Unit 1 - Unit 5 Quiz

In order to collect under a P & C policy and insurable interest must exist at which of the following times?

At the time of application for the policy At the time of the loss

In P&C insurance and interim ensuring agreement between an insurance company and I knew insert is called

Binder

All of the following are primary parts of an iInsurance policy except

Covered perils

The principal that maintains an individual should not be permitted to profit from the existence of an insurance contract which should be restored to the same financial condition which existed before I lost with this describe

The principle of indemnity

The ABC insurance company has a 60,000 fire policy on a factory the XYZ insurance company has a 40,000 fire policy on the same factory assuming that the factory is worth 100,000 how much were the ABC insurance company pay a 10,000 covered loss at the factory

$6000

Exclusions are often found an insurance policies for which of the following reasons

1 to help control physical and moral hazard 2 to eliminate catastrophic or an insurable perils 3 to indirectly protect the interest of the other policyholders

Every property insurance policy must clearly state how the insurance company will determine value under the contract which of the following definitions of value would normally result in the injured receiving the smallest settlement for a loss

Actual cash value

A contract in which only one of the parties to the contract sets forth the terms and conditions of the agreement and the other party to the contract must except those terms and conditions on a take it or leave it basis is referred to as a contract of

Adhesion

The fair credit reporting act states all of the following except that

All information obtained on an application must be collected during a personal interview

Of the following statements about all this coverage is or are true

All risk policy cover losses from any payroll that is not specifically excluded

All of the following can improve the acceptability of a risk except

Hazards

There are two types of risk which of the following top of risk is not insurable

Speculative risk

When an insurance company Sue's a negligent third-party to recover I lost paid to an insured the company is exercise and it's right of

Subrogation

All of the following are essential parts of a concept except

Written instrument

Which of the following individuals would be classified as incompetent or under insurance law

A 14 year old owner student A man under the influence of alcohol A customer who buys a policy under duress

Which of the following is/are legally competent and therefore able to enter into a legally binding contract

A 15-year-old female in Kentucky or a 16-year-old man in Indiana wanting to purchase insurance

Which of the following contract can be legally enforced

A contract for which there is no written agreement but there is an oral agreement A binder which is not processed by payment of the first premium

The time limit for bringing suit against an insurance company is found in the policy

Conditions

Most property insurance policies can be written to ensure property on all of the following value basis except

Fair market value

An individual who is responsible for the financial affairs of another individual is referred to as a

Fiduciary

State Inc You're Lanes departments have codes that agent must follow which of the following are important

Fiduciary Responsibilities Misrepresentation Unfair discrimination

A material fact is defined as one which

Is important enough to affect the insurance companies decision whether to issue the policy or not

Part of the insurance consideration in a property insurance contract is the

Payment of the premium by the insured

Gertrude has an insurable interest in all of the following except

Property her uncle might leave her

Which of the following is true about the insurance binder's

They are legal evidence that coverage is in force

Which of the following contracts can they legally enforced

A contract that encourages results against the public interest A contract in which the insured has no insurable interest in the property Both of these options are incorrect

An insurance company which is run primarily for the benefit of the policy owners is referred to as

A mutual company

A policy which requires a counter signature must be signed by

Any duly licensed property and casualty insurance agent

Which of the following insurance principles is designed to encourage you to purchase adequate insurance protection on your property

Coinsurance

Which of the following is true regarding oral binders

Coverage will become effective when the proposed insured excepts obligation to pay the premium

To have an insurable interest in a property the insured must

Currently have some financial relationship to the property

A binder may expire on all of the following dates except

Day prior to the receipt of the notice of cancellation of the binder

The portion of the policy that specifies Exactly what items will be covered and the dollar amounts of coverages is cold

Declarations

The definition of actual cash value includes which of the following

Depreciation

The primary purpose for including a deductible in an insurance policy is to

Eliminate small claims

If an insurance company is chartered In Ohio it would be what kind of company in Kentucky

Foreign

Auntie and see the term used to describe a situation or conditions that can increase risk such as us on the streets or faulty wiring in buildings is/are called

Hazards

Which of the following is/are essential elements of a contract

I meeting of the minds of the parties involved An exchange of some thing about you

Which of the following server Spiros is used to sit rights and policy forms of property and casualty insurance companies

ISO

Your new white car turns to rest during the next three years as a result of sitting outside and P and say language this phenomenon would be classified as

Inherent vice

Which of the following insurance principles is designed to keep you from profiting by ensuring and then destroying other peoples property

Insurable interest

In PNC insurance the part of the policy which defines and describes the top of property and the perils to be covered is called the

Insuring agreement

The part of the policy that defines and describes the scope of the coverage provided is referred to as the

Insuring clause

You purchase a property policy in order to ensure your commercial building two months later your insurance company offers the same policy to new customers with improved benefits but the policies are sold for the same premium right as your policy which of the following causes in your policy would result in your policy automatically including these new improved benefits

Liberalization

Under most state statues An oral contract is significant for which of the following

Making changes to coverages that are already in effect Banding the company until a policy is issued

An applicant who makes an untrue statement on an application for a homeowners policy would be guilty of

Missrepresentation

All of the following are examples of insurable interest except a

Persons interest in property she intends to purchase next week

Which of the following our way as an insurance company can get their policy forms ratified

Prior approval File & Use Open competition

Which of the following is part of the formula for calculating the ACV of a building

Replacement cost

All of the following are types of hazards except

Risk

You own a building valued at $100,000 you have an insured for 85,000 with an annual premium of 1000 for the policy if you were to cancel the policy halfway through the policy or you should receive a refund of

Something less than $500

Under the doctrine of warrantees and insured must tell the insurance company

The absolute literal truth

There can be many perils in an insurance policy what is the definition of a peril

The cause of the loss