ADJUSTER PRO - INSURANCE ADJUSTER TEST EXAM
QUESTIONS WITH RIGHT ACTUAL ANSWERS .
What is insurance? - correct Answers -protection against financial loss
what is a premium - correct Answers -a scheduled amount to be paid for an insurance policy.
What are premiums used for - correct Answers -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 Answers -the
insurer collects premiums from all policy holders and uses them to pay out the claims of a few.
what is Indemnity - correct Answers -payment for damages, that is not more or less than the amount
caused by the damage.
principle of idemnity - correct Answers -insurance will pay no more or less than the actual financial loss
suffered
indemnification may also include - correct Answers -repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - correct Answers -1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - correct Answers -mutual intent by offeror and offeree
1
,six special characteristics of insurance contracts - correct Answers -1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - correct Answers -Personal contract
what is a contract of adhesion - correct Answers -the insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith - correct Answers -An obligation to act in complete honesty and to disclose all
relevant facts.
Aleatory Contract - correct Answers -a contract where the values exchanged may not be equal but depend
on an uncertain event
Unilateral Contract - correct Answers -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 - correct Answers -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 - correct Answers -DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
2
, Decelerations section - correct Answers -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 - correct Answers -Defines terms used to write policy including "collusion" "decay"
"like kind and quality"
Includes important language for adjusters to know
Insuring agreement section - correct Answers -What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
Conditions section - correct Answers -Insurer specifies any limits or qualifications the policy holder must
meet
Exclusions section - correct Answers -losses for which the insured is not covered for
Endorsements - correct Answers -Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
Certificate of Insurance - correct Answers -A legal document that indicates that an insurance policy has
been issued, and that states both the amounts and types of insurance provided.
3
QUESTIONS WITH RIGHT ACTUAL ANSWERS .
What is insurance? - correct Answers -protection against financial loss
what is a premium - correct Answers -a scheduled amount to be paid for an insurance policy.
What are premiums used for - correct Answers -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 Answers -the
insurer collects premiums from all policy holders and uses them to pay out the claims of a few.
what is Indemnity - correct Answers -payment for damages, that is not more or less than the amount
caused by the damage.
principle of idemnity - correct Answers -insurance will pay no more or less than the actual financial loss
suffered
indemnification may also include - correct Answers -repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - correct Answers -1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - correct Answers -mutual intent by offeror and offeree
1
,six special characteristics of insurance contracts - correct Answers -1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - correct Answers -Personal contract
what is a contract of adhesion - correct Answers -the insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith - correct Answers -An obligation to act in complete honesty and to disclose all
relevant facts.
Aleatory Contract - correct Answers -a contract where the values exchanged may not be equal but depend
on an uncertain event
Unilateral Contract - correct Answers -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 - correct Answers -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 - correct Answers -DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
2
, Decelerations section - correct Answers -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 - correct Answers -Defines terms used to write policy including "collusion" "decay"
"like kind and quality"
Includes important language for adjusters to know
Insuring agreement section - correct Answers -What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
Conditions section - correct Answers -Insurer specifies any limits or qualifications the policy holder must
meet
Exclusions section - correct Answers -losses for which the insured is not covered for
Endorsements - correct Answers -Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
Certificate of Insurance - correct Answers -A legal document that indicates that an insurance policy has
been issued, and that states both the amounts and types of insurance provided.
3
