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Adjuster Pro - Insurance adjuster test Questions & Verified Answers | 100% Pass Rate Guaranteed | Latest Updated Version

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What is insurance? protection against financial loss what is a premium a scheduled amount to be paid for an insurance policy. What are premiums used for premiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance companies afford to pay for an ind...

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  • November 27, 2024
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  • 2024/2025
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Adjuster Pro - Insurance adjuster
test Questions & Verified Answers
2024-2025 | 100% Pass Rate
Guaranteed | Latest Updated
Version
What is insurance?


✓ protection against financial loss




what is a premium


✓ a scheduled amount to be paid for an insurance policy.




What are premiums used for


✓ 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?


✓ the insurer collects premiums from all policy holders and uses them to

pay out the claims of a few.




ExamArsenal | Dec, 2024/2025 | Latest update

, 1|Page | © copyright 2024/2025 | Grade A+

what is Indemnity


✓ payment for damages, that is not more or less than the amount

caused by the damage.




principle of idemnity


✓ insurance will pay no more or less than the actual financial loss suffered




indemnification may also include


✓ repairs to property

✓ reimbursement for additional living expenses

✓ rental cars and hotels

✓ costs directly associated with a loss




4 Parts of Legal Contract


✓ 1. Agreement

✓ 2. Consideration

✓ 3. Competent Parties

✓ 4. Legal Purpose




legal contract - agreement


ExamArsenal | Dec, 2024/2025 | Latest update

, 1|Page | © copyright 2024/2025 | Grade A+

✓ mutual intent by offeror and offeree




six special characteristics of insurance contracts


✓ 1. Personal

✓ 2. adhesion

✓ 3. utmost good faith

✓ 4. aleatory

✓ 5. unilateral

✓ 6. conditional




what kind of contract is an insurance policy?


✓ Personal contract




what is a contract of adhesion


✓ the insured must accept the entire contract with all of its terms and

conditions




Utmost Good Faith


✓ An obligation to act in complete honesty and to disclose all relevant

facts.



ExamArsenal | Dec, 2024/2025 | Latest update

, 1|Page | © copyright 2024/2025 | Grade A+

Aleatory Contract


✓ a contract where the values exchanged may not be equal but

depend on an uncertain event




Unilateral Contract


✓ 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


✓ 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


✓ DICE

✓ D - declarations page

✓ I - Insuring Agreement

✓ C- Conditions

✓ E - Exclusions




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