Claims Adjuster Exam Questions with
correct Answers 2025/2026 A+ GRADED.
Insurance - ANS--an economic device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - ANS--the fee paid by the insured in exchange for insurance
Principle of Indemnity - ANS--the insurer should be restored to where they were before the
incident
-no profit can be made
Indemnification - ANS--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 - ANS--Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
Insured - ANS-individual 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 - ANS--company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - ANS--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 - ANS--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 - ANS--applicants are expected not to withhold any information or the
contract can be voided
6 Characteristics of a Contract:
Aleatory - ANS--depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - ANS--only the insurer make an obligation to pay for covered losses
6 Characteristics of a Contract:
Conditional - ANS--the insurer only has to perform if certain conditions are met
Policy Sections
Declarations Page - ANS--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 - ANS--it is not technically essential
-need to know info. or language used in the contract
Policy Sections
Insuring Agreement - ANS-summarizes:
-what is covered
-which losses are covered
-maximum limit of policy
correct Answers 2025/2026 A+ GRADED.
Insurance - ANS--an economic device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - ANS--the fee paid by the insured in exchange for insurance
Principle of Indemnity - ANS--the insurer should be restored to where they were before the
incident
-no profit can be made
Indemnification - ANS--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 - ANS--Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
Insured - ANS-individual 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 - ANS--company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - ANS--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 - ANS--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 - ANS--applicants are expected not to withhold any information or the
contract can be voided
6 Characteristics of a Contract:
Aleatory - ANS--depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - ANS--only the insurer make an obligation to pay for covered losses
6 Characteristics of a Contract:
Conditional - ANS--the insurer only has to perform if certain conditions are met
Policy Sections
Declarations Page - ANS--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 - ANS--it is not technically essential
-need to know info. or language used in the contract
Policy Sections
Insuring Agreement - ANS-summarizes:
-what is covered
-which losses are covered
-maximum limit of policy
