Adjuster Pro - Insurance adjuster test| 154QUESTIONS(WELL ANSWERED)| 13 PAGES

Adjuster Pro - Insurance adjuster test| 154QUESTIONS(WELL ANSWERED)| 13 PAGES 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 "reserveto 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 is Indemnity Correct Answer:payment for damages, that is not more or less than theamount caused by the iple of idemnity Correct Answer:insurance will pay no more or less than the actualfinancial loss sufferedindemnification may also include Correct Answer:repairs to propertyreimbursement for additional living expensesrental cars and hotelscosts directly associated with a loss4 Parts of Legal Contract Correct Answer:1. Agreement 2. Consideration3. Competent Parties4. Legal Purposelegal contract - agreement Correct Answer:mutual intent by offeror and offereesix special characteristics of insurance contracts Correct Answer:1. Personal2. adhesion3. utmost good faith4. aleatory5. unilateral 6. conditionalwhat 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 withall of its terms and conditions Utmost Good Faith Correct Answer:An obligation to act in complete honesty and to disclose allrelevant facts.Aleatory Contract Correct Answer:a contract where the values exchanged may not be equal butdepend on an uncertain eventUnilateral Contract Correct Answer:insurance agrees that they must pay in event of a claim. theinsured can stop paying premiums at any the insurer has promised to perform an action.Conditional Contract Correct Answer:A type of an agreement in which both parties mustperform certain duties and follow rules of conduct to make the contract enforceable.Acronym for the four sections of an Insurance policy Correct Answer:DICED - declarations pageI - Insuring AgreementC- ConditionsE - ExclusionsDecelerations section Correct Answer:Always the first section - establishes the followingNames of both partiesPolicy numberLocation and description of insured itemDates of the policyAmount and limit of coverageDeductiblePremiumDefinitions section Correct Answer:Defines terms used to write policy including "collusion""decay" "like kind and quality"Includes important language for adjusters to knowInsuring agreement section Correct Answer:What is covered and howWhich causes of loss are coveredAny services providedAny exclusions to coverageThe maximum limit of policy coverage in dollarsConditions section Correct Answer:Insurer specifies any limits or qualifications the policyholder must meetExclusions section Correct Answer:losses for which the insured is not covered forEndorsements Correct Answer:Provision that modifies the coverage of the original contractAdd or subtract coverageSynonyms - rider, addendum, attachment Certificate of Insurance Correct Answer:A legal document that indicates that an insurancepolicy has been issued, and that states both the amounts and types of insurance provided.Characteristics of social insurance Correct Answer:Non profitMandatory participationBenefits prescribed by lawDesigned to meet needs of publicGovernment has monopolyPrivate Insurers Correct Answer:Sell insurance based on needs and preferencesWide variety of productsExist to generate a profitInsured party voluntarily participateStock Insurance Companies Correct Answer:Always for profitPublicly tradedStockholder provide capital and participate in profit or losses"Non participation" insurers - no dividends go to policy holdersMutual Insurance Company Correct Answer:No shareholdersPolicy holders elect board of directors"Participating" insurers - policy holders participate in dividendsRe-insurer Correct Answer:Provides insurance for insurers to reduce exposure to lossPays percentage of insurers loss or any loss over a certain a