OTL Study 2 Practice Test Questions – Exam Preparation and Review Material
What do you call an independent businessperson who may be hired by an insured to help settle
a claim? - ✔✔Public Adjuster
What are the five secondary functions of insurance? - ✔✔Aiding security, aiding credit,
promoting loss prevention, providing capital, and providing employment.
Substituting a certain premium payment in place of an uncertain loss is a description for which
secondary function of insurance? - ✔✔Aid to security
Which autonomous businessperson may place business with any number of insurers that they
are contracted with? - ✔✔Independent Broker
Loss prevention activities with the secondary functions of insurance - ✔✔safe driving
regulations, fire protection research, and anti-theft protection
Fire, crime, business interruption, liability, and automobile insurance are examples of what type
of insurance? - ✔✔General insurance
What is the primary function of insurance? - ✔✔A method of sharing the losses of a few
people among the many
What is the purpose of personal articles and personal effects insurance? - ✔✔To cover high
value items that require more coverage than is offered under standard habitational policies.
What types of losses are meant to be paid out of the pool of funds that have been collected? -
✔✔Legitimate losses
What do you call an independent businessperson who may be hired by an insured to help settle
a claim? - ✔✔Public Adjuster
What are the five secondary functions of insurance? - ✔✔Aiding security, aiding credit,
promoting loss prevention, providing capital, and providing employment.
Substituting a certain premium payment in place of an uncertain loss is a description for which
secondary function of insurance? - ✔✔Aid to security
Which autonomous businessperson may place business with any number of insurers that they
are contracted with? - ✔✔Independent Broker
Loss prevention activities with the secondary functions of insurance - ✔✔safe driving
regulations, fire protection research, and anti-theft protection
Fire, crime, business interruption, liability, and automobile insurance are examples of what type
of insurance? - ✔✔General insurance
What is the primary function of insurance? - ✔✔A method of sharing the losses of a few
people among the many
What is the purpose of personal articles and personal effects insurance? - ✔✔To cover high
value items that require more coverage than is offered under standard habitational policies.
What types of losses are meant to be paid out of the pool of funds that have been collected? -
✔✔Legitimate losses
