Adjuster Pro Insurance Adjuster Test Updated Questions and Answers Latest (Verified Answers)
Question 1: What is insurance?
CORRECT ANSWER : protection against financial loss
Question 2: What is a premium?
CORRECT ANSWER : a scheduled amount to be paid for an
insurance policy.
Question 3: What are premiums used for?
CORRECT ANSWER : premiums are collected into a "pool"
or "reserve to pay out claimants when needed.
Question 4: How can insurance companies afford to pay for
an individual's catastrophic loss?
CORRECT ANSWER : the insurer collects premiums from
all policy holders and uses them to pay out the claims of a few.
Question 5: What is indemnity?
CORRECT ANSWER : payment for damages, that is not
more or less than the amount caused by the damage.
Question 6: What is the principle of indemnity?
CORRECT ANSWER : insurance will pay no more or less
than the actual financial loss suffered
Question 7: Indemnification may also include?
CORRECT ANSWER : repairs to property, reimbursement
for additional living expenses, rental cars and hotels, costs directly associated with a loss
Question 8: What are the 4 parts of a legal contract?
CORRECT ANSWER : 1. Agreement 2. Consideration 3.
Competent Parties 4. Legal Purpose
Question 9: What is a legal contract - agreement?
CORRECT ANSWER : mutual intent by offeror and offeree
Question 10: What are the six special characteristics of
insurance contracts?
CORRECT ANSWER : 1. Personal 2. adhesion 3. utmost
good faith 4. aleatory 5. unilateral 6. conditional
Question 11: What kind of contract is an insurance policy?
CORRECT ANSWER : Personal contract
Question 12: What is a contract of adhesion?
CORRECT ANSWER : the insured must accept the entire
contract with all of its terms and conditions
Question 13: What is utmost good faith?
CORRECT ANSWER : An obligation to act in complete
honesty and to disclose all relevant facts.
Question 14: What is an aleatory contract?
CORRECT ANSWER : a contract where the values
exchanged may not be equal but depend on an uncertain event
Question 15: What is a unilateral contract?
CORRECT 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.
Question 16: What is a conditional contract?
CORRECT ANSWER : A type of an agreement in which
both parties must perform certain duties and follow rules of conduct to make the contract enforceable.
Question 17: What is the acronym for the four sections of an
insurance policy?
CORRECT ANSWER: DICE D - declarations page I -
Insuring Agreement C - Conditions E - Exclusions
Question 18: What is the declarations section?
CORRECT 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