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Adjuster Pro - Insurance Adjuster Test: 154 Questions & Answers
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Adjuster Pro - Insurance Adjuster Test: 154Questions & Answers
What is insurance? Correct Ans ➡ protection against financial loss
What is a premium Correct Ans ➡ a scheduled amount to be paid for an
insurance policy.
What are premiums used for Correct Ans ➡ 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 Ans ➡ the insurer collects premiums from all policy holders
and uses them to pay out the claims of a few.
What is Indemnity Correct Ans ➡ payment for damages, that is not more
or less than the amount caused by the damage.
Principle of idemnity Correct Ans ➡ insurance will pay no more or less
than the actual financial loss suffered
Indemnification may also include Correct Ans ➡ repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract Correct Ans ➡ 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
Legal contract - agreement Correct Ans ➡ mutual intent by offeror and
offeree
Six special characteristics of insurance contracts Correct Ans ➡ 1.
Personal
2. adhesion
,3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? Correct Ans ➡ Personal
contract
what is a contract of adhesion Correct Ans ➡ the insured must accept the
entire contract with all of its terms and conditions
Utmost Good Faith Correct Ans ➡ An obligation to act in complete
honesty and to disclose all relevant facts.
Aleatory Contract Correct Ans ➡ a contract where the values exchanged
may not be equal but depend on an uncertain event
Unilateral Contract Correct Ans ➡ 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.
Conditional Contract Correct Ans ➡ 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 Ans ➡ DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section Correct Ans ➡ 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
Definitions section Correct Ans ➡ Defines terms used to write policy
including "collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section Correct Ans ➡ What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
Conditions section Correct Ans ➡ Insurer specifies any limits or
qualifications the policy holder must meet
Exclusions section Correct Ans ➡ losses for which the insured is not
covered for
Endorsements Correct Ans ➡ Provision that modifies the coverage of the
original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
Certificate of Insurance Correct Ans ➡ A legal document that indicates
that an insurance policy has been issued, and that states both the amounts and
types of insurance provided.
Characteristics of social insurance Correct Ans ➡ Non profit
Mandatory participation
Benefits prescribed by law
Designed to meet needs of public
Government has monopoly
Private Insurers Correct Ans ➡ Sell insurance based on needs and
preferences
Wide variety of products
Exist to generate a profit
Insured party voluntarily participate
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