NY Adjuster Practice Exam 2025
Questions and Answers
Claimant - --Answer --Insured individual who has filed a claim
Premium Pool - --Answer --Reserve where collected premiums are stored
Insurance - --Answer --Economic device for protecting against financial loss
Principle of Indemnity - --Answer --Prevents insured from profiting from
loss
Premium - --Answer --Fee paid by insured for insurance coverage
Indemnification - --Answer --Payment for repairs, ALE expenses, and costs
related to loss
Insurance Policy Contract - --Answer --Legally binding agreement providing
financial protection; 4 requirements: agreement/consideration/competent
parties/legal purpose
Agreement - --Answer --Mutual consent between offeror and offeree
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Termination of Offer - --Answer --Revocation, rejection, time lapse, or
operation of law
Offer Rejection - --Answer --Proposal of new offer or counteroffer; Side
note-Asking for more info is NOT a legal rejection
Insurance - --Answer --Transfers risk of financial losses from one party to
another
Insured - --Answer --Individual or organization paying premiums for
protection
Insurer - --Answer --Company or agency offering financial protection
Insured Policy - --Answer --legally binding contract in which the insurer
agrees to take on specified risk in exchange for insured premium
Personal Insurance - --Answer --Insurance is a personal contract that
protects the policyholder from financial loss, does not protect property, coverage
follows the person and not the property ; Example: when you sell a car the
insurance does not go with the car only with the person
Contract of Adhesion - --Answer --insurer responsible for the terms of the
contract, insured has no say in wording, courts favor the insured - there is an
unequal balance of power in the creation of the contract. One party gets to set the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, terms of the contract, while the other only chooses whether or not to accept those
terms
Doctrine of Reasonable Expectations - --Answer --Contract should be
interpreted as a reasonable person would
Utmost Good Faith - --Answer --Appliance be honest-Insurer must rely on
applicants to not conceal or misrepresent facts - be honest
Aleatory - --Answer --Dependent on unknown future event; Insurer ONLY
pays if and when a covered loss occur; Policyholders can pay more for premiums
than claims or insurer pay more claims than it receives
Unilateral - --Answer --Insurer has obligation to pay for losses and an
insured has no obligation (they can stop paying premiums)
Conditional - --Answer --Insurer only has to perform if certain conditions
are met; Insured must fulfill all conditions listed in the policy
Declarations - --Answer --Information that makes the policy unique to a
specified insured
Insuring Agreement - --Answer --Essence of the contract; summarizes what
the insurer will cover and how.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Questions and Answers
Claimant - --Answer --Insured individual who has filed a claim
Premium Pool - --Answer --Reserve where collected premiums are stored
Insurance - --Answer --Economic device for protecting against financial loss
Principle of Indemnity - --Answer --Prevents insured from profiting from
loss
Premium - --Answer --Fee paid by insured for insurance coverage
Indemnification - --Answer --Payment for repairs, ALE expenses, and costs
related to loss
Insurance Policy Contract - --Answer --Legally binding agreement providing
financial protection; 4 requirements: agreement/consideration/competent
parties/legal purpose
Agreement - --Answer --Mutual consent between offeror and offeree
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Termination of Offer - --Answer --Revocation, rejection, time lapse, or
operation of law
Offer Rejection - --Answer --Proposal of new offer or counteroffer; Side
note-Asking for more info is NOT a legal rejection
Insurance - --Answer --Transfers risk of financial losses from one party to
another
Insured - --Answer --Individual or organization paying premiums for
protection
Insurer - --Answer --Company or agency offering financial protection
Insured Policy - --Answer --legally binding contract in which the insurer
agrees to take on specified risk in exchange for insured premium
Personal Insurance - --Answer --Insurance is a personal contract that
protects the policyholder from financial loss, does not protect property, coverage
follows the person and not the property ; Example: when you sell a car the
insurance does not go with the car only with the person
Contract of Adhesion - --Answer --insurer responsible for the terms of the
contract, insured has no say in wording, courts favor the insured - there is an
unequal balance of power in the creation of the contract. One party gets to set the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, terms of the contract, while the other only chooses whether or not to accept those
terms
Doctrine of Reasonable Expectations - --Answer --Contract should be
interpreted as a reasonable person would
Utmost Good Faith - --Answer --Appliance be honest-Insurer must rely on
applicants to not conceal or misrepresent facts - be honest
Aleatory - --Answer --Dependent on unknown future event; Insurer ONLY
pays if and when a covered loss occur; Policyholders can pay more for premiums
than claims or insurer pay more claims than it receives
Unilateral - --Answer --Insurer has obligation to pay for losses and an
insured has no obligation (they can stop paying premiums)
Conditional - --Answer --Insurer only has to perform if certain conditions
are met; Insured must fulfill all conditions listed in the policy
Declarations - --Answer --Information that makes the policy unique to a
specified insured
Insuring Agreement - --Answer --Essence of the contract; summarizes what
the insurer will cover and how.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
