Adjuster Pro - Insurance adjuster test
What is insurance?
Protection against financial loss
What is a premium?
A scheduled amount to be paid for an insurance policy
What are premiums used for?
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?
The insurer collects premiums from all policy holders and uses them
to pay out the claims of a few
What is indemnity?
Payment for damages, that is not more or less than the amount
caused by the damage
What is the principle of indemnity?
,Insurance will pay no more or less than the actual financial loss
suffered
Indemnification may also include:
Repairs to property
Reimbursement for additional living expenses
Rental cars and hotels
Costs directly associated with a loss
4 Parts of a Legal Contract:
Agreement – Mutual intent by offeror and offeree
Consideration
Competent Parties
Legal Purpose
,Six Special Characteristics of Insurance Contracts:
Personal – Insurance is a personal contract between the insurer and
the insured
Adhesion – The insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith – An obligation to act in complete honesty and to
disclose all relevant facts
Aleatory – A contract where the values exchanged may not be equal
but depend on an uncertain event
Unilateral – Only the insurer has promised to perform an action
Conditional – Both parties must perform certain duties and follow
rules for the contract to be enforceable
What kind of contract is an insurance policy?
Personal contract
What is a contract of adhesion?
The insured must accept the entire contract with all of its terms and
conditions
, What is utmost good faith in insurance?
An obligation to act in complete honesty and to disclose all relevant
facts
What is an aleatory contract?
A contract where the values exchanged may not be equal but depend
on an uncertain event
What is a unilateral contract?
Only the insurer has promised to perform an action
What is a conditional contract?
An agreement where both parties must perform duties and follow
rules to make the contract enforceable
Acronym for the Four Sections of an Insurance Policy: DICE
D – Declarations Page
I – Insuring Agreement
C – Conditions
What is insurance?
Protection against financial loss
What is a premium?
A scheduled amount to be paid for an insurance policy
What are premiums used for?
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?
The insurer collects premiums from all policy holders and uses them
to pay out the claims of a few
What is indemnity?
Payment for damages, that is not more or less than the amount
caused by the damage
What is the principle of indemnity?
,Insurance will pay no more or less than the actual financial loss
suffered
Indemnification may also include:
Repairs to property
Reimbursement for additional living expenses
Rental cars and hotels
Costs directly associated with a loss
4 Parts of a Legal Contract:
Agreement – Mutual intent by offeror and offeree
Consideration
Competent Parties
Legal Purpose
,Six Special Characteristics of Insurance Contracts:
Personal – Insurance is a personal contract between the insurer and
the insured
Adhesion – The insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith – An obligation to act in complete honesty and to
disclose all relevant facts
Aleatory – A contract where the values exchanged may not be equal
but depend on an uncertain event
Unilateral – Only the insurer has promised to perform an action
Conditional – Both parties must perform certain duties and follow
rules for the contract to be enforceable
What kind of contract is an insurance policy?
Personal contract
What is a contract of adhesion?
The insured must accept the entire contract with all of its terms and
conditions
, What is utmost good faith in insurance?
An obligation to act in complete honesty and to disclose all relevant
facts
What is an aleatory contract?
A contract where the values exchanged may not be equal but depend
on an uncertain event
What is a unilateral contract?
Only the insurer has promised to perform an action
What is a conditional contract?
An agreement where both parties must perform duties and follow
rules to make the contract enforceable
Acronym for the Four Sections of an Insurance Policy: DICE
D – Declarations Page
I – Insuring Agreement
C – Conditions
