CLAIMS ADJUSTER FINAL EXAM
2026 INSURANCE TEST PAPER
QUESTIONS ANSWERS GRADED A+
◉ 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
E - Exclusions
◉ Decelerations section Answer: Always the first section - establishes
the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
2026 INSURANCE TEST PAPER
QUESTIONS ANSWERS GRADED A+
◉ 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
E - Exclusions
◉ Decelerations section Answer: Always the first section - establishes
the following
Names of both parties
Policy number
Location and description of insured item
Dates of the policy
Amount and limit of coverage
