Claims Adjuster Exam Question &
Answers 2025
Insurance - CORRECT ANSWERS ✔✔-an economic
device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - CORRECT ANSWERS ✔✔-the fee paid by
the insured in exchange for insurance
Principle of Indemnity - CORRECT ANSWERS ✔✔-the
insurer should be restored to where they were before the
incident
-no profit can be made
Idemnification - CORRECT ANSWERS ✔✔-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
4 Elements of a Legal Contract - CORRECT ANSWERS
✔✔-Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
,Claims Adjuster Exam Question &
Answers 2025
Insured - CORRECT ANSWERS ✔✔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 the policy)
Insurer - CORRECT ANSWERS ✔✔-company or group
offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - CORRECT ANSWERS ✔✔-protects the
person (insured) from loss
-does not protect property from becoming damaged
-coverage follows the person not the property
6 Characteristics of a Contract:
,Claims Adjuster Exam Question &
Answers 2025
Adhesion - CORRECT ANSWERS ✔✔-one party
dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
6 Characteristics of a Contract:
Utmost Good Faith - CORRECT ANSWERS ✔✔-
applicants are expected not to withhold any information
or the contract can be voided
6 Characteristics of a Contract:
Aleatory - CORRECT ANSWERS ✔✔-depending on a
unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - CORRECT ANSWERS ✔✔-only the
insurer make an obligation to pay for covered losses
, Claims Adjuster Exam Question &
Answers 2025
6 Characteristics of a Contract:
Conditional - CORRECT ANSWERS ✔✔-the insurer
only has to perform if certain conditions are met
Policy Sections
Declarations Page - CORRECT ANSWERS ✔✔-makes
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
-Premium
Policy Sections
Answers 2025
Insurance - CORRECT ANSWERS ✔✔-an economic
device used to protect against extreme unforeseen loss
- the transfer of risk from one party to another
Premium - CORRECT ANSWERS ✔✔-the fee paid by
the insured in exchange for insurance
Principle of Indemnity - CORRECT ANSWERS ✔✔-the
insurer should be restored to where they were before the
incident
-no profit can be made
Idemnification - CORRECT ANSWERS ✔✔-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
4 Elements of a Legal Contract - CORRECT ANSWERS
✔✔-Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
,Claims Adjuster Exam Question &
Answers 2025
Insured - CORRECT ANSWERS ✔✔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 the policy)
Insurer - CORRECT ANSWERS ✔✔-company or group
offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
6 Characteristics of a Contract:
Personal - CORRECT ANSWERS ✔✔-protects the
person (insured) from loss
-does not protect property from becoming damaged
-coverage follows the person not the property
6 Characteristics of a Contract:
,Claims Adjuster Exam Question &
Answers 2025
Adhesion - CORRECT ANSWERS ✔✔-one party
dictates terms
-the insured has no power to write the contract
-courses will favor the insured in a case of ambiguity
6 Characteristics of a Contract:
Utmost Good Faith - CORRECT ANSWERS ✔✔-
applicants are expected not to withhold any information
or the contract can be voided
6 Characteristics of a Contract:
Aleatory - CORRECT ANSWERS ✔✔-depending on a
unknown future event
-Insurer only has to pay in and when covered losses occur
6 Characteristics of a Contract:
Unilateral - CORRECT ANSWERS ✔✔-only the
insurer make an obligation to pay for covered losses
, Claims Adjuster Exam Question &
Answers 2025
6 Characteristics of a Contract:
Conditional - CORRECT ANSWERS ✔✔-the insurer
only has to perform if certain conditions are met
Policy Sections
Declarations Page - CORRECT ANSWERS ✔✔-makes
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
-Premium
Policy Sections
