12/7/25, 9:02 AM Kentucky Adjuster Exam Prep || Exam study guide COMPLETE EXAM Questions and Answers (Verified Answers) (Latest Update 2…
Kentucky Adjuster Exam Prep || Exam study
guide COMPLETE EXAM Questions and Answers
(Verified Answers) (Latest Update 2025) UPDATE!!
Save
Terms in this set (99)
Transfers risk of financial losses from one party to
Insurance
another
Individual or organization that pays premiums in
Insured
exchange for protection
Company, group, or government agency offering
Insurer
financial protection
A legally binding contract in which the insurer agrees
Insurance policy to take on specified risks in exchange for the insured's
premium.
Restoration to previous financial condition; no more,
Principle of indemnity
no less
-Agreement
Four Qualifications of a -Consideration
contract: -Competent parties
-Legal Purpose
- Makes contract specific to the policy holder
-Always establishes first section
Declarations - Names, Policy #, Location and description of item,
value of item, dates of policy, amount and limit of
coverage, deductible, premium
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, 12/7/25, 9:02 AM Kentucky Adjuster Exam Prep || Exam study guide COMPLETE EXAM Questions and Answers (Verified Answers) (Latest Update 2…
- Not essential
Definitions
- Defines terms used to write policy
What is covered, causes of loss covered, services
Insuring Agreement
provided, exclusions, max limit of coverage
Insurer specifies any limits or qualifications the
Conditions
policyholder must meet
common: Earthquakes, flooding, war, nuclear hazards,
Exclusions
intentional
Endorsements Additions to policy
1. Personal Contract 2. Contract of Adhesion
Characteristics of 3. Utmost Good Faith contract
Insurance contracts 4. Aleatory Contract
5 Unilateral Contract 6. Conditional Contract
- Potential for loss
Meanings of Risk
-The insured item
- Speculative= any risk in which gain is possible. Not
Categories of Risk insurable
- Pure Risk= any risk which no gain is possible
Risk Avoidance- Eliminates Risks
Risk Management Risk Reduction- Reduces or mitigates risk
Techniques Risk Transference- Paying someone to take on risk
Risk Retention- Assumes or accepts risk
Binder Temp. coverage until policy is issued
Principle holding that if insurer accepts a practice for
Estoppel a time, it cannot later refuse coverage because of that
practice.
Occurence Event or circumstance that causes a loss
original occurrence in an unbroken chain of events
Proximate cause
that results in a loss
Transfer of rights that allows the insurer to recover its
Subrogation
losses after it has indemnified the policyholder
https://quizlet.com/1118395420/kentucky-adjuster-exam-prep-exam-study-guide-complete-exam-questions-and-answers-verified-answers-latest-upda… 2/11
Kentucky Adjuster Exam Prep || Exam study
guide COMPLETE EXAM Questions and Answers
(Verified Answers) (Latest Update 2025) UPDATE!!
Save
Terms in this set (99)
Transfers risk of financial losses from one party to
Insurance
another
Individual or organization that pays premiums in
Insured
exchange for protection
Company, group, or government agency offering
Insurer
financial protection
A legally binding contract in which the insurer agrees
Insurance policy to take on specified risks in exchange for the insured's
premium.
Restoration to previous financial condition; no more,
Principle of indemnity
no less
-Agreement
Four Qualifications of a -Consideration
contract: -Competent parties
-Legal Purpose
- Makes contract specific to the policy holder
-Always establishes first section
Declarations - Names, Policy #, Location and description of item,
value of item, dates of policy, amount and limit of
coverage, deductible, premium
https://quizlet.com/1118395420/kentucky-adjuster-exam-prep-exam-study-guide-complete-exam-questions-and-answers-verified-answers-latest-upda… 1/11
, 12/7/25, 9:02 AM Kentucky Adjuster Exam Prep || Exam study guide COMPLETE EXAM Questions and Answers (Verified Answers) (Latest Update 2…
- Not essential
Definitions
- Defines terms used to write policy
What is covered, causes of loss covered, services
Insuring Agreement
provided, exclusions, max limit of coverage
Insurer specifies any limits or qualifications the
Conditions
policyholder must meet
common: Earthquakes, flooding, war, nuclear hazards,
Exclusions
intentional
Endorsements Additions to policy
1. Personal Contract 2. Contract of Adhesion
Characteristics of 3. Utmost Good Faith contract
Insurance contracts 4. Aleatory Contract
5 Unilateral Contract 6. Conditional Contract
- Potential for loss
Meanings of Risk
-The insured item
- Speculative= any risk in which gain is possible. Not
Categories of Risk insurable
- Pure Risk= any risk which no gain is possible
Risk Avoidance- Eliminates Risks
Risk Management Risk Reduction- Reduces or mitigates risk
Techniques Risk Transference- Paying someone to take on risk
Risk Retention- Assumes or accepts risk
Binder Temp. coverage until policy is issued
Principle holding that if insurer accepts a practice for
Estoppel a time, it cannot later refuse coverage because of that
practice.
Occurence Event or circumstance that causes a loss
original occurrence in an unbroken chain of events
Proximate cause
that results in a loss
Transfer of rights that allows the insurer to recover its
Subrogation
losses after it has indemnified the policyholder
https://quizlet.com/1118395420/kentucky-adjuster-exam-prep-exam-study-guide-complete-exam-questions-and-answers-verified-answers-latest-upda… 2/11
