INSURANCE ADJUSTER FINAL PAPER EXAM QUESTIONS ACCURATE ANSWERS FULL
SOLUTION
● 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
● Idemnification. 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:
SOLUTION
● 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
● Idemnification. 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:
