INSURANCE ADJUSTER EXAM 2026
COMPREHENSIVE STUDY GUIDE WITH
VERIFIED SOLUTIONS
◉what is a premium. Answer: a scheduled amount to be paid for an
insurance policy.
◉What are premiums used for. Answer: 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?. Answer: the insurer collects premiums from all
policy holders and uses them to pay out the claims of a few.
◉what is Indemnity. Answer: payment for damages, that is not more
or less than the amount caused by the damage.
◉principle of idemnity. Answer: insurance will pay no more or less
than the actual financial loss suffered
◉indemnification may also include. Answer: repairs to property
,reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
◉4 Parts of Legal Contract. Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
◉legal contract - agreement. Answer: mutual intent by offeror and
offeree
◉six special characteristics of insurance contracts. Answer: 1.
Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
◉what kind of contract is an insurance policy?. Answer: Personal
contract
, ◉what is a contract of adhesion. Answer: the insured must accept
the entire contract with all of its terms and conditions
◉Utmost Good Faith. Answer: An obligation to act in complete
honesty and to disclose all relevant facts.
◉Aleatory Contract. Answer: a contract where the values exchanged
may not be equal but depend on an uncertain event
◉Unilateral Contract. Answer: insurance agrees that they must pay
in event of a claim. the insured can stop paying premiums at any
point.
only the insurer has promised to perform an action.
◉Conditional Contract. Answer: A type of an agreement in which
both parties must perform certain duties and follow rules of conduct
to make the contract enforceable.
◉Acronym for the four sections of an Insurance policy. Answer:
DICE
D - declarations page
I - Insuring Agreement
C- Conditions
COMPREHENSIVE STUDY GUIDE WITH
VERIFIED SOLUTIONS
◉what is a premium. Answer: a scheduled amount to be paid for an
insurance policy.
◉What are premiums used for. Answer: 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?. Answer: the insurer collects premiums from all
policy holders and uses them to pay out the claims of a few.
◉what is Indemnity. Answer: payment for damages, that is not more
or less than the amount caused by the damage.
◉principle of idemnity. Answer: insurance will pay no more or less
than the actual financial loss suffered
◉indemnification may also include. Answer: repairs to property
,reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
◉4 Parts of Legal Contract. Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
◉legal contract - agreement. Answer: mutual intent by offeror and
offeree
◉six special characteristics of insurance contracts. Answer: 1.
Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
◉what kind of contract is an insurance policy?. Answer: Personal
contract
, ◉what is a contract of adhesion. Answer: the insured must accept
the entire contract with all of its terms and conditions
◉Utmost Good Faith. Answer: An obligation to act in complete
honesty and to disclose all relevant facts.
◉Aleatory Contract. Answer: a contract where the values exchanged
may not be equal but depend on an uncertain event
◉Unilateral Contract. Answer: insurance agrees that they must pay
in event of a claim. the insured can stop paying premiums at any
point.
only the insurer has promised to perform an action.
◉Conditional Contract. Answer: A type of an agreement in which
both parties must perform certain duties and follow rules of conduct
to make the contract enforceable.
◉Acronym for the four sections of an Insurance policy. Answer:
DICE
D - declarations page
I - Insuring Agreement
C- Conditions
