OTL Exam A – Study Guide and Exam Preparation Material
unearned premium is defined as which of the following - correct answer ✔✔premium
representing the unexpired portion of a policy
the fire statutory condition -- replacement, outlines the options available to the insurer for
delivering indemnity to the insured. which of the following statements is false about how the
insurer may do that - correct answer ✔✔if requested by the insured, the insurers must pay a
loss in cash
what does an underwriter watch for when there are more than one loss payees named on an
insurance application - correct answer ✔✔financial hardship, poor property maintenance, and
temptation for fraud
which of the following would be considered a friendly fire - correct answer ✔✔the fire that
burns inside a furnace to create heat
for a homeowner's property policy, how is indemnity determined - correct answer ✔✔unless
otherwise stated, it is the actual cash value less depreciation
a basic home insurance policy would not provide coverage for which of the following (basic
doesn't cover faulty fireplace) - correct answer ✔✔damage caused by the sudden release of
smoke from a faulty fireplace
which of the following statements is true about a personal articles endorsement - correct
answer ✔✔provide all-risk coverage
a young child throws an object and damage the paint on the neighbor's car, what coverages
would be applicable to compensate - correct answer ✔✔1. this would be covered by legal
liability (cover E) , or voluntary payment for damage to property (cover G)
unearned premium is defined as which of the following - correct answer ✔✔premium
representing the unexpired portion of a policy
the fire statutory condition -- replacement, outlines the options available to the insurer for
delivering indemnity to the insured. which of the following statements is false about how the
insurer may do that - correct answer ✔✔if requested by the insured, the insurers must pay a
loss in cash
what does an underwriter watch for when there are more than one loss payees named on an
insurance application - correct answer ✔✔financial hardship, poor property maintenance, and
temptation for fraud
which of the following would be considered a friendly fire - correct answer ✔✔the fire that
burns inside a furnace to create heat
for a homeowner's property policy, how is indemnity determined - correct answer ✔✔unless
otherwise stated, it is the actual cash value less depreciation
a basic home insurance policy would not provide coverage for which of the following (basic
doesn't cover faulty fireplace) - correct answer ✔✔damage caused by the sudden release of
smoke from a faulty fireplace
which of the following statements is true about a personal articles endorsement - correct
answer ✔✔provide all-risk coverage
a young child throws an object and damage the paint on the neighbor's car, what coverages
would be applicable to compensate - correct answer ✔✔1. this would be covered by legal
liability (cover E) , or voluntary payment for damage to property (cover G)
