Adjuster Pro - Insurance adjuster test| 154
QUESTIONS(WELL ANSWERED)| 13 PAGES
What is insurance? Correct Answer: protection against financial loss
what is a premium Correct Answer: a scheduled amount to be paid for an insurance policy.
What are premiums used for Correct 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? Correct Answer:
the insurer collects premiums from all policy holders and uses them to pay out the claims of a
few.
what is Indemnity Correct Answer: payment for damages, that is not more or less than the
amount caused by the damage.
principle of idemnity Correct Answer: insurance will pay no more or less than the actual
financial loss suffered
indemnification may also include Correct Answer: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract Correct Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement Correct Answer: mutual intent by offeror and offeree
six special characteristics of insurance contracts Correct Answer: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? Correct Answer: Personal contract
what is a contract of adhesion Correct Answer: the insured must accept the entire contract with
all of its terms and conditions
, Utmost Good Faith Correct Answer: An obligation to act in complete honesty and to disclose all
relevant facts.
Aleatory Contract Correct Answer: a contract where the values exchanged may not be equal but
depend on an uncertain event
Unilateral Contract Correct 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 Correct 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 Correct Answer: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section Correct 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
Deductible
Premium
Definitions section Correct Answer: Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section Correct Answer: What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
Conditions section Correct Answer: Insurer specifies any limits or qualifications the policy
holder must meet
Exclusions section Correct Answer: losses for which the insured is not covered for
Endorsements Correct Answer: Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
QUESTIONS(WELL ANSWERED)| 13 PAGES
What is insurance? Correct Answer: protection against financial loss
what is a premium Correct Answer: a scheduled amount to be paid for an insurance policy.
What are premiums used for Correct 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? Correct Answer:
the insurer collects premiums from all policy holders and uses them to pay out the claims of a
few.
what is Indemnity Correct Answer: payment for damages, that is not more or less than the
amount caused by the damage.
principle of idemnity Correct Answer: insurance will pay no more or less than the actual
financial loss suffered
indemnification may also include Correct Answer: repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract Correct Answer: 1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement Correct Answer: mutual intent by offeror and offeree
six special characteristics of insurance contracts Correct Answer: 1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? Correct Answer: Personal contract
what is a contract of adhesion Correct Answer: the insured must accept the entire contract with
all of its terms and conditions
, Utmost Good Faith Correct Answer: An obligation to act in complete honesty and to disclose all
relevant facts.
Aleatory Contract Correct Answer: a contract where the values exchanged may not be equal but
depend on an uncertain event
Unilateral Contract Correct 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 Correct 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 Correct Answer: DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section Correct 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
Deductible
Premium
Definitions section Correct Answer: Defines terms used to write policy including "collusion"
"decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section Correct Answer: What is covered and how
Which causes of loss are covered
Any services provided
Any exclusions to coverage
The maximum limit of policy coverage in dollars
Conditions section Correct Answer: Insurer specifies any limits or qualifications the policy
holder must meet
Exclusions section Correct Answer: losses for which the insured is not covered for
Endorsements Correct Answer: Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
