Adjuster Pro - Insurance adjuster test Questions And Answers

Adjuster Pro - Insurance adjuster test Questions And Answers What is insurance? - ANS protection against financial loss what is a premium - ANS a scheduled amount to be paid for an insurance policy. What are premiums used for - ANS premiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance companies afford to pay for an individual's catastrophic loss? - ANS the insurer collects premiums from all policyholders and uses them to pay out the claims of a few. what is Indemnity - ANS payment for damages, that is not more or less than the amount caused by the damage. principle of indemnity - ANS insurance will pay no more or less than the actual financial loss suffered indemnification may also include - ANS repairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract - ANS 1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose legal contract - agreement - ANS mutual intent by offeror and offeree six special characteristics of insurance contracts - ANS 1. Personal 2. adhesion 3. utmost good faith 4. aleatory 5. unilateral 6. conditional what kind of contract is an insurance policy? - ANS Personal contract what is a contract of adhesion - ANS the insured must accept the entire contract with all of its terms and conditions Utmost Good Faith - ANS An obligation to act in complete honesty and to disclose all relevant facts. Aleatory Contract - ANS a contract where the values exchanged may not be equal but depend on an uncertain event Unilateral Contract - ANS 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 - ANS 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 - ANS DICE D - declarations page I - Insuring Agreement C- Conditions E - Exclusions Decelerations section - ANS 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 - ANS Defines terms used to write policy including "collusion" "decay" "like kind and quality" Includes important language for adjusters to know Insuring agreement section - ANS 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 - ANS Insurer specifies any limits or qualifications the policy holder must meet Exclusions section - ANS losses for which the insured is not covered for