ADJUSTER PRO INSURANCE ADJUSTER TEST 2026 UPDATED
QUESTIONS AND LATESTVERIFIED ANSWERS)
Risk
Potential for financial loss
An insured item
Two types of risk
Pure and Speculative
Speculative risk
No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
Pure risk
Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
,Exposure
Extent to which an item, person, or organization is open to
damage or loss
Evaluating exposure
Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
Hazard
A condition increasing the likelihood or severity of a loss
Peril
The actual cause of loss or damage
Insurable risk
Adequate premiums
,Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
Adequate Premiums
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
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
Unforeseeable
Unexpected
, Reasonably unpreventable
Random in nature
Substantial loss
Must cause substantial economic hardship
Exclusions
Insurer must be able to exclude large scale disasters and
catastrophic events
Law of large numbers
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
QUESTIONS AND LATESTVERIFIED ANSWERS)
Risk
Potential for financial loss
An insured item
Two types of risk
Pure and Speculative
Speculative risk
No certainty of gain or loss
Made knowingly, by conscious choice
Cannot be insured
Pure risk
Risk with no chance of gain
Can only result in either loss or no loss
Can be insured
,Exposure
Extent to which an item, person, or organization is open to
damage or loss
Evaluating exposure
Expressed in dollars or units
Determining factor in issuing a policy and setting a premium
Hazard
A condition increasing the likelihood or severity of a loss
Peril
The actual cause of loss or damage
Insurable risk
Adequate premiums
,Definable risk
Unexpected losses
Substantial loss
Exclusions
Law of large numbers
Adequate Premiums
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
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
Unforeseeable
Unexpected
, Reasonably unpreventable
Random in nature
Substantial loss
Must cause substantial economic hardship
Exclusions
Insurer must be able to exclude large scale disasters and
catastrophic events
Law of large numbers
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
