TDI DISASTER EXAM | 120+ QUESTIONS AND ANSWERS | GRADED A+ |

TDI DISASTER EXAM | 120+ QUESTIONS AND ANSWERS | GRADED A+ | Question 1 If Lowest Cost Insurance Company chooses to accept his application for insurance, the insurer is the risk? • Retaining (Correct Answer) • Reducing • Avoiding • Transferring If Lowest Cost Insurance Company declines his application for insurance, the insurer is the risk? • Retaining • Reducing • Avoiding (Correct Answer) • Transferring Mr. Jones' heart attack is best described as his ? Risk Exposure Peril (Correct Answer) Loss If Lowest Cost Insurance Company rates the policy premium in order to accept the risk, the insurer is the risk? • Retaining • Reducing (Correct Answer) • Avoiding • Transferring Question 2 When Mr. Ames policy is issued, who would be considered his ceding company or companies? • ABC Insurance Corp. • AIG • Allstate Insurance • ProActive Corp. (Correct Answer) All of the following Element of Insurable Risk are required by an insurer in order to issue a policy EXCEPT: • The loss must be uncertain in order for an insurer to accept a proposed risk. • Loss must be certain (Correct Answer) • Economic Hardship • Large number of homogenous units Correct If Mr. Ames (the insured) dies, which insurer will issue the check to his loved ones? ProActive Insurer Corp. (Correct Answer) ABC Insurance Corp. AIG Allstate Insurance There are different forms of Reinsuring Agreements between Insurers. ABC Insurance Corp. routinely handles potential risk and reinsures losses as they are accepted by ProActive Insurer Corp. Which form below best describes the reinsuring agreement in effect with ABC Insurance Corp? • Facultative Treaty (Correct Answer) Normal Ceding Question 3 The allows the insurer to predict their future losses in a particular group of policyholders. • Morbidity Table • Loss Ratio • Experience Rating • Law of Large Numbers (Correct Answer) Which of the following groups of people would be considered the best definition of Adverse Selection'? • A group of farmers. (Correct Answer) • A group of young interns • A group of secretaries • A group of college students Which of the following private insurers are considered 'PAR'? Stock Companies Mutual Companies (Correct Answer) Non-Profit Service Organizations Special Non-Profit Organizations Which of the following private insurers are considered NON-PAR'? • Stock Companies (Correct Answer) • Mutual Companies • Non-Profit Service Organizations • Special Non-Profit Organizations Question 4 The Airman's Lodge would be considered to be which type of an insurer? • Reciprocal Insurer • Risk Retention Group • Fraternal Association (Correct Answer) • Purchasing Group This insurer's price per thousand for life insurance for their members started at pennies per thousand. However, this year there were more losses than expected in their earlier planning years. Therefore this type of insurer is allowed (without permission or endorsement to the original policy) to read just their cost per thousand for life coverage and begin charging their members the new pricing immediately. Which type of private insurer best describes this insurer? • Reciprocal Insurer • Lloyd's of London • Fraternal Association (Correct Answer) • Purchasing Group This type insurer would insure Tom Brady's arm as a quarterback and his way of making a living? Reciprocal Insurer Risk Retention Group (Correct Answer) Fraternal Association Purchasing Group 4. This type insurer would provide for hole in one indemnity at a golfing tournament! Reciprocal Insurer Risk Retention Group (Correct Answer) Fraternal Association Purchasing Group Correct Question 5 Best Valued Insurance Company doing business in Atlanta, Georgia would be considered a/an Insurer. • Domestic • Foreign (Correct Answer) • Admitted • Alien Best Valued Insurance Company doing business in Europe would be considered a/an Insurer. • Domestic • Foreign • Admitted • Alien (Correct Answer) Best Valued Insurance Company doing business in Houston, Texas would be considered a/an Insurer. Domestic (Correct Answer) Foreign Admitted Alien 4. Best Valued Insurance Company doing business in Juarez, Mexico would be considered a/an Insurer. Domestic Foreign Admitted Alien (Correct Answer) Question 6 Joe represents six different insurance companies and is paid based on his earned commissions. He is the best example of a/an . • Independent (Correct Answer) • Captive/Exclusive • General Agent • Direct Writer Julie is a supervisor & manages several agents for ABC Insurance Corp. She cannot represent any other insurance carrier except for the one in which she represents now. She is the best example of a/an . • Independent • Captive/Exclusive • General Agent (Correct Answer) • Direct Writer Okay Insurance Corporation has received the strongest financial rating position. Choose which of the following would be the published rating position for public view? 100 A++ A+ Superior (Correct Answer) AAA Betsy Sue works in the bank offering their customers only credit life insurance on their new loans. She does not receive additional compensation if a customer purchases the insurance. She is the best example of a/an . • Independent • Captive/Exclusive • General Agent • Direct Writer (Correct Answer) Question 7 Mr. Jones choose to purchase travel accidental coverage to protect his loved ones for his flight to New York. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing • Non-Insurance Sponsors • Vending Machine (Correct Answer) Mr. Jones is a member of the Business Men Of Texas Association and purchases Life and Health coverage through the association. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing (Correct Answer) • Non-Insurance Sponsors • Vending Machine ABC Insurance Corp. conducts their advertising on television. Which form of mass marketing do they use? Direct Response (Correct Answer) Franchise Marketing Non-Insurance Sponsors Vending Machine ◻ Ā ◻ Ā ◻ r. Edwards received a flyer from Alliance Insurance Corp. through the mail. Which form of mass marketing do he receive? • Direct Response (Correct Answer) • Franchise Marketing • Non-Insurance Sponsors • Vending Machine Question 8 Joe (the agent) writes his first auto application. The proposed insured is 22 years of age. Which of the following authorities was violated by Joe? • Expressed • Implied • Apparent (Correct Answer) • Obvious Joe has reviewed his contract with the principal and determined the contract does not stipulate the following; How late an agent may knock on a prospects door or how early an agent may telephone prospective clients each weekend day! Which type of authority does Joe have to perform these tasks? • Expressed (Correct Answer) • Implied Apparent Obvious You missed this question. Miss. Ellie Ethics (the instructor) asked the students to determine which statement below does not represent an adjuster's duties & responsibilities? Obvious Expressed Implied (Correct Answer) Apparent Joe (the agent) explains to his next applicant to cancel their existing life insurance coverage because he is certain that his application will be approved although the client did not give any premium with the application. Which of the following authorities was violated by Joe? • Expressed • Implied (Correct Answer) • Apparent Obvious Question 9 Which of the following parties acceptance within the insurance contract? • The Insurer. (Correct Answer) • The Insured. • The Agent. • The Underwriting Department. Which of the following parties make the offer with the contract? The Insurer. The Insured. (Correct Answer) The Agent. The Underwriting Department. Correct Determine which party below would have a fiduciary responsibility within the contract. The insured is to use Utmost Good Faith and Fiduciary action The insurer is to practice Fiduciary acts while re- insuring a loss. The underwriter is required to use fiduciary practices while reviewing the application for insurance. The agent has a fiduciary responsibility to act in the clients best interest at all times. (Correct Answer) What does the insured offer as consideration for the promise of the insurer to pay possible claims? • Their good health • Their premium dollars (Correct Answer) • Their Utmost Good Faith • Their promise not to cancel the policy Question 10 Ms. Jones (the insured) has paid her premium for 46 years without filing a single claim. Which unique characteristic best describes this action? • Personal Contracts • Aleatory Contracts (Correct Answer) • Contract of Adhesion Conditional Correct Ms. Jones (the insured) is dead. Her loved ones file a claim with the Insurance Company in order to receive her life insurance proceeds. However the insurer requires the beneficiary to forward the death certificate before the claim can be paid! Which unique characteristic best describes this action? • Personal Contracts • Aleatory Contracts • Contract of Adhesion • Conditional (Correct Answer) Ms. Jones (the insured) makes three premium payments on her new auto policy then totals her $60,000.00 Lexus LS430. Which unique characteristic best describes this action? Personal Contracts Aleatory Contracts (Correct Answer) Contract of Adhesion Conditional Miss. Ellie Ethics (the instructor) asked the students to review the following example of an adjuster: Barry White is an insurance adjuster who represents the insured on a fee basis and/or for a percentage of the claim settlement that this type of an adjuster is able to negotiate and settle with an insurance carrier regarding a particular claim. Which one of the four types of Adjusters listed below best describes this type of an adjuster? • Personal Contracts • Aleatory Contracts Contract of Adhesion (Correct Answer) Conditional Question 11 Joe is applying for insurance. Every statement made on the application by Joe for insurance is considered to be a . • Warranty • Representation (Correct Answer) • Estoppel • Waiver Lucy Waites, a policyholder, has filed a claim of burglary at her home. However, there are no signs of visible marks of entry or exit at the residence. Furthermore, upon investigating the claim the adjuster finds out that four neighbors saw her and a companion carrying out two televisions, three vcrs and a microwave from her residence a week earlier. The adjuster reviews her proof of loss statement and she has listed both televisions, two of the three vcrs and the microwave as stolen! She has . • Committed Fraud which voids her claim. (Correct Answer) • Misrepresented pertinent facts regarding the inventory originally in her home. • Concealed known information about this claim. • Waived her right to an attorney in reference to this claim. Mike Suny, a proposed insured, does not disclose that he is HIV positive in an attempt to purchase life insurance from several insurance companies. Furthermore, he is hoping to live past the incontestable period in Texas in which the insurer will simply be forced to pay the claim to the named beneficiary without the advantages of investigating the death. His failure to disclose his illness is an example of . Misrepresentation Concealment (Correct Answer) Fraud Waiver Conner Insurance Corp. has accepted Mary Frances's premium late for her health insurance each and every month. Suddenly after 11 months the insurer cancels her policy without notice! However, she can prove by her banking records that the insurance company routinely accepted the premiums for her coverage each and every month on the same date without any problem. The insurance company will most likely be required to reinstate her policy because of . • Warranty • Representation • Estoppel (Correct Answer) Question 12 Joe (the newly insured) purchased an auto liability coverage policy from Amco Insurance Company around 2:30 p.m. Unfortunately, he caused an accident and hit the other car on the driver's side around 11:52 p.m. the same day. When will his policy be in effect? 2:30 pm 11:52 pm 12:00 midnight 12:01 a.m. (Correct Answer) Mr. Holmes is reviewing his recently issued policy. All of the following information would be located on his Declarations page, EXCEPT: • Name of the Insurer • Conditions within the policy (Correct Answer) • VIN number of the vehicle covered. • Policy premiums We, Us and Our in the insurance policy refers to which party? The insurer (Correct Answer) The insured The claimant The finance company where you leased the automobile You and Yours in the insurance policy refers to which party? • The insurer • The insured (Correct Answer) • The claimant • The finance company where you leased the automobile Question 13 John just received his TSFP in the mail! He will find all of the following information on his 'Dec Page', EXCEPT: Name and Address of the Insured His policy number His policy conditions (Correct Answer) His policy term May West has just received her email allowing her to print her policy & applicable documents. She will find all of the following information on her 'Dec Page', EXCEPT: • Name of the Insurer. • Address of the Insurer. • Financial Rating of the Insurer. (Correct Answer) • Policy Number. The TSFP would be used to insure which of the following risk? A single family dwelling's risk. A mobile home community risk A business risk (Correct Answer) A Liability risk Which of the following statements below does not refer to the TSFP? • It is for new building structures (Correct Answer) • It is for buildings in high crime areas • It is a property only policy. • It does not provide for liability coverage. Question 14 Under his TSFP, Jon Smith files a claim which totals $20,000. The insurer will assume liability for the removal of all debris resulting from damage to property covered by the insured peril, up to $ . • $ 2,000 • $ 2,500 • $ 4,000 • $ 5,000 (Correct Answer) Under the TSFP, an insured files a claim which totals $50,000. The insurer will assume liability for the removal of all debris resulting from damage to property covered by the insured peril, up to $ . • $ 5,000 • $10,000 • $12,500 (Correct Answer) • $20,000 Under the TSFP, an insured removes their property from the claim site on January 1st, 2007, the items removed will be covered under the "Removal Clause" until . ◻ Ā ◻ Ā ◻ Ā anuary 6th, 2009 (Correct Answer) ◻ anuary 15th, 2009 Ā ◻ Ā ◻ Ā ◻ anuary 27th, 2009 Ā ◻ Ā ◻ Ā ◻ anuary 31st, 2009