California Independent Adjuster Exam
Questions and Answers (Solved Papers)
insurance - Correct Answers ✅protection against possible
unforeseen financial loss
spreading risk - Correct Answers ✅Premiums enter pool.
Insurer pays for claims out of the pooled premiums.
Violation of Principle of Indemnity - Correct Answers
✅Insurer should be restored, no better, no worse - made
whole. Also means insurer can not profit from loss.
Idemnification may include - Correct Answers ✅Repairs to
property, living expense reimbursement, rental cars/hotel and
costs directly associated with a loss as allowed under the
policy.
insurance policy contract - Correct Answers ✅Provide
financial protection for a fee.
4 requirements of a legal contract - Correct Answers
✅Agreement - offer and acceptance
consideration- all parties bring something of value (money for
car)
competent parties- 18 years old, sober, sane
legal purpose- Example - no contracts for laundering.
,California Independent Adjuster Exam
Questions and Answers (Solved Papers)
Termination of Offer - Correct Answers ✅Revocation by
offeror
Rejection by the Offeree
Time lapse
Termination by operation of law- Illegal or becomes illegal.
Note: Asking for more info is not a legal rejection.
Insured - Correct Answers ✅Individual or organization that
pays premiums in exchange for protection.
Insurer - Correct Answers ✅Company, group, or gov.
agency offering financial protection.
legal contract - Correct Answers ✅Legally binding contract-
Insurer agrees to take on specified risks in exchange for the
insured's premiums.
6 Characteristics of Insurance Contracts - Correct Answers
✅Personal- protects policyholder, not property or vehicle.
Coverage follows the person, not the property.
Adhesion- Insured has no say in the wording / Courts favor
the insured in the event of ambiguity. Reasonable
expectations.
,California Independent Adjuster Exam
Questions and Answers (Solved Papers)
Utmost Good Faith- Honest about the risk of the insurer.
Insurer may not conceal or misrepresent facts.
Aleatory- Depending on a unknown future event.
Unilateral- Insurance contracts. Insurer has an obligation for
covered losses. The insurer has no obligation and can stop
paying premiums any time.
Conditional- insurer only has to perform if certain conditions
are met. (covered loss)
Doctrine of Reasonable Expectations - Correct Answers
✅States that a policy includes coverages that an average
person would reasonably expect it to include, regardless of
what the policy actually provides.
Aleatory - Correct Answers ✅Depending on a unknown
future event.
Insurer only has to pay if and when covered losses occur.
4 essential parts of an insurance contract - Correct Answers
✅*D*eclaration & *D*efinitions
*I*nsuring Agreement
*C*onditions
, California Independent Adjuster Exam
Questions and Answers (Solved Papers)
*E*xclusions
*E*ndorsements
Declarations Page - Correct Answers ✅An insurance policy
information page or pages providing specific details about the
insured and the subject of the insurance.
Definitions section of contract - Correct Answers ✅Not
essential but common.
Defines terms used to write policy
Insuring agreement - Correct Answers ✅summarizes the
major promises of the insurer
Conditions of insurance contract - Correct Answers
✅provisions in the policy that qualify or place limitations on
the insurer's promise to perform
Exclusion Section of insurance contract - Correct Answers
✅Common exclusions-
Earthquakes
Flooding
war
nuclear hazards
intentional acts
Questions and Answers (Solved Papers)
insurance - Correct Answers ✅protection against possible
unforeseen financial loss
spreading risk - Correct Answers ✅Premiums enter pool.
Insurer pays for claims out of the pooled premiums.
Violation of Principle of Indemnity - Correct Answers
✅Insurer should be restored, no better, no worse - made
whole. Also means insurer can not profit from loss.
Idemnification may include - Correct Answers ✅Repairs to
property, living expense reimbursement, rental cars/hotel and
costs directly associated with a loss as allowed under the
policy.
insurance policy contract - Correct Answers ✅Provide
financial protection for a fee.
4 requirements of a legal contract - Correct Answers
✅Agreement - offer and acceptance
consideration- all parties bring something of value (money for
car)
competent parties- 18 years old, sober, sane
legal purpose- Example - no contracts for laundering.
,California Independent Adjuster Exam
Questions and Answers (Solved Papers)
Termination of Offer - Correct Answers ✅Revocation by
offeror
Rejection by the Offeree
Time lapse
Termination by operation of law- Illegal or becomes illegal.
Note: Asking for more info is not a legal rejection.
Insured - Correct Answers ✅Individual or organization that
pays premiums in exchange for protection.
Insurer - Correct Answers ✅Company, group, or gov.
agency offering financial protection.
legal contract - Correct Answers ✅Legally binding contract-
Insurer agrees to take on specified risks in exchange for the
insured's premiums.
6 Characteristics of Insurance Contracts - Correct Answers
✅Personal- protects policyholder, not property or vehicle.
Coverage follows the person, not the property.
Adhesion- Insured has no say in the wording / Courts favor
the insured in the event of ambiguity. Reasonable
expectations.
,California Independent Adjuster Exam
Questions and Answers (Solved Papers)
Utmost Good Faith- Honest about the risk of the insurer.
Insurer may not conceal or misrepresent facts.
Aleatory- Depending on a unknown future event.
Unilateral- Insurance contracts. Insurer has an obligation for
covered losses. The insurer has no obligation and can stop
paying premiums any time.
Conditional- insurer only has to perform if certain conditions
are met. (covered loss)
Doctrine of Reasonable Expectations - Correct Answers
✅States that a policy includes coverages that an average
person would reasonably expect it to include, regardless of
what the policy actually provides.
Aleatory - Correct Answers ✅Depending on a unknown
future event.
Insurer only has to pay if and when covered losses occur.
4 essential parts of an insurance contract - Correct Answers
✅*D*eclaration & *D*efinitions
*I*nsuring Agreement
*C*onditions
, California Independent Adjuster Exam
Questions and Answers (Solved Papers)
*E*xclusions
*E*ndorsements
Declarations Page - Correct Answers ✅An insurance policy
information page or pages providing specific details about the
insured and the subject of the insurance.
Definitions section of contract - Correct Answers ✅Not
essential but common.
Defines terms used to write policy
Insuring agreement - Correct Answers ✅summarizes the
major promises of the insurer
Conditions of insurance contract - Correct Answers
✅provisions in the policy that qualify or place limitations on
the insurer's promise to perform
Exclusion Section of insurance contract - Correct Answers
✅Common exclusions-
Earthquakes
Flooding
war
nuclear hazards
intentional acts
