AdjusterPRO Final Exam WITH 100%
CORRECT ANSWERS 2025-2026
,-+What is a reserve, in insurance terms? - answer A pool of collected
premiums that the insurer sets aside to pay claims
Which of these scenarios is NOT an example of indemnification? - answer
When trying to renew her dog's license, Ellen has to pay a penalty to the
city for letting its rabies vaccination lapse.
Ellen having to pay a fine is not an example of indemnification.
Indemnification means being restored to the financial condition you were
in before a loss. In three of these situations, someone experienced a loss and
was then "made whole": Joe-Bob's neighbor lost his TV, Alice lost her house,
and Hugh lost the use of his car. But in the case of Ellen's dog, the city did
not experience a loss; it simply imposed a penalty to teach Ellen a lesson
about keeping up with her dog's shots.
Greg plays trombone in his school band during football games. During a
rally song in the stands one day, Greg annoys one of the opposing team's
fans, who grabs his $400 trombone and hurls it down the bleachers,
completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the opposing team's coach also offers to replace the
instrument, at whatever the cost. So Greg orders a new $3,200 trombone
and has the opposing team's athletic department absorb the cost. Which
principle has Greg violated? - answer The principle of indemnity
, Which of the following statements is true about an insurance policy?
- answer It relies on the utmost good faith of both the insured and
the insurer
An insurance policy relies on the utmost good faith of both the insured and
the insurer.
Which of the following would you find in the Conditions section of an
insurance policy? - answer The insured's duty after a loss
In which section of an insurance policy might you find the following
statement? "Damage to insured property must be reported within 15 days of
the damaging occurrence." - answer Conditions
A captive insurance company: - answer exists solely to provide insurance
for its parent company.
Cindy holds an insurance policy from Sine Nomine Insurance. This is
not a publicly traded company, and Cindy can participate in the election
of the board, receiving dividends if the company does well. Sine Nomine
Insurance could be best described as a: - answer Sine Nomine Insurance
is a mutual insurance company.
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - answer risk.
CORRECT ANSWERS 2025-2026
,-+What is a reserve, in insurance terms? - answer A pool of collected
premiums that the insurer sets aside to pay claims
Which of these scenarios is NOT an example of indemnification? - answer
When trying to renew her dog's license, Ellen has to pay a penalty to the
city for letting its rabies vaccination lapse.
Ellen having to pay a fine is not an example of indemnification.
Indemnification means being restored to the financial condition you were
in before a loss. In three of these situations, someone experienced a loss and
was then "made whole": Joe-Bob's neighbor lost his TV, Alice lost her house,
and Hugh lost the use of his car. But in the case of Ellen's dog, the city did
not experience a loss; it simply imposed a penalty to teach Ellen a lesson
about keeping up with her dog's shots.
Greg plays trombone in his school band during football games. During a
rally song in the stands one day, Greg annoys one of the opposing team's
fans, who grabs his $400 trombone and hurls it down the bleachers,
completely destroying it. Greg's insurance pays him $400 to replace the
trombone, but then the opposing team's coach also offers to replace the
instrument, at whatever the cost. So Greg orders a new $3,200 trombone
and has the opposing team's athletic department absorb the cost. Which
principle has Greg violated? - answer The principle of indemnity
, Which of the following statements is true about an insurance policy?
- answer It relies on the utmost good faith of both the insured and
the insurer
An insurance policy relies on the utmost good faith of both the insured and
the insurer.
Which of the following would you find in the Conditions section of an
insurance policy? - answer The insured's duty after a loss
In which section of an insurance policy might you find the following
statement? "Damage to insured property must be reported within 15 days of
the damaging occurrence." - answer Conditions
A captive insurance company: - answer exists solely to provide insurance
for its parent company.
Cindy holds an insurance policy from Sine Nomine Insurance. This is
not a publicly traded company, and Cindy can participate in the election
of the board, receiving dividends if the company does well. Sine Nomine
Insurance could be best described as a: - answer Sine Nomine Insurance
is a mutual insurance company.
When an insurer issues an insurance policy, the actual item, person, or
organization that is being insured is called the: - answer risk.
