FREE Claims Adjuster Insurance Principles Questions and Answers

Question 1

It is the scheduled fee that must be paid for an insurance policy.

Accepted Answer

Premium

Answer

Indemnity

Answer

Pro rata

Answer

Policy

Question 2

What is the purpose of premiums?

Accepted Answer

Fund the operation of insurance companies and create a pool.

Answer

To make informed decisions

Answer

Managing risks in various transactions

Answer

To protect the rights and interests

Question 3

How can insurance providers afford to cover a person's catastrophic loss?

Accepted Answer

The insurer collects premiums from all policy holders and uses them to pay out the claims of a few.

Answer

The insurer collects all his\her money to pay out the claims

Answer

The insurer collects all premiums from solicitation to pay out the claims

Answer

None of the above

Question 4

Compensation for damages that is equal to the amount of the damage, neither more nor less.

Accepted Answer

Indemnity

Answer

Premium

Answer

Policy

Answer

Compensation

Question 5

The following are the four parts of a legal contract, except:

Accepted Answer

Endorsement

Answer

Offer

Answer

Acceptance

Answer

Intention

Question 6

It is a mutual intent by the offeror and offeree.

Accepted Answer

Agreement

Answer

Consideration

Answer

Legal Purpose

Answer

Competent Parties

Question 7

Which of the following is NOT one of the six special characteristics of insurance contracts?

Accepted Answer

None of the above

Answer

Personal

Answer

Adhesion

Answer

Aleatory

Question 8

An insurance policy is what kind of a contract?

Accepted Answer

Personal contract

Answer

Unilateral Contract

Answer

Conditional

Answer

Aleatory Contract

Question 9

What is an adhesion contract?

Accepted Answer

The insured must accept the entire contract with all of its terms and conditions

Answer

Benefits and obligations under the contract are contingent upon the occurrence of uncertain events

Answer

Entered into between the insurer and the individual policyholder or insured

Answer

All of the above

Question 10

A responsibility to act in complete honesty and to provide all relevant facts.

Accepted Answer

Utmost Good Faith

Answer

Conditional

Answer

Adhesion

Answer

Aleatory