Adjuster Pro - Insurance adjuster test:
Questions, Answers and Rationale 2025
What is insurance? ------- Correct Ans ---------- protection against financial loss
what is a premium ------- Correct Ans ---------- a scheduled amount to be paid for an insurance
policy.
What are premiums used for ------- Correct Ans ---------- 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
Ans ---------- the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity ------- Correct Ans ---------- payment for damages, that is not more or less than
the amount caused by the damage.
principle of idemnity ------- Correct Ans ---------- insurance will pay no more or less than the
actual financial loss suffered
indemnification may also include ------- Correct Ans ---------- repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract ------- Correct Ans ---------- 1. Agreement
,2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement ------- Correct Ans ---------- mutual intent by offeror and offeree
six special characteristics of insurance contracts ------- Correct Ans ---------- 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? ------- Correct Ans ---------- Personal contract
what is a contract of adhesion ------- Correct Ans ---------- the insured must accept the entire
contract with all of its terms and conditions
Utmost Good Faith ------- Correct Ans ---------- An obligation to act in complete honesty and to
disclose all relevant facts.
Aleatory Contract ------- Correct Ans ---------- a contract where the values exchanged may not be
equal but depend on an uncertain event
Unilateral Contract ------- Correct Ans ---------- 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.
, Conditional Contract ------- Correct Ans ---------- A 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 ------- Correct Ans ---------- DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section ------- Correct Ans ---------- Always 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 ------- Correct Ans ---------- Defines terms used to write policy including
"collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section ------- Correct Ans ---------- What is covered and how
Which causes of loss are covered
Any services provided
Questions, Answers and Rationale 2025
What is insurance? ------- Correct Ans ---------- protection against financial loss
what is a premium ------- Correct Ans ---------- a scheduled amount to be paid for an insurance
policy.
What are premiums used for ------- Correct Ans ---------- 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
Ans ---------- the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity ------- Correct Ans ---------- payment for damages, that is not more or less than
the amount caused by the damage.
principle of idemnity ------- Correct Ans ---------- insurance will pay no more or less than the
actual financial loss suffered
indemnification may also include ------- Correct Ans ---------- repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract ------- Correct Ans ---------- 1. Agreement
,2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement ------- Correct Ans ---------- mutual intent by offeror and offeree
six special characteristics of insurance contracts ------- Correct Ans ---------- 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? ------- Correct Ans ---------- Personal contract
what is a contract of adhesion ------- Correct Ans ---------- the insured must accept the entire
contract with all of its terms and conditions
Utmost Good Faith ------- Correct Ans ---------- An obligation to act in complete honesty and to
disclose all relevant facts.
Aleatory Contract ------- Correct Ans ---------- a contract where the values exchanged may not be
equal but depend on an uncertain event
Unilateral Contract ------- Correct Ans ---------- 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.
, Conditional Contract ------- Correct Ans ---------- A 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 ------- Correct Ans ---------- DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section ------- Correct Ans ---------- Always 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 ------- Correct Ans ---------- Defines terms used to write policy including
"collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section ------- Correct Ans ---------- What is covered and how
Which causes of loss are covered
Any services provided
