Property quiz questions

Under fair credit reporting act maximum penalty for obtaining consumer information reports under false pretenses is

$5,000, imprisonment for one year, or both

Trees, shrubs and other plans are included in coverages and Debi two in DP3 however, the policy will not pay more than

$500 for anyone tree, shrub or plant

An insured has a dwelling broad form on her home with a replacement value of $100,000 how much insurance should the insured carry to obtain replacement cost coverage for the partial losses to the dwelling?

$80,000

Under cancellation condition during the first 60 days of a policy term the insurance company can cancel for any reason as long as they give the insured

10 days written notice

An insured owns a $200,000 home and ensures it for 100,000 if the insured's home was completely destroyed by a fire, how much money would the insurance company pay if the insured has a policy that requires a minimum of 80% coverage?

100,000

The policy minimum limit for coverage all personal liability is

100,000

Imprisonment may be ordered for up to how many years of false statements may jeopardize the safety and soundness of an insurer

15

In the broth have coverage endorsement what is the limit of liability for jewelry watches for his precious and semi precious stones

1500

Todd and Mary have insurance protection for their home with a policy deductible 501 night thunderstorm extra onto the roof and causes 2500 damage. How much money will the insurance company pay to Todd married to fix the roof

2000

David roofers damage on his garage when a tree fell during thunderstorm he removed his property from the garage to storage facility to protect it from getting destroyed this property although off the premise will be covered for

30 days

In DP-1 property removed to protect it from a basic payroll is covered for five days in DP2 and the P3 property removed is covered for

30 days

The last payment condition states that the insurance company has how many days to pay for a loss after reaching an agreement with the insured

60

Which of the following theft losses would be completely covered if the loss were for the full value of the property described?

A $2,000 silver set

Which of the following would not be covered under coverage a or coverage be of the dwelling policy?

A detached garage used for commercial purposes

Which of the following is not eligible for coverage under a dwelling policy?

A farm

Sometimes an individual or business has an exceptionally large or specialized risk. The no authorized insurer can, or will cover in this case, the individual or business may call.

A non-admitted insurance company

Jill is filling out an insurance application with information she believes to be true the information she's providing is considered

A representation

Brad has a dwelling policy with broad theft coverage for on and off his promise, which of the following theft losseswould be covered

A ring that was received as a gift

All of the following statements about a stock insurance company are true, except

A stock company is a non-participating A stock company has shareholders A stock company pays dividends to shareholders A stock companies are participating company D- stock companies are non-participating

Which of the following perils is not included in the basic form perils

Accidental discharge of water

An insurance contract is prepared by one party the insurance company with little or no opportunity, for the other party to bargain is characteristic is called

Adhesion

In insurance and insured may pay premiums for many years without having a loss or an insured me suffer a loss and get a larger amount of money from the insurance company than he is paid in premiums for this reason an insurance contract is

Aleatory

Which of the following is not one of the nine major categories of valuable property that are used in the scheduled personal property endorsement?

Antique car collection

Which one of the following is not an additional coverage included in all homeowners forms

Building additions and alterations

States require companies to have a license to sell insurance in the state. This license is called.

Certificate of authority

The best example of reduction as a risk management technique is

Choosing not to go, skydiving, buying an insurance policy, increasing a deductible, wearing a seatbelt D

Legal agreement between two competent parties, that promise, certain performance, and exchange for certain consideration

Contract

Which of the following is not a ratio that the insurer uses to evaluate performance?

Cost ratio

For all forms except HO-4 an HO-6 the primary amount of insurance is

Coverage A

The Johnson family home is covered by DP-3. When a fire destroys the home, they are forced to live in a hotel for two months. What coverage would reimburse them for the hotel, dining, laundry, and transportation expenses during these two months?

Coverage E

Damage to covered property caused by glass breakage is

Covered in DP2 in DP3 Covered in DP1 Excluded in all dwelling forms Covered in all dwelling forma A

Which dwelling form pays losses to dwellings, and other structures on an actual cash value basis

DP-1

After a blizzard, the roof of the insured's home collapses due to the way of the snow this would be covered under which form

DP-2

A financial loss resulting directly from a loss to property, such as a house fire or a diamond ring being stolen, is called

Direct loss

Which of the following types of advertising does not involve an agent and is conducted through mail by advertisements and newspapers, magazines on television, or radio or through the Internet?

Direct response

Calling policies, exclude losses from all of the following, except

Earthquakes war, intentional, losses vandalism D- vandilism

Allison's auto insurance policy due on the 10th of each month she sent the premium in on the 16th of the month. Insurer has been accepting the premium this way for the past five years new CEO takes over and decides to cancel Allison's policy for nonpayment of premium she can test this decision. Lily gets the policy reinstated the decision to reinstate the policy is an example of.

Estoppel

The authority made explicit in a producers, written agency agreement with the insurance is known as

Express

A person in a position of financial trust is called

Fiduciary

Rod payroll coverages include all basic perils, and all of the following, except

Flooding and overflow from a sump pump

All of the following are insured in the broad perils coverage form, except

Flooding from a river or lake Burglar damage Weight of ice and snow Freezing a plumbing A

And insurance company Inc. in Wisconsin in conducting business in Wisconsin is known as a domestic company. What kind of company are they considered if they do business in Minnesota

Foreign

Anthony lied on his insurance application to obtain coverage. This is an example of.

Fraud

Which of the following acts requires financial institutions companies that offer consumers financial products or services like loans and insurance companies to explain their information sharing practices to their customers and safeguard sensitive data

GLBA

Which homeowners form insures tenants in a rental property

HO-4

Karl hands out a business card with his company logo to a new prospect setting me to the golf outing. This is an example of.

Implied authority

What is a contract or a device for transferring risk from a person, business or organization to an insurance company?

Insurance is the transfer of risk

Which of the following premium reading methods is determined by considering the individual risk, and using careful judgment in the experience of the underwriter

Judgement rating

Which of the following is not a type of merit reading that modifies the meaning of premium of the basis of the insurance loss experience

Manual rating

Dwelling policies, ensure only property do not automatically contain liability insurance for this reason dwelling policies are called

Monoline policies

A flood is an example of

Moral hazard, physical hazard, speculative risk peril

Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents our insurance so there's no reason to worry which type of hazard is this an example of.

Morale

Which policy ensures a property against all payrolls specifically listed in the policy

Named peril policy

Ensures may be classified according to their financial strength. This includes all the following factors, except.

Number of clients loss experience, operating expenses investment performance A- number of clients are not a measure of financial strength

Which policy insurance against all risk of direct physical loss except those specifically excluded in the policy

Open peril policy

All of the following statements regarding other coverage, is under the basic form DP-1 are true, except.

Other structures provides up to 10% of the coverage a limit the fire department service charge pays up to $500 other coverages are included for an additional premium rental value provides 20% of the coverage a limit C

Coverage be in a dwelling policy provides coverage for

Other stuctures

In an insurance contract, the consideration of the insured gives is called

Premium payment

Marcus has two policies that will cover his $20,000 loss company will pay the first 15,000 company Bp Zoo reminder in this example company 80s policy is considered

Primary

Factors that determine premium rates or by insurance companies include loss, costs, operating expenses, claim handling costs, and

Profits

Which of the following is not specifically excluded from coverage in coverage C of the homeowners policy

Property of a guest

An explosion damage, the wall of the insured's garage. The insured paid to have the wall boarded up to protect the garage and belongings in the garage from additional damage what other coverage would apply in the situation

Reasonable repairs

Insurance companies often purchase insurance to cover their own exposure to loss. This is called.

Reinsurance

The standard coinsurance clause provides a property must be insured for a specific percentage, usually 80% of its

Replacement cost

Since Jeff lives in the neighborhood across from the fire station, he decides to cancel his fire insurance policy, which risk management method is this

Retention

When an insured decides to cancel the policy before the expiration date, the unearned premium is returned on a

Short rate basis

Which of the following is not an example of insurable interest?

Someone's interest on a home their parents on

Which form provides (coverage on the dwelling in other structures, ensuring against risks of direct physical laws that are not specifically excluded in the policy

Special form

Which of the following coverages insures against all risks of direct physical lost that are not specifically excluded in the policy

Special perils

Which of the following individuals would be considered a competent party in an insurance contract?

Stephen who is 21 does not have a job and lives at home with his parents

Which of the following represents a pure risk

The chance your house may burn down

Suzanne, leave her side door unlocked when she leaves her work. Someone entered the apartment and stole her jewelry. What was the hazard?

The door being unlocked

Which of the following would not be included on the declarations page of the policy?

The exclusions in the policy

An individual applied for auto insurance and obtain coverage from ABC insurance company who was the first party in the contract

The insured (customer)

The heart of the insurance policy that states what will be covered is called

The insuring agreement

Agency is a relationship in which one person is authorized to represent an act for another person, or a corporation an insurance the insurance agent ask on behalf of

The principal

Six classes of construction that I recognized by underwriters. The class of the building is determined by the types of material used in the building, and.

The roof of the insured structure

Which of the following terms specifies the rights and duties of the mortgagee under the policy

The standard mortgage clause

Which statement best describes a peril

Tornado damage, the insured's home gas can in the insurance garage or leaking smoking cause the insured to pay higher premium commuting to work exposes the insured to Loss A

An act of terrorism must be certified by secretary of treasury, secretary of homeland, security, and

US Attorney General

Which of the following is not an element of a legal contract?

Unilateral

The term that describes the absences about people and property from the premise is

Vacant

Homeowners Policy provides property and liability coverage in a single policy for this reason it is called

a multiline policy

Losses to personal property, awnings, carpeting appliances, outdoor antennas, outdoor equipment, and structures that are not buildings are paid at

actual cash value

Which of the following terms describes a single limit of insurance that applies to all items of that property type?

blanket

Which of the following individuals represent only one insurance company?

captive agent

Which is not an element of insurable risk

catastrophic

The failure to disclose known facts is

concealment

Which of the following other coverages are included in all dwelling forms

debris removal

Which of the following is calculated by dividing the underwriting expenses by the written premium, and is a good indicator of the cost of doing business

expense ratio

Which of the following is not a part of the structure of a property or casualty insurance policy?

explanations

What do insurance companies use to help predict how many losses will occur in a group or class of individuals?

law of large numbers

Which of the following coverage limits does not have special theft only limits

money

An agreement between two parties is also called

offer and acceptance

The dp-3 provides

open peril coverage for the dwelling and broad coverage for personal property

Which of the following items of personal property would be covered under a dwelling policy?

pool table Motorized boat A pet A motorcycle A

All of the following are ways to assign rates, except

pro rata rating

What type of insurance policy protects the insured from loss caused by damage to covered property by a covered peril

property insurance policy

All of the following statements regarding appraisal are true, except

the claimant selects the umpire

All of the following are requirements of an insurable, pure risk, except

the risk must be catastrophic for the insurance company Premiums must be calculated bowl premiums must be affordable the Loss must've been accidental