Adjuster Pro Insurance Adjuster Test 2025 Updated
Questions and Answers Latest () (Verified
Answers)
What is insurance? - protection against financial loss
what is a premium - a scheduled amount to be paid for an insurance policy.
What are premiums used for - 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? - the insurer
collects premiums from all policy holders and uses them to pay out the claims of a few.
what is Indemnity - payment for damages, that is not more or less than the amount caused by the
damage.
principle of idemnity - insurance will pay no more or less than the actual financial loss suffered
indemnification may also include - repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - 1. Agreement
2. Consideration
,3. Competent Parties
4. Legal Purpose
legal contract - agreement - mutual intent by offeror and offeree
six special characteristics of insurance contracts - 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - Personal contract
what is a contract of adhesion - the insured must accept the entire contract with all of its terms and
conditions
Utmost Good Faith - An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract - a contract where the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract - 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 - 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 - DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - 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 - Defines terms used to write policy including "collusion" "decay" "like kind and
quality"
Includes important language for adjusters to know
Insuring agreement section - 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 - Insurer specifies any limits or qualifications the policy holder must meet
Questions and Answers Latest () (Verified
Answers)
What is insurance? - protection against financial loss
what is a premium - a scheduled amount to be paid for an insurance policy.
What are premiums used for - 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? - the insurer
collects premiums from all policy holders and uses them to pay out the claims of a few.
what is Indemnity - payment for damages, that is not more or less than the amount caused by the
damage.
principle of idemnity - insurance will pay no more or less than the actual financial loss suffered
indemnification may also include - repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - 1. Agreement
2. Consideration
,3. Competent Parties
4. Legal Purpose
legal contract - agreement - mutual intent by offeror and offeree
six special characteristics of insurance contracts - 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? - Personal contract
what is a contract of adhesion - the insured must accept the entire contract with all of its terms and
conditions
Utmost Good Faith - An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract - a contract where the values exchanged may not be equal but depend on an
uncertain event
Unilateral Contract - 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 - 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 - DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - 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 - Defines terms used to write policy including "collusion" "decay" "like kind and
quality"
Includes important language for adjusters to know
Insuring agreement section - 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 - Insurer specifies any limits or qualifications the policy holder must meet
