Adjuster Pro - Insurance adjuster test 2023 100% Correctly Answered

What is insurance? - CORRECT ANS protection against financial loss what is a premium - CORRECT ANS a scheduled amount to be paid for an insurance policy. What are premiums used for - CORRECT ANS 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? - CORRECT ANS the insurer collects premiums from all policy holders and uses them to pay out the claims of a few. what is Indemnity - CORRECT ANS payment for damages, that is not more or less than the amount caused by the damage. principle of idemnity - CORRECT ANS insurance will pay no more or less than the actual financial loss suffered indemnification may also include - CORRECT ANS repairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract - CORRECT ANS 1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose legal contract - agreement - CORRECT ANS mutual intent by offeror and offeree six special characteristics of insurance contracts - CORRECT ANS 1. Personal 2. adhesion 3. utmost good faith 4. aleatory 5. unilateral 6. conditional what kind of contract is an insurance policy? - CORRECT ANS Personal contract what is a contract of adhesion - CORRECT ANS the insured must accept the entire contract with all of its terms and conditions Utmost Good Faith - CORRECT ANS An obligation to act in complete honesty and to disclose all relevant facts. Aleatory Contract - CORRECT ANS a contract where the values exchanged may not be equal but depend on an uncertain event Unilateral Contract - CORRECT ANS 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 - CORRECT ANS 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 - CORRECT ANS DICE D - declarations page I - Insuring Agreement C- Conditions E - Exclusions Decelerations section - CORRECT ANS Always the first section - establishes the following Names of both parties