ADJUSTER PRO - INSURANCE ADJUSTER EXAM | WITH QUESTIONS & ANSWERS | GRADED A+ | UPDATE

ADJUSTER PRO - INSURANCE ADJUSTER EXAM | WITH QUESTIONS & ANSWERS | GRADED A+ | UPDATE What is insurance? - protection against financial loss what is a premium - a scheduled amount to be paid for an insurance policy. What are premiums used for - 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? - the insurer collects premiums from all policy holders and uses them to pay out the claims of a few. what is Indemnity - payment for damages, that is not more or less than the amount caused by the damage. principle of idemnity - insurance will pay no more or less than the actual financial loss suffered indemnification may also include - repairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract - 1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose legal contract - agreement - mutual intent by offeror and offeree six special characteristics of insurance contracts - 1. Personal 2. adhesion 3. utmost good fait