10/23/24, 8:15 PM GEORGIA CLAIMS ADJUSTER LICENSING EXAM 2024 / GA CLAIMS ADJUSTER EXAM 250 QUESTIONS AND CORRECT DE…
GEORGIA CLAIMS ADJUSTER LICENSING EXAM
2024 / GA CLAIMS ADJUSTER EXAM 250
QUESTIONS AND CORRECT DETAILED ANSWERS
WITH RATIONALES
Terms in this set (251)
Allows the policyholder to transfer risk to the
Insurance insurance company who agrees to indemnify the
insured (policyholder) for economic loss
Restore the insured for economic losses as closely as
Idemnification
possible
Risk The chance of loss
(Insurable) There is an outcome of loss or no loss
[Involves personal risks such as premature death,
insufficient income, poor health, or unemployment.
Pure Risk
Involves property risks such as losses to real or
personal property. Involves Risk of injury through
negligence by the insured to a third party.]
(True or False) Risk may be True
controlled by risk
management through
avoidance, loss control
(safety), retention of risk
(self-insure or the use of
deductibles to decrease
premiums) or risk transfer
by the purchase of
insurance.
, 10/23/24, 8:15 PM GEORGIA CLAIMS ADJUSTER LICENSING EXAM 2024 / GA CLAIMS ADJUSTER EXAM 250 QUESTIONS AND CORRECT DE…
(Not Insurable) There may be either loss of profit
Speculative Risk
[Gambling, betting on a race, buying stocks]
(True or False) Insurance is True
obtained by purchasing an
insurance contract or
policy.
The insurance policy- a written document containing
Insurance Contract
coverage, exclusions, conditions, and endorsements
1. Offer and acceptance (Consent of all parties to the
contract)
2. All parties must be competent (over 18 and sound
Requirements of any
mind)
Contract include:
3. For legal purposes
4. A valuable consideration- exchange of something
of value.
1. Personal - Ratings based on factors of location, age,
gender, claim history
2. Conditional - The rights and responsibilities
imposed on both the insurance company and the
policyholder
Characteristics of an
3. Agreement to indemnify - Restore the insured to
insurance contract:
the same financial position as before the loss
4. Contracts of adhesion - The insurance company
writes the policy, but they are stuck with what they
write. The insured is favored if there is unclear,
ambiguous writing.
(Oral or written) Evidence that the policy is in effect
Binder
before formal policy is in place by a company.
Restoration to approximately the same financial
Indemnity Principle
position after a loss as was before the loss
Must be a large pool of insureds to be able to predict
Law of Large Numbers losses for outcomes to reflect statistical probability of
results
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