Adjuster Pro - Insurance adjuster test (100% correct answers)

What is insurance? correct answers protection against financial loss what is a premium correct answers a scheduled amount to be paid for an insurance policy. What are premiums used for correct answers 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? correct answers the insurer collects premiums from all policy holders and uses them to pay out the claims of a few. what is Indemnity correct answers payment for damages, that is not more or less than the amount caused by the damage. principle of idemnity correct answers insurance will pay no more or less than the actual financial loss suffered indemnification may also include correct answers repairs to property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss 4 Parts of Legal Contract correct answers 1. Agreement 2. Consideration 3. Competent Parties 4. Legal Purpose legal contract - agreement correct answers mutual intent by offeror and offeree six special characteristics of insurance contracts correct answers 1. Personal 2. adhesion 3. utmost good faith 4. aleatory 5. unilateral 6. conditional what kind of contract is an insurance policy? correct answers Personal contract what is a contract of adhesion correct answers the insured must accept the entire contract with all of its terms and conditions