Claims Adjuster questions and answers correctly explained.

Claims Adjuster questions and answers correctly explained. Insurance - correct answers.-an economic device used to protect against extreme unforeseen loss - the transfer of risk from one party to another Premium - correct answers.-the fee paid by the insured in exchange for insurance Principle of Indemnity - correct answers.-the insurer should be restored to where they were before the incident -no profit can be made Idemnification - correct answers.-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 - correct answers.-Agreement- signature or handshake -Consideration- money exchange -Competent Parties-18 yrs. old, sober, sane -Legal Purpose-no contracts for money laundering Insured - correct idual 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 - correct answers.-company or group offering insurance -can be a government organization -terms- "We," "Us," and "Our 6 Characteristics of a Contract: Personal - correct answers.-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 - correct answers.-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 - correct answers.-applicants are expected not to withhold any information or the contract can be voided 6 Characteristics of a Contract: Aleatory - correct answers.-depending on a unknown future event -Insurer only has to pay in and when covered losses occur 6 Characteristics of a Contract: Unilateral - correct answers.-only the insurer make an obligation to pay for covered losses 6 Characteristics of a Contract: Conditional - correct answers.-the insurer only has to perform if certain conditions are met Policy Sections Declarations Page - correct answers.-makes contract specific to the policy holder Includes: -Name of both parties -Policy Number -Location & Description of Item -Value of Insured Item -Value of item dates - Amount & Limit of Coverage -Deductible -Premium Policy Sections Definitions - correct answers.-it is not technically essential -need to know info. or language used in the contract