ADJUSTER PRO –INSUARANCE ADJUSTER TEST QUESTIONS AND ANSWERS FOR A GUARANTEED PASS.

ADJUSTER PRO –INSUARANCE ADJUSTER TEST QUESTIONS AND ANSWERS FOR A GUARANTEED PASS. 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. 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 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