Claims Adjuster exam 2023 with 100% correct questions and answers

Insurance -an economic device used to protect against extreme unforeseen loss - the transfer of risk from one party to another Premium -the fee paid by the insured in exchange for insurance Principle of Indemnity -the insurer should be restored to where they were before the incident -no profit can be made Idemnification -to compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person 4 Elements of a Legal Contract -Agreement- signature or handshake -Consideration- money exchange -Competent Parties-18 yrs. old, sober, sane -Legal Purpose-no contracts for money laundering Insured individual who pays premiums in exchange for protection -can be a person, person's or an organization - "You," "Your," or "Your's" (if the insured is a group it is important to list the "first named insured,"- because that is the only one that can authorize changes to the policy) Insurer -company or group offering insurance -can be a government organization -terms- "We," "Us," and "Our 6 Characteristics of a Contract: Personal -protects the person (insured) from loss -does not protect property from becoming damaged -coverage follows the person not the property 6 Characteristics of a Contract: Adhesion -one party dictates terms -the insured has no power to write the contract -courses will favor the insured in a case of ambiguity 6 Characteristics of a Contract: Utmost Good Faith -applicants are expected not to withhold any information or the contract can be voided 6 Characteristics of a Contract: Aleatory -depending on a unknown future event -Insurer only has to pay in and when covered losses occur 6 Characteristics of a Contract: Unilateral -only the insurer make an obligation to pay for covered losses