Claim Adjuster Licensing Exam 2025
Questions and Answers
Who is the highest ranking in the policy? - --Answer --The Named Insured
Who is the covered party in policy for? - --Answer --named insured, spouse,
resident family member
Who files claims for the personal line policy? - --Answer --the named
insured
Who is the highest ranking in commercial insurance? - --Answer --1st named
insured
What are the two parties of an insurance contract? - --Answer --Party 1:
Insured
Party 2: The Insurance Company
Insurance can be defined as: - --Answer --the transfer of risk
Who determines which kind of risk is being submitted and what we cover? - --
Answer --Underwriters
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,When a person buys insurance the value they receive is called? - --Answer --
Peace of Mind
What type of risk does insurance cover ? - --Answer --pure risk
What are the three ways to manage risk? - --Answer --avoidance
reduction
retention
Risk Avoidance - --Answer --avoiding an act that would create a risk
Risk Reduction - --Answer --lowers the chance of loss by taking measures to
lessen the frequency or severity of losses that may occur
Risk Retention - --Answer --accepting that some risks simply arise in the
course of one's life and consciously retaining that risk
What is risk? - --Answer --the potential for loss
What is loss? - --Answer --reduction of the value of that property that
sustained physical destruction.
What are the two types of loss insurance can cover? - --Answer --Direct
Loss
Indirect Loss
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, What is direct loss? - --Answer --physical harm or damage to tangible
property
Anytime you have physical destruction go property what type of loss is it? - --
Answer --Direct Loss
What is indirect loss? - --Answer --Refers to financial loss suffered because
of loss of use of property
EX: buying out-to-eat food every night because kitchen was completely damaged
in house fire
The same policy will cover? - --Answer --direct and indirect loss
What is a peril? - --Answer --cause of loss
What is a named peril? - --Answer --Coverage for only the named perils on a
policy.
What is an open peril or all risk? - --Answer --It is a loss that isn't an
exclusion, and open perils will pay.
What loss will be used when there is damage to property that isn't an exclusion? - -
-Answer --Open Perils OR All Risk
What is a mutual insurer? - --Answer --a corporation owned by the
policyholders
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Questions and Answers
Who is the highest ranking in the policy? - --Answer --The Named Insured
Who is the covered party in policy for? - --Answer --named insured, spouse,
resident family member
Who files claims for the personal line policy? - --Answer --the named
insured
Who is the highest ranking in commercial insurance? - --Answer --1st named
insured
What are the two parties of an insurance contract? - --Answer --Party 1:
Insured
Party 2: The Insurance Company
Insurance can be defined as: - --Answer --the transfer of risk
Who determines which kind of risk is being submitted and what we cover? - --
Answer --Underwriters
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,When a person buys insurance the value they receive is called? - --Answer --
Peace of Mind
What type of risk does insurance cover ? - --Answer --pure risk
What are the three ways to manage risk? - --Answer --avoidance
reduction
retention
Risk Avoidance - --Answer --avoiding an act that would create a risk
Risk Reduction - --Answer --lowers the chance of loss by taking measures to
lessen the frequency or severity of losses that may occur
Risk Retention - --Answer --accepting that some risks simply arise in the
course of one's life and consciously retaining that risk
What is risk? - --Answer --the potential for loss
What is loss? - --Answer --reduction of the value of that property that
sustained physical destruction.
What are the two types of loss insurance can cover? - --Answer --Direct
Loss
Indirect Loss
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, What is direct loss? - --Answer --physical harm or damage to tangible
property
Anytime you have physical destruction go property what type of loss is it? - --
Answer --Direct Loss
What is indirect loss? - --Answer --Refers to financial loss suffered because
of loss of use of property
EX: buying out-to-eat food every night because kitchen was completely damaged
in house fire
The same policy will cover? - --Answer --direct and indirect loss
What is a peril? - --Answer --cause of loss
What is a named peril? - --Answer --Coverage for only the named perils on a
policy.
What is an open peril or all risk? - --Answer --It is a loss that isn't an
exclusion, and open perils will pay.
What loss will be used when there is damage to property that isn't an exclusion? - -
-Answer --Open Perils OR All Risk
What is a mutual insurer? - --Answer --a corporation owned by the
policyholders
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
