chapter 3 test (1/2)

Which federal law requires the insurer to notify the Insured in advance of its intent to obtain an investigative consumer report? Select one: a.Fair Credit Reporting Act b.Truth in Lending Act c.Equal Credit Opportunity Act d.Insurance Notice Act

a.Fair Credit Reporting Act

Evidence of temporary coverage is a: Select one: a.binder b.peril

a.binder

Which document specifies the probable cause of a loss and estimates the loss? Select one: a.proof of loss b.endorsement

a.proof of loss

Which section of the policy specifies the Insured's responsibilities? Select one: a.Declaration b.Exclusions c.Insuring Agreements d.Conditions

d.Conditions

Which section of the policy contains the policy limits? Select one: a.Insuring Agreements b.Exclusions c.Conditions d.Declaration

d.Declaration

Which section of the policy contains the premium? Select one: a.Exclusions b.Conditions c.Insuring Agreements d.Declaration

d.Declaration

Which section of the policy obligates the Insurer to indemnify the Insured? Select one: a.Exclusions b.Declaration c.Conditions d.Insuring Agreements

d.Insuring Agreements

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.Acts of terrorism

The rules of conduct between the Insurer and Insured are set forth in which section of the policy? Select one: a.Conditions b.Exclusions c.Insuring Agreement d.Declarations

a.Conditions

A proof of loss form: Select one: a.assists the insurer in settling a loss covered by the policy b.which contains a false statement will automatically void coverage c.settles disputes regarding whether losses are covered

a.assists the insurer in settling a loss covered by the policy

A binder: Select one: a.provides temporary coverage. b.must be in writing. c.requires issuance of a permanent policy. d.requires prior payment of a premium.

a.provides temporary coverage.

Under the Federal Fair Credit Reporting Act, the Insured has NO right to: Select one: a.require that the insurer supply a copy of the report. b.demand that an incorrect report be corrected. c.be told the name and address of the consumer reporting agency d.insert a corrective statement in the report.

a.require that the insurer supply a copy of the report.

The conditions section of the policy contains: Select one: a.the insured's obligations if a loss occurs b.the insurer's obligations if a loss occurs

a.the insured's obligations if a loss occurs

The insured's promise to maintain specified anti-theft devices is a? Select one: a.warranty b.misrepresentation c.concealment d.representation

a.warranty

Which section of the policy contains the insured's time limits for bringing suit against the Insurer? Select one: a.Declaration b.Conditions c.Insuring Agreements d.Exclusions

b.Conditions

Which section of the policy may require the Insured to use the claim payment to replace the destroyed property? Select one: a.Declaration b.Conditions c.Insuring Agreements d.Exclusions

b.Conditions

Which federal law encourages the states to adopt uniform licensing standards? Select one: a.Equal Credit Opportunity Act b.Graham-Leach-Bliley Act c.Federal Fair Credit Reporting Act d.TRIA (Terrorism Risk Insurance Act)

b.Graham-Leach-Bliley Act

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.The agent will need to issue a binder to provide Alice with temporary coverage

Which of the following is issued by the agent to notify the parties of the date coverage becomes effective? Select one: a.quotation b.binder c.presumption of proposition d.condition

b.binder

Concealment is: Select one: a.misstating material facts b.intentional nondisclosure of material facts

b.intentional nondisclosure of material facts

A binder becomes effective when: Select one: a.the insured delivers the premium payment. b.made by the agent.

b.made by the agent.

A sworn statement containing information regarding the claim is: Select one: a.assignment b.proof of loss

b.proof of loss

The Insured's sworn statement made to the Insurer regarding the time and cause of the loss is known as: Select one: a.certification b.proof of loss

b.proof of loss

Which section of the policy contains coverages eliminated? Select one: a.Conditions b.Insuring Agreements c.Declaration d.Exclusions

d.Exclusions

Which policy section should the Insured check to determine if a particular coverage is provided in a named peril policy? Select one: a.Exclusions b.Declaration c.Conditions d.Insuring Agreements

d.Insuring Agreements

Which section of the policy contains the covered perils? Select one: a.Conditions b.Declaration c.Exclusions d.Insuring Agreements

d.Insuring Agreements

Which section of the policy contains the precise description of covered perils? Select one: a.Exclusions b.Conditions c.Declaration d.Insuring Agreements

d.Insuring Agreements

The Fair Credit Reporting Act: Select one: a.requires insurers to provide applicants with copies of all investigative reports. b.allows an insurer to obtain consumer investigative reports without notifying the consumers. c.prohibits insurers from obtaining credit reports without consent of the consumer. d.allows consumers to insert corrective statements in their consumer reports.

d.allows consumers to insert corrective statements in their consumer reports.

Which section of the policy contains the Insured's obligation to give notice of a loss? Select one: a.Conditions b.Declaration c.Exclusions d.Insuring Agreements

a.Conditions

In addition to requiring that Insurers protect clients' privacy rights, the Gramm-Leach-Bliley Act: Select one: a.encourages the states to adopt uniform licensing requirements to make it easier for Producers to sell insurance across state lines. b.prohibits the sale of property insurance in America.

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

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.a binder

Which insurance policy section contains the Insured's duties in the event of a loss? Select one: a.Conditions b.Declaration c.Insuring Agreements d.Exclusions

a.Conditions

Which section of the policy contains the Insurer's obligation to repair, replace or pay? Select one: a.Insuring Agreements b.Exclusions c.Declaration d.Conditions

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? Select one: a.Yes b.No

a.Yes

In situations involving misrepresentation, the insurer may: Select one: a.cancel the policy. b.charge an extra premium.

a.cancel the policy.

An applicant intentionally withholds material facts in an application. This is a? Select one: a.concealment b.misrepresentation c.representation d.warranty

a.concealment

The purpose of the Fair Credit Reporting Act is to? Select one: a.make credit available to all persons regardless of credit history. b.provide fair and accurate consumer credit reporting.

b.provide fair and accurate consumer credit reporting.

A statement in the proof of loss form is presumed to be a? Select one: a.concealment b.representation c.misrepresentation d.warranty

b.representation

Which section of the policy contains the Insured's right to bring legal action against the Insurer? Select one: a.Declaration b.Insuring Agreements c.Conditions d.Exclusions

c.Conditions

Which section of the policy contains the cancellation provisions? Select one: a.Declaration b.Exclusions c.Conditions d.Insuring Agreements

c.Conditions

Which section of the policy contains the Insurer's promise to pay? Select one: a.Exclusions b.Conditions c.Insuring Agreements d.Declaration

c.Insuring Agreements

Concealment involves: Select one: a.intentionally failing to disclose an immaterial fact. b.unintentionally failing to disclose a material fact. c.intentionally failing to disclose a material fact. d.unintentionally failing to disclose an immaterial fact.

c.intentionally failing to disclose a material fact.

A written statement of fact guaranteed to be true is a/an? Select one: a.concealment b.representation c.warranty d.misrepresentation

c.warranty

Which section of the policy states the reasons for which the Insurer will pay claims? Select one: a.Exclusions b.Conditions c.Declaration d.Insuring Agreements

d.Insuring Agreements

The primary source of insurability information is the: Select one: a.state government b.insurer's physical inspection of the property to be insured c.federal government d.application

d.application

The applicant believes the statement to be true with a/an? Select one: a.concealment b.representation c.misrepresentation d.warranty

b.representation

Which section of the policy determines the coverage? Select one: a.Declaration b.Exclusions c.Insuring Agreements d.Conditions

c.Insuring Agreements

Which section of the policy describes the coverage? Select one: a.Conditions b.Exclusions c.Insuring agreements d.Declaration

c.Insuring agreements

ven though he owns several boats, the applicant states that he owns no boats. This is an example of: Select one: a.misrepresentation b.concealment c.subrogation d.a warranty

a.misrepresentation

The Terrorism Risk Insurance Act (TRIA) was adopted following: Select one: a.Hurrican Katrina b.The World Trade Center destruction on 9/11/01

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