Public Adjuster Illinois Exam Questions With Accurate
Answers.
What is insurance? - accurate answers-method of handling pure risk
Law of large numbers - accurate answers-group of people to predict issues/
prices/etc. This is what insurance is based on
Principle of Indemidity - accurate answers-you only get what it cost, no more
what 6 characteristics does insurable risk need to have? - accurate answers--
Loss must be definite
-Loss must be accidental
-Calculate chance of risk
-law of number should apply
-must not be catastrophic
-should create economic hardship
Pure Risk - accurate answers-only the possibility of loss
Speculative Risk - accurate answers-not insurable. Possibility of gain
static risk - accurate answers-historical factors
dynamic risk - accurate answers-risk associated w change
Fundamental Risk - accurate answers-risk affecting entire groups of people
Particular Risk - accurate answers-a risk that affects only individuals as
individuals
peril - accurate answers-cause of loss
hazard - accurate answers-what creates the loss
physical hazard - accurate answers-a physical condition that increases the
chance of loss
, moral hazard - accurate answers-increases probability a person will cause or
create loss
morale hazard - accurate answers-intention of loss
what does a contract need to have in order to be valid? - accurate answers-C -
CAPACITY TO CONTACT
L - LEGAL PURPOSE
O -OFFER AND ACCEPTED
C- CONSIDERATION
Risk avoidance - accurate answers-aims to completely eliminate a risk or its
potential impact on an organization
transfer of risk - accurate answers-the process of shifting the financial
consequences of a risk from one party to another.
risk sharing - accurate answers-means that the premiums and losses of each
member of a group of policyholders are allocated within the group based on a
predetermined formula.
Risk Retention - accurate answers-can be used to manage and reduce the
financial impact of certain risks
risk reduction control - accurate answers-a set of processes and measures that
organizations use to reduce the likelihood of adverse events and their impact
What are the parts of contract? - accurate answers-D- Dec page
I- insuring agreement
C- Conditions
E- Endorsements
Aleatory Contract - accurate answers-a contract where the values exchanged
may not be equal but depend on an uncertain event
Adhesion Contract - accurate answers-A standard-form contract in which the
stronger party dictates the terms.
Answers.
What is insurance? - accurate answers-method of handling pure risk
Law of large numbers - accurate answers-group of people to predict issues/
prices/etc. This is what insurance is based on
Principle of Indemidity - accurate answers-you only get what it cost, no more
what 6 characteristics does insurable risk need to have? - accurate answers--
Loss must be definite
-Loss must be accidental
-Calculate chance of risk
-law of number should apply
-must not be catastrophic
-should create economic hardship
Pure Risk - accurate answers-only the possibility of loss
Speculative Risk - accurate answers-not insurable. Possibility of gain
static risk - accurate answers-historical factors
dynamic risk - accurate answers-risk associated w change
Fundamental Risk - accurate answers-risk affecting entire groups of people
Particular Risk - accurate answers-a risk that affects only individuals as
individuals
peril - accurate answers-cause of loss
hazard - accurate answers-what creates the loss
physical hazard - accurate answers-a physical condition that increases the
chance of loss
, moral hazard - accurate answers-increases probability a person will cause or
create loss
morale hazard - accurate answers-intention of loss
what does a contract need to have in order to be valid? - accurate answers-C -
CAPACITY TO CONTACT
L - LEGAL PURPOSE
O -OFFER AND ACCEPTED
C- CONSIDERATION
Risk avoidance - accurate answers-aims to completely eliminate a risk or its
potential impact on an organization
transfer of risk - accurate answers-the process of shifting the financial
consequences of a risk from one party to another.
risk sharing - accurate answers-means that the premiums and losses of each
member of a group of policyholders are allocated within the group based on a
predetermined formula.
Risk Retention - accurate answers-can be used to manage and reduce the
financial impact of certain risks
risk reduction control - accurate answers-a set of processes and measures that
organizations use to reduce the likelihood of adverse events and their impact
What are the parts of contract? - accurate answers-D- Dec page
I- insuring agreement
C- Conditions
E- Endorsements
Aleatory Contract - accurate answers-a contract where the values exchanged
may not be equal but depend on an uncertain event
Adhesion Contract - accurate answers-A standard-form contract in which the
stronger party dictates the terms.
