2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
Is a a contract in which an insurance company or government
agency provides a guarantee of compensation for specified
loss, damage, illness, or death in return for a payment of a
premium from an "insured person or group". - Correct
Answers ✅insurance policy
A method of handling pure risk, by spreading it over a large
number of similar individuals. - Correct Answers
✅Insurance - the more tradition definition and will probably
be on the state exam:
Insurance is based on the Law of Large Numbers. This law
shows that you can predict, fairly accurately, what happen to
a large group of similar individuals in a given time period. -
Correct Answers ✅Law of Large Numbers
When large groups of similar individuals are combined. -
Correct Answers ✅Risk Pools
People who make mathematical predictions about things like,
how many people in any given "risk pool" will have their
home destroyed by a tornado, be diagnosed with cancer or
die in a given year. - Correct Answers ✅Actuaries
Insurers are able to calculate their probable losses and to
establish the rates for premiums that will cover losses and
,2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
operating expenses. - Correct Answers ✅Using the Law of
Large Numbers
Insurance Contracts are governed by the principal of
indemnity. - Correct Answers ✅Principal of Indemnity
Assumes that an insured, who suffered a loss, should only be
restored to the approximate financial condition that existed
prior to the loss, no better, no worse. If insured makes a
profit, the principal of indemnity is violated. - Correct
Answers ✅The Principal of Indemnity
The person must show lawful, substantial, and economic
interest in the life, health, property, or object being covered
under the insurance contract. - Correct Answers
✅Insurable Interest
An individual, company, insurer, association, organization,
partnership, or any other legal entity, - Correct Answers
✅Person when referring to the purchaser of an insurance
policy, includes
Must be present at the time of the loss. - Correct Answers
✅With Property and Casually insurance policies insurable
interest
,2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
Use exist at the time the policy is purchased. - Correct
Answers ✅Insurable Interest - life insurance polices
Is the possibility (uncertainty) that a loss might occur is the
reason that people buy insurance. - Correct Answers ✅Risk
Are insurable - Correct Answers ✅Not al Risks
The loss must be definite and definable;
The loss must be accidental;
The insurance company should be able to calculate the
chance of loss;
The Law of Large Numbers should apply;
The loss must be great enough to create economic hardship;
The insurance must be offered at a reasonable cost; and
The loss must not be catastrophic in nature.
All elements are not required to be present for every insured
risk but most of them should exist whenever possible. -
Correct Answers ✅Characteristics of an Insurable Risk
Pure Risks and Speculative Risks - Correct Answers
✅Categories of Risk
, 2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
A situation where there is only the possibility of a loss, there
is never a possibility of a profit or gain. Pure Risks are
insurable. - Correct Answers ✅Pure Risks
A situation where either a profit or loss is possible, such as
betting on a horse. Speculative Risks are NOT insurable. -
Correct Answers ✅Speculative Risks
Static Risks, Dynamic Risks, Fundamental Risk and Particular
Risk - Correct Answers ✅Types of Pure and Speculative
Risks
These risk factors are historical factors that do not frequently
fluctuate. They result from a static or unchanged
environment. Associated with long term risk such as a flood
every 20 years.static risk may or may not occur and
therefore, are insurable. - Correct Answers ✅Static Risk
Type of risk associated with change and are Not insurable.
Examples, A new and fatal virus spontaneously erupts into
society, unforeseen technology advances that might cause a
business to lose market shares. - Correct Answers
✅Dynamic Risk
Risks that effect entire groups of people or within society and
can be both insurable and non insurable. Example, floods and
earthquakes are insurable through food and earthquake
Questions and Answers (Solved Papers)
Is a a contract in which an insurance company or government
agency provides a guarantee of compensation for specified
loss, damage, illness, or death in return for a payment of a
premium from an "insured person or group". - Correct
Answers ✅insurance policy
A method of handling pure risk, by spreading it over a large
number of similar individuals. - Correct Answers
✅Insurance - the more tradition definition and will probably
be on the state exam:
Insurance is based on the Law of Large Numbers. This law
shows that you can predict, fairly accurately, what happen to
a large group of similar individuals in a given time period. -
Correct Answers ✅Law of Large Numbers
When large groups of similar individuals are combined. -
Correct Answers ✅Risk Pools
People who make mathematical predictions about things like,
how many people in any given "risk pool" will have their
home destroyed by a tornado, be diagnosed with cancer or
die in a given year. - Correct Answers ✅Actuaries
Insurers are able to calculate their probable losses and to
establish the rates for premiums that will cover losses and
,2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
operating expenses. - Correct Answers ✅Using the Law of
Large Numbers
Insurance Contracts are governed by the principal of
indemnity. - Correct Answers ✅Principal of Indemnity
Assumes that an insured, who suffered a loss, should only be
restored to the approximate financial condition that existed
prior to the loss, no better, no worse. If insured makes a
profit, the principal of indemnity is violated. - Correct
Answers ✅The Principal of Indemnity
The person must show lawful, substantial, and economic
interest in the life, health, property, or object being covered
under the insurance contract. - Correct Answers
✅Insurable Interest
An individual, company, insurer, association, organization,
partnership, or any other legal entity, - Correct Answers
✅Person when referring to the purchaser of an insurance
policy, includes
Must be present at the time of the loss. - Correct Answers
✅With Property and Casually insurance policies insurable
interest
,2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
Use exist at the time the policy is purchased. - Correct
Answers ✅Insurable Interest - life insurance polices
Is the possibility (uncertainty) that a loss might occur is the
reason that people buy insurance. - Correct Answers ✅Risk
Are insurable - Correct Answers ✅Not al Risks
The loss must be definite and definable;
The loss must be accidental;
The insurance company should be able to calculate the
chance of loss;
The Law of Large Numbers should apply;
The loss must be great enough to create economic hardship;
The insurance must be offered at a reasonable cost; and
The loss must not be catastrophic in nature.
All elements are not required to be present for every insured
risk but most of them should exist whenever possible. -
Correct Answers ✅Characteristics of an Insurable Risk
Pure Risks and Speculative Risks - Correct Answers
✅Categories of Risk
, 2018 CA Insurance Adjuster Exam
Questions and Answers (Solved Papers)
A situation where there is only the possibility of a loss, there
is never a possibility of a profit or gain. Pure Risks are
insurable. - Correct Answers ✅Pure Risks
A situation where either a profit or loss is possible, such as
betting on a horse. Speculative Risks are NOT insurable. -
Correct Answers ✅Speculative Risks
Static Risks, Dynamic Risks, Fundamental Risk and Particular
Risk - Correct Answers ✅Types of Pure and Speculative
Risks
These risk factors are historical factors that do not frequently
fluctuate. They result from a static or unchanged
environment. Associated with long term risk such as a flood
every 20 years.static risk may or may not occur and
therefore, are insurable. - Correct Answers ✅Static Risk
Type of risk associated with change and are Not insurable.
Examples, A new and fatal virus spontaneously erupts into
society, unforeseen technology advances that might cause a
business to lose market shares. - Correct Answers
✅Dynamic Risk
Risks that effect entire groups of people or within society and
can be both insurable and non insurable. Example, floods and
earthquakes are insurable through food and earthquake
