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