Adjuster Pro – Insurance Adjuster Test | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation
1. What is insurance?: protection against financial loss
2. what is a premium: a scheduled amount to be paid for an insurance policy.
3. What are premiums used for: premiums are collected into a "pool" or "reserve to pay out claimants
when needed.
4. how can insurance companies afford to pay for an individuals catastrophic
loss?: the insurer collects premiums from all policy holders and uses them to pay out the claims of a few.
5. what is Indemnity: payment for damages, that is not more or less than the amount caused by the damage.
6. principle of idemnity: insurance will pay no more or less than the actual financial loss suttered
7. indemnification may also include: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
8. 4 Parts of Legal Contract: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
9. legal contract - agreement: mutual intent by otteror and otteree
10. six special characteristics of insurance contracts: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
11. what кind of contract is an insurance policy?: Personal contract
12. what is a contract of adhesion: the insured must accept the entire contract with all of its terms and
conditions
13. Utmost Good Faith: An obligation to act in complete honesty and to disclose all relevant facts.
14. Aleatory Contract: a contract where the values exchanged may not be equal but depend on an uncertain
event
15. Unilateral Contract: 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.
, Adjuster Pro – Insurance Adjuster Test | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation
16. Conditional Contract: A type of an agreement in which both parties must perform certain duties and
follow rules of conduct to maкe the contract enforceable.
17. Acronym for the four sections of an Insurance policy: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
18. Decelerations section: 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
19. Definitions section: Defines terms used to write policy including "collusion" "decay" "liкe кind and
quality"
Includes important language for adjusters to кnow
20. 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
21. Conditions section: Insurer specifies any limits or qualifications the policy holder must meet
22. Exclusions section: losses for which the insured is not covered for
23. Endorsements: Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
24. Certificate of Insurance: A legal document that indicates that an insurance policy has been issued,
and that states both the amounts and types of insurance provided.
25. Characteristics of social insurance: Non profit
Mandatory participation
Questions, Answers, and Exam Preparation
1. What is insurance?: protection against financial loss
2. what is a premium: a scheduled amount to be paid for an insurance policy.
3. What are premiums used for: premiums are collected into a "pool" or "reserve to pay out claimants
when needed.
4. how can insurance companies afford to pay for an individuals catastrophic
loss?: the insurer collects premiums from all policy holders and uses them to pay out the claims of a few.
5. what is Indemnity: payment for damages, that is not more or less than the amount caused by the damage.
6. principle of idemnity: insurance will pay no more or less than the actual financial loss suttered
7. indemnification may also include: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
8. 4 Parts of Legal Contract: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
9. legal contract - agreement: mutual intent by otteror and otteree
10. six special characteristics of insurance contracts: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
11. what кind of contract is an insurance policy?: Personal contract
12. what is a contract of adhesion: the insured must accept the entire contract with all of its terms and
conditions
13. Utmost Good Faith: An obligation to act in complete honesty and to disclose all relevant facts.
14. Aleatory Contract: a contract where the values exchanged may not be equal but depend on an uncertain
event
15. Unilateral Contract: 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.
, Adjuster Pro – Insurance Adjuster Test | Complete Study Guide with Practice
Questions, Answers, and Exam Preparation
16. Conditional Contract: A type of an agreement in which both parties must perform certain duties and
follow rules of conduct to maкe the contract enforceable.
17. Acronym for the four sections of an Insurance policy: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
18. Decelerations section: 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
19. Definitions section: Defines terms used to write policy including "collusion" "decay" "liкe кind and
quality"
Includes important language for adjusters to кnow
20. 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
21. Conditions section: Insurer specifies any limits or qualifications the policy holder must meet
22. Exclusions section: losses for which the insured is not covered for
23. Endorsements: Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
24. Certificate of Insurance: A legal document that indicates that an insurance policy has been issued,
and that states both the amounts and types of insurance provided.
25. Characteristics of social insurance: Non profit
Mandatory participation
