HS 311 Exam Multiple-Choice – Questions With
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Terms in this set (45)
The risk that individuals of higher than Q 1.1
average risk will seek out or purchase
insurance policies is called? d. Adverse Selection
a. Peril.
b. Hazard.
c. Law of Large Numbers.
d. Adverse Selection.
,The principle of indemnity requires Q 1.2
that:
a. A person is entitled to compensation only to the
a. A person is entitled to compensation extent that financial loss has been suffered
only to the extent that financial loss
has been suffered.
b. Insured cannot indemnify himself
from both the insurance company and
a negligent third party for the same
claim.
c. The insured must be subject to
emotional or financial hardship
resulting from the loss.
d. The insured and insurer must both
be forthcoming with all relevant facts
about the insured risk and coverage
provided for that risk.
When must an insurable interest exist Q 1.3
for a life insurance claim?
b. At the policy inception only
a. At the policy inception and time of
loss.
b. At the policy inception only.
c. At the time of the loss.
d. Either at the policy inception or at
the time of the loss.
, Joe walks into his insurance agent's Q 1.4
office and notices his agent's name on
a business card and the insurer's name b. Implied Authority
on letterhead. If an agency agreement
exists, what type of authority does Joe
believe his agent has to enter into an
insurance contract?
a. Express Authority.
b. Implied Authority.
c. Apparent Authority.
d. None of the Above.
Which of the following statements Q 1.5
regarding loss severity is true?
1. Loss severity is the expected number b. 2 only
of losses that will occur within a given
period.
2. Loss severity is the potential size or
damage of a loss.
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.
Accurate Answers
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Match Blocks Charms NEW
Terms in this set (45)
The risk that individuals of higher than Q 1.1
average risk will seek out or purchase
insurance policies is called? d. Adverse Selection
a. Peril.
b. Hazard.
c. Law of Large Numbers.
d. Adverse Selection.
,The principle of indemnity requires Q 1.2
that:
a. A person is entitled to compensation only to the
a. A person is entitled to compensation extent that financial loss has been suffered
only to the extent that financial loss
has been suffered.
b. Insured cannot indemnify himself
from both the insurance company and
a negligent third party for the same
claim.
c. The insured must be subject to
emotional or financial hardship
resulting from the loss.
d. The insured and insurer must both
be forthcoming with all relevant facts
about the insured risk and coverage
provided for that risk.
When must an insurable interest exist Q 1.3
for a life insurance claim?
b. At the policy inception only
a. At the policy inception and time of
loss.
b. At the policy inception only.
c. At the time of the loss.
d. Either at the policy inception or at
the time of the loss.
, Joe walks into his insurance agent's Q 1.4
office and notices his agent's name on
a business card and the insurer's name b. Implied Authority
on letterhead. If an agency agreement
exists, what type of authority does Joe
believe his agent has to enter into an
insurance contract?
a. Express Authority.
b. Implied Authority.
c. Apparent Authority.
d. None of the Above.
Which of the following statements Q 1.5
regarding loss severity is true?
1. Loss severity is the expected number b. 2 only
of losses that will occur within a given
period.
2. Loss severity is the potential size or
damage of a loss.
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.
