Adjuster Pro - Insurance Adjuster Test 2023 Questions and
Answers (Verified Answers)
What is insurance?
protection against financial loss
what is a premium
a scheduled amount to be paid for an insurance policy.
What are premiums used for
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?
the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity
payment for damages, that is not more or less than the amount caused by the damage.
principle of idemnity
insurance will pay no more or less than the actual financial loss suffered
indemnification may also include
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement
mutual intent by offeror and offeree
six special characteristics of insurance contracts
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy?
Personal contract
what is a contract of adhesion
the insured must accept the entire contract with all of its terms and conditions
Utmost Good Faith
An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract
a contract where the values exchanged may not be equal but depend on an uncertain
event
Unilateral Contract
, 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
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
DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section
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
Defines terms used to write policy including "collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section
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
Insurer specifies any limits or qualifications the policy holder must meet
Exclusions section
losses for which the insured is not covered for
Endorsements
Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
Certificate of Insurance
A legal document that indicates that an insurance policy has been issued, and that
states both the amounts and types of insurance provided.
Characteristics of social insurance
Non profit
Mandatory participation
Benefits prescribed by law
Answers (Verified Answers)
What is insurance?
protection against financial loss
what is a premium
a scheduled amount to be paid for an insurance policy.
What are premiums used for
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?
the insurer collects premiums from all policy holders and uses them to pay out the
claims of a few.
what is Indemnity
payment for damages, that is not more or less than the amount caused by the damage.
principle of idemnity
insurance will pay no more or less than the actual financial loss suffered
indemnification may also include
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract
1. Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement
mutual intent by offeror and offeree
six special characteristics of insurance contracts
1. Personal
2. adhesion
3. utmost good faith
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy?
Personal contract
what is a contract of adhesion
the insured must accept the entire contract with all of its terms and conditions
Utmost Good Faith
An obligation to act in complete honesty and to disclose all relevant facts.
Aleatory Contract
a contract where the values exchanged may not be equal but depend on an uncertain
event
Unilateral Contract
, 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
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
DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section
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
Defines terms used to write policy including "collusion" "decay" "like kind and quality"
Includes important language for adjusters to know
Insuring agreement section
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
Insurer specifies any limits or qualifications the policy holder must meet
Exclusions section
losses for which the insured is not covered for
Endorsements
Provision that modifies the coverage of the original contract
Add or subtract coverage
Synonyms - rider, addendum, attachment
Certificate of Insurance
A legal document that indicates that an insurance policy has been issued, and that
states both the amounts and types of insurance provided.
Characteristics of social insurance
Non profit
Mandatory participation
Benefits prescribed by law
