Adjuster Pro - Insurance adjuster test Exam Questions With Verified Answers

Adjuster Pro - Insurance adjuster test Exam Questions With Verified Answers What is insurance? - answerprotection against financial loss what is a premium - answera scheduled amount to be paid for an insurance policy. What are premiums used for - answerpremiums 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? - answerthe insurer collects premiums from all policy holders and uses them to pay out the claims of a few. what is Indemnity - answerpayment for damages, that is not more or less than the amount caused by the damage. principle of idemnity - answerinsurance will pay no more or less than the actual financial loss suffered indemnification may also include - answerrepairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract - answer1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose legal contract - agreement - answermutual intent by offeror and offeree six special characteristics of insurance contracts - answer1. Personal 2. adhesion 3. utmost good faith 4. aleatory 5. unilateral 6. conditional what kind of contract is an insurance policy? - answerPersonal contract what is a contract of adhesion - answerthe insured must accept the entire contract with all of its terms and conditions Utmost Good Faith - answerAn obligation to act in complete honesty and to disclose all relevant facts. Aleatory Contract - answera contract where the values exchanged may not be equal but depend on an uncertain event Unilateral Contract - answerinsurance agrees that they must pay in event of a claim. the insured can stop paying premiums at any point. only the insurer has promised to perform an action. Conditional Contract - answerA type of an agreement in which both parties must perform certain duties and follow rules of conduct to make the contract enforceable. Acronym for the four sections of an Insurance policy - answerDICE D - declarations page I - Insuring Agreement C- Conditions E - Exclusions Decelerations section - answerAlways the first section - establishes the following Names of both parties Policy number Location and description of insured item Dates of the policy Amount and limit of coverage Deductible Premium Definitions section - answerDefines terms used to write policy including "collusion" "decay" "like kind and quality" Includes important language for adjusters to know Insuring agreement section - answerWhat is covered and how Which causes of loss are covered Any services provided Any exclusions to coverage The maximum limit of policy coverage in dollars Conditions section - answerInsurer specifies any limits or qualifications the policy holder must meet Exclusions section - answerlosses for which the insured is not covered for Endorsements - answerProvision that modifies the coverage of the original contract Add or subtract coverage Synonyms - rider, addendum, attachment Certificate of Insurance - answerA legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. Characteristics of social insurance - answerNon profit Mandatory participation Benefits prescribed by law Designed to meet needs of public Government has monopoly Private Insurers - answerSell insurance based on needs and preferences Wide variety of products Exist to generate a profit Insured party voluntarily participate Stock Insurance Companies - answerAlways f