CLAIMS ADJUSTER LICENSING COMPLETE
EXAM REVIEW WITH FULL SOLUTIONS
●● Premium
Answer: -the fee paid by the insured in exchange for insurance
●● Principle of Indemnity
Answer: -the insurer should be restored to where they were before the
incident
-no profit can be made
●● Idemnification
Answer: -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
Answer: -Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
,●● Insured
Answer: 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
Answer: -company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
●● 6 Characteristics of a Contract:
Personal
Answer: -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:
Adhesion
,Answer: -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
Answer: -applicants are expected not to withhold any information or the
contract can be voided
●● 6 Characteristics of a Contract:
Aleatory
Answer: -depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
●● 6 Characteristics of a Contract:
Unilateral
Answer: -only the insurer make an obligation to pay for covered losses
●● 6 Characteristics of a Contract:
, Conditional
Answer: -the insurer only has to perform if certain conditions are met
●● Policy Sections
Declarations Page
Answer: -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
Definitions
EXAM REVIEW WITH FULL SOLUTIONS
●● Premium
Answer: -the fee paid by the insured in exchange for insurance
●● Principle of Indemnity
Answer: -the insurer should be restored to where they were before the
incident
-no profit can be made
●● Idemnification
Answer: -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
Answer: -Agreement- signature or handshake
-Consideration- money exchange
-Competent Parties-18 yrs. old, sober, sane
-Legal Purpose-no contracts for money laundering
,●● Insured
Answer: 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
Answer: -company or group offering insurance
-can be a government organization
-terms- "We," "Us," and "Our
●● 6 Characteristics of a Contract:
Personal
Answer: -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:
Adhesion
,Answer: -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
Answer: -applicants are expected not to withhold any information or the
contract can be voided
●● 6 Characteristics of a Contract:
Aleatory
Answer: -depending on a unknown future event
-Insurer only has to pay in and when covered losses occur
●● 6 Characteristics of a Contract:
Unilateral
Answer: -only the insurer make an obligation to pay for covered losses
●● 6 Characteristics of a Contract:
, Conditional
Answer: -the insurer only has to perform if certain conditions are met
●● Policy Sections
Declarations Page
Answer: -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
Definitions
