4-40 CSR Unit 2 (Property and Liability Insurance Concepts) Quiz

John was involved in an automobile accident that was not his fault. John then transferred his rights to his insurance company to collect damages for the claim they just paid. This is a perfect example of what insurance concept?

Subrogation

What is temporary insurance which can be made through oral or written agreement?

Binder

John is shopping for auto insurance and is offered an insurance policy which he does not agree with. The insurance representative tells him that the terms of the insurance contract are non-negotiable. This type of insurance contract is known as a(n)

Contract of adhesion

What type of insurance best describes when payments are made on behalf of the insured to another party?

Liability insurance

If an insurance company broadens coverage in similar policies then those who are already insured under similar policies would receive said benefits of the broadened coverage without additional premium. This insurance concept is best known as

Liberalization

If Ashley states that she has an anti-theft alarm on her vehicle when she in fact does not have an alarm. Misleading the insurer in such a way is known as

Misrepresentation

Intentionally destroying your car to collect money from the insurance is classified as what type of hazard?

Moral

Wind, theft, lightning, fire, and flood are all examples of what?

Peril

What is the best definition of risk?

The chance of financial loss

A policy condition that is based on information you provided to the insurer during the application for insurance, or a policy condition that was inserted by the insurer is known as a(n)

Warranty