Adjusterpro: Chapter 1 All Sections
Exam Q&A 100% Solved | Graded A+
Insurance - ✔✔financial tool that protects individuals and organizations
from unforeseen and extraordinary financial losses by transferring risk to
another party
insured - ✔✔individual or organization that pays premiums in exchange for
protection
insurer - ✔✔Company, group, or government agency offering financial
protection
insurance policy - ✔✔A legally binding contract that defines the obligations
of both the insured and the insurer.
Principle of Indemnity - ✔✔Restoration to previous financial condition; no
more, no less
4 qualifications of a contract - ✔✔1. agreement
2. consideration
3. competent parties
4. legal purpose
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, indemnification - ✔✔Putting the policyholder back in the same financial
condition he or she was in before a loss occurred
reserve - ✔✔pool of collected premiums that the insurer sets aside to pay
claims
Six special characteristics of insurance contracts - ✔✔1. Personal-it
protects the insured's financial interests, not the insured item itself.
2. Adhesion-since the insurer gets to set the terms of the contract, while the
insured must simply agree
3. Utmost good faith-requires complete honesty. Policy can be voided if this
principle is violated
4. aleatory-contract depends on an unknown event
5. unitlateral-only one party, the insurer, makes a promise to perform
6. conditional-it only kicks in when there is a covered loss and certain
conditions are met
Declarations Page - ✔✔Provides a general overview of who the policy
covers. Aka the "dec page"
definitions page - ✔✔not essential, but is common to most policies. Defines
the important terms in the policy
Insuring Agreeement - ✔✔summarizes what the insurer will cover and how
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
Exam Q&A 100% Solved | Graded A+
Insurance - ✔✔financial tool that protects individuals and organizations
from unforeseen and extraordinary financial losses by transferring risk to
another party
insured - ✔✔individual or organization that pays premiums in exchange for
protection
insurer - ✔✔Company, group, or government agency offering financial
protection
insurance policy - ✔✔A legally binding contract that defines the obligations
of both the insured and the insurer.
Principle of Indemnity - ✔✔Restoration to previous financial condition; no
more, no less
4 qualifications of a contract - ✔✔1. agreement
2. consideration
3. competent parties
4. legal purpose
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, indemnification - ✔✔Putting the policyholder back in the same financial
condition he or she was in before a loss occurred
reserve - ✔✔pool of collected premiums that the insurer sets aside to pay
claims
Six special characteristics of insurance contracts - ✔✔1. Personal-it
protects the insured's financial interests, not the insured item itself.
2. Adhesion-since the insurer gets to set the terms of the contract, while the
insured must simply agree
3. Utmost good faith-requires complete honesty. Policy can be voided if this
principle is violated
4. aleatory-contract depends on an unknown event
5. unitlateral-only one party, the insurer, makes a promise to perform
6. conditional-it only kicks in when there is a covered loss and certain
conditions are met
Declarations Page - ✔✔Provides a general overview of who the policy
covers. Aka the "dec page"
definitions page - ✔✔not essential, but is common to most policies. Defines
the important terms in the policy
Insuring Agreeement - ✔✔summarizes what the insurer will cover and how
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
