Rhode Island Insurance Adjuster Quiz 2026
Guide
1
/
6
1.
Agreement
One
of
the
four
elements
of
a
valid
insurance
contract.
2.
Consideration
The value exchanged — the insured's premium for the insurer's
promise to pay covered losses.
3.
Competent
parties
One
of
the
four
elements
of
a
valid
insurance
contract.
4.
Legal
purpose
One
of
the
four
elements
of
a
valid
insurance
contract.
5.
Insurance
policy
A
legal
contract
between
the
insured
and
insurer
outlining
cov-
erage,
conditions,
and
exclusions.
6.
Principle
of
indemnity
The insured should not profit from a loss — only be restored to
the
financial
position
prior
to
it.
7.
Binder
Temporary
insurance
coverage
until
a
formal
policy
is
issued.
8.
Risk
The
chance
or
uncertainty
of
loss
occurring.
9.
Pure
risk
Insurable
risk.
10.
Speculative
risk
Not insurable risk.
11.
Peril
The cause of a loss (e.g., fire, theft, wind).
12.
Hazard
A
condition
that
increases
the
chance
or
severity
of
a
loss.
13.
Physical
hazard
One
of
the
three
types
of
hazards.
14.
Moral
hazard
One
of
the
three
types
of
hazards.
15.
Morale
hazard
One
of
the
three
types
of
hazards.
16.
Law
of
large
numbers
The
principle
that
larger
groups
provide
more
predictable
loss
statistics.
