ADJUSTER PRO - INSURANCE
ADJUSTER TEST ACTUAL EXAM:
QUESTION AND ANSWERS
UPDATED 2026 LATEST
ADJUSTER PRO - INSURANCE
ADJUSTER TEST
What is insurance? - CORRECT ANSWER -protection
against financial loss
what is a premium - CORRECT ANSWER -a scheduled
amount to be paid for an insurance policy.
What are premiums used for - CORRECT ANSWER -
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? - CORRECT ANSWER -the insurer
collects premiums from all policy holders and uses them to
pay out the claims of a few.
what is Indemnity - CORRECT ANSWER -payment for
damages, that is not more or less than the amount caused by
the damage.
principle of idemnity - CORRECT ANSWER -insurance will
pay no more or less than the actual financial loss suffered
indemnification may also include -
CORRECT ANSWER -repairs to property
reimbursement for additional living expenses
rental cars and hotels costs directly
associated with a loss
4 Parts of Legal Contract - CORRECT ANSWER -1.
Agreement
,2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - CORRECT ANSWER -mutual
intent by offeror and offeree
six special characteristics of insurance contracts - CORRECT
ANSWER -1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - CORRECT
ANSWER -Personal contract
, what is a contract of adhesion - CORRECT ANSWER -the
insured must accept the entire contract with all of its terms
and conditions
Utmost Good Faith - CORRECT ANSWER -An obligation
to act in complete honesty and to disclose all relevant facts.
Aleatory Contract - CORRECT ANSWER -a contract where
the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract - CORRECT ANSWER -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.
ADJUSTER TEST ACTUAL EXAM:
QUESTION AND ANSWERS
UPDATED 2026 LATEST
ADJUSTER PRO - INSURANCE
ADJUSTER TEST
What is insurance? - CORRECT ANSWER -protection
against financial loss
what is a premium - CORRECT ANSWER -a scheduled
amount to be paid for an insurance policy.
What are premiums used for - CORRECT ANSWER -
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? - CORRECT ANSWER -the insurer
collects premiums from all policy holders and uses them to
pay out the claims of a few.
what is Indemnity - CORRECT ANSWER -payment for
damages, that is not more or less than the amount caused by
the damage.
principle of idemnity - CORRECT ANSWER -insurance will
pay no more or less than the actual financial loss suffered
indemnification may also include -
CORRECT ANSWER -repairs to property
reimbursement for additional living expenses
rental cars and hotels costs directly
associated with a loss
4 Parts of Legal Contract - CORRECT ANSWER -1.
Agreement
,2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - CORRECT ANSWER -mutual
intent by offeror and offeree
six special characteristics of insurance contracts - CORRECT
ANSWER -1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - CORRECT
ANSWER -Personal contract
, what is a contract of adhesion - CORRECT ANSWER -the
insured must accept the entire contract with all of its terms
and conditions
Utmost Good Faith - CORRECT ANSWER -An obligation
to act in complete honesty and to disclose all relevant facts.
Aleatory Contract - CORRECT ANSWER -a contract where
the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract - CORRECT ANSWER -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.
