INSURANCE ADJUSTER EXAMS TEST PAPER 2026
QUESTIONS AND ANSWERS SURE A+
✔✔Insurable risk - ✔✔Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
✔✔Adequate Premiums - ✔✔Potential loss can't be too much for insurer to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
✔✔Difneable risk - ✔✔Insurer can define exact conditions under which the item is
covered by the policy
Item it's self is defineable
Item has precise value
✔✔Unexpected loss - ✔✔Unforeseeable
Unexpected
Reasonably unpreventable
Random in nature
, ✔✔Substantial loss - ✔✔Must cause substantial economic hardship
✔✔Exclusions - ✔✔Insurer must be able to exclude large scale disasters and
catastrophic events
✔✔Law of large numbers - ✔✔Insurer must be able to cover large numbers of similar
risks
Spreads risk across more policies
Helps insurers predict losses more accurately
Similar risks can mean, cars houses, persons lives, similar business etc
✔✔Adverse Selection - ✔✔when someone buys health insurance because they know
they will probably file a claim
✔✔4 risk management techniques - ✔✔Avoidance
Reduction
Transference
Retention
✔✔Risk avoidance - ✔✔Eliminates risk by not taking action that involves risk
✔✔Risk reduction - ✔✔Taking measures to reduce risk that is involved
Also called risk mitigation
✔✔Risk Transference - ✔✔Management of sever risk by transferring risk to someone
else
Most common example is Insurance
✔✔Risk retention - ✔✔Acknowledging the risks and preparing to handle the unexpected
losses as they occur
✔✔Policy Period - ✔✔The time frame, beginning with the inception date to the
expiration date, during which insurance coverage applies.
✔✔Binder - ✔✔Providing temporary coverage until the policy is issued
✔✔Blanket coverage vs specific coverage - ✔✔Blankets cover more than one property,
type of property, or coverage under a single limit
Specific limits - limits that apply to on specific type of property
✔✔Representation - ✔✔Statement of fact
QUESTIONS AND ANSWERS SURE A+
✔✔Insurable risk - ✔✔Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
✔✔Adequate Premiums - ✔✔Potential loss can't be too much for insurer to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
✔✔Difneable risk - ✔✔Insurer can define exact conditions under which the item is
covered by the policy
Item it's self is defineable
Item has precise value
✔✔Unexpected loss - ✔✔Unforeseeable
Unexpected
Reasonably unpreventable
Random in nature
, ✔✔Substantial loss - ✔✔Must cause substantial economic hardship
✔✔Exclusions - ✔✔Insurer must be able to exclude large scale disasters and
catastrophic events
✔✔Law of large numbers - ✔✔Insurer must be able to cover large numbers of similar
risks
Spreads risk across more policies
Helps insurers predict losses more accurately
Similar risks can mean, cars houses, persons lives, similar business etc
✔✔Adverse Selection - ✔✔when someone buys health insurance because they know
they will probably file a claim
✔✔4 risk management techniques - ✔✔Avoidance
Reduction
Transference
Retention
✔✔Risk avoidance - ✔✔Eliminates risk by not taking action that involves risk
✔✔Risk reduction - ✔✔Taking measures to reduce risk that is involved
Also called risk mitigation
✔✔Risk Transference - ✔✔Management of sever risk by transferring risk to someone
else
Most common example is Insurance
✔✔Risk retention - ✔✔Acknowledging the risks and preparing to handle the unexpected
losses as they occur
✔✔Policy Period - ✔✔The time frame, beginning with the inception date to the
expiration date, during which insurance coverage applies.
✔✔Binder - ✔✔Providing temporary coverage until the policy is issued
✔✔Blanket coverage vs specific coverage - ✔✔Blankets cover more than one property,
type of property, or coverage under a single limit
Specific limits - limits that apply to on specific type of property
✔✔Representation - ✔✔Statement of fact
