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ADJUSTER PRO - INSURANCE ADJUSTER TEST
QUESTIONS AND ANSWERS 2025
What is insurance? - ....ANSWER ....✔✔ protection
against financial loss
what is a premium - ....ANSWER ....✔✔ a scheduled
amount to be paid for an insurance policy.
What are premiums used for - ....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? - ....ANSWER ....✔✔ the
insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
what is Indemnity - ....ANSWER ....✔✔ payment for
damages, that is not more or less than the amount
caused by the damage.
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principle of idemnity - ....ANSWER ....✔✔ insurance
will pay no more or less than the actual financial loss
suffered
indemnification may also include - ....ANSWER ....✔✔
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - ....ANSWER ....✔✔ 1.
Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - ....ANSWER ....✔✔
mutual intent by offeror and offeree
six special characteristics of insurance contracts -
....ANSWER ....✔✔ 1. Personal
2. adhesion
3. utmost good faith
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4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? -
....ANSWER ....✔✔ Personal contract
what is a contract of adhesion - ....ANSWER ....✔✔
the insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith - ....ANSWER ....✔✔ An obligation
to act in complete honesty and to disclose all relevant
facts.
Aleatory Contract - ....ANSWER ....✔✔ a contract
where the values exchanged may not be equal but
depend on an uncertain event
Unilateral Contract - ....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.
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Conditional Contract - ....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 -
....ANSWER ....✔✔ DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - ....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
ADJUSTER PRO - INSURANCE ADJUSTER TEST
QUESTIONS AND ANSWERS 2025
What is insurance? - ....ANSWER ....✔✔ protection
against financial loss
what is a premium - ....ANSWER ....✔✔ a scheduled
amount to be paid for an insurance policy.
What are premiums used for - ....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? - ....ANSWER ....✔✔ the
insurer collects premiums from all policy holders and uses
them to pay out the claims of a few.
what is Indemnity - ....ANSWER ....✔✔ payment for
damages, that is not more or less than the amount
caused by the damage.
,2|Page
principle of idemnity - ....ANSWER ....✔✔ insurance
will pay no more or less than the actual financial loss
suffered
indemnification may also include - ....ANSWER ....✔✔
repairs to property
reimbursement for additional living expenses
rental cars and hotels
costs directly associated with a loss
4 Parts of Legal Contract - ....ANSWER ....✔✔ 1.
Agreement
2. Consideration
3. Competent Parties
4. Legal Purpose
legal contract - agreement - ....ANSWER ....✔✔
mutual intent by offeror and offeree
six special characteristics of insurance contracts -
....ANSWER ....✔✔ 1. Personal
2. adhesion
3. utmost good faith
,3|Page
4. aleatory
5. unilateral
6. conditional
what kind of contract is an insurance policy? -
....ANSWER ....✔✔ Personal contract
what is a contract of adhesion - ....ANSWER ....✔✔
the insured must accept the entire contract with all of its
terms and conditions
Utmost Good Faith - ....ANSWER ....✔✔ An obligation
to act in complete honesty and to disclose all relevant
facts.
Aleatory Contract - ....ANSWER ....✔✔ a contract
where the values exchanged may not be equal but
depend on an uncertain event
Unilateral Contract - ....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.
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Conditional Contract - ....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 -
....ANSWER ....✔✔ DICE
D - declarations page
I - Insuring Agreement
C- Conditions
E - Exclusions
Decelerations section - ....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
