Insurance Review pt.2

Play an AI-generated podcast conversation about this lesson

How often do you review insurance policies?

Never

Once a year (correct)

Every few months

Regularly

What transfers financial risk in insurance?

Policyholder

Banks

Insurance company (correct)

Government

Property insurance covers reputation damage

False

Which insurance covers liability for personal actions?

Causality Insurance Signup and view all the answers

All risks are insurable

False Signup and view all the answers

What does "peril" mean in insurance terms?

Cause of loss Signup and view all the answers

Mutual companies issue dividends to policyowners.

True Signup and view all the answers

What is the primary role of a producer in insurance?

Representing insurer Signup and view all the answers

Which contract term benefits the policyowner?

Adhesion Signup and view all the answers

What does 'adverse selection' describe?

High risks seeking insurance Signup and view all the answers

Which is NOT a type of property insurance?

Health Signup and view all the answers

What is the benefit of a contract of adhesion?

Policyowner determines wording Signup and view all the answers

What does 'adverse selection' describe?

Selection of policyholders Signup and view all the answers

Which is NOT a type of property insurance?

Workers Compensation Signup and view all the answers

What is the purpose of a personal umbrella liability policy?

Supplement primary liability coverage Signup and view all the answers

What does a commercial liability umbrella policy provide?

Excess limits for general liability Signup and view all the answers

What is the purpose of a surety bond?

Protects the obligee Signup and view all the answers

What does medical professional liability insurance cover?

Claims involving medical care providers Signup and view all the answers

What does employment practices liability insurance cover?

Claims involving workplace violations Signup and view all the answers

What does fiduciary liability insurance cover?

Claims involving breach of fiduciary duties Signup and view all the answers

What does an employee benefits liability policy cover?

Claims involving errors in employee benefit plans Signup and view all the answers

What does a commercial crime policy cover?

Employee theft and forgery Signup and view all the answers

What is the purpose of a workers compensation policy?

Provides worker benefits Signup and view all the answers

What does 'subrogation' mean in insurance?

Claim recovery Signup and view all the answers

Which policy covers business liability?

Commercial General Liability Signup and view all the answers

What does 'exposure' indicate in insurance?

Risk of loss Signup and view all the answers

Which is a duty of an insurance producer?

Full disclosure Signup and view all the answers

What is the main purpose of 'coinsurance'?

Encourage adequate coverage Signup and view all the answers

Which is NOT covered by standard property insurance?

Earthquake Signup and view all the answers

What does 'indemnity' mean in property insurance?

Reimburse loss Signup and view all the answers

Which insurance is mandatory for businesses in most states?

Workers Compensation Signup and view all the answers

What does 'premium' refer to in insurance?

Policy cost Signup and view all the answers

Individuals in the business of selling construction equipment and mobile equipment should insure with a/an

Equipment dealers coverage form Signup and view all the answers

All of the following are true regarding deposit premium

It must be paid in advance It is an estimated premium paid at the policy issue It could be adjusted by the audit Signup and view all the answers

Which of the following is NOT an essential element of an insurance contract?

counteroffer Signup and view all the answers

To purchase insurance, the policyowner must have financial interest in the property being insured. This is known as

Insurable Interest Signup and view all the answers

What type of property does a Personal Floaters policy cover?

Movable personal property, wherever it may be located Signup and view all the answers

Events of conditions that increase the chances of an insured loss occurring are referred to as

Hazards Signup and view all the answers

When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The proximate case Signup and view all the answers

The causes of loss insured against in an insurance policy are known as

Perils Signup and view all the answers

Surety bonds are written for a definite limit called

The Bond Penalty Signup and view all the answers

Insurance is the transfer of

Risk Signup and view all the answers

Crime insurance is usually written on the basis of

All-Risk Signup and view all the answers

The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is

Considered uninsured Signup and view all the answers

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment Signup and view all the answers

When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of

concealment Signup and view all the answers

An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for?

80% of the property's replacement cost or more Signup and view all the answers

Which of the following is true regarding the fire department service charge under the builders risk form?

it is an additional coverage Signup and view all the answers

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration Signup and view all the answers

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty Signup and view all the answers

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT

The insured's business income losses due to personal injury Signup and view all the answers

All of the following are considered parts of the policy structure EXCEPT

Provisions Signup and view all the answers

A premium discount is the term that describes when an insured owes a total standard premium greater than

$5000 Signup and view all the answers

Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered?

any other state Signup and view all the answers

Which of the following is an additional coverage that is covered by the broad causes of loss form?

collapse Signup and view all the answers

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT

$1000 on silverware Signup and view all the answers

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days Signup and view all the answers

Which of the following policies will help an auto dealership cover most of its liability exposures?

A garage liability coverage Signup and view all the answers

Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?

Aggregate limit of liability Signup and view all the answers

Coverage under the builders risk form will end in all of the following except

60 days after the construction ended Signup and view all the answers

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions Signup and view all the answers

To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

That has met the minimum floodplain management guidelines Signup and view all the answers

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engaged in hazardous activities Signup and view all the answers

When a parent is required to pay for damages caused by his or her children, this is an example of

Vicarious liability Signup and view all the answers

Insurance Review pt.2

Choose a study mode

Podcast

Questions and Answers

How often do you review insurance policies?

What transfers financial risk in insurance?

Property insurance covers reputation damage

Which insurance covers liability for personal actions?

All risks are insurable

What does "peril" mean in insurance terms?

Mutual companies issue dividends to policyowners.

What is the primary role of a producer in insurance?

Which contract term benefits the policyowner?

What does 'adverse selection' describe?

Which is NOT a type of property insurance?

What is the benefit of a contract of adhesion?

What does 'adverse selection' describe?

Which is NOT a type of property insurance?

What is the purpose of a personal umbrella liability policy?

What does a commercial liability umbrella policy provide?

What is the purpose of a surety bond?

What does medical professional liability insurance cover?

What does employment practices liability insurance cover?

What does fiduciary liability insurance cover?

What does an employee benefits liability policy cover?

What does a commercial crime policy cover?

What is the purpose of a workers compensation policy?

What does 'subrogation' mean in insurance?

Which policy covers business liability?

What does 'exposure' indicate in insurance?

Which is a duty of an insurance producer?

What is the main purpose of 'coinsurance'?

Which is NOT covered by standard property insurance?

What does 'indemnity' mean in property insurance?

Which insurance is mandatory for businesses in most states?

What does 'premium' refer to in insurance?

Individuals in the business of selling construction equipment and mobile equipment should insure with a/an

All of the following are true regarding deposit premium

Which of the following is NOT an essential element of an insurance contract?

To purchase insurance, the policyowner must have financial interest in the property being insured. This is known as

What type of property does a Personal Floaters policy cover?

Events of conditions that increase the chances of an insured loss occurring are referred to as

When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be

The causes of loss insured against in an insurance policy are known as

Surety bonds are written for a definite limit called

Insurance is the transfer of

Crime insurance is usually written on the basis of

The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of

An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for?

Which of the following is true regarding the fire department service charge under the builders risk form?

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT

All of the following are considered parts of the policy structure EXCEPT

A premium discount is the term that describes when an insured owes a total standard premium greater than

Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered?

Which of the following is an additional coverage that is covered by the broad causes of loss form?

The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

Which of the following policies will help an auto dealership cover most of its liability exposures?

Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?

Coverage under the builders risk form will end in all of the following except

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

All of the following statements describe the concept of strict liability EXCEPT

When a parent is required to pay for damages caused by his or her children, this is an example of

More Like This

Understanding Insurer's Payouts: Quiz & Flashcards

Medical Expense Insurance Exam Review

Variable Life Insurance Exam Review

Medicare Advantage Plans Overview