Adjuster Pro - Insurance Adjuster Testinsurance Adjuster Test Study Guide

Adjuster Pro - Insurance Adjuster Testinsurance Adjuster Test Study Guide

What is insurance?

(Ans- protection against financial loss

what is a premium

(Ans- a scheduled amount to be paid for an insurance policy.

What are premiums used for

(Ans- 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?

(Ans- the insurer collects premiums from all policy holders and uses them

to pay out the claims of a few.

what is Indemnity

(Ans- payment for damages, that is not more or less than the amount

caused by the damage.

principle of indemnity

(Ans- insurance will pay no more or less than the actual financial loss

suffered

indemnification may also include

(Ansrepairs to property

reimbursement for additional living expenses

rental cars and hotels

costs directly associated with a loss

4 Parts of Legal Contract

(Ans1. Agreement

2. Consideration

3. Competent Parties

4. Legal Purpose

legal contract – agreement

(Ans- mutual intent by offeror and offeree

six special characteristics of insurance contracts

(Ans1. Personal

2. adhesion

3. utmost good faith

4. aleatory

5. unilateral

6. conditional

what kind of contract is an insurance policy?

(Ans- Personal contract

what is a contract of adhesion

(Ans- the insured must accept the entire contract with all of its terms and

conditions