Kentucky Insurance
Adjuster Exam
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, Kentucky Insurance Adjuster Exam
Study online at https://quizlet.com/_d2ygr5
1. Four requirements of 1. Agreement
a legal contract 2. Consideration
3. Competent Parties
4. Legal purpose
2. Six Characteristics of Personal, Adhesion, Utmost Good Faith, Aleatory, Unilateral, Conditional
Insurance Contracts
3. Adhesion One party dictates, the other agrees (or not)
4. aleatory Depends on a future, unknown event
5. unilateral Only one party agrees to perform an act
6. Four sections of an in- Dec page, insuring agreement, conditions, exclusions (also definitions
surance policy and endorsements)
7. Speculative Risk Consciously taken, gain is possible (not insurable)
8. Pure Risk Only loss or no loss is possible, can be insured
9. hazard A condition increasing the likelihood or severity of a loss
10. Adverse Selection When someone buys insurance because they will probably file a claims
because of info about a risk that the insurer is unaware of
11. binder Temporary coverage for an insurance applicant until a policy is issued
12. warranty A promise that certain conditions will be met
13. Estoppel Prevents an insurer from denying coverage if the insured has reasonable
come to believe that he has such coverage based on insurers practices
14. Moral Hazard Deliberate, involved reckless behavior, an attempt to defraud
2026
, Kentucky Insurance Adjuster Exam
Study online at https://quizlet.com/_d2ygr5
15. Morale Hazard Indifference/carelessness, no intent to defraud, just feel more secure
because of insurance
16. proximate cause Unbroken chain of events between an occurrence and a loss, the occur-
rence is the proximate cause of the loss
17. Claims process (5)) 1. filed 2. Acknowledgment 3. Investigation 4. Evaluation 5. Adjustment
18. Actual Cash Value Market/depreciated value prior to destruction (replacement cost minus
depreciation)
19. Replacement Cost Don't subtract depreciation,
Common in home but not in auto
20. Valued Policy Assigns a set value to an item, avoids confusion of depreciation
21. stated value Value state by insured when applying for insurance. (Usually for when
insured can't afford to insure for full value)
22. Deductibles (fixed, Fixed- set amount; percent- % of risks value; franchise- policy kicks in after
percent, franchise) loss exceeds certain amount, insurer pays 100%
23. Coinsurance Penalty (Amount of Insurance )/(Amount of Insurance Required) x Loss - De-
Formula ductible
24. Vicarious Liability Transfer of negligence (employer or parent)
25. Four elements of neg- 1-Duty of care
ligence 2-Derelict: breah of duty if care
3-Direct cause: legally recognizable injury occurs as a result of breach of
duty of care
4-Damage: wrongful activity must have been caused the injury or harm
that occurred
2026
Adjuster Exam
2026
Questions and Answers
(A+ Grade Guarantee)
2026
, Kentucky Insurance Adjuster Exam
Study online at https://quizlet.com/_d2ygr5
1. Four requirements of 1. Agreement
a legal contract 2. Consideration
3. Competent Parties
4. Legal purpose
2. Six Characteristics of Personal, Adhesion, Utmost Good Faith, Aleatory, Unilateral, Conditional
Insurance Contracts
3. Adhesion One party dictates, the other agrees (or not)
4. aleatory Depends on a future, unknown event
5. unilateral Only one party agrees to perform an act
6. Four sections of an in- Dec page, insuring agreement, conditions, exclusions (also definitions
surance policy and endorsements)
7. Speculative Risk Consciously taken, gain is possible (not insurable)
8. Pure Risk Only loss or no loss is possible, can be insured
9. hazard A condition increasing the likelihood or severity of a loss
10. Adverse Selection When someone buys insurance because they will probably file a claims
because of info about a risk that the insurer is unaware of
11. binder Temporary coverage for an insurance applicant until a policy is issued
12. warranty A promise that certain conditions will be met
13. Estoppel Prevents an insurer from denying coverage if the insured has reasonable
come to believe that he has such coverage based on insurers practices
14. Moral Hazard Deliberate, involved reckless behavior, an attempt to defraud
2026
, Kentucky Insurance Adjuster Exam
Study online at https://quizlet.com/_d2ygr5
15. Morale Hazard Indifference/carelessness, no intent to defraud, just feel more secure
because of insurance
16. proximate cause Unbroken chain of events between an occurrence and a loss, the occur-
rence is the proximate cause of the loss
17. Claims process (5)) 1. filed 2. Acknowledgment 3. Investigation 4. Evaluation 5. Adjustment
18. Actual Cash Value Market/depreciated value prior to destruction (replacement cost minus
depreciation)
19. Replacement Cost Don't subtract depreciation,
Common in home but not in auto
20. Valued Policy Assigns a set value to an item, avoids confusion of depreciation
21. stated value Value state by insured when applying for insurance. (Usually for when
insured can't afford to insure for full value)
22. Deductibles (fixed, Fixed- set amount; percent- % of risks value; franchise- policy kicks in after
percent, franchise) loss exceeds certain amount, insurer pays 100%
23. Coinsurance Penalty (Amount of Insurance )/(Amount of Insurance Required) x Loss - De-
Formula ductible
24. Vicarious Liability Transfer of negligence (employer or parent)
25. Four elements of neg- 1-Duty of care
ligence 2-Derelict: breah of duty if care
3-Direct cause: legally recognizable injury occurs as a result of breach of
duty of care
4-Damage: wrongful activity must have been caused the injury or harm
that occurred
2026
