Adjuster Pro Insurance Adjuster Test 2025/2026 QUESTIONS AND VERIFIED CORRECT SOLUTIONS || 100% GUARANTEED PASS BRAND NEW VERSION

Adjuster Pro Insurance Adjuster Test 2025/2026 QUESTIONS AND VERIFIED CORRECT SOLUTIONS || 100% GUARANTEED PASS BRAND NEW VERSION 1. What is insurance? - ANSWER protection against financial loss 2. what is a premium - ANSWER a scheduled amount to be paid for an insurance policy. 3. What are premiums used for - ANSWER premiums are collected into a "pool" or "reserve to pay out claimants when needed. 4. Certificate of Insurance - ANSWER A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. 5. Characteristics of social insurance - ANSWER Non profit Mandatory participation Benefits prescribed by law Designed to meet needs of public Government has monopoly 6. Private Insurers - ANSWER Sell insurance based on needs and preferences Wide variety of products Exist to generate a profit Insured party voluntarily participate 7. Stock Insurance Companies - ANSWER Always for profit Publicly traded Stockholder provide capital and participate in profit or losses "Non participation" insurers - no dividends go to policy holders 8. Mutual Insurance Company - ANSWER No shareholders Policy holders elect board of directors "Participating" insurers - policy holders participate in dividends 9. Re-insurer - ANSWER Provides insurance for insurers to reduce exposure to loss Pays percentage of insurers loss or any loss over a certain amount 10. Reciprocal Insurers - ANSWER Unincorporated Non profit Operated by attorney in fact Members pay into individual accounts Cost of claims shared by whole groups 11. Fraternal Benefit Societies - ANSWER Also called fraternal associations Non profit mutual aid organizations Engage in charitable activities Provide some type of insurance to members Typically consist of people with similar religion, ethnicity or occupation 12. Fraternal Benefit Societies insurance - ANSWER Used to fund altruistic activities Must be assessable by law Members are both providers and recipients If claims payment ability is impaired, members help pay the difference 13. captive insurers - ANSWER Created by businesses in order to retain risk Exist to provide insurance for their "parent" All profit belongs to parent company Permitted in some states 14. Risk retention groups - ANSWER Authorized by the federal liability risk retention act of 1986 Owned by their members Provide commercial liability 15. RRG Requirements - ANSWER Members must be involved in similar business endeavors Don't need to be licensed in multiple states 16. Classification based on location - ANSWER Domestic Insurer - adhere to law of a state, located in that state 17. Foreign insurer - adhere to laws in the US but can be located elsewhere 18. Alien insurer - obey laws of another country all together 19. Risk - ANSWER Potential for financial loss An insured item 20. Two types of risk - ANSWER Pure and Speculative 21. Speculative risk - ANSWER No certainty of gain or loss Made knowingly, by conscious choice Cannot be insured 22. Pure risk - ANSWER Risk with no chance of gain Can only result in either loss or no loss Can be insured 23. What is the purpose of a Dwelling Fire Policy? - ANSWER to cover a residence 24. Residence: - ANSWER can only contain up to 4 family units 25. If a structure contains more than 4 family units, it is a: - ANSWER commercial building 26. Mobile homes can qualify as a residence; however, they: - ANSWER can't be on wheels, they must have a location with an address 27. Does a house on a farm qualify as a residence? - ANSWER No- must get a Farm Owners Policy, which covers both residential and farmer activities 28. If your name is on the insurance policy, you are the: - ANSWER Named Insured 29. A spouse can be covered under a policy even if her name isn't on it, as long as: - ANSWER she is a resident of the household 30. Must be a full-time student under the age of ____ for policy to cover child when away from household - ANSWER 24 31. What does Dwelling Coverage E cover? - ANSWER additional living expenses 32. What does Dwelling Coverage D cover? - ANSWER loss of rental value 33. What does Coverage C of the Dwelling Policy cover? - ANSWER personal property 34. What does Coverage B of the Dwelling Policy cover? - ANSWER other structures that are unattached/disconnected structures, like a shed or pool 35. What does Coverage A of Dwelling Policy cover? - ANSWER the residence and anything attached 36. By default, the limit for Coverage B of Dwelling Policy is automatically ____% of the Coverage A limit - ANSWER 10% 37. What are the minimum and maximum time frames for a temporary adjuster's license? - ANSWER minimum: 6 months maximum: 15 months