Texas All-Lines Adjuster Pre-Licensing exam with 100% correct answers

insurance financial took that protects individual 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 how does insurance work? insured pays premium insurer promises to pay for specific losses if they occur insurer's promise gives peace of mind to insured principle of indemnity when a loss occurs, an individual should be restored to the approximate financial condition he was in before the loss, no more and no less Q1: How can insurance companies afford to pay for an individual's catastrophic loss? Q1: The purpose of the principle of indemnity: prevents an insured from profiting from a loss Q1: Which of the following best defines premium? the fee paid by the insured in exchange for the insurance policy Q1: What best describes insurance? an economic device used to protect against the risk of unforeseen and extraordinary financial loss Q1: Mark incurred $8000 damage to his car in an accident. He received $8000 from his insurance company and $4000 from the other driver. By receiving profit from his loss, Mark could be in violation of: the principle of indemnity he should be in the same financial condition. no better, no worse indemnification may include payment for: repairs to property reimbursement for additional living expenses