RMI 3011 Exam 2 | UPDATED Questions with 100%
Verified Answers
Q1: Each of the following is an example of information found on
the declarations page of a policy EXPECT
Name of the insured
A summary of the insurer's major promises
Amount of the premium
Deductible amount
A: A summary of the insurer's major promises
Q2: Which of the following statements concerning policy
"definitions" is/are true?
A: Both I and II
Q3: I. The aleatory nature of insurance contracts makes it
necessary for insurers to precisely define certain words in a
policy in order to avoid having to pay for losses the insurer
never intended having to pay.
A:
Q4: II. Defined words make it easier to determine if a loss can be
covered by the policy
A:
Q5: Which of the following statements concerning policy
exclusions is true?
(a) Coverage while carrying passengers for a charge is usually
included under a Personal Auto Policy (PAP)
(b) Coverage for use of an automobile is typically included
under a HO policy
(c) Coverage for flood is excluded because of moral hazard
concerns
(d) Particular coverage isn't needed by most insureds
A: (d) A particular coverage isn't needed by most insureds
Q6: Joe owns a brewery that he insurers with a commercial
insurance policy with a $20,000 aggregate deductible. During
a single policy period, He experiences the following covered
losses.
Loss 1: $10,000
Loss 2: $6,000
Loss 3: $7,000
, How much will Joe's insurer pay Joe for Loss 3?
A: $3,000
Q7: Which of the following statements concerning the coinsurance
clause of a property insurance policy is/are true?
A: Both I and II
Q8: I. The coinsurance clause only applies to partial losses, not
total losses
A:
Q9: II. The fundamental purpose of coinsurance is to achieve
rating equity
A:
Q10: When each insurance policy applicable to a loss only pays its
share of the loss based on its proportion of the total available
insurance coverage, it is an example of
(a) Primary and excess insurance
(b) Pro rata liability
(c) contribution by equal shares
(d) all of the above
A: (b) Pro rata liability
Q11: Which of the following statements is/are true?
A: I only
Q12: I. Other-insurance provisions apply to the payment of losses
when more than one policy provides coverage for the same
loss
A:
Q13: II. Other-insurance provisions are an exception to the principle
of indemnity
A:
Q14: _______ impose certain requirements on an insured before they
are able to receive payment for a covered loss.
(a) Declarations
(b) Insuring agreement
(c) Exclusions
Verified Answers
Q1: Each of the following is an example of information found on
the declarations page of a policy EXPECT
Name of the insured
A summary of the insurer's major promises
Amount of the premium
Deductible amount
A: A summary of the insurer's major promises
Q2: Which of the following statements concerning policy
"definitions" is/are true?
A: Both I and II
Q3: I. The aleatory nature of insurance contracts makes it
necessary for insurers to precisely define certain words in a
policy in order to avoid having to pay for losses the insurer
never intended having to pay.
A:
Q4: II. Defined words make it easier to determine if a loss can be
covered by the policy
A:
Q5: Which of the following statements concerning policy
exclusions is true?
(a) Coverage while carrying passengers for a charge is usually
included under a Personal Auto Policy (PAP)
(b) Coverage for use of an automobile is typically included
under a HO policy
(c) Coverage for flood is excluded because of moral hazard
concerns
(d) Particular coverage isn't needed by most insureds
A: (d) A particular coverage isn't needed by most insureds
Q6: Joe owns a brewery that he insurers with a commercial
insurance policy with a $20,000 aggregate deductible. During
a single policy period, He experiences the following covered
losses.
Loss 1: $10,000
Loss 2: $6,000
Loss 3: $7,000
, How much will Joe's insurer pay Joe for Loss 3?
A: $3,000
Q7: Which of the following statements concerning the coinsurance
clause of a property insurance policy is/are true?
A: Both I and II
Q8: I. The coinsurance clause only applies to partial losses, not
total losses
A:
Q9: II. The fundamental purpose of coinsurance is to achieve
rating equity
A:
Q10: When each insurance policy applicable to a loss only pays its
share of the loss based on its proportion of the total available
insurance coverage, it is an example of
(a) Primary and excess insurance
(b) Pro rata liability
(c) contribution by equal shares
(d) all of the above
A: (b) Pro rata liability
Q11: Which of the following statements is/are true?
A: I only
Q12: I. Other-insurance provisions apply to the payment of losses
when more than one policy provides coverage for the same
loss
A:
Q13: II. Other-insurance provisions are an exception to the principle
of indemnity
A:
Q14: _______ impose certain requirements on an insured before they
are able to receive payment for a covered loss.
(a) Declarations
(b) Insuring agreement
(c) Exclusions
