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Adjuster Pro - Insurance adjuster test latest already passed
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
individuals 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.
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Question 6: principle of idemnity
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: 4 Parts of Legal Contract
CORRECT ANSWER: 1. Agreement
- Consideration
- Competent Parties
- Legal Purpose
Question 9: legal contract - agreement
CORRECT ANSWER: mutual intent by offeror and offeree
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Question 10: six special characteristics of insurance contracts
CORRECT ANSWER : 1. Personal
- adhesion
- utmost good faith
- aleatory
- unilateral
- 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: Utmost Good Faith
CORRECT ANSWER: An obligation to act in complete
honesty and to disclose all relevant facts.
Question 14: Aleatory Contract
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CORRECT ANSWER: a contract where the values exchanged
may not be equal but depend on an uncertain event
Question 15: 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: 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: Acronym for the four sections of an Insurance
policy
CORRECT ANSWER: DICE
D - declarations page I - Insuring Agreement C- Conditions E - Exclusions