Public Adjuster Illinois Exam Questions & Answers | 100% Verified soluti
|Questions with Correct Answers 2025 latest update!!
1. What is insurance? method of handling pure risk
2. Law of large num- group of people to predict issues/ prices/etc. This is what insurance is based
bers on
3. Principle of In- you only get what it cost, no more
demidity
4. what 6 characteris- - Loss must be definite
tics does insurable -Loss must be accidental
risk need to have? -Calculate chance of risk
-law of number should apply
-must not be catastrophic
-should create economic hardship
5. Pure Risk only the possibility of loss
6. Speculative Risk not insurable. Possibility of gain
7. static risk historical factors
8. dynamic risk risk associated w change
9. Fundamental Risk risk affecting entire groups of people
10. Particular Risk a risk that affects only individuals as individuals
11. peril cause of loss
12. hazard what creates the loss
13. physical hazard a physical condition that increases the chance of loss
14. moral hazard increases probability a person will cause or create loss
, Public Adjuster Illinois Exam Questions & Answers | 100% Verified soluti
|Questions with Correct Answers 2025 latest update!!
15. morale hazard intention of loss
16. what does a con- C - CAPACITY TO CONTACT
tract need to have in L - LEGAL PURPOSE
order to be valid? O -OFFER AND ACCEPTED
C- CONSIDERATION
17. Risk avoidance aims to completely eliminate a risk or its potential impact on an organization
18. transfer of risk the process of shifting the financial consequences of a risk from one party to
another.
19. risk sharing means that the premiums and losses of each member of a group of policy-
holders are allocated within the group based on a predetermined formula.
20. Risk Retention can be used to manage and reduce the financial impact of certain risks
21. risk reduction con- a set of processes and measures that organizations use to reduce the likeli-
trol hood of adverse events and their impact
22. What are the parts D- Dec page
of contract? I- insuring agreement
C- Conditions
E- Endorsements
23. Aleatory Contract a contract where the values exchanged may not be equal but depend on an
uncertain event
24. Adhesion Contract A standard-form contract in which the stronger party dictates the terms.
25. executory contract A contract that has not yet been fully performed.
26. conditional contract
, Public Adjuster Illinois Exam Questions & Answers | 100% Verified soluti
|Questions with Correct Answers 2025 latest update!!
A contract that one or more parties must perform only under certain condi-
tions.
27. unilateral contract one sided contract
28. personal contract the contract is between the insured and the insurer
29. indemnification only pays what it cost before loss
contract
30. what 2 broad princi- - The doctrine of utmost good faith
ples form the legal -the doctrine of reasonable expectation
foundation
31. what are the 4 twisting, chiming, sliding, concealment
types of misrepre-
sentations?
32. hard fraud vs soft premeditated vs unplanned
fraud
33. difference be- misrepresentation involves lying, while concealment involves hiding
tween misrepresen-
tation and conceal-
ment
34. ambiguous lan- language in favor of insured
guage
35. application for in- applicants representation
surance
36. arbitration clause process of bringing contract dispute
|Questions with Correct Answers 2025 latest update!!
1. What is insurance? method of handling pure risk
2. Law of large num- group of people to predict issues/ prices/etc. This is what insurance is based
bers on
3. Principle of In- you only get what it cost, no more
demidity
4. what 6 characteris- - Loss must be definite
tics does insurable -Loss must be accidental
risk need to have? -Calculate chance of risk
-law of number should apply
-must not be catastrophic
-should create economic hardship
5. Pure Risk only the possibility of loss
6. Speculative Risk not insurable. Possibility of gain
7. static risk historical factors
8. dynamic risk risk associated w change
9. Fundamental Risk risk affecting entire groups of people
10. Particular Risk a risk that affects only individuals as individuals
11. peril cause of loss
12. hazard what creates the loss
13. physical hazard a physical condition that increases the chance of loss
14. moral hazard increases probability a person will cause or create loss
, Public Adjuster Illinois Exam Questions & Answers | 100% Verified soluti
|Questions with Correct Answers 2025 latest update!!
15. morale hazard intention of loss
16. what does a con- C - CAPACITY TO CONTACT
tract need to have in L - LEGAL PURPOSE
order to be valid? O -OFFER AND ACCEPTED
C- CONSIDERATION
17. Risk avoidance aims to completely eliminate a risk or its potential impact on an organization
18. transfer of risk the process of shifting the financial consequences of a risk from one party to
another.
19. risk sharing means that the premiums and losses of each member of a group of policy-
holders are allocated within the group based on a predetermined formula.
20. Risk Retention can be used to manage and reduce the financial impact of certain risks
21. risk reduction con- a set of processes and measures that organizations use to reduce the likeli-
trol hood of adverse events and their impact
22. What are the parts D- Dec page
of contract? I- insuring agreement
C- Conditions
E- Endorsements
23. Aleatory Contract a contract where the values exchanged may not be equal but depend on an
uncertain event
24. Adhesion Contract A standard-form contract in which the stronger party dictates the terms.
25. executory contract A contract that has not yet been fully performed.
26. conditional contract
, Public Adjuster Illinois Exam Questions & Answers | 100% Verified soluti
|Questions with Correct Answers 2025 latest update!!
A contract that one or more parties must perform only under certain condi-
tions.
27. unilateral contract one sided contract
28. personal contract the contract is between the insured and the insurer
29. indemnification only pays what it cost before loss
contract
30. what 2 broad princi- - The doctrine of utmost good faith
ples form the legal -the doctrine of reasonable expectation
foundation
31. what are the 4 twisting, chiming, sliding, concealment
types of misrepre-
sentations?
32. hard fraud vs soft premeditated vs unplanned
fraud
33. difference be- misrepresentation involves lying, while concealment involves hiding
tween misrepresen-
tation and conceal-
ment
34. ambiguous lan- language in favor of insured
guage
35. application for in- applicants representation
surance
36. arbitration clause process of bringing contract dispute
