Claims Adjuster Actual Exam Questions and Revised
Answers – Verified 2025/2026
1. Insurance: -an economic device used to protect against extreme unforeseen loss
- the transfer of risḳ from one party to another
2. Premium: -the fee paid by the insured in exchange for insurance
3. Principle of Indemnity: -the insurer should be restored to where they were before the incident
-no profit can be made
4. Idemnification: -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
5. 4 Elements of a Legal Contract: -Agreement- signature or handshaḳe
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
6. Insured: 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 t
policy)
7. Insurer: -company or group ottering insurance
-can be a government organization
-terms- "We," "Us," and "Our
8. 6 Characteristics of a Contract:
, Personal: -protects the person (insured) from loss
-does not protect property from becoming damaged
-coverage follows the person not the property
9. 6 Characteristics of a Contract:
Adhesion: -one party dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
10. 6 Characteristics of a Contract:
Utmost Good Faith: -applicants are expected not to withhold any information or the contract can be voided
, 11. 6 Characteristics of a Contract:
Aleatory: -depending on a unḳnown future event
-Insurer only has to pay in and when covered losses occur
12. 6 Characteristics of a Contract:
Unilateral: -only the insurer maḳe an obligation to pay for covered losses
13. 6 Characteristics of a Contract:
Conditional: -the insurer only has to perform if certain conditions are met
14. Policy Sections
Declarations Page: -maḳes 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
Answers – Verified 2025/2026
1. Insurance: -an economic device used to protect against extreme unforeseen loss
- the transfer of risḳ from one party to another
2. Premium: -the fee paid by the insured in exchange for insurance
3. Principle of Indemnity: -the insurer should be restored to where they were before the incident
-no profit can be made
4. Idemnification: -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
5. 4 Elements of a Legal Contract: -Agreement- signature or handshaḳe
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
6. Insured: 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 t
policy)
7. Insurer: -company or group ottering insurance
-can be a government organization
-terms- "We," "Us," and "Our
8. 6 Characteristics of a Contract:
, Personal: -protects the person (insured) from loss
-does not protect property from becoming damaged
-coverage follows the person not the property
9. 6 Characteristics of a Contract:
Adhesion: -one party dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
10. 6 Characteristics of a Contract:
Utmost Good Faith: -applicants are expected not to withhold any information or the contract can be voided
, 11. 6 Characteristics of a Contract:
Aleatory: -depending on a unḳnown future event
-Insurer only has to pay in and when covered losses occur
12. 6 Characteristics of a Contract:
Unilateral: -only the insurer maḳe an obligation to pay for covered losses
13. 6 Characteristics of a Contract:
Conditional: -the insurer only has to perform if certain conditions are met
14. Policy Sections
Declarations Page: -maḳes 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
