1 / 13
Adjuster Pro - Insurance Adjuster Test 2023
1.What is insurance?: protection against financial loss
2.what is a premium: a scheduled amount to be paid for an insurance
policy.
3.What are premiums used for: premiums are collected into a "pool" or
"reserve to pay out claimants when needed.
4.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.
5.what is Indemnity: payment for damages, that is not more or less
than the amount caused by the damage. 1 / 3
2 / 13
6.principle of idemnity: insurance will pay no more or less than the
actual financial loss suffered
7.indemnification may also include: repairs to
property reimbursement for additional living expenses rental cars and hotels costs directly associated with a loss
8.4 Parts of Legal Contract: 1. Agreement
2.Consideration 3.Competent Parties 4.Legal Purpose
9.legal contract - agreement: mutual intent by offeror and offeree
10.six special characteristics of insurance contracts: 1. Personal
2.adhesion 3.utmost good faith 4.aleatory 5.unilateral 6.conditional 11.what kind of contract is an insurance policy?: Personal contract 2 / 3
3 / 13
12.what is a contract of adhesion: the insured must accept the entire
contract with all of its terms and conditions
13.Utmost Good Faith: An obligation to act in complete honesty and to
disclose all relevant facts.
14.Aleatory Contract: a contract where the values exchanged may not
be equal but depend on an uncertain event
- / 3