Chap.3
A binder is: Select one: a.a policy of insurance b.confirmation of temporary insurance
B
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? Select one: a.Forwarding the completed application to the Insurance company automatically provides Alice with coverage, so there is no need to issue a binder. b.The agent will need to issue a binder to provide Alice with temporary coverage
B
An insurance policy may be voided if a warranty has been: Select one: a.explained. b.breached. c.notarized. d.made.
B
Before the policy is issued, the insurance agent may provide a written document to prove that insurance is already in effect. This is: Select one: a.an endorsement b.a binder
B
Concealment involves intentionally hiding: Select one: a.an immaterial fact. b.a material fact.
B
Contracts require each of the following EXCEPT: Select one: a.consideration b.notarization c.legal purpose d.competent parties
B
In situations involving misrepresentation, the insurer may: Select one: a.charge an extra premium. b.cancel the policy.
B
Insurable losses will be listed in what section of the policy? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
B
Prior to issuing the policy, the agent may provide evidence of temporary insurance. This is a: Select one: a.binder b.endorsement
B
Representations given by the insured to the insurer are located in the? Select one: a.Declarations b.Application c.Conditions d.Insuring agreements
B
The Fair Credit Reporting Act requires the insurer to: Select one: a.refrain from using the investigative report as part of its decision making process. b.inform the applicant that an investigative report will be made.
B
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? Select one: a.No b.Yes
B
The Terrorism Risk Insurance Act (TRIA) was adopted following: Select one: a.Hurricane Katrina b.The World Trade Center destruction on 9/11/01
B
The applicant believes the statement to be true with a/an? Select one: a.warranty b.representation c.concealment d.misrepresentation
B
The best source of moral character information is the: Select one: a.application b.investigative report
B
The conditions section of the policy contains: Select one: a.the insurer's obligations if a loss occurs b.the insured's obligations if a loss occurs
B
The insured is entitled to: Select one: a.receive a copy of the investigative report from the insurer. b.be told the name and address of the consumer reporting company.
B
To determine the applicant's financial standing, an Insurer may use a: Select one: a.proof of loss form. b.credit report.
B
When must the applicant be told that an investigative report will be obtained? Select one: a.when the loss occurs. b.when the application is made. c.when the premium is paid. d.prior to payment of the claim.
B
Which document specifies the probable cause of a loss and estimates the loss? Select one: a.endorsement b.proof of loss
B
Which of the following is considered to be part of the policy? Select one: a.insured b.application c.proof of loss form d.premium
B
Which section of a property policy requires the Insured to submit a sworn proof of loss form? Select one: a.Declarations b.Conditions c.Exclusions d.Insuring Agreement
B
Which section of the policy contains the Insured's duties in the event of a loss? Select one: a.Insuring Agreements b.Conditions c.Exclusions d.Declaration
B
Which section of the policy contains the Insured's obligation to give notice of a loss? Select one: a.Insuring Agreements b.Conditions c.Exclusions d.Declaration
B
Which section of the policy contains the Insured's responsibilities? Select one: a.Exclusions b.Conditions c.Declarations d.Insuring Agreements
B
Which section of the policy contains the Insured's right to bring legal action against the Insurer? Select one: a.Declaration b.Conditions c.Exclusions d.Insuring Agreements
B
Which section of the policy contains the insured's time limits for bringing suit against the Insurer? Select one: a.Exclusions b.Conditions c.Insuring Agreements d.Declaration
B
Which section of the policy contains the policy limits? Select one: a.Conditions b.Declaration c.Insuring Agreements d.Exclusions
B
Which section of the policy contains the precise description of covered perils? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
B
Which section of the policy contains the premium? Select one: a.Conditions b.Declaration c.Exclusions d.Insuring Agreements
B
Which section of the policy specifies the Insured's responsibilities? Select one: a.Declaration b.Conditions c.Exclusions d.Insuring Agreements
B
Exclusions are designed to do each of the following EXCEPT: Select one: a.reduce moral hazards b.eliminate catastrophic perils c.indemnify the Insured d.reduce physical hazards
C
The Fair Credit Reporting Act: Select one: a.prohibits insurers from obtaining credit reports without consent of the consumer. b.allows an insurer to obtain consumer investigative reports without notifying the consumers. c.allows consumers to insert corrective statements in their consumer reports. d.requires insurers to provide applicants with copies of all investigative reports.
C
The Insured's promise to maintain a fire sprinkler system is a? Select one: a.misrepresentation b.representation c.warranty d.concealment
C
The creation of a contract requires each of these EXCEPT: Select one: a.consideration b.legal purpose c.notarization d.competent parties
C
The insured intentionally did not inform the insurer that the insured owned only 35% of the property. This is an example of: Select one: a.misrepresentation b.error c.concealment d.conditional coverage
C
The insured's promise to maintain a burglar alarm system is a? Select one: a.misrepresentation b.representation c.warranty d.concealment
C
The insured's promise to maintain specified anti-theft devices is a? Select one: a.concealment b.representation c.warranty d.misrepresentation
C
Which federal law encourages the states to adopt uniform licensing standards? Select one: a.Equal Credit Opportunity Act b.TRIA (Terrorism Risk Insurance Act) c.Graham-Leach-Bliley Act d.Federal Fair Credit Reporting Act
C
Which federal law requires the insurer to notify the Insured in advance of its intent to obtain an investigative consumer report? Select one: a.Truth in Lending Act b.Insurance Notice Act c.Fair Credit Reporting Act d.Equal Credit Opportunity Act
C
Which section of the policy contains coverages eliminated? Select one: a.Conditions b.Insuring Agreements c.Exclusions d.Declaration
C
Which section of the policy contains the company's promise of protection? Select one: a.Conditions b.Exclusions c.Insuring Agreements d.Declaration
C
Which section of the policy contains the identity of the Insured and Insurer? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
C
Which section of the policy contains the perils NOT covered? Select one: a.Declaration b.Conditions c.Exclusions d.Insuring Agreements
C
Which section of the policy contains the provisions permitting the Insurer to inspect the Insured's premises? Select one: a.Declaration b.Insuring Agreements c.Conditions d.Exclusions
C
Which section of the policy specifies which stores owned by an Insured are covered? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
C
Willful failure to disclose material information is a/an? Select one: a.representation b.misrepresentation c.concealment d.warranty
C
Which section of the policy requires the Insurer to provide coverage? Select one: a.Insuring Agreements b.Exclusions c.Declarations d.Conditions
A
Which section of the policy obligates the Insurer to indemnify the Insured? Select one: a.Insuring Agreements b.Exclusions c.Conditions d.Declaration
A
A binder becomes effective when: Select one: a.made by the agent. b.the insured delivers the premium payment.
A
A binder is: Select one: a.a temporary substitute for a permanent policy b.a type of permanent insurance c.a method of paying for insurance d.a claim settlement technique
A
A binder: Select one: a.provides temporary coverage. b.must be in writing. c.requires prior payment of a premium. d.requires issuance of a permanent policy.
A
A policy provision that may void the policy if the provision is violated is a: Select one: a.warranty b.binder
A
A policy provision that may void the policy if the provision is violated is a: Select one: a.warranty b.binderA
A
A promise by the insured that certain future conditions will exist is a? Select one: a.warranty b.concealment c.representation d.misrepresentation
A
A proof of loss form: Select one: a.assists the insurer in settling a loss covered by the policy b.settles disputes regarding whether losses are covered c.which contains a false statement will automatically void coverage
A
A sworn statement containing information regarding the claim is: Select one: a.proof of loss b.assignment
A
Al fill's out an application for insurance on his home and gives it to the Insurance company. This is considered: Select one: a.an offer b.an acceptance c.a legal purpose d.an invitation
A
An Insuring Agreement is: Select one: a.a promise to pay b.an exclusion
A
An applicant intentionally withholds material facts in an application. This is a? Select one: a.concealment b.misrepresentation c.representation d.warranty
A
Binders: Select one: a.may be oral. b.guarantee a permanent policy will be issued.
A
Concealment is: Select one: a.intentional nondisclosure of material facts b.misstating material facts
A
Evidence of temporary coverage is a: Select one: a.binder b.peril
A
Failure to file a Proof of Loss may result in: Select one: a.denial of the claim b.policy cancellation
A
TRIA applies to which of the following? Select one: a.Acts of terrorism b.Acts of war c.Both A and B d.None of the above
A
The Insured's sworn statement made to the Insurer regarding the time and cause of the loss is known as: Select one: a.proof of loss b.certification
A
The Proof of Loss form: Select one: a.assists in determining the amount of the loss covered by the policy. b.settles disputes about the covered losses.
A
The binder is actually issued by the: Select one: a.the agent b.the Insurer
A
The primary source of insurability information is the: Select one: a.application b.insurer's physical inspection of the property to be insured c.state government d.federal government
A
The purpose of the Fair Credit Reporting Act is to? Select one: a.provide fair and accurate consumer credit reporting. b.make credit available to all persons regardless of credit history.
A
The rules of conduct between the Insurer and Insured are set forth in which section of the policy? Select one: a.Conditions b.Declarations c.Exclusions d.Insuring Agreement
A
To collect on a loss, the Insured must comply with the procedures set forth in the? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
A
Which of the following is issued by the agent to notify the parties of the date coverage becomes effective? Select one: a.binder b.quotation c.presumption of proposition d.condition
A
Which section of the policy contains the Insurer's promise to pay? Select one: a.Insuring Agreements b.Conditions c.Declaration d.Exclusions
A
Which section of the policy contains the Other Insurance provision? Select one: a.Conditions b.Insuring Agreements c.Exclusions d.Declaration
A
Which section of the policy contains the cancellation provisions? Select one: a.Conditions b.Exclusions c.Declaration d.Insuring Agreements
A
Which section of the policy contains the covered perils? Select one: a.Insuring Agreements b.Exclusions c.Declaration d.Conditions
A
Which section of the policy may require the Insured to use the claim payment to replace the destroyed property? Select one: a.Conditions b.Insuring Agreements c.Exclusions d.Declaration
A
A statement in the proof of loss form is presumed to be a? Select one: a.warranty b.misrepresentation c.representation d.concealment
C
An applicant was denied insurance based on a consumer report. The applicant may: Select one: a.demand that the Insurer correct any error in the consumer report. b.obtain a copy of the report through a request to the Insurer. c.receive the name and address of the reporting agency from the Insurer. d.examine the report after providing the Insurer with verification of identification.
C
An application says no fire wood will be stored on the premises. If a later fire is caused by fire wood stored on the premises, the insurer may refuse coverage if the insured: Select one: a.concealed immaterial facts. b.misrepresented immaterial facts. c.misrepresented material facts. d.unintentionally made a misstatement.
C
A warranty: Select one: a.Must be complied with strictly. b.Is made by the insured rather than the insurer. c.May be part of the contract. d.All of the above.
D
A written statement of fact guaranteed to be true is a/an? Select one: a.concealment b.misrepresentation c.representation d.warranty
D
Binders must show each of these EXCEPT: Select one: a.name of insurer and insured b.list of covered items c.the date the binder becomes effective d.the amount of the premium
D
Concealment involves: Select one: a.unintentionally failing to disclose a material fact. b.unintentionally failing to disclose an immaterial fact. c.intentionally failing to disclose an immaterial fact. d.intentionally failing to disclose a material fact.
D
Consideration is evidenced by: Select one: a.filing a proof of loss form b.issuing a policy c.endorsing a policy d.paying a premium
D
Even though he owns several boats, the applicant states that he owns no boats. This is an example of: Select one: a.concealment b.subrogation c.a warranty d.misrepresentation
D
Insurance covers: Select one: a.physical hazards b.morale hazards c.moral hazards d.All of the above
D
The Proof of Loss includes each of the following except: Select one: a.the names of all persons with an insurable interest. b.a sworn statement regarding other insurance. c.lienholder identification. d.the policy's limit of liability.
D
The Proof of Loss must contain each of these EXCEPT: Select one: a.any replacement sales receipt if the item has been replaced. b.the cause of the loss. c.a sworn statement. d.the original sales receipt
D
The named Insured is identified in which section of the policy? Select one: a.Conditions b.Exclusions c.Insuring Agreements d.Declaration
D
Under the Federal Fair Credit Reporting Act, the Insured has NO right to: Select one: a.demand that an incorrect report be corrected. b.be told the name and address of the consumer reporting agency c.insert a corrective statement in the report. d.require that the insurer supply a copy of the report.
D
Which insurance policy section contains the Insured's duties in the event of a loss? Select one: a.Declaration b.Exclusions c.Insuring Agreements d.Conditions
D
Which policy section should the Insured check to determine if a particular coverage is provided in a named peril policy? Select one: a.Declaration b.Exclusions c.Conditions d.Insuring Agreements
D
Which section of the policy contains the Insurer's obligation to repair, replace or pay? Select one: a.Declaration b.Conditions c.Exclusions d.Insuring Agreements
D
Which section of the policy contains the location of the risk (the insured property)? Select one: a.Conditions b.Declaration c.Insuring Agreements d.Exclusions
D
Which section of the policy describes the coverage? Select one: a.Exclusions b.Declaration c.Conditions d.Insuring agreements
D
Which section of the policy determines the coverage? Select one: a.Exclusions b.Declaration c.Conditions d.Insuring Agreements
D
Which section of the policy limits the scope of coverage? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions
D
Which section of the policy states the reasons for which the Insurer will pay claims? Select one: a.Exclusions b.Declaration c.Conditions d.Insuring Agreements
D