4-25 ADJUSTER PRO EXAM QUETIONS
2
& VERIFIED ANSWERS
hat is insurance?
W
Protection against financial loss
hat is a premium?
W
a scheduled amount to be paid for an insurance policy.
hat are premiums used for?
W
premiums are collected into a "pool" or "reserve to pay out claimants when needed.
ow can insurance companies afford to pay for an individual's catastrophic loss?
H
The insurer collects premiums from all policyholders and uses them to pay out the claims of a
few.
hat is Indemnity?
W
payment for damages that is not more or less than the amount caused by the damage.
rinciple of idemnity?
p
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
Parts of a Legal Contract?
4
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
, 4-25 ADJUSTER PRO EXAM QUETIONS
2
& VERIFIED ANSWERS
egal contract - agreement?
L
mutual intent by offeror and offeree
ix special characteristics of insurance contracts?
S
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. Unilateral
6. conditional
hat kind of contract is an insurance policy?
W
Personal contract
hat is a contract of adhesion?
W
the insured must accept the entire contract with all of its terms and conditions
tmost Good Faith?
U
An obligation to act in complete honesty and to disclose all relevant facts.
leatory Contract?
A
a contract where the values exchanged may not be equal but depend on an uncertain event
nilateral Contract?
U
insurance agrees that they must pay in the event of a claim. The insured can stop paying
premiums at any point.
Only the insurer has promised to act.
onditional Contract?
C
A type of an agreement in which both parties must perform certain duties and follow rules of
conduct to make the contract enforceable.
cronym for the four sections of an Insurance policy?
A
DICE
, 4-25 ADJUSTER PRO EXAM QUETIONS
2
& VERIFIED ANSWERS
- declarations page
D
I - Insuring Agreement
C- Conditions
E - Exclusions
ecelerations section?
D
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
efinitions section?
D
Defines terms used to write policy including "collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section
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
onditions section
C
The insurer specifies any limits or qualifications the policyholder must meet.
xclusions section
E
losses for which the insured is not covered for
ndorsements
E
Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
2
& VERIFIED ANSWERS
hat is insurance?
W
Protection against financial loss
hat is a premium?
W
a scheduled amount to be paid for an insurance policy.
hat are premiums used for?
W
premiums are collected into a "pool" or "reserve to pay out claimants when needed.
ow can insurance companies afford to pay for an individual's catastrophic loss?
H
The insurer collects premiums from all policyholders and uses them to pay out the claims of a
few.
hat is Indemnity?
W
payment for damages that is not more or less than the amount caused by the damage.
rinciple of idemnity?
p
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
Parts of a Legal Contract?
4
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
, 4-25 ADJUSTER PRO EXAM QUETIONS
2
& VERIFIED ANSWERS
egal contract - agreement?
L
mutual intent by offeror and offeree
ix special characteristics of insurance contracts?
S
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. Unilateral
6. conditional
hat kind of contract is an insurance policy?
W
Personal contract
hat is a contract of adhesion?
W
the insured must accept the entire contract with all of its terms and conditions
tmost Good Faith?
U
An obligation to act in complete honesty and to disclose all relevant facts.
leatory Contract?
A
a contract where the values exchanged may not be equal but depend on an uncertain event
nilateral Contract?
U
insurance agrees that they must pay in the event of a claim. The insured can stop paying
premiums at any point.
Only the insurer has promised to act.
onditional Contract?
C
A type of an agreement in which both parties must perform certain duties and follow rules of
conduct to make the contract enforceable.
cronym for the four sections of an Insurance policy?
A
DICE
, 4-25 ADJUSTER PRO EXAM QUETIONS
2
& VERIFIED ANSWERS
- declarations page
D
I - Insuring Agreement
C- Conditions
E - Exclusions
ecelerations section?
D
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
efinitions section?
D
Defines terms used to write policy including "collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section
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
onditions section
C
The insurer specifies any limits or qualifications the policyholder must meet.
xclusions section
E
losses for which the insured is not covered for
ndorsements
E
Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
