問題一覧
1
Insurance is a type of:
Risk transfer
2
In an insurance policy, who is the first party?
the named insured
3
Which term does not represent the theory of indemnity?
abandonment
4
Which of the following is not required to create a contract?
the agreement must be put in writing
5
Who of the following is competent to enter into a contract?
an adult who is sober and sane
6
A person applying for homeowner’s insurance lied about prior losses and the age of his house. He is guilty of what?
material misrepresentation
7
When originally applying for the policy, a homeowner’s insured stated that no business operations took place at the residence. While investigating a claim for windstorm damage, the insurer discovered that the insured had been manufacturing dynamite in the house. The insurer will most likely:
void the policy
8
Which of the following building would be considered vacant?
a building with no contents and no occupants
9
The moral hazard is shown by which of the following?
an insurer knowingly increased the risk of loss without telling the insurer
10
Which of the following would be an insurable loss?
accidental discharge of an appliance
11
Property insurance would not cover which of the following?
freezing pipes when the power was left off during a blizzard
12
Which of the following would not cause obsolescence?
wear and tear
13
Of the following, who does not have insurable interest?
a non-owner occupant in a building
14
Property insurance covers what kind of losses?
direct and indirect loss
15
What is a direct loss?
damage by a peril insured against
16
What is indirect loss?
loss of use of property resulting from direct loss
17
What type of policy covers all perils that are not excluded?
all-risk or special form
18
Which of the following most accurately describes concurrent causation?
two or more perils acting together to cause a loss
19
David and Thomas each own half of an 80-inch flatscreen TV. Only David buys insurance, in his name only, with a limit of $12,000 and a deductible of $250. A total loss occurs while David is using the TV. At the time of loss, the TV is valued at $15,000. How much will David and/or Thomas receive?
Dave will receive $12,000 and Thomas will receive nothing
20
Which of the following is not a duty of the insured in the event of a loss?
file a lawsuit against a person suspected of arson
21
Which of the following is true about a proof of loss?
an insured must prove a loss in a signed, sworn statement
22
Which of the following most accurately describes actual cash value?
replacement cost minus depreciation
23
Which of the following happens in a bailment?
transfer of possession
24
Which of the following is not bailment?
you borrow your neighbor’s chainsaw
25
A commercial insured has three building insured with a blanket limit of $375,000. At policy inception, building 1 had a value of $200,000, building 2 was valued at $150,000, and building 3 had a value of $120,000. What is the most that would be available for loss to any one building? Hint: on the date of loss, you would not yet know the current values of any building, but you WOULD know the limit on the policy.
$375,000
26
Two policies are nonconcurring when:
they cover the same property but with different terms and provisions
27
What is the purpose of an insurer’s declaratory action?
to obtain the court’s opinion of coverage under a policy in a loss situation
28
When is an insured allowed to abandon property that has suffered a covered loss?
never
29
An insured is not allowed to do which of the following?
abandon property to the insurance company
30
An insuring agreement:
expresses the insurer’s obligation of coverage
31
The conditions section of a policy:
states, among other rules and rights, the insured’s duties in the event of loss or damage
32
Which of the following property is not excluded in a standard fire policy?
stamp collection
33
Which of the following causes of loss is excluded in a standard fire policy?
neglecting loss
34
When is there coverage in a standard fire policy for damage caused by order of a civil authority?
when the purpose of the civil authority’s action is to help prevent the spread of fire
35
An insured has standard fire policies on a building with insurers A and Z. The policy limit with A is $100,000 and the limit with X is $50,000. Disregarding the deductibles, How much would each insurer pay in a $30,000 loss?
A will pay $20,000 and Z will pay $10,000
36
If an insurer decides to cancel a standard fire policy, it must do what?
Notify the insured in writing with proof of mailing
37
A standard fire policy with the extended coverage endorsement would not cover which of the following claims?
The weight of snow and ice caused the roof to collapse
38
An insured wants to add an extended coverage endorsement to his standard fire policy. What peril is not included?
Vandalism