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ADJUSTER PRO - INSURANCE
ADJUSTER TEST ACTUAL EXAM
2026/2027 ACTUAL QUESTIONS
WITH VERIFIED ANSWERS.
What is insurance? - ANSWER-protection against financial loss
what is a premium - ANSWER-a scheduled amount to be paid
for an insurance policy.
What are premiums used for - ANSWER-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? - ANSWER-the insurer collects premiums
from all policy holders and uses them to pay out the claims of a
few.
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what is Indemnity - ANSWER-payment for damages, that is not
more or less than the amount caused by the damage.
principle of idemnity - ANSWER-insurance will pay no more or
less than the actual financial loss suffered
indemnification may also include - ANSWER-repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - ANSWER-1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - ANSWER-mutual intent by offeror
and offeree
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six special characteristics of insurance contracts - ANSWER-1.
Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - ANSWER-
Personal contract
what is a contract of adhesion - ANSWER-the insured must
accept the entire contract with all of its terms and conditions
Utmost Good Faith - ANSWER-An obligation to act in complete
honesty and to disclose all relevant facts.
Aleatory Contract - ANSWER-a contract where the values
exchanged may not be equal but depend on an uncertain event
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Unilateral Contract - ANSWER-insurance agrees that they must
pay in event of a claim. the insured can stop paying premiums
at any point.
only the insurer has promised to perform an action.
Conditional Contract - ANSWER-A type of an agreement in
which both parties must perform certain duties and follow rules
of conduct to make the contract enforceable.
Acronym for the four sections of an Insurance policy -
ANSWER-DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - ANSWER-Always the first section -
establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
ADJUSTER PRO - INSURANCE
ADJUSTER TEST ACTUAL EXAM
2026/2027 ACTUAL QUESTIONS
WITH VERIFIED ANSWERS.
What is insurance? - ANSWER-protection against financial loss
what is a premium - ANSWER-a scheduled amount to be paid
for an insurance policy.
What are premiums used for - ANSWER-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? - ANSWER-the insurer collects premiums
from all policy holders and uses them to pay out the claims of a
few.
,2 | Page
what is Indemnity - ANSWER-payment for damages, that is not
more or less than the amount caused by the damage.
principle of idemnity - ANSWER-insurance will pay no more or
less than the actual financial loss suffered
indemnification may also include - ANSWER-repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - ANSWER-1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - ANSWER-mutual intent by offeror
and offeree
,3 | Page
six special characteristics of insurance contracts - ANSWER-1.
Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - ANSWER-
Personal contract
what is a contract of adhesion - ANSWER-the insured must
accept the entire contract with all of its terms and conditions
Utmost Good Faith - ANSWER-An obligation to act in complete
honesty and to disclose all relevant facts.
Aleatory Contract - ANSWER-a contract where the values
exchanged may not be equal but depend on an uncertain event
, 4 | Page
Unilateral Contract - ANSWER-insurance agrees that they must
pay in event of a claim. the insured can stop paying premiums
at any point.
only the insurer has promised to perform an action.
Conditional Contract - ANSWER-A type of an agreement in
which both parties must perform certain duties and follow rules
of conduct to make the contract enforceable.
Acronym for the four sections of an Insurance policy -
ANSWER-DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - ANSWER-Always the first section -
establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
