Adjuster Pro - Insurance adjuster Exam Questions
and Answers| Latest
What is insurance?
protection against financial loss
what is a premium
a scheduled amount to be paid for an insurance policy.
What are premiums used for
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?
the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity
payment for damages, that is not more or less than the amount caused by the
damage.
principle of indemnity
insurance will pay no more or less than the actual financial loss suffered
,indemnification may also include
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement
mutual intent by offeror and offeree
six special characteristics of insurance contracts
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
,what kind of contract is an insurance policy?
Personal contract
what is a contract of adhesion
the insured must accept the entire contract with all of its terms and conditions
Utmost Good Faith
An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract
a contract where the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract
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
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
DICE
, D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section
Always the first section - establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
Deductible
Premium
Definitions section
Defines terms used to write policy including "collusion" "decay" "like kind and
quality"
Includes important language for adjusters to know
and Answers| Latest
What is insurance?
protection against financial loss
what is a premium
a scheduled amount to be paid for an insurance policy.
What are premiums used for
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?
the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity
payment for damages, that is not more or less than the amount caused by the
damage.
principle of indemnity
insurance will pay no more or less than the actual financial loss suffered
,indemnification may also include
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement
mutual intent by offeror and offeree
six special characteristics of insurance contracts
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
,what kind of contract is an insurance policy?
Personal contract
what is a contract of adhesion
the insured must accept the entire contract with all of its terms and conditions
Utmost Good Faith
An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract
a contract where the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract
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
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
DICE
, D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section
Always the first section - establishes the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
Deductible
Premium
Definitions section
Defines terms used to write policy including "collusion" "decay" "like kind and
quality"
Includes important language for adjusters to know
