General insurance quiz
Things to be considered when examining a property risk
location Distance from the fire station Type of business
Named perils are found in which cause of loss forms
Basic and broad
In the following example who would have insurable interest; Bob buys a car from Ford in which he took out a car loan from Comerica bank Bob drives his car to his place of work the mega corporation
Bob and Comerica
Bob eats chicken salad from Smith's deli and dies this is an example of
Bodily injury
Authority that is not formally communicated to a producer is
Implied Authority
In order for a contract to meet the standard of legal purpose the insured must demonstrate what
They have an insurable interest in the property
Bob buys a car in finances through his credit union what would half an insurable interest in the car
Title holder owner Credit union
A contract in which the insurer must perform certain duties is
Unilateral
What rating services are designed to do
Verify the Financial strength of the insurer
The uncertainty of loss
risk
Grandma is moved from her house to a nursing home, she took most of her belongings her house is now
unoccupied
Law of large numbers
A Large Group of similar risks
The liability in which the person is automatically liable if damages arise from the proximate cause of their actions.
Absolute liability
The concept in contract law which states the receiver of the contract must except or reject the contract and it's entirety
Adhesion
The concept in contract law which states that one party could gain an economic advantage over the other party based on the outcome of some unknown future event is
Aleatory
The authority a producer has based upon the publics perception of what he can do is
Apparent authority
A building is insured by two property policies that are the same type of insurance company has a limit of 50,000 and Company B has a limit of 100,000 the building suffers a covered loss in the amount of 12,000 which of the following directly describes how the loss will be paid
Company A pays 4000 and Company B pays 8000
When two perils occur at the same time and one of them is excluded this is referred to as
Concurrent causation
A contract has an offer and an acceptance which of the following is also required
Consideration
A contract not only has to be for a legal purpose but it must also have
Consideration
Insuring Clause
Coverage/perils provided The insurers promise to pay Pronoun designations
A liable policy could pay for
Special compensatory General compensatory Medical payments
Which section of the policy would you find a complete explanation of the terms used through out of contract
Definitions
A property policy has an other insurance provision that states that the policy will only pay once the primary policy has exhausted their limit. This provision means the policy will be
Excess
A house built on a floodplain is an example of
Exposure
Authority that is given to a producer whether in writing or verbally is
Expressed authority
Type of perils that would be found in broad form cause of loss
Falling objects Weight of ice snow and sleet Water damage
A condition that increases the likelihood of loss is
Hazard
A homeowner keeps a stack of newspapers next to the fireplace is an example of what
Hazard
Best describe perils and hazards
Hazards are inactive, perils are active
Duties of a producer
Help their clients file claims and follow up with those claims make sure the client clearly understands what they have purchased Represent the insurer and help negotiate insurance policies
The concept in which the insurer is to put the insurance in the same position they were in before the loss takes place
Indemnification
A house is destroyed by fire the insured cost for renting another house all repairs are being made is an example of what
Indirect loss
The insurer will only ensure the risk if the risk is known to the insurer
Insurable interest
To be in a position to lose something of value is defined by
Insurable interest
What would be an accurate description of the exchange of value that takes place during an insurance transaction
Insurer makes a promise and the insured pays money
The perils insured against would be found in which section of the insurance policy
Insuring agreement
What would not be considered a competent party
Intoxicated 30 year old
Losses over a specific period is known, who specifically will suffer a loss is not known.
Law of large numbers
What are used to sit insurance rates
Loss costs
If an insured purposely gives a wrong answer on an application they have done what
Misrepresentation
Types of hazard for property insurance
Morale, moral, and physical
The type of insurer which pays dividends to its policyholder
Mutual
What is found on a declarations page
Name of the insured Address of the insured Limits of insurance
A homeowner stores property in a storage unit in a storage unit catches on fire the owner of the storage unit facility will not receive any payment under the homeowners policy because of
No benefit to bailee provision
Someone is texting while driving and runs into a tree, the collision would be
Peril
Bodily injury is most accurately described as
Physical injury to the body including sickness and death
The effective date and expiration date is defined as
Policy period
If an insurance policy is canceled and the insurer returns the unknown earned premium without any reduction it will be which of the following cancellations
Pro rata
The two types of risk
Pure and Speculative
If an insured has purchased a homeowners policy and their home is damaged what legal principle would guide the insurers actions
Reasonable expectations
If the owner of the building and saw the sprinkler system which method of risk management have they used
Reduction
What are statements Made by an insured on an application
Representations
The insured has purchased agreed value on their property policy. If their property suffers a covered loss, what would the insured pay.
Set limit
The type of insure which has shareholders is
Stock
In the contract of insurance the principal would be
The insurer
