Adjuster Pro - Insurance adjuster test questions with correct answers

What is insurance? CORRECT ANSWER protection against financial loss what is a premium CORRECT ANSWER a scheduled amount to be paid for an insurance policy. What are premiums used for CORRECT ANSWER premiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance companies afford to pay for an individual’s catastrophic loss? CORRECT ANSWER the insurer collects premiums from all policy holders and uses them to pay out the claims of a few. what is Indemnity CORRECT ANSWER payment for damages, that is not more or less than the amount caused by the damage. principle of indemnity CORRECT ANSWER insurance will pay no more or less than the actual financial loss suffered indemnification may also include CORRECT ANSWER repairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract CORRECT ANSWER 1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose