Adjuster Exam (Arizona) package deal Questions & Answers

Insurance - ANSWERSfinancial tool that protects individuals and organizations from unforeseen and extraordinary financial losses by transferring risk to another party insured - ANSWERSindividual or organization that pays premiums in exchange for protection insurer - ANSWERSCompany, group, or g...

The purpose of the principle of indemnity is - ANSWERSto prevent an insured from making a profit on a loss. Jerrod is awarded $4000 in a court case after Ollie accidentally starts a fire and burns down his detached garage. This award is an example of - ANSWERSspecial damages Which of the follo...

Agent - ANSWERSone who recieves the authority to act on behalf of someone else Sales Agent - ANSWERSreceives authority to sell -authority given by written contract Insurance Adjuster - ANSWERSreceives authority to settle claims brought against the insurer - authority given by written contr...

agreement - ANSWERSOne of the 4 requirements of a legally binding contract. All parties involved must agree to the terms of the contract. Can also refer to a binder, which is the preliminary substance of a contract. aleatory - ANSWERSA characteristic of an insurance contract. Means " depending...

Stephen's insurer denied his claim because the peril was not covered. But, according to Stephen's understanding of the policy, his loss should be covered, so he filed a dispute. During the trial, the jury agreed that the policy language was open to interpretation, so they decided in favor of S...

All of the following pieces of information can be found in the conditions section of an insurance policy EXCEPT: - ANSWERSCauses of loss that are not covered Which of the following best defines the principle of indemnity? - ANSWERSAfter a loss, the insured should be restored to his approximate fi...

-+What is a reserve, in insurance terms? - ANSWERSA pool of collected premiums that the insurer sets aside to pay claims Which of these scenarios is NOT an example of indemnification? - ANSWERSWhen trying to renew her dog's license, Ellen has to pay a penalty to the city for letting its rabies...

Common law is based upon - ANSWERScourt decisions and customs. cause of loss or damage - ANSWERSperil Jim owns a home valued at $187,500, but he only has a $100,000 homeowner's policy and is underinsured. During a storm, lightning strikes Jim's home causing $45,000 in damages. The insure...

Stu has a collection of rare comic books. He wants to purchase theft insurance for his collection, separate from his home and other property. What term most accurately describes the type of policy Stu would purchase? - ANSWERSMonoline Policy Which of the following statements does NOT apply to t...

What is insurance? - ANSWERSprotection against financial loss what is a premium - ANSWERSa scheduled amount to be paid for an insurance policy. What are premiums used for - ANSWERSpremiums are collected into a "pool" or "reserve to pay out claimants when needed. how can insurance c...