MA PERSONAL LINES MULTIPLE CHOICE QUESTIONS WITH CORRECT ANSWERS

MA PERSONAL LINES MULTIPLE CHOICE
QUESTIONS WITH CORRECT ANSWERS


C - ans-
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Each of the following must be present in order for an insurance contract to be legal and enfo
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rceable except: cv




A. Offer cv cv




B. Acceptance
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C. Competent Underwriting
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D. Legal Purpose
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A - ans-
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An insurance contract is created by an insurer. Any ambiguities that appear in the future will
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be decided by a court in favor of the insured since the policy is:
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A. A contract of adhesion
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B. An aleatory contract
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C. A unilateral contract
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D. A personal contract
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B - ans-Which of the following parts of an insurance contract identifies the perils covered?
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A. Declarations
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B. Insuring Agreement
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C. Conditions
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D. Exclusions
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B - ans-
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An insurance policy is comprised of four basic sections. Which of the following appears in th
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e declarations section of the policy?
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A. The perils covered
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B. The type of property covered
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C. The obligations of the insurer
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D. The property not covered
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A - ans-
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The name of a mortgagee, amount of the annual premium and the coverage inception date
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all appear in what section of a property and casualty insurance policy?
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A. Declarations
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B. Insuring Agreement
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C. Conditions
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D. Exclusions
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D - ans-Which of the following permits an insurer to reduce the cost of insurance?
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A. Declarations
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, B. Insuring Agreement
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C. Conditions
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D. Exclusions
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B - ans-
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The statements made by an applicant in an insurance application are considered to be:
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A. Warranties
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B. Representations
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C. Misrepresentations
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D. Countersignatures
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D - ans-
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A statement made by an applicant for insurance that is guaranteed to be absolutely true an
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d is made part of the contract is called a:
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A. Representation
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B. Conditional Promise
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C. Consideration
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D. Warranty
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C - ans-Which of the following is true regarding the Fair Reporting Credit Act?
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A. It permits insurers to deny invalid claims
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B. It allows applicants to do a credit check on the insurer
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C. It allows an applicant to receive a copy of the information contained in a consumer report
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D. It permits an insurer to cancel a policy for nonpayment of premium
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A - ans-A promise made in exchange for an act already performed best describes:
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A. A unilateral contract
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B. A bilateral contract
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C. An executory contract
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D. An executed contract
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B - ans-
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An insurer which issues a policy after accepting an incomplete application has engaged in a
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:
A. Parole evidence rule
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B. Waiver
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C. Warranty
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D. Conditional acceptance
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A - ans-
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Ms. Walters makes an offer to an insurer. The insurer then counters the original offer. This
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means that the original offer has been:
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A. Rejected
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B. Accepted
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C. Unilaterally assumed
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D. Negotiated
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