Study Guide Exam Claims Adjuster
Questions All Answered Correct 2026
Updated.
Insurance - Answer -an economic device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - Answer -the fee paid by the insured in exchange for insurance
Principle of Indemnity - Answer -the insurer should be restored to where they were before
the incident
-no profit can be made
Indemnification - Answer -to compensate for loss or damage; to provide security for financial
reimbursement to an individual in case of a specified loss incurred by the person
4 Elements of a Legal Contract - Answer -Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
Insured - Answer individual who pays premiums in exchange for protection
-can be a person, person's or an organization
- "You," "Your," or "Your's"
(if the insured is a group it is important to list the "first named insured,"- because that is the
only one that can authorize changes to the policy)
Insurer - Answer -company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - Answer -protects the person (insured) from loss
-does not protect property from becoming damaged
,-coverage follows the person not the property
6 Characteristics of a Contract:
Adhesion - Answer -one party dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
6 Characteristics of a Contract:
Utmost Good Faith - Answer -applicants are expected not to withhold any information or
the contract can be voided
6 Characteristics of a Contract:
Aleatory - Answer -depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - Answer -only the insurer make an obligation to pay for covered losses
6 Characteristics of a Contract:
Conditional - Answer -the insurer only has to perform if certain conditions are met
Policy Sections
Declarations Page - Answer -makes contract specific to the policy holder
Includes:
-Name of both parties
-Policy Number
-Location & Description of Item
-Value of Insured Item
, -Value of item dates
- Amount & Limit of Coverage
-Deductible
-Premium
Policy Sections
Definitions - Answer -it is not technically essential
-need to know info. or language used in the contract
Policy Sections
Insuring Agreement - Answer summarizes:
-what is covered
-which losses are covered
-maximum limit of policy
-the core of the contract
-often one sentence
Policy Sections
Conditions - Answer -the insurer specifies any limits or qualifications the policy holder must
meet
-will explain what procedure to follow in the event of a dispute
Policy Sections
Exclusions - Answer - what is not covered (excluded) under the contract
Policy Sections
Endorsements - Answer -any additions to the policy
-can be added at anytime (could increase or decrease the price)
-aka: ryder, addendum, attachments
Questions All Answered Correct 2026
Updated.
Insurance - Answer -an economic device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - Answer -the fee paid by the insured in exchange for insurance
Principle of Indemnity - Answer -the insurer should be restored to where they were before
the incident
-no profit can be made
Indemnification - Answer -to compensate for loss or damage; to provide security for financial
reimbursement to an individual in case of a specified loss incurred by the person
4 Elements of a Legal Contract - Answer -Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
Insured - Answer individual who pays premiums in exchange for protection
-can be a person, person's or an organization
- "You," "Your," or "Your's"
(if the insured is a group it is important to list the "first named insured,"- because that is the
only one that can authorize changes to the policy)
Insurer - Answer -company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - Answer -protects the person (insured) from loss
-does not protect property from becoming damaged
,-coverage follows the person not the property
6 Characteristics of a Contract:
Adhesion - Answer -one party dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
6 Characteristics of a Contract:
Utmost Good Faith - Answer -applicants are expected not to withhold any information or
the contract can be voided
6 Characteristics of a Contract:
Aleatory - Answer -depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - Answer -only the insurer make an obligation to pay for covered losses
6 Characteristics of a Contract:
Conditional - Answer -the insurer only has to perform if certain conditions are met
Policy Sections
Declarations Page - Answer -makes contract specific to the policy holder
Includes:
-Name of both parties
-Policy Number
-Location & Description of Item
-Value of Insured Item
, -Value of item dates
- Amount & Limit of Coverage
-Deductible
-Premium
Policy Sections
Definitions - Answer -it is not technically essential
-need to know info. or language used in the contract
Policy Sections
Insuring Agreement - Answer summarizes:
-what is covered
-which losses are covered
-maximum limit of policy
-the core of the contract
-often one sentence
Policy Sections
Conditions - Answer -the insurer specifies any limits or qualifications the policy holder must
meet
-will explain what procedure to follow in the event of a dispute
Policy Sections
Exclusions - Answer - what is not covered (excluded) under the contract
Policy Sections
Endorsements - Answer -any additions to the policy
-can be added at anytime (could increase or decrease the price)
-aka: ryder, addendum, attachments
