure and Speculative

Question 10: what kind of contract is an insurance policy?

Answer:

Personal contract

Question 11: Risk reduction

Answer:

Taking measures to reduce risk that is involved Also called risk mitigation

Question 12: Difneable risk

Answer:

Insurer can define exact conditions under which the item is covered by the policy Item it's self is defineable Item has precise value

Question 13: what is a premium

Answer:

a scheduled amount to be paid for an insurance policy.

Question 14: Types of physical hazards

Answer:

Environmental - pot holes in road Material - asbestos in a old house Operational - poorly managed engine Occupant - working in a coal mine

Question 15: Aleatory Contract

Answer:

a contract where the values exchanged may not be equal but depend on an uncertain event

Question 16: What is insurance?

Answer:

protection against financial loss

Question 17: Waiver

Answer:

Voluntarily surrender of a right, claim, or privilege

Question 18: Insurance claims

Answer:

Demand for payment in accordance with terms of the policy

Question 19: Conditions section

Answer:

Insurer specifies any limits or qualifications the policy holder must meet

Question 20: indemnification may also include

Answer:

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

Question 21: Fixed deductible

Answer:

Specific set amount

Question 22: Unexpected loss

Answer:

Unforeseeable Unexpected Reasonably unpreventable Random in nature

Question 23: Investigation

Answer:

Finding the proximate cause of the loss Examining all damages Noting circumstances Taking witness statements Determining liability Deciding wether claim is valid

Question 24: Implied waiver

Answer:

assumed based on actions