Chpt 3 Quiz
Representations given by the insured to the insurer are located in the?
Application
Which document specifies the probable cause of a loss and estimates the loss?
. proof of loss
Al fill's out an application for insurance on his home and gives it to the Insurance company. This is considered
.an offer
The binder is actually issued by the:
.the agent
A written statement of fact guaranteed to be true is a/an?
.warranty
The insured's promise to maintain a burglar alarm system is a?
.warranty
Which section of the policy contains the Insured's duties in the event of a loss?
Conditions
Which section of the policy contains the Insured's obligation to give notice of a loss?
Conditions
Which section of the policy contains the Insured's responsibilities?
Conditions
Which section of the policy contains the Insured's right to bring legal action against the Insurer?
Conditions
Which section of the policy contains the Other Insurance provision?
Conditions
Which section of the policy contains the cancellation provisions?
Conditions
Which section of the policy contains the insured's time limits for bringing suit against the Insurer?
Conditions
Which section of the policy contains the provisions permitting the Insurer to inspect the Insured's premises?
Conditions
Which section of the policy may require the Insured to use the claim payment to replace the destroyed property?
Conditions
Which section of the policy specifies the Insured's responsibilities?
Conditions
Which section of the policy contains the location of the risk (the insured property)?
Declaration
Which section of the policy contains the policy limits?
Declaration
Which section of the policy specifies which stores owned by an Insured are covered?
Declaration
Which section of the policy contains coverages eliminated?
Exclusions
Which section of the policy contains the perils NOT covered?
Exclusions
Which section of the policy limits the scope of coverage
Exclusions
Which federal law requires the insurer to notify the Insured in advance of its intent to obtain an investigative consumer report?
Fair Credit Reporting Act
Which federal law encourages the states to adopt uniform licensing standards?
Graham-Leach-Bliley Act
Prior to issuing the policy, the agent may provide evidence of temporary insurance. This is a:
binder
Which of the following is issued by the agent to notify the parties of the date coverage becomes effective?
binder
An insurance policy may be voided if a warranty has been:
breached
Exclusions are designed to do each of the following EXCEPT: a.eliminate catastrophic perils b.reduce moral hazards c.indemnify the Insured d.reduce physical hazards
c
In situations involving misrepresentation, the insurer may:
cancel the policy.
An applicant intentionally withholds material facts in an application. This is a?
concealmen
The insured intentionally did not inform the insurer that the insured owned only 35% of the property. This is an example of:
concealment
Willful failure to disclose material information is a/an?
concealment
A binder is:
confirmation of temporary insurance
To determine the applicant's financial standing, an Insurer may use a:
credit report
When must the applicant be told that an investigative report will be obtained?
when the application is made
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? yes or no
yes
The Insured's promise to maintain a fire sprinkler system is a?
warranty
The insured's promise to maintain specified anti-theft devices is a?
warranty
Which section of a property policy requires the Insured to submit a sworn proof of loss form?
Conditions
Which insurance policy section contains the Insured's duties in the event of a loss?
Conditions
assists the insurer in settling a loss covered by the policy
A proof of loss form:
TRIA applies to which of the following?
Acts of terrorism
The rules of conduct between the Insurer and Insured are set forth in which section of the policy?
Conditions
To collect on a loss, the Insured must comply with the procedures set forth in the?
Conditions
Which section of the policy contains the identity of the Insured and Insurer
Declaration
The named Insured is identified in which section of the policy?
Declaration
Insurable losses will be listed in what section of the policy?
Insuring Agreements
Which policy section should the Insured check to determine if a particular coverage is provided in a named peril policy?
Insuring Agreements
Which section of the policy contains the Insurer's obligation to repair, replace or pay?
Insuring Agreements
Which section of the policy contains the Insurer's promise to pay
Insuring Agreements
Which section of the policy contains the covered perils?
Insuring Agreements
Which section of the policy contains the precise description of covered perils?
Insuring Agreements
Which section of the policy determines the coverage?
Insuring Agreements
Which section of the policy obligates the Insurer to indemnify the Insured?
Insuring Agreements
Which section of the policy requires the Insurer to provide coverage?
Insuring Agreements
Which section of the policy states the reasons for which the Insurer will pay claims?
Insuring Agreements
Which section of the policy describes the coverage?
Insuring agreements
The Terrorism Risk Insurance Act (TRIA) was adopted following:
The World Trade Center destruction on 9/11/01
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? 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
The agent will need to issue a binder to provide Alice with temporary coverage
Binders must show each of these EXCEPT: a.the amount of the premium b.name of insurer and insured c.list of covered items d.the date the binder becomes effective
a
The Proof of Loss includes each of the following except: a.the policy's limit of liability. b.lienholder identification. c.a sworn statement regarding other insurance. d.the names of all persons with an insurable interest.
a
Before the policy is issued, the insurance agent may provide a written document to prove that insurance is already in effect. This is:
a binder
The Fair Credit Reporting Act:
allows consumers to insert corrective statements in their consumer reports.
The primary source of insurability information is the:
application
Which of the following is considered to be part of the policy? a.application b.insured c.proof of loss form d.premium
application
The Proof of Loss form:
assists in determining the amount of the loss covered by the policy.
The Proof of Loss must contain each of these EXCEPT: a.the cause of the loss. b.the original sales receipt. c.any replacement sales receipt if the item has been replaced. d.a sworn statement.
b
The creation of a contract requires each of these EXCEPT: a.competent parties ba.competent parties b.notarization c.consideration d.legal purpose c.consideration d.legal purpose
b.notarization
The insured is entitled to: a.receive a copy of the investigative report from the insurer. b.be told the name and address of the consumer reporting company
be told the name and address of the consumer reporting company.
Evidence of temporary coverage is a:
binder
a warranty 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
Insurance covers: a.physical hazards b.morale hazards c.moral hazards d.All of the above
d.
Which section of the policy contains the premium
declaration
Failure to file a Proof of Loss may result in:
denial of the claim
In addition to requiring that Insurers protect clients' privacy rights, the Gramm-Leach-Bliley Act:
encourages the states to adopt uniform licensing requirements to make it easier for Producers to sell insurance across state lines.
The Fair Credit Reporting Act requires the insurer to:
inform the applicant that an investigative report will be made
Which section of the policy contains the company's promise of protection?
insuring Agreements
Concealment is:
intentional nondisclosure of material facts
Concealment involves:
intentionally failing to disclose a material fact
The best source of moral character information is the:
investigative report
A binder becomes effective when:
made by the agent.
Concealment involves intentionally hiding:
material fact
Binders: a.guarantee a permanent policy will be issued. b.may be oral.
may be oral.
Even though he owns several boats, the applicant states that he owns no boats. This is an example of:
misrepresentation
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:
misrepresented material facts.
Contracts require each of the following EXCEPT:
notarization
A promise by the insured that certain future conditions will exist is a?
warranty
Consideration is evidenced by:
paying a premium
An Insuring Agreement is:
promise to pay
A sworn statement containing information regarding the claim is:
proof of loss
The Insured's sworn statement made to the Insurer regarding the time and cause of the loss is known as:
proof of loss
The purpose of the Fair Credit Reporting Act is to?
provide fair and accurate consumer credit reporting.
A binder:
provides temporary coverage.
An applicant was denied insurance based on a consumer report. The applicant may:
receive the name and address of the reporting agency from the Insurer.
A statement in the proof of loss form is presumed to be a?
representation
The applicant believes the statement to be true with a/an?
representation
Under the Federal Fair Credit Reporting Act, the Insured has NO right to:
require that the insurer supply a copy of the report.
The conditions section of the policy contains:
the insured's obligations if a loss occurs
A policy provision that may void the policy if the provision is violated is a:
warranty