ADJUSTER PRO INSURANCE
ADJUSTER TEST 154 QUESTIONS
2026 STUDY GUIDE
COMPREHENSIVE QUESTIONS
ANSWERS VERIFIED A+
◉ what is a premium.
Answer: a scheduled amount to be paid for an insurance policy.
◉ What are premiums used for.
Answer: 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?.
Answer: the insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
◉ what is Indemnity.
Answer: payment for damages, that is not more or less than the amount
caused by the damage.
◉ principle of idemnity.
Answer: insurance will pay no more or less than the actual financial loss
suffered
,◉ indemnification may also include.
Answer: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
◉ 4 Parts of Legal Contract.
Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
◉ legal contract - agreement.
Answer: mutual intent by offeror and offeree
◉ six special characteristics of insurance contracts.
Answer: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
,◉ what kind of contract is an insurance policy?.
Answer: Personal contract
◉ what is a contract of adhesion.
Answer: the insured must accept the entire contract with all of its terms
and conditions
◉ Utmost Good Faith.
Answer: An obligation to act in complete honesty and to disclose all
relevant facts.
◉ Aleatory Contract.
Answer: a contract where the values exchanged may not be equal but
depend on an uncertain event
◉ Unilateral Contract.
Answer: 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.
Answer: 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.
Answer: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
◉ Decelerations section.
Answer: 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.
Answer: Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
ADJUSTER TEST 154 QUESTIONS
2026 STUDY GUIDE
COMPREHENSIVE QUESTIONS
ANSWERS VERIFIED A+
◉ what is a premium.
Answer: a scheduled amount to be paid for an insurance policy.
◉ What are premiums used for.
Answer: 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?.
Answer: the insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
◉ what is Indemnity.
Answer: payment for damages, that is not more or less than the amount
caused by the damage.
◉ principle of idemnity.
Answer: insurance will pay no more or less than the actual financial loss
suffered
,◉ indemnification may also include.
Answer: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
◉ 4 Parts of Legal Contract.
Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
◉ legal contract - agreement.
Answer: mutual intent by offeror and offeree
◉ six special characteristics of insurance contracts.
Answer: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
,◉ what kind of contract is an insurance policy?.
Answer: Personal contract
◉ what is a contract of adhesion.
Answer: the insured must accept the entire contract with all of its terms
and conditions
◉ Utmost Good Faith.
Answer: An obligation to act in complete honesty and to disclose all
relevant facts.
◉ Aleatory Contract.
Answer: a contract where the values exchanged may not be equal but
depend on an uncertain event
◉ Unilateral Contract.
Answer: 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.
Answer: 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.
Answer: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
◉ Decelerations section.
Answer: 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.
Answer: Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
