Adjuster Pro - Insurance adjuster test Questions and Answers(Rated A)

What is insurance? - ANSWER-protection against financial loss 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