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Adjusterpro: Chapter 1 All Sections Exam Q&A 100% Solved | Graded A+ Insurance - financial tool that protects individuals and organizations from unforeseen and extraordinary financial losses by transferring risk to another party insured - individual or organization that pays premiums in exch...

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  • December 30, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
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  • Adjusterpro
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Adjusterpro: Chapter 1 All Sections

Exam Q&A 100% Solved | Graded A+


Insurance - ✔✔financial tool that protects individuals and organizations

from unforeseen and extraordinary financial losses by transferring risk to

another party

insured - ✔✔individual or organization that pays premiums in exchange for

protection

insurer - ✔✔Company, group, or government agency offering financial

protection

insurance policy - ✔✔A legally binding contract that defines the obligations

of both the insured and the insurer.

Principle of Indemnity - ✔✔Restoration to previous financial condition; no

more, no less

4 qualifications of a contract - ✔✔1. agreement

2. consideration

3. competent parties

4. legal purpose

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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.

, indemnification - ✔✔Putting the policyholder back in the same financial

condition he or she was in before a loss occurred

reserve - ✔✔pool of collected premiums that the insurer sets aside to pay

claims

Six special characteristics of insurance contracts - ✔✔1. Personal-it

protects the insured's financial interests, not the insured item itself.

2. Adhesion-since the insurer gets to set the terms of the contract, while the

insured must simply agree

3. Utmost good faith-requires complete honesty. Policy can be voided if this

principle is violated

4. aleatory-contract depends on an unknown event

5. unitlateral-only one party, the insurer, makes a promise to perform

6. conditional-it only kicks in when there is a covered loss and certain

conditions are met

Declarations Page - ✔✔Provides a general overview of who the policy

covers. Aka the "dec page"

definitions page - ✔✔not essential, but is common to most policies. Defines

the important terms in the policy

Insuring Agreeement - ✔✔summarizes what the insurer will cover and how


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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.

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