a car accident is an example of

ABC Insurance is headquartered in Wisconsin but doing business in Florida. The prospective client is headquartered in Canada. While doing business in Florida, ABC Insurance is classified as

ABC Insurance company is licensed to sell insurance in Wisconsin. When the company is licensed in a state, it is considered

Susan decides to drive fast in a horrible snowstorm because she knows that if she gets in an accident that her insurance will cover her. This is an example of

All of the following are elements of insurable risks EXCEPT

All of the following statements regarding mutual insurers are correct EXCEPT

A bulk mail insurance advertising brochure sent by the insurer to every home in one zip code is an example of

Which of the following risk management methods is used by insurance companies?

According to the law of agency, an insurance agent acts on behalf of

In an insurance contract, the second party is

Which of the following levels of agent authority is a written agreement with the insurer?

The owner of a house left a gasoline can too close to a source of heat in the garage. If the house burns down in a fire because the gasoline can exploded, the cause of loss is called

According to the law of large numbers

All of the following statements regarding surplus lines insurers are correct EXCEPT

Josephine sells insurance for one company and is an independent contractor, not an employee of the insurer. She is

An insured gives a producer the premium for an insurance policy. The producer sends the premium to the insurance company. In this situation, who is the fiduciary?

Insurance is a contract that

At the state level, the government is involved in

An insurance policy between the insurance company and an insured, which cannot be assigned to another person without the insurer's consent, is a characteristic of

Mr. and Mrs. Smith meet their insurance agent at a restaurant after work to purchase a new dwelling policy. Both have had several cocktails by the time the agent arrives. Which of the elements of a legal contract is missing?

Edward is applying for an auto insurance policy for him and his son Bradley. Edward knows that Bradley has had three speeding tickets in the past year, but he did not tell the agent this while filling out the application. This is an example of

All of the following statements about aleatory contracts are true EXCEPT

Intentional misrepresentation and withholding material information is known as

Which of the following elements consists of an offer and an acceptance?

All of the following statements about unilateral contracts are true EXCEPT

All of the following statements about waiver and estoppel are true EXCEPT

Statements provided by an insurance applicant, that the applicant believes are true, are considered

Information that is given on an insurance application that is not true and would affect the insurer's decision to accept the contract is known as

Which of the following statements best describes the principle of indemnity?

Holly visits her insurance agent's office to discuss coverage for her new condo. They complete the insurance application and Holly gives the agent a check for $500 for the premium. A month later, the agent calls Holly to tell her the policy arrived at his office. At what point did consideration take place?

An applicant for insurance must accept or reject a contract as written. For this reason insurance policies are

All of the following are requirements of a legal contract EXCEPT

A statement that is guaranteed to be true is

According to the Gramm-Leach Bliley Act, anyone who has an ongoing relationship with a financial institution is considered to be

Randall has an insurance policy that states that his policy began at 10:00 AM EST on January 17th of the current year and ends at 12:01 AM EST on January 17th of the following year. These details are known as

Glenn's insurance policy was cancelled by the insurer on the effective date. This is called

An existing auto insurance customer calls your office and says she has bought a car and needs immediate coverage. What can you give your customer to provide immediate coverage in this situation?

All of the following statements about cancellation and nonrenewal of an insurance policy are true EXCEPT

The provision that states where a loss must occur for it to be covered is known as

Which part of the policy states the rules of conduct, duties, and obligations that are required for coverage?

Casualty insurance

Brady and his wife Julie had an insurance policy that was cancelled by the insurer before the expiration date. They will receive a portion of their premium back on

Which of the following is NOT part of the underwriting process?

Which of the following statements about the deductible in an insurance policy is CORRECT?

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

The penalty for early cancellation of an insurance policy by the insured is applied on

The declarations section of a policy contains all of the following information EXCEPT

All of the following statements about property insurance are correct EXCEPT

Nathan and Allison have two insurance policies on their home. Policy A has a coverage limit of $100,000. Policy B has a coverage limit of $200,000. When Nathan and Allison have a house fire and have a $100,000 claim, Policy A paid $50,000 and Policy B paid $50,000. This is an example of which other insurance provision?

Natalie has an insurance policy that specifically does NOT cover flood damage. This information can be found in which of the following sections of the policy?

A promise to pay and perils covered is described in

All of the following statements about the Fair Credit Reporting Act are true EXCEPT

The person that is listed on the declarations page when there are multiple people insured in a policy, and may have higher level duties or rights in the policy, is known as

Which of the following is NOT a factor that determines premium rates?

A car speeds through the red light at an intersection, totaling the insured's car. After his insurer paid for the total loss of his car, his insurance company brings suit against the negligent party to recover the amount paid for the loss. This is known as

The amount of money that the insurance company makes by providing insurance for a designated period is called

Which of the following states that a policy may not be transferred to anyone else without the written consent of the insurer?

All of the following are included in the duties after loss provision EXCEPT

Bernie and his insurer came up with a price value of his grandfather's baseball card collection that he now owns. If a loss occurs to this collection, what will be the amount that the insurer will pay?

Which of the following is NOT included on the basic cause of loss form?

The insured had a covered loss in which the replacement cost of the item is $5,000; current market value is $4,500; depreciation is $2,000; and the repair cost is $3,500. How much will be paid on this claim if it is settled on an actual cash value (ACV) basis?

Which of the following statements about loss valuation is NOT correct?

Renee has a policy that covers all risks of direct physical loss except for flooding because it is specifically excluded. Which coverage form does Renee most likely have?

An insured may be reimbursed on the basis of a damaged item's repair cost when the repair cost is less than

Which of the following is NOT covered by broad peril coverage?

Which of the following statements about the appraisal condition is NOT correct?

Mr. and Mrs. Kim own a home in Chicago and re a lake home in Wisconsin. Every year, they travel to their lake home for Memorial Day weekend. While the Kims are at the lake home, their home in Chicago is considered to be

Which of the following is NOT another name for an open peril policy?

Which of the following conditions is used to resolve other areas of disagreement besides value of loss between the insured and insurance company and is typically used before an insured seeks legal advice?

The insured has a home with a replacement cost of $200,000 but has insured it for only $100,000. An 80% coinsurance provision is present in the policy. When an $80,000 loss occurs, the policy will pay

As it relates to property insurance, the person or business that has temporary possession of someone else's property is known as

Appliances, clothing, tools, furniture, jewelry, and electronics are examples of

Adam has a blanket policy on his house. Which of the following best describes the items that are covered under this policy?

All of the following are examples of an indirect loss EXCEPT

Anita has a split limit liability policy that has limits of 100/200/50. Anita caused an accident that caused $75,000 of property damage. What is the maximum that her liability policy will pay for the property damage?

All of the following are defenses against negligence EXCEPT

All of the following statements are true about negligence EXCEPT

Joyce was driving too fast on a busy highway during a snow storm. She caused a collision and totaled Ray's car. Ray suffered from a broken leg, broken arm, and lost wages after having to miss work for 6 weeks. Ray's specific and provable expenses are called

Jordan delivers lunches for the local deli, using his employer's vehicle. He is on his cell phone and swerves into oncoming traffic which causes an accident, injuring the driver and passengers of another vehicle. Jordan is directly liable for the accident. What type of liability, if any, might his employer incur?

In a liability loss, who is the first party?

Heather, the insured, was texting and driving and caused an accident that injured a passenger in another vehicle. The passenger in the other vehicle cannot be held liable for any damages. Which of the following defenses of negligence confirms this statement?

Ricardo, the insured, is in a hurry to get to work. He fails to stop at a stop sign, speeds through an intersection, and strikes another vehicle injuring the passenger. The injured passenger sues Ricardo for the injuries she sustained. In this example, who is the third party?

Alligators-R-Us is an eco-tourist site to build awareness of alligator habitat. The facility is very well maintained and exceedingly properly managed. Some teenagers were joking around and pried open one of the alligator gates. One of the teenagers was injured by an escaping alligator. Which statement is true?

Jimmy was driving over the speed limit and almost caused a major accident. According to the definition of establishing negligence, Jimmy would be

In general, which of the following is included in a liability policy?

Which of the following liability limits is not applied on a per-occurrence basis?

A liability policy has limits of $500,000 per occurrence and a $2 million aggregate. The policy period is from January 1 to December 31. If the company files a $450,000 claim in March, two-$500,000 claims in August, and a $100,000 claim on December 23, what will the aggregate amount be after the policy is renewed?

All of the following are duties of the insured after a liability loss EXCEPT

All of the following statements about supplementary payments in a liability policy are true EXCEPT

Which of the following statements about dwelling insurance is NOT correct?

Which of the following covered perils forms is the most inclusive?

Personal liability and medical payments to others coverage includes all of the following additional coverages EXCEPT

According to the loss settlement condition in the DP-2 and DP-3, as long as the insured carries insurance equal to 80% or more of the full replacement cost of the building at the time of loss, the loss to the dwelling or other structures will be paid on

William and Joan need to purchase dwelling insurance for their vacation home. They want to insure the dwelling itself and their personal property in the vacation home. Which of the following coverages should they purchase?

All of the following statements about Coverage C-personal property are true EXCEPT

Under the DP-1 - dwelling basic form, property that is removed from the premises to protect it against loss is covered for how many days?

All of the following statements about the residential theft coverage endorsement are true EXCEPT

Which of the following losses is covered in the covered perils-broad form?

Clint has a DP-1 policy and chooses not to add on any extended coverage for an additional premium. Which of the following perils would NOT be covered in his policy?

Which of the following comes closest to expressing the insurance protection Coverage E provides?