KY Unit 1 - Principles of Insurance
C
All of the following can improve the acceptability of a risk EXCEPT A. deductibles B. coinsurance C. hazards D. limited peril protection
A
All of the following are examples of insurable interest EXCEPT a A. person't interest in property she intends to purchase next week B. dry cleaner's interest in his customer's clothing that is still in his custody C. person's interest in the home she own's D. person's interest in the improvements he has added to his leased apartment
C
All of the following are types of hazards except. A. morale B. moral C. risk D. physical
D
Exclusions are often found in insurance policies for which of the following reasons? I to help control physical and moral hazards II to eliminate catastrophic or uninsurable perils III to indirectly protect the interests of the policy holders A. II only B. III only C. I and II D. I, II and III
D
Gertrude has an insurable interest in all of the following EXCEPT a A. improvements she has made to her apartment B. the life of her husband, Lurch C. her automobile D. property he uncle might leave her
C
In P&C the term to describe situations or conditions that can increase risk, such as ice on streets or faulity wiring in buyildings is/are called A. risks C. hazards B. causes of loss D. perils
B
In order to collect under a P&C policy, an insurable interest must exist at which of the following times? 1 at the time of application for the policy 2 at the time of loss A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
A
The principle that maintains an individual should not be permitted to profit from the existence of an insurance contract, but should be restored to the same financial condition which existed before a loss would best describe: A. principle of idemnity B.Actual cash value C. principle of admission D. Concept of utmost good faith in a contract
C
There are 2 types of risk, which of the following type of risk is NOT insurable? A. pure risk B. implies risk C. speculative risk D. all of the above
D
There can be many perils in an insurance policy. A. available risk B. transfer risk C. share risk D. The cause of loss
A
To have an insurable interest in a property, the insured must A. Currently have some financial relationship to the property B. have had at some time a financial relationship to the property C. be the sole owner of the property D. be the only on e who purchases insurance coverage on the property
D
Which of the following insurance principles is designed to keep you from profiting by insuring and then destroying other people's property? A. Indemnification B. Subrogation C. Co-insurance D. Insurable interest