Chapter 3

A binder becomes effective when:

made by the agent

Binders:

may be oral.

Contracts require each of the following EXCEPT:

notarization

An Insurance policy may be volded if a warranty has been

C Breached.

The named Insured is identified in which section of the policy?

C. Declaration

Which section of the policy contains the Insurer's promise to pay?

C. Insuring Agreements

Which section of the policy contains coverages eliminated?

Exclusions

Which section of the policy contains the perils NOT covered?

Exclusions

Which section of the policy limits the scope of coverage?

Exclusions

Which section of the policy contains the company's promise of protection?

Insuring Agreements

Which section of the policy requires the Insurer to provide coverage?

Insuring Agreements

Which section of the policy states the reasons for which the Insurer will pay claims?

Insuring Agreements

Which section of the policy contains the Insurer's obligation to repair, replace or pay?

Insuring Agreements.

TRIA applies to which of the following?

a Acts of terrorism

Before the policy is issued, the insurance agent may provide a written document to prove that insurance is already in effect This is

a a binder

When must the applicant be told that an investigative report will be obtained?

a when the application is made.

The Proof of Loss includes each of the following except:

a. the policy's limit of liability.

Which section of the policy contains the location of the risk (the insured property)?

answer is Declaration

The Insured's sworn statement made to the insurer regarding the time and cause of the loss is known as:

b proof of loss

A policy provision that may void the policy if the provision is violated is a:

b. warranty

A promise by the insured that certain future conditions will exist is a?

b. warranty

A binder is

b.confirmation of temporary insurance

Which section of the policy contains the Insured's obligation to give notice of a loss?

is: Conditions

A statement in the proof of loss form is presumed to be a?

representaton:

Under the Federal Fair Credit Reporting Act, the Insured has NO right to:

require that the insurer supply a copy of the report.

Which section of the policy contains the identity of the Insured and Insurer?

Declaration

Which section of the policy contains the provisions permitting the Insurer to inspect the Insured's premises?

Conditions

Which section of the policy may require the Insured to use the claim payment to replace the destroyed property?

Conditions

A warranty

d All of the above

A written statement of fact guaranteed to be true is a/an?

d. warranty

Failure to file a Proof of Loss may result in:

denial of the claim

Which federal law requires the insurer to notify the Insured in advance of its intent to obtain an investigative consumer report?

is: Fair Credit Reporting Act:

The binder is actually issued by the

the agent

The insured's promise to maintain specified anti-theft devices is a?

warranty

Which insurance policy section contains the Insured's duties in the event of a loss?

Conditions

The applicant believes the statement to be true with a/an?

representation

Which section of a property policy requires the Insured to submit a sworm proof of loss form?

Conditions

Which section of the policy specifies which stores owned by an Insured are covered?

Declaration

Which section of the policy contains the Insured's duties in the event of a loss?

a. Conditions

Which section of the policy contains the cancellation provisions?

a. Conditions

Concealment involves.

a. intentionally failing to disclose a material fact.

The primary source of insurability information is the:

application

Representations given by the insured to the insurer are located in the?

b. Application

Terrorism Risk Insurance Act (TRIA) was adopted following

b. The World Trade Center destruction on 9/11/01

An application says no fire wood will be stored on the premises. ifa later fire is caused by fire wood stored on the premises, the insurer may refuse coverage if the insured

c misrepresented material facts

The insured intentionally did not inform the insurer that the insured owned only 35% of the property This is an example of:

concealment

Which section of the policy contains the Other Insurance provision?

d Conditions

The best source of moral character information is the:

investigative report

Concealment involves Intentionally hiding

materlal fact

Even though he owns several boats, the applicant states that he owns no boats. This is an example of

misrepresentation

The creation of a contract requires each of these EXCEPT:

notarization

Which document specifies the probable cause of a loss and estimates the loss?

proof of loss

The purpose of the Fair Credit Reporting Act is to?

provide fair and accurate consumer credit reporting

insured's promise to maintain a burglar alarm system is a?

warranty

Which section of the policy determines the coverage?

a. Insuring Agreements

Evidence of temporary coverage isa:

binder

To determine the applicant's financial standing an Insurer may use a:

credit report.

The rules of conduct between the Insurer and Insured are set forth in which section of the policy?

Conditions

Which section of the policy contains the policy limits?

Declaration

Which section of the policy contains the premium?

Declaration

Which section of the policy describes the coverage?

Insuring agreements

An applicant intentionally withholds material facts in an application. This is a?

O C. concealment

Which policy section should the Insured check to determine if a particular coverage is provided in a named peril policy?

a. Insuring Agreements

Which section of the policy obligates the Insurer to indemnify the Insured?

a. Insuring Agreements

The Insurer decides to nonrenew Alice's policy based on information contained in a consumer report. Is the Insurer required to tell Alice that the decision to nonrenew was based on information contained in the consumer report?

a. Yes

An Insuring Agreement is:

a. a promise to pay

The Proof of Loss form:

a. assists in determining the amount of the joss covered by the policy

The insured is entitled to:

a. be told the name and address of the consumer reporting company.

Prior to issuing the policy, the agent may provide evidence of temporary insurance. This is a:

a. binder

In addition to requiring that Insurers protect clients' privacy rights, the Gramm-Leach-Bliley Act:

a. encourages the states to adopt uniform licensing requirements to make it easier for Producers to sell insurance across state lines

The Fair Credit Reporting Act requires the insurer to:

a. inform the applicant that an investigative report will be made.

Concealment is:

a. intentional nondisciosure of material facts

Insurable losses will be listed in what section of the policy?

c. Insuring Agreements

Which of the following is Issued by the agent to notify the partles of the date coverage becomes effective?

c. binder

Insurance covers:

All 3 hazards( all of the above)

Alice and her insurance agent fill out an application for an insurance policy for her new car The agent then forwards the completed application to the Insurance company Which of the following statements is CORRECT?

The agent will need to Issue a binderto provide Allce with temporary.coverage

Al fill's out an application for insurance on his home and gives it to the Insurance company. This is considered:

offer

A binder is:

temporary substitute for a permanent policy

To collect on a loss, the Insured must comply with the procedures set forth in the?

d. Conditions

Which section of the policy specifies the Insured's responsibilities?

d. Conditions

Which section of the policy contains the covered perils?

d. Insuring Agreements

Which of the following is considered to be part of the policy?

d. application

Consideration is evidenced by:

d. paying a premlum

The Proof of Loss must contain each of these EXCEPT:

C. the original sales receipt.

The Insured's promise to maintain a fire sprinkler system is a?

C. warranty

Which section of the policy contains the Insured's responsibilities?

Conditions

Which section of the policy contains the Insured's right to bring legal action against the Insurer?

Conditions

Which section of the policy contains the insured's time limits for bringing suit against the Insurer?

Conditions

Which section of the policy contains the precise description of covered perils?

Insuring Agreements

Which federal law encourages the states to adopt uniform licensing standards?

O b. Graham-Leach-Bley Act

The conditions section of the policy contains:

a. the insured's obligations if a loss occurs

The Fair Credit Reporting Act:

allows consumers to insert corective statements in their consumer reports.

A sworn statement containing information regarding the claim is:

b. proof of los

A binder

b. provides temporary coverage.

An applicant was denied insurance based on a consumer report. The applicant may:

b. recelve the name and address of the reporting agency from the Insurer.

in situations involving misrepresentation. the insurer may

cancel the policy

Willful failure to disclose material information is a/an?

concealment