ADJUSTER PRO INSURANCE ADJUSTER
TEST 2026 154 QUESTIONS WITH
COMPLETE SOLUTIONS 13 PAGES VERIFIED
CONTENT GRADED A+
⩥ Law of Large Numbers.
Answer: The larger the number of risks insured in the same risk pool;
the more predictable losses become.
⩥ Peril.
Answer: An immediate, specific event that causes a loss.
⩥ Loss.
Answer: An unintended, unforeseen reduction, or destruction of
financial or economic value.
⩥ Hazard.
Answer: Creates an increased possibility that a peril (a cause of a loss)
will actually occur.
⩥ Occurrence.
Answer: Is any event that causes a loss.
,⩥ Risk.
Answer: Risk is defined as thepotential or uncertainty for loss.
⩥ Speculative risk.
Answer: A situation in which either profit or loss is possible, not insured.
⩥ Industrial life insurance.
Answer: Issues very small face amounts, such as $1,000 or $2,000.
Premiums are paid weekly and collected by debit agents. They were
designed for burial coverage.
⩥ Ordinary life insurance.
Answer: Life insurance of commercial companies not issued on the
weekly premium basis. It is made up of several types of individual life
insurance, such as temporary (term), permanent (whole).
⩥ Group life insurance.
Answer: Insurance written for members of a group, such as a place of
employment, association, or a union. Coverage is provided to the
members of that group under one master contract. The group is
underwritten as a whole, not on each individual member. One of the
benefits of group life coverage is usually there is no evidence of
insurability required.
,⩥ Term life insurance.
Answer: Life insurance that pays a death benefit if the policyholder dies
within a specific time period but has no remaining value at the end of
this time.
⩥ Whole life insurance.
Answer: Sometimes called straight life insurance or ordinary life
insurance; can provide lifetime insurance coverage; in this case, fixed
premiums are paid for life; pays interest on the cash value portion with a
guaranteed minimum interest rate during life of the contract.
⩥ Joint survivor or last survivor life policies.
Answer: Cover the lives of two individuals and saves on premium costs
by averaging the ages of the two insureds. Joint Life Survivor or Last
Survivor policies only pay the death benefit upon the death of the last
insured person. For example, say B and M purchase a joint life survivor
policy. If B were to die first and then M died 10 years later, no benefits
would be paid out from the policy until M died. A Joint Life and
Survivor policy covers two lives but only pays benefits after the death of
the last insured.
⩥ Family maintenance policy.
Answer: Pays a monthly income from the date of death of the insured to
the end of the preselected period.
, ⩥ Family income policy.
Answer: Combines Whole Life insurance with a Decreasing Term
Rider also written on the same person.
⩥ Adjustable life policy.
Answer: Whole life insurance policy, but you can change your policy as
your needs change. You can change your premium payments to increase
or decrease coverage.
⩥ Universal life insurance policy.
Answer: Incorporates flexible premiums and an adjustable death benefit.
The investment gains from a Universal Life Policy usually go toward the
cash value. The policy owner can use the cash value to manipulate the
flexible aspects of a universal life insurance policy. A customer who
wants a policy that gives them the most options and the most control
would be looking for a Universal Life Policy. Universal policies use
gains to fund the cash value and give the policy owner options for
flexible premiums and adjustable death benefits.
⩥ Variable Life Insurance.
Answer: Life insurance in which the benefits are a function of the
returns being generated on the investments selected by the policyholder.
⩥ Equity index universal life insurance.
TEST 2026 154 QUESTIONS WITH
COMPLETE SOLUTIONS 13 PAGES VERIFIED
CONTENT GRADED A+
⩥ Law of Large Numbers.
Answer: The larger the number of risks insured in the same risk pool;
the more predictable losses become.
⩥ Peril.
Answer: An immediate, specific event that causes a loss.
⩥ Loss.
Answer: An unintended, unforeseen reduction, or destruction of
financial or economic value.
⩥ Hazard.
Answer: Creates an increased possibility that a peril (a cause of a loss)
will actually occur.
⩥ Occurrence.
Answer: Is any event that causes a loss.
,⩥ Risk.
Answer: Risk is defined as thepotential or uncertainty for loss.
⩥ Speculative risk.
Answer: A situation in which either profit or loss is possible, not insured.
⩥ Industrial life insurance.
Answer: Issues very small face amounts, such as $1,000 or $2,000.
Premiums are paid weekly and collected by debit agents. They were
designed for burial coverage.
⩥ Ordinary life insurance.
Answer: Life insurance of commercial companies not issued on the
weekly premium basis. It is made up of several types of individual life
insurance, such as temporary (term), permanent (whole).
⩥ Group life insurance.
Answer: Insurance written for members of a group, such as a place of
employment, association, or a union. Coverage is provided to the
members of that group under one master contract. The group is
underwritten as a whole, not on each individual member. One of the
benefits of group life coverage is usually there is no evidence of
insurability required.
,⩥ Term life insurance.
Answer: Life insurance that pays a death benefit if the policyholder dies
within a specific time period but has no remaining value at the end of
this time.
⩥ Whole life insurance.
Answer: Sometimes called straight life insurance or ordinary life
insurance; can provide lifetime insurance coverage; in this case, fixed
premiums are paid for life; pays interest on the cash value portion with a
guaranteed minimum interest rate during life of the contract.
⩥ Joint survivor or last survivor life policies.
Answer: Cover the lives of two individuals and saves on premium costs
by averaging the ages of the two insureds. Joint Life Survivor or Last
Survivor policies only pay the death benefit upon the death of the last
insured person. For example, say B and M purchase a joint life survivor
policy. If B were to die first and then M died 10 years later, no benefits
would be paid out from the policy until M died. A Joint Life and
Survivor policy covers two lives but only pays benefits after the death of
the last insured.
⩥ Family maintenance policy.
Answer: Pays a monthly income from the date of death of the insured to
the end of the preselected period.
, ⩥ Family income policy.
Answer: Combines Whole Life insurance with a Decreasing Term
Rider also written on the same person.
⩥ Adjustable life policy.
Answer: Whole life insurance policy, but you can change your policy as
your needs change. You can change your premium payments to increase
or decrease coverage.
⩥ Universal life insurance policy.
Answer: Incorporates flexible premiums and an adjustable death benefit.
The investment gains from a Universal Life Policy usually go toward the
cash value. The policy owner can use the cash value to manipulate the
flexible aspects of a universal life insurance policy. A customer who
wants a policy that gives them the most options and the most control
would be looking for a Universal Life Policy. Universal policies use
gains to fund the cash value and give the policy owner options for
flexible premiums and adjustable death benefits.
⩥ Variable Life Insurance.
Answer: Life insurance in which the benefits are a function of the
returns being generated on the investments selected by the policyholder.
⩥ Equity index universal life insurance.
