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Adjuster Pro - Insurance Adjuster Test
|Verified Questions & Answers
Evaluating exposure - correct-answer -Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
Hazard - correct-answer -A condition increasing the likelihood or severity of a loss
Peril - correct-answer -The actual cause of loss or damage
Insurable risk - correct-answer -Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
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Adequate Premiums - correct-answer -Potential loss can't be too much for insurer
to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
Difneable risk - correct-answer -Insurer can define exact conditions under which
the item is covered by the policy
Item it's self is defineable
Item has precise value
Unexpected loss - correct-answer -Unforeseeable
Unexpected
Reasonably unpreventable
Random in nature
Substantial loss - correct-answer -Must cause substantial economic hardship
Exclusions - correct-answer -Insurer must be able to exclude large scale disasters
and catastrophic events
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Law of large numbers - correct-answer -Insurer must be able to cover large
numbers of similar risks
Spreads risk across more policies
Helps insurers predict losses more accurately
Similar risks can mean, cars houses, persons lives, similar business etc
Adverse Selection - correct-answer -when someone buys health insurance
because they know they will probably file a claim
4 risk management techniques - correct-answer -Avoidance
Reduction
Transference
Retention
Risk avoidance - correct-answer -Eliminates risk by not taking action that involves
risk
Risk reduction - correct-answer -Taking measures to reduce risk that is involved
Also called risk mitigation
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Risk Transference - correct-answer -Management of sever risk by transferring risk
to someone else
Most common example is Insurance
Risk retention - correct-answer -Acknowledging the risks and preparing to handle
the unexpected losses as they occur
Policy Period - correct-answer -The time frame, beginning with the inception date
to the expiration date, during which insurance coverage applies.
Binder - correct-answer -Providing temporary coverage until the policy is issued
Blanket coverage vs specific coverage - correct-answer -Blankets cover more than
one property, type of property, or coverage under a single limit
Specific limits - limits that apply to on specific type of property
Adjuster Pro - Insurance Adjuster Test
|Verified Questions & Answers
Evaluating exposure - correct-answer -Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
Hazard - correct-answer -A condition increasing the likelihood or severity of a loss
Peril - correct-answer -The actual cause of loss or damage
Insurable risk - correct-answer -Adequate premiums
Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
,2|Page
Adequate Premiums - correct-answer -Potential loss can't be too much for insurer
to pay
Insurer must b able to cover claims and expenses
If premiums must be set too high, the risk is not insurable
Difneable risk - correct-answer -Insurer can define exact conditions under which
the item is covered by the policy
Item it's self is defineable
Item has precise value
Unexpected loss - correct-answer -Unforeseeable
Unexpected
Reasonably unpreventable
Random in nature
Substantial loss - correct-answer -Must cause substantial economic hardship
Exclusions - correct-answer -Insurer must be able to exclude large scale disasters
and catastrophic events
,3|Page
Law of large numbers - correct-answer -Insurer must be able to cover large
numbers of similar risks
Spreads risk across more policies
Helps insurers predict losses more accurately
Similar risks can mean, cars houses, persons lives, similar business etc
Adverse Selection - correct-answer -when someone buys health insurance
because they know they will probably file a claim
4 risk management techniques - correct-answer -Avoidance
Reduction
Transference
Retention
Risk avoidance - correct-answer -Eliminates risk by not taking action that involves
risk
Risk reduction - correct-answer -Taking measures to reduce risk that is involved
Also called risk mitigation
, 4|Page
Risk Transference - correct-answer -Management of sever risk by transferring risk
to someone else
Most common example is Insurance
Risk retention - correct-answer -Acknowledging the risks and preparing to handle
the unexpected losses as they occur
Policy Period - correct-answer -The time frame, beginning with the inception date
to the expiration date, during which insurance coverage applies.
Binder - correct-answer -Providing temporary coverage until the policy is issued
Blanket coverage vs specific coverage - correct-answer -Blankets cover more than
one property, type of property, or coverage under a single limit
Specific limits - limits that apply to on specific type of property
