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Adjuster Pro - Insurance Adjuster Test
Study Guide |Actual Exam With 100%
Verified Questions And Correct Solutions
|Excellent Scores
What is insurance? - correct-answer-protection against financial loss
what is a premium - correct-answer-a scheduled amount to be paid for an
insurance policy.
What are premiums used for - correct-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? -
correct-answer-the insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
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what is Indemnity - correct-answer-payment for damages, that is not more or less
than the amount caused by the damage.
principle of idemnity - correct-answer-insurance will pay no more or less than the
actual financial loss suffered
indemnification may also include - correct-answer-repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - correct-answer-1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - correct-answer-mutual intent by offeror and offeree
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six special characteristics of insurance contracts - correct-answer-1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - correct-answer-Personal contract
what is a contract of adhesion - correct-answer-the insured must accept the
entire contract with all of its terms and conditions
Utmost Good Faith - correct-answer-An obligation to act in complete honesty and
to disclose all relevant facts.
Aleatory Contract - correct-answer-a contract where the values exchanged may
not be equal but depend on an uncertain event
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Unilateral Contract - correct-answer-insurance 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.
Adjustment - correct-answer-If a claim is accepted, the insurer must pay promptly
after notifying that the claim will be paid
If claim is denied the insurer must explicitly state reasons for denial
Insurable Interest - correct-answer-Only parties with insurable interest can insure
a property or person
You can only insure something that has some financial interest to you
Lender interest - correct-answer-A lenders financial stake in an insured item
Lender Interest Provisions - correct-answer-Allow the lender to be listed as a
payee on the policy
Endure the lender is notified if the policy is canceled, reduced, or expires
Adjuster Pro - Insurance Adjuster Test
Study Guide |Actual Exam With 100%
Verified Questions And Correct Solutions
|Excellent Scores
What is insurance? - correct-answer-protection against financial loss
what is a premium - correct-answer-a scheduled amount to be paid for an
insurance policy.
What are premiums used for - correct-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? -
correct-answer-the insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
, Page |2
what is Indemnity - correct-answer-payment for damages, that is not more or less
than the amount caused by the damage.
principle of idemnity - correct-answer-insurance will pay no more or less than the
actual financial loss suffered
indemnification may also include - correct-answer-repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - correct-answer-1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - correct-answer-mutual intent by offeror and offeree
, Page |3
six special characteristics of insurance contracts - correct-answer-1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - correct-answer-Personal contract
what is a contract of adhesion - correct-answer-the insured must accept the
entire contract with all of its terms and conditions
Utmost Good Faith - correct-answer-An obligation to act in complete honesty and
to disclose all relevant facts.
Aleatory Contract - correct-answer-a contract where the values exchanged may
not be equal but depend on an uncertain event
, Page |4
Unilateral Contract - correct-answer-insurance 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.
Adjustment - correct-answer-If a claim is accepted, the insurer must pay promptly
after notifying that the claim will be paid
If claim is denied the insurer must explicitly state reasons for denial
Insurable Interest - correct-answer-Only parties with insurable interest can insure
a property or person
You can only insure something that has some financial interest to you
Lender interest - correct-answer-A lenders financial stake in an insured item
Lender Interest Provisions - correct-answer-Allow the lender to be listed as a
payee on the policy
Endure the lender is notified if the policy is canceled, reduced, or expires
