Claim Adjuster Licensing Exam 2025
Questions and Answers
Who is the highest ranking in the policy? - ANSWER-The Named Insured
Who is the covered party in policy for? - ANSWER-named insured, spouse,
resident family member
Who files claims for the personal line policy? - ANSWER-the named insured
Who is the highest ranking in commercial insurance? - ANSWER-1st named
insured
What are the two parties of an insurance contract? - ANSWER-Party 1: Insured
Party 2: The Insurance Company
Insurance can be defined as: - ANSWER-the transfer of risk
Who determines which kind of risk is being submitted and what we cover? -
ANSWER-Underwriters
When a person buys insurance the value they receive is called? - ANSWER-Peace
of Mind
What type of risk does insurance cover ? - ANSWER-pure risk
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, What are the three ways to manage risk? - ANSWER-avoidance
reduction
retention
Risk Avoidance - ANSWER-avoiding an act that would create a risk
Risk Reduction - ANSWER-lowers the chance of loss by taking measures to lessen
the frequency or severity of losses that may occur
Risk Retention - ANSWER-accepting that some risks simply arise in the course of
one's life and consciously retaining that risk
What is risk? - ANSWER-the potential for loss
What is loss? - ANSWER-reduction of the value of that property that sustained
physical destruction.
What are the two types of loss insurance can cover? - ANSWER-Direct Loss
Indirect Loss
What is direct loss? - ANSWER-physical harm or damage to tangible property
Anytime you have physical destruction go property what type of loss is it? -
ANSWER-Direct Loss
What is indirect loss? - ANSWER-Refers to financial loss suffered because of loss
of use of property
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Questions and Answers
Who is the highest ranking in the policy? - ANSWER-The Named Insured
Who is the covered party in policy for? - ANSWER-named insured, spouse,
resident family member
Who files claims for the personal line policy? - ANSWER-the named insured
Who is the highest ranking in commercial insurance? - ANSWER-1st named
insured
What are the two parties of an insurance contract? - ANSWER-Party 1: Insured
Party 2: The Insurance Company
Insurance can be defined as: - ANSWER-the transfer of risk
Who determines which kind of risk is being submitted and what we cover? -
ANSWER-Underwriters
When a person buys insurance the value they receive is called? - ANSWER-Peace
of Mind
What type of risk does insurance cover ? - ANSWER-pure risk
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, What are the three ways to manage risk? - ANSWER-avoidance
reduction
retention
Risk Avoidance - ANSWER-avoiding an act that would create a risk
Risk Reduction - ANSWER-lowers the chance of loss by taking measures to lessen
the frequency or severity of losses that may occur
Risk Retention - ANSWER-accepting that some risks simply arise in the course of
one's life and consciously retaining that risk
What is risk? - ANSWER-the potential for loss
What is loss? - ANSWER-reduction of the value of that property that sustained
physical destruction.
What are the two types of loss insurance can cover? - ANSWER-Direct Loss
Indirect Loss
What is direct loss? - ANSWER-physical harm or damage to tangible property
Anytime you have physical destruction go property what type of loss is it? -
ANSWER-Direct Loss
What is indirect loss? - ANSWER-Refers to financial loss suffered because of loss
of use of property
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
